Solar supply firms up for controversial Middle Arm precinct – but not from Sun Cable

Efforts to transform the Northern Territory’s Middle Arm gas hub into the Middle Arm Sustainable Development Precinct continue this week, with a new deal promising the supply of solar power to businesses setting up shop at the precinct.

The deal, announced on Wednesday, commits Larrakia Energy to provide up to 30MW of solar energy from 2026 to support a vanadium electrolyte facility being built at Middle Arm by Tivan Limited.

It builds on a memorandum of understanding (MoU) signed in August by the NT government and Indigenous-owned Larrakia Energy and Korea Midland Power Co, for Larrakia and partners to scope, build and operate 300MW of solar power on land next to the Middle Arm site.

The deal this week with Tivan suggests that the so-called Green Energy Project is progressing in a timely enough fashion that it will be able to deliver at least 30MW of power to the precinct by 2026.

ASX-listed resources company Tivan’s plans for a large-scale vanadium electrolyte facility at Middle Arm aim to establish a renewable-powered supply chain for long-duration energy storage in Northern Australia.

In April, the company signed a tentative solar supply deal for Middle Arm with the massive Sun Cable project that plans to build up to 20GW of solar 800km south of Darwin.

The one-year, non-binding letter of intent committed the two companies to progress commercial and technical discussions on a potential offtake of 200-300 MW of renewable electricity from the AAPowerLink transmission project.

The Northern Territory has had mixed success with the shift to renewables, with a number of completed solar farms  – including the 15MW projects at Batchelor and Manton – left stranded and unable to generate because of strict rules governing dispatch on the local grid.

As RenewEconomy has reported, these rules have effectively meant that the projects need battery storage to get a connection, but the developers and owners have claimed that this was not known at the time of construction.

The NT government said on Wednesday that Larrakia’s joint venture solar farm at Middle Arm demonstrates the Territory’s dedication to providing renewable energy to the precinct.

“We look forward to the positive impact of this collaboration, as it drives economic growth, job opportunities, and sustainable energy solutions,” said the NT’s minister for industry, Nicole Manison.

“This puts Darwin on the map when it comes to the critical minerals and renewable technologies needed for the energy transition.”

Despite its new green-sounding name, Middle Arm currently houses the Santos and Ichthys LNG export terminals. And in June, the NT government awarded a spot in the precinct to Beetaloo Basin gas company Tamboran Resources, which plans to use it to build its own LNG export plant.

Others awarded land at the precinct include Total Eren and Fortescue Future Industries, both of which want to set up green hydrogen manufacturing, and Avenira which wants to make precursor battery cathode materials.