Andrew Forrest’s Squadron locks in $1 billion in finance for part two of huge Queensland wind farm

Squadron Energy, owned by iron ore magnate and green energy champion Andrew Forrest, says it has set a “new market benchmark” for wind farm finance, after locking in $A1 billion in financial backing for part two of its more than 1 gigawatt Clarke Creek project in Queensland.

The Clarke Creek Wind Farm is a two-stage project being developed by Squadron roughly half-way between Rockhampton and Mackay on the traditional land of the Barada Kabalbara Yetimarala (BKY) people.

The 100-turbine, 450 megawatt (MW) stage one of the project recently powered up and is producing enough electricity to power the equivalent of 330,000 Queensland homes. Stage two will add another 88 turbines with an expected capacity of 704 MW.

Squadron said on Monday that the $1 billion financing deal for the second stage of Clarke Creek was arranged with a bank group of 10 capital partners, alongside “strong support” from Squadron’s existing banking partners. 

The deal – hailed by Squadron as a major milestone for Clarke Creek – is a good sign for the broader market, too, following an extended wind investment drought in Australia, as lenders and investors turned their focus to batteries and solar battery hybrids.

The financing drought for new wind projects is expected to be broken soon, possibly for Tilt Renewables’ Palmer wind project, or Aula Energy’s Carmody Hill project, both in South Australia.

“This transaction was a true team effort,” says Squadron’s head of capital markets and investments, David Sidoti.

“It reflects the collaboration and expertise across our business to deliver one of the most significant wind financings in the market.”

With stage two, Clarke Creek stands to be one of Australia’s biggest wind farms – beaten only by the 1.33 GW Golden Plains wind farm in Victoria (counting just those currently under construction) – with Squadron committing to invest around $20 million in community benefits over the life of the project. 

The huge project in July was the scene of a fatal incident, in which a 27 year-old contractor was killed while operating a telehandler, a heavy vehicle that combines features of a forklift and a crane. 

More recently the wind farm has been connected to the discovery of white asbestos in components of some wind turbines manufactured by Goldwind, which is the supplier for Clarke Creek.

In a statement issued last week, Squadron said that “following proactive testing, Goldwind is remediating asbestos detected in a number of brake pads in the internal service lifts in turbines at Clarke Creek Wind Farm. 

“This is an industry-wide issue stemming from a component that would fit in the palm of your hand,” the statement said.

“There has been no detection of airborne asbestos and work is underway to resolve the issue. 

“There is no risk to the community, and the health and safety of staff and community members remains our number one priority.” 

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