Listed renewable energy developer Tilt Renewable says it has landed a long term contract with major mining company Newcrest that will underpin the development of what will be the biggest wind project in NSW – the 400MW Rye Park project north of Yass near the Southern Highlands.
Tilt and Newcrest has signed up for a 15-year supply deal for its Cadia gold mine in western NSW, that will account for around 55 per cent of the output of Rye Park and will include electricity and green products. The pricing has not been revealed.
Newcrest says the deal is important to support the long term future of the Cadia mine, saying the deal guarantees its energy supply costs will remain competitive and will deliver a significant reduction in emissions.
Tilt says the deal means that it can now move forward with the construction of Rye Park, where it expects to start construction late next year and deliver power in late 2023.
However, the project depends on the ability to obtain a variation to its development approval that will allow it to use bigger turbines. Machines of up to 6MW are being contemplated, but the application has attracted opposition from many locals.
It is the second major off take agreement with a corporate customer for Tilt, which signed up retailer Audi for its 336MW Dundonnell wind farm in Victoria (pictured above) which also has an underwriting agreement with the Victorian government.
The Dundonnell wind farm continues to move forward with the commissioning of Dundonnell, now at a 226MW hold point as it works to satisfy the demands of the Australian Energy Market Operator and install new equipment such as capacitor banks. It hopes to reach full capacity in the new year, which would be about six months behind original expectations.
“The long‐term off-take agreement with Newcrest, our second corporate off-take, will underpin the investment decision for our largest wind farm to date, allowing Tilt Renewables to grow its footprint of high‐quality renewable energy assets, supporting the low carbon ambitions of corporate Australia,” Tilt CEO Deion Campbell said in a statement.
It is thought that Newcrest is looking to secure another offtake agreement for Cadia, which is located near Orange in the central west and is one of the biggest gold and copper mines in the state.
“This new contract secures renewable energy for our Cadia operations, reduces carbon emissions and helps us maintain competitive energy costs,” Newcrest managing director and CEO Sandeep Biswas said in a statement,
“This is a critical step in our transition to sustainable energy use at our operations. As part of our Climate Change Policy released last June, we have committed to a significant reduction in emissions intensity, and this agreement is a major step towards delivering on that objective.”
“We continue to explore ways to reduce Cadia’s emissions intensity and our long term aim is to virtually eliminate Cadia’s energy-related greenhouse gas emissions. In addition, we continue to pursue emissions intensity reduction initiatives at our other operating sites.”
Tilt has one of the biggest development pipelines in the market with more than 4,500MW of wind, solar and storage opportunities across New Zealand and Australia, some 3,000MW of which are considered mid‐late stage projects.
This includes approximately 500MW of solar and 400MW of storage and firming options.