Molycop's steel manufacturing plant at Waratah has flicked the switch to renewable energy as part of a long-term purchase agreement with energy retailer Flow Power.
The contract, which runs until the end of 2030, is underwritten by agreements with the Bomen Solar Farm and the Sapphire Wind Farm in regional NSW.
Under the agreement, Molycop's expected offtake of renewable energy is 100,000 megawatt hours per year, which covers more than half of its electricity consumption in NSW.
This will make Molycop, which operates the Comsteel plant at Waratah, one of Australia's largest purchasers of renewable energy.
The company - which manufactures and supplies steel-based products and services to the mining and rail transport industries - said the agreement marked the start of a new chapter for the business
"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," Molycop's Australasia president Michael Parker said.
"It also enables us to gain greater control over volatile energy costs."
Molycop chose to partner with Flow Power due to its offer of both wind and solar offtakes and access to the Australian Renewable Energy Agency demand response program, as well as its energy sourcing and forecasting expertise.
"By combining renewable offtake and demand response, our unique model will future-proof energy needs while supporting the changing energy system," Flow Power managing director Matthew van der Linden said.
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The 170MW Sapphire wind farm, located near Glen Innes in northern NSW, is also contracted to the ACT government.
The wind farm is owned by Grassroots Renewable Energy, a partnership between CWP Renewables and Partners Group.
The 100 megawatt hour Bomen solar farm - located near Wagga Wagga was developed by Renew Estate and recently bought by Spark Infrastructure.
It has contracted a large part of its capacity to Westpac, as part of the bank's commitment to 100 per cent renewables.
Both projects were also recently contracted via Flow Power to supply 16 gigawatt hours a year of renewable energy for the Sydney Opera House to help cut its electricity bill.
Correct Planning and Consultation for Mayfield spokesman John L Hayes said Molycop should be congratulated.
"We can only hope that other large companies in the Hunter follow their example," he said.
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