Windlab eyes new growth, markets with $8m CEFC loan

Australian renewable energy developer Windlab is to receive $8 million from the Clean Energy Finance Corporation, a funding boost the company says will help it “invest more aggressively” as the Australian clean energy market regains momentum.

The Canberra-based company, formed in 2003 as a spin-off from the CSIRO, has developed more than 550MW of wind energy capacity and currently has more than 50 projects in various stages of the development pipeline.

Its most recently completed project, the Coonooer Bridge wind farm, is now operating at full capacity, and producing what is assumed to be Australia’s cheapest wind energy, as the first project from the ACT government’s hugely successful wind auction to generate power.

Windlab CEO Roger Price said the $8 million from the CEFC would be used as general ongoing working capital to continue to support the growth of the business.

“Windlab has done pretty well over the last few years, despite difficult market conditions,” Price told RenewEconomy in an interview on Monday.

“(This money) will help strengthen the balance sheet and help us to invest more aggressively now that the market is starting to look more favourable,” he said.

And while Price said there was still a fairly long lead time for establishing power purchase agreements in the Australian renewables market, he added that there were a lot of signs it was heading in the right direction.

For the CEFC, Windlab – a company originally established to commercialise CSIRO’s world leading atmospheric modelling and wind energy assessment technology – showcases how its finance mechanism can be used to drive Australian innovation.

“Windlab is a great example of an Australian company that is successfully commercialising Australian innovation, both locally and in export markets,” CEO Oliver Yates said in s statement.

“This CEFC finance will help Windlab continue its expansion from project development to investment and asset management, an important part of its growth plans. As a result of the CEFC’s $8 million commitment, Windlab will have additional access to working capital as it seeks to expand its business.”

Part of this expansion includes the development of solar and wind hybrid projects using state of the art utility-scale battery storage.

In November last year Price announced plans to build the world’s biggest wind-solar hybrid plant  – a 600MW wind farm alongside a 600MW solar PV farm – near Hughenden, around 300kms inland from Townsville.

Price says Windlab is continuing to “work hard” on realising that project. “Things are making good progress and we’re quite hopeful of getting that project up and going at the end of this year,” he told RE on Monday.