Australia-based independent power producer (IPP) and energy product provider ReNu Energy Ltd has announced that it has signed two power purchase agreements (PPA's) with A.J. Bush & Sons (Manufactures) Pty Ltd (AJ Bush), a long-standing customer of ReNu Energy. The deal entails a term sheet for a new solar PV PPA and an extension of the existing bioenergy PPA located at AJ Bush’s rendering facility near Beaudesert, Queensland.
According to a statement, the solar PV PPA term sheet provides exclusivity for the development of an 850 kW DC solar PV project at AJ Bush’s facility near Beaudesert, Queensland and provides ReNu Energy with exclusivity until 31 March 31, 2018, to execute a PPA with a 25-year term. The second agreement entails a ten-year extension to the existing Bioenergy PPA for the 1.1 MWe operational biopower project. The capital cost of the Solar Project is approximately AU$1.5 million.
With an estimated capital cost of around AU$1.5 million, the solar PV equipment will be ground mounted on AJ Bush’s land adjacent to the rendering facility and is estimated to provide approximately 1.3 GWh of power annually. This will be used exclusively behind the meter by AJ Bush and will generate approximately 1 330 Large-Scale Generation Certificates (LGCs) annually which are to ReNu Energy’s account. Execution of the PPA is subject to customary conditions including due diligence, relevant approvals and finance.
On completion of the Solar Project, ReNu Energy can supply up to half of the rendering facility’s energy demand, providing significant electricity cost savings and decreasing the site’s emissions by approximately 3 700 tonnes of carbon dioxide equivalents (CO2e) per annum.
The AJ Bush Bioenergy Project was built and commissioned in 2011 and was acquired by ReNu Energy in 2015. ReNu Energy owns, operates and maintains the project and completed an upgrade of the generation equipment in early 2017 which included the replacement of one generator and installation of gas conditioning equipment. The installed nameplate capacity of the project is 1.1 MWe.
The Bioenergy Project receives the biogas from the anaerobic digestion (AD) ponds at the AJ Bush rendering plant produce sufficient biogas for in excess of 3.36 GWh per annum of electricity which is utilised behind the meter at the facility. The project also produces approximately 3 360 Large-scale Generation Certificates (LGC) per annum. The extension, which is on the same terms as the existing PPA, extends the term of the agreement for a further 10 years to January 2031.
It is a pleasure to be extending our relationship with AJ Bush, a leader in the utilisation of renewable energy and a long-term customer. We are also delighted at the opportunity to develop the Solar Project at AJ Bush’s facility. The combination of solar PV and bioenergy is a great solution for the facility and its load requirements. These agreements build on an already great start to 2018 for ReNu Energy, having recently announced the commencement of commercial operations at the Goulburn Bioenergy Project and the settlement of the Amaroo Solar PV Project acquisition. Securing the revenue stream from the Bioenergy PPA for a further 10 years and adding to our pipeline of solar PV projects under term sheet has increased our portfolio of renewable energy projects to 14.9 MW DC, which includes 3.3 MW of operational assets. With a further strong pipeline of opportunities under review, we look forward to increasing our portfolio significantly this year, said Chris Murray, CEO, ReNu Energy.
