Molycop, incorporating Comsteel, has announced the signing of a long-term Power Purchase Agreement (PPA) with energy retailer Flow Power.
The agreement runs until the end of 2030 and is backed by offtake agreements with the Bomen Solar Farm and the Sapphire Wind Farm, both located in regional NSW.
The Bomen Solar Farm is under construction and is expected to be fully operational by mid-2020, while the Sapphire Wind Farm has been in full operation since November 2018.
Under the PPA, Molycop’s expected offtake of renewable energy is 100,000MWh per year, which covers more than half of its electricity consumption in NSW. This will make Molycop one of the largest purchasers of renewable energy in Australia.
In Australia, Molycop manufactures and supplies products and services to the mining and rail transport industries.
“This agreement is an important milestone for Molycop. It not only provides strong support to Australia’s pipeline of renewable energy infrastructure projects that will also benefit the wider community, but also enables us to gain greater control over volatile energy costs,” said Molycop Australasia president Michael Parker.
Molycop chose to partner with Flow Power due to its offer of both wind and solar offtakes and access to the ARENA Demand Response program, as well as its energy sourcing and forecasting expertise.
“By combining renewable offtake and demand response, our unique model will future-proof energy needs while supporting the changing energy system,” said Flow Power managing director Matthew van der Linden.