Origin Energy shares up after wind farm buy
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More news: Origin Energy shares were up 1.52% to $9.68 by 1:39pm AEDT following its announcement that it would purchase one of the largest wind farms in NSW.
The purchase of the Yanco Delta project in the Riverina is part of Origin’s strategy to boost its renewable energy portfolio.
Origin Energy to buy one of the largest wind farms in NSW
The news: Origin Energy has agreed to buy one of the largest wind farms under development in New South Wales as it looks to boost its renewable energy portfolio.
The numbers: Australia’s top energy retailer and gas producer will buy the Yanco Delta project in the Riverina, consisting of a 1.5 Gigawatt wind farm and a 800 megawatts hour (MWh) battery from Belgian group Virya Energy.
It will make an upfront payment of $125 million to Virya and an additional variable payment of up to $175 million conditional on the project achieving certain development milestones.
The context: Origin said the wind farm development, located on a 33,000 hectare site, is a quality wind resource that provides benefits of scale. The project has received approval from both the NSW Government and the Environmental Protection and Biodiversity Conservation (EPBC) authority.
The project is in the NSW government-designated South West Renewable Energy Zone (REZ), and strategically located next to key transmission infrastructure.
The latest deal follows Origin’s acquisition of renewable energy developer Walcha Energy, which delivered to it the proposed Ruby Hills Wind Farm and Salisbury Solar Farm projects in NSW totalling 1,300 MW. It has previously also purchased the 500 MW Warrane wind farm project in Northern Tablelands Wind Farm in the state.
The source: ASX announcement
