Jan 28, 2021

NT deal paves way for $22b energy development

NT deal paves way for $22b  energy development

The Northern Territory Government and Sun Cable have signed a milestone agreement to advance development of the $22 billion Australia-ASEAN Power Link project.

Today’s signing of the Project Development Agreement provides a roadmap for the NT Government and Sun Cable to work in partnership to finalise land tenure and commercial arrangements ahead of the project’s financial close.

The AAPL is proposed to combine the world’s largest solar farm and battery storage facility in the Northern Territory with a 4500km transmission system, to supply Darwin, Singapore and ASEAN markets with renewable electricity.

The project would see up to $8 billion invested into the NT, which would host the solar farm in the Barkly region.  

“Today’s announcement is a big step forward for the Territory – for our energy security and our job security,” Chief Minister Michael Gunner said.

“This project will put the NT on the international map when it comes to renewables.

“It will also see hundreds of Territorians find work in the Barkly and Darwin regions during the construction and operational phases.

“Territorians are already seeing the benefits of this investment, with Sun Cable hiring more than a dozen Darwin firms for initial works.”

The Barkly region has been chosen as the location for a solar farm and battery storage facility for the project, which is expected to create 1500 jobs during construction and 350 ongoing positions once operations begin.

Sun Cable aims to begin construction immediately after financial close in October 2023.

By 2027, the AAPL is expected to have the capacity to provide a significant amount of renewable energy for the Territory, as well as up to 20 per cent of Singapore’s electricity supply.

Late last year Aeon Metals signed a Letter of Intent (LOI) with Sun Cable to provide an energy solution for its planned Walford Creek copper-cobalt project in North-West Queensland.