The Cultana Solar Project, to be constructed in South Australia’s Upper Spencer Gulf, will consist of 780,000 solar panels capable of generating 600 GWh of energy generation per year - enough power for 96,000 homes - while also offsetting 492,000 tonnes of carbon dioxide every year, according to the announcement reported initally by South Australia's news service, The Lead.
Construction of the project is expected to begin in early 2019, strengthening Gupta’s position in South Australia. Gupta's interest in the state began last year when the British billionaire’s company Liberty House purchased the struggling Whyalla Steelworks from Arrium. GFG Alliance then purchased a 50.1 per cent stake in South Australian renewable energy company ZEN Energy to form SIMEC ZEN Energy before launching its 1 GW bid in October 2017.
"Today’s event is symbolic of our desire to develop and invest in new‐generation energy assets that will bring down Australia’s electricity prices to competitive levels again, as well as our commitment to local and regional Australia" Gupta said. "In particular, this signals the beginning of our journey with a number of stakeholders to not only transform GFG’s operations in Whyalla, but also further enhance the appeal of this great city."
Gupta’s other projects in the Upper Spencer Gulf region, about 300 km north of the South Australian capital Adelaide, are yet to be detailed but include: cogeneration at GFG’s Whyalla Primary Steel plant using waste gas; the world’s largest lithium‐ion battery; and pumped hydro projects at GFG’s Middleback Ranges mining operations.
Gupta added that the Cultana project – together with SIMEC ZEN’s second solar project to be built nearby – would combine to become one of Australia’s largest solar farms, with even larger projects to follow in other states. These projects will not only improve reliability and greatly reduce the cost of electricity in Gupta's own operations, but will also provide competitive sources of power for other industrial and commercial users, while at the same time playing a key role in the market’s transition towards renewables.
"We have a strong conviction that traditional carbon‐intensive generation sources do not have a long‐term future as the predominant source of power in Australia and globally" Gupta said. "We believe the world is undergoing a momentous transition to renewable power as the cost of renewables drops dramatically and quickly".
Development approval for the SIMEC ZEN Energy solar project is expected towards the end of the year, allowing construction to commence in the first quarter of 2019. The company has commenced preliminary consultation discussions with the local community regarding the project, and will continue to engage closely with key stakeholders as it progresses through the remaining approval processes.
Whyalla Mayor Lyn Breuer said her local council was keen to partner with GFG in the rejuvenation of Whyalla over the coming decades, including leasing a portion of the land for the Cultana project.
"We’ve already seen Sanjeev invest tens of millions improving efficiencies and reducing input costs for his Whyalla operations, this now marks the beginning of his long‐term investment programme" Mayor Breuer said. "Most importantly for Whyalla, this project signals to the nation that Whyalla is open for development, helping attract industries to our great city and further diversify and strengthen our economy."
The announcement is the latest in a string of renewable energy projects underway in South Australia. Last year, Tesla partnered with French renewable energy company Neoen to build the world’s largest lithium-ion battery (100MW/129MWh) at Neoen’s Hornsdale Wind Farm in the state’s Mid-North.
South Australia currently leads the nation in the uptake of wind energy and rooftop solar with renewable sources accounting for more than 40 per cent of the electricity generated in the state.
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