“Strong endorsement:” Australia’s biggest solar-battery hybrid project locks in finance

The first stage of what promises to be the biggest solar-battery hybrid energy generator on Australia’s main grid will move to construction in the northern rivers region of New South Wales after locking in more than $1 billion in funding for the huge project.

South Korea-based outfit Ark Energy said on Friday that it has secured a financial investment decision (FID) for its $A1.3 billion Richmond Valley Solar Farm and Battery Energy Storage System (BESS), which has all state and federal approvals for construction around 25 km south of Casino.

Richmond Valley’s first stage will combine a 200 megawatt AC solar farm and a long-duration Lithium-iron phosphate (LFP) BESS with a power capacity of up to 275 MW and storage capacity of 2,200 MWh.

Ark says a resolution seeking the FID was approved at an Extraordinary Board Meeting for parent company Korea Zinc in Seoul on 21 July, positioning Ark Energy to get a financing package comprised of $A586 million in equity funding and $A716 million in debt financing.

Richmond Valley is the first build-to-own project in Ark Energy’s development portfolio to secure FID. It has also won backing from the New South Wales government through a Long-Term Energy Service Agreement (LTESA).

The milestone for Ark Energy is part of a flurry of FID and financial close announcements over the past seven days, starting last Friday with stage one of Frontier Energy’s Waroona Renewable Energy Project, with 132 MW of solar and 81.5 MW, 6.9-hour, or 565 MWh BESS.

Earlier this week, Neoen Australia’s 179 MW Narrogin wind farm in Western Australia’s Wheatbelt region announced that it will move to construction after locking in an offtake deal with the state-owned utility, Synergy.

Spanish energy giant Naturgy announced on Tuesday that it has reached a financial investment decision on its $500 million Fraser Coast project, combining 290 MW of solar and a 180 MW, two-hour battery, about 50km south-west of Maryborough in Queensland. 

And European Energy announced on Monday that it has locked in finance from Deutsche Bank to add a battery to its operational 58 MW Mokoan solar farm in Victoria.

Ark Energy CEO Michael Choi says Korea Zinc’s funding decision on Richmond Valley was a “strong endorsement” of the project’s strategic importance to the business and of its strong economic fundamentals.

“We are thrilled to have reached this major milestone and look forward to moving the project into the next phase of financial close and construction,” Choi said in a statement.

“It is the result of focused dedication and hard work by Ark Energy’s team, and reflects the project’s strong economic fundamentals and Korea Zinc’s commitment to Ark Energy’s ambitions,” the company added on LinkedIn.

Ark Energy says it has already locked in a supply agreement with Hanwha Energy and in September of last year signed an Early Contractor Involvement (ECI) agreement with Elecnor Australia for the balance of plant.

The company says the project is expected to support more than 850 direct and indirect jobs during peak construction and generate approximately $180 million in expenditure in the local area, as well as a community benefit fund of $850 per installed MW of solar generation for the life of the project.

Environmental commitments include the establishment of a new 30 metre-wide biodiversity corridor and planting of native species to improve connectivity between the nearby Ellangowan and Bungawalbin State Forests.

Financial close is targeted for September 2026 and construction is expected to commence in October 2026, with operation targeted for January 2029, Ark Energy says.

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