The Clean Energy Finance Corporation (CEFC) will back clean energy producer Neoen’s 100MW/200MW Capital Battery project with operations to begin from 2023.
The lithium-ion battery storage facility is located next to the Queanbeyan substation near Canberra, in the Australian Capital Territory (ACT), and is being delivered in collaboration with technology provider Doosan.
The battery will be financed by a combination of equity provided by Neoen and senior debt facilities provided by the CEFC and Infradebt, a specialist infrastructure fund manager.
Neoen Australia’s Managing Director, Louis de Sambucy, said the company was excited to announce the financial close of the Capital Battery project.
“We are excited to announce that the Capital Battery has reached this important financial milestone,” Mr de Sambucy said.
“I would like to thank the CEFC and Infradebt for their trust and their commitment to supporting battery storage solutions.
“In particular, we extend our gratitude to the CEFC for this third investment in a Neoen big battery.
“With the dedication and commitment of our partners at Doosan, we are on track to deliver this project in the first half of 2023 and looking forward to contributing to the region’s energy transition.”
Construction for the Capital Battery project commenced in December 2021, now that financing is secured Neoen expects the battery to begin operating from early 2023.
Neoen committed to building the Capital Battery as part of its winning bid in the ACT’s 2020 renewable energy auction, where it won a 100MW power purchase agreement for Goyder South Stage 1 Wind Farm in South Australia.
In line with its develop-to-own business model, the company will be the long-term owner and operator of the battery. Once it is operational, Neoen will launch a Community Co-investment Scheme, providing residents of the ACT and Capital region with an opportunity to become financial stakeholders in the project.
CEFC Managing Director, Ian Learmouth, said investment in net-zero enabling technologies was critical to meeting emissions targets.
“As Australia raises its ambitions to reach net zero with a new emission reduction target of 43 per cewnt by 2030, we need to heighten our focus on developing the enabling technologies that will be critical to our success,” Mr Learmouth said.
“Battery storage is key to our ability to decarbonise the energy sector. The Capital Battery adds to our previous work with Neoen on the Victorian Big Battery and Hornsdale Power Reserve in demonstrating the economic and grid security case for large-scale batteries.”