Construction to start on solar and battery project at site of former coal mine

Construction will begin “immediately” on a solar farm and battery proposed for the site of a former coal mine in the New South Wales Hunter region, after the project reached financial close.

Swedish developer OX2 announced the major milestone for the Muswellbrook Solar Farm and Battery project on Monday, kicking off its first owner-operator project in Australia.

The 135 megawatt (MW) solar farm and 100 MW up to two-hour battery energy storage system was one of nine Australian renewables projects to be signed up to power purchase agreements with web giant Amazon last month, as part of a 430 megawatt (MW), $A2.8 billion buy-up.

Amazon has contracted 94.5 MW of PV and 70 MW of battery capacity from OX2’s Muswellbrook project, which is being built adjacent to the coal mine of the same name, which ceased operations in 2022, on land owned by mine operator and project co-developer Idemitsu Australia.

In a statement, the two companies said Idemitsu remains a long-term landholder of the site, as it starts its transition from the oldest open cut mine in the Hunter Valley to a renewable energy precinct that may also include green hydrogen.

“I’m proud of the work that has brought this project to life and of our contribution to strengthening the energy supply in New South Wales,” OX2 CEO Matthias Taft said on LinkedIn on Monday.

“The investment highlights our long-term commitment to Australia and supports our growth as an independent power producer.”

The project secured state development approval roughly one year ago from the NSW Independent Planning Commission, having been referred for fresh assessment after attracting more than 50 public objections.

A submissions report showed that the majority of objections had not come from locals, with 60 per cent coming from more than 100 km away from the proposed solar farm, including half a dozen from Queensland.

The Commission Panel concluded that the site of the former coal mine was suitable for the solar and battery project, which it deemed to be in the public interest and in line with NSW renewable energy and emissions targets.

But the IPC also imposed specific conditions, including a road safety audit, a waste management plan, a biodiversity management plan, and an accommodation and employment strategy, along with a comprehensive decommissioning and rehabilitation plan.

OX2 says it is committed to “genuine community engagement” and to creating long term tangible benefits for locals, through jobs, economic development, skills and training.

The project will contribute around $115,000 a year to a Community Benefit Sharing Program, as outlined in a Voluntary Planning Agreement (VPA) with Muswellbrook Shire Council.

“OX2 is extremely proud to reach financial close on the Muswellbrook project and deliver a project that illustrates Australia’s renewable energy opportunity,” OX2 Australia vice president Stephen Symons said.

“We are delivering on our long-term commitment to Australia’s energy future and real benefits for regional communities.”

Construction will begin immediately, the companies say, led by an EPC joint venture between Bouygues Construction Australia and Equans Solar and Storage Australia (BYESSA).

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