Alinta Energy Enterprise Agreement
Spokesmen for Alinta Energy and Procurement Australia said they were enthusiastic and proud of the deal. Ros O`Mally, partner of Hogan Lovells, said: “It was a pleasure to support Alinta Energy during these complex negotiations with the federal government. The skills required to carry out this milestone have been the strengths of our team and contribute to the company`s already enviable success in the significant infrastructure and renewable energy activities in Australia. These PPAs are based on the National GreenPower Accreditation Program, which assures electricity consumers that their voluntary commitments are associated with renewable energy that is included in the grid on their behalf. In accordance with the agreements, the Bald Hills wind farm in Gippsland, an accredited GreenPower generator, will provide important production certificates to meet the specific renewable energy requirements of each signatory. Up to 100% of the stationary day energy requirements in Fortescue Metals Group`s (FMG) Iron Ore Company Chichester Hub are powered by renewable energy after the construction of a 60 MW (PV) photovoltaic production facility on the Chichester Hub, which includes the Christmas Creek iron ore and FMG Cloudbreak. In addition, a 60-kilometre transmission line linking mining to Alinta Energy`s Newman gas-fired power plant and a 35 MW battery facility are expected to be completed in 2021. “One of the benefits of these 10-year-old PPAs is the security it will provide to these organizations and their constituents, which is important given the volatility we have seen in energy markets over the past decade,” he said. The Pilbara region should strengthen the security of energy supply, with regional communities and pastoralist stations benefiting from a reliable local energy source. The Australian Infrastructure, Energy, Resources and Projects team at Hogan Lovells led the legal due diligence and project financing for this pioneering project, funded in part by the federal government, with AUD 90 million received by the Northern Australia Infrastructure Facility (NAIF) and AUD 24.2 million from the Australian Renewable Energy Agency (ARENA), as well as subordinated debt and equity from Alinta Energy.