Sod turned at first Hunter REZ project – a solar farm and battery at site of former coal mine

The first sod has been turned at the first major solar and battery project to connect to the Hunter-Central Coast Renewable Energy Zone, the REZ that will help deliver the clean energy transition for a region known as the coal centre of New South Wales.

Global renewables developer OX2 announced the start of construction at the Muswellbrook Solar Farm and Battery project on Friday, checking off a major milestone for the Sweden-based company’s first owner-operator project in Australia.

The 135 megawatt (MW) solar and 100 MW, 200 megawatt-hour battery energy storage system (BESS) is being built adjacent to the Muswellbrook coal mine, which ceased operations in 2022, on land owned by mine operator and project co-developer Idemitsu Australia.

The solar and battery project was one of nine around Australia to be signed up to power purchase agreements with web giant Amazon, in April, as part of a 430 megawatt (MW), $A2.8 billion buy-up.

“Today’s sod turning marks the beginning of construction on a project that demonstrates how Australia’s energy transformation can deliver lasting benefits for regional communities,” OX2 Australia vice president Stephen Symons said onn Friday.

“By repurposing a former coal mine site into a renewables hub, we’re investing in infrastructure that will provide reliable energy, create local jobs, strengthen regional supply chains and support the Hunter’s future prosperity.”

Joining OX2 Australia executives at the ceremonial sod turning was NSW minister for finance, Courtney Houssos, and EnergyCo chief executive Hannah McCaughey, to mark the milestone for the Hunter-Central Coast REZ.

The Hunter-Central Coast REZ, an oblong that stretches diagonally from the coast of Newcastle up to Muswellbrook, is expected to attract up to $3.9 billion in private investment and support roughly 590 direct jobs a year during construction, and 220 ongoing operational jobs from 2030.

EnergyCo has commissioned Ausgrid to deliver the necessary upgrades to its distribution network to unlock 1 gigawatt (GW) of new hosting capacity in the region by 2028, construction of which kicked off in March.

EnergyCo said on Friday that, with the first stage of the REZ network build complete, projects like OX2’s Muswellbrook solar and battery can immediately connect to the grid once construction is completed.

“It’s pleasing to see that the additional network capacity we are building in the Hunter-Central Coast REZ is already unlocking new renewable energy and storage projects, delivering economic benefits to the Hunter region,” McCaughey said in a statement on Friday.

For OX2, the Muswellbrook Solar Farm and Battery is its first owner-operated project since entering the Australian market in 2022. In operation, OX2 has seven solar farms – Childers, Moura, Ross River and Susan River in Queensland; Wyalong and Finley in NSW and Glenrowan in Victoria.

In the development pipeline OX2 has 11 wind, solar and or battery projects, with four of those under construction, including the Mulwala solar farm in NSW and the Horsham Renewable Energy Park in Victoria, which has been acquired by the publicly owned SEC.

Among the projects listed as “in development” in Australia is the Corop Solar Farm & Battery, a 230 MW solar farm and a 290 MW battery being northwest of Rushworth, in Victoria, which OX2 recently acquired from BNRG Renewables and Leeson Power Holdings.

Global law firm DLA Piper said in an email on Friday that it advised OX2 on all aspects of the acquisition of the hybrid solar and BESS project, which is described as a “late-stage development.”

The Muswellbrook solar and BESS project, which is being built around 2.5 km east of the town of the same name, will generate enough electricity to power more than 52,000 homes and create up to 200 jobs during construction.

OX2’s Voluntary Planning Agreement with Muswellbrook Shire Council will see the company contribute around $115,000 a year to a Community Benefit
Sharing Program that will support local initiatives throughout the life of the project.

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