Landmark sustainable power purchase agreement signed
PPA Agreement makes Molycop one of the largest purchasers of renewable energy in Australia
Molycop, incorporating Comsteel, has announced the signing of a long-term Power Purchase Agreement (PPA) with energy retailer, Flow Power.
This agreement runs until 31 December 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 currently under construction and is expected to be fully operational in the 2nd quarter 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 100,000 MWh 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.
Michael Parker, President Molycop Australasia, said “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.”
By entering this long-term agreement Molycop is supporting the transition to renewable energy which will also substantially reduce the carbon emissions associated with the generation of electricity.
“From a sustainability standpoint, Molycop is not only supporting two important renewable energy projects, but we are further enhancing our credentials as a responsible and sustainable organisation. We already utilise 95% recycled feed for our steelmaking process, material that would otherwise be exported, and we are offering customers an expanding range of recycling services” said Mr Parker.
Molycop chose to partner with Flow Power due to their offer of both wind and solar offtakes and access to the ARENA Demand Response program, as well as their energy sourcing and forecasting expertise.
Matthew van der Linden, Managing Director Flow Power, said “Flow Power is proud to be working with Molycop. By combining renewable offtake and demand response, our unique model will future-proof energy needs while supporting the changing energy system”.
To read more about Molycop, go to their website here.