CS Energy takes 50% stake in its first wind farm, in big step away from coal

Queensland state-owned coal utility CS Energy has made its first major investment in large-scale wind, in a deal to take a 50 per cent equity stake in the 228MW Boulder Creek wind farm – and to buy all of its energy output.

The deal with the developers of the 60-turbine project, Macquarie’s Green Investment Group, was announced on Wednesday by Queensland premier Annastacia Palaszczuk, during her State of the State address in Brisbane.

“Since launching our Energy and Jobs plan, connection inquiries have more than doubled from 10 gigawatts to 25 gigawatts,” Palaszczuk said.

“Companies want what Queensland has to offer. And this is just the beginning.

“Today I can also announce that CS Energy will own 50 per cent of the Boulder Creek wind farm in Central Queensland.”

Boulder Creek, previously owned by Epuron and then Ark Energy, is now being developed by Macquarie’s GIG around 40km southwest of Rockhampton, 5km west of Mount Morgan, and around 100km north of CS Energy’s Callide coal plant.

CS Energy’s 50 per cent stake in the project – the price tag for which remains commercial in confidence – marks the coal company’s first direct investment in wind power, after it was allocated $312 million in the 2023-24 state budget “to invest in Central Queensland wind farms and large-scale batteries.”

That money is part of Queensland Labor’s $62 billion energy plan to get the state to 80% renewables and end its reliance on coal-fire power generation by 2035.

CS Energy said on Thursday that it was also considering options for other wind projects following its successful application for state government funding to develop 700MW of wind projects in Central Queensland.

In comments on the sidelines of the premier’s speech, state energy minister Mick de Brenni said the deal was part of the broader transition of all the government-owned generators away from fossil fuels and into renewables.

“This is a quality project which has received all of its appropriate approvals and we expect first power in 2025,” de Brenni said in a recording shared with RenewEconomy.

CS Energy, which also owns the Kogan Creek coal fired plant, has signed numerous renewable energy offtake deals over the past several years.

These include for all of the output of the 162MW Columboola Solar Farm in the Western Downs regoin, surplus energy from the 64MW Warwick solar farm, owned by the University of Queensland, and a portion of generation from the Kennedy Energy Park.