Clean energy developer OX2 will begin construction on the Muswellbrook Solar Farm and Battery, after reaching financial close on the $302 million project.
On the former Muswellbrook Coal site, the 135 megawatt solar farm and 100 megawatt battery energy storage system (BESS) will power up to 52,310 homes and create up to 200 jobs during construction.
The project, which will be operational 2028, is part of the Hunter Central Coast Renewable Energy Zone (REZ).
OX2 will contribute about $115,000 every year to a Community Benefit Sharing Program, as outlined in a voluntary planning agreement with Muswellbrook Shire Council.
"OX2 is extremely proud to reach financial close on the Muswellbrook project and deliver a project that illustrates Australia's renewable energy opportunity," OX2 Australia vice president Stephen Symons said.
"We are delivering on our long-term commitment to Australia's energy future and real benefits for regional communities through local jobs and the Community Benefit Sharing Program in partnership with Muswellbrook Shire Council," OX2 Australia vice-president Stephen Symons said.
Idemitsu Australia co-developed the solar farm and battery storage project with OX2 and remains a long-term landholder of the project site.
"We welcome this major milestone for the Muswellbrook project and acknowledge the ongoing partnership with OX2 to help transform Australia's energy system with reliable firmed renewables," Idemitsu Australia chief executive Steve Kovac said.
OX2 has appointed an engineering, procurement and construction joint venture between Bouygues Construction Australia and Equans Solar and Storage Australia (BYESSA) to deliver the project.
The project has also secured a long-term hybrid power purchase agreement with an international offtaker, covering both solar generation and battery energy storage.
It is the second project to be built by OX2 since it entered the Australian market in 2022.
In a separate project on the site, AGL and Idemitsu are investigating the feasibility of a pumped hydro project that would provide eight hours of energy storage.
The 400 megawatt project would have four times the storage duration and five times the asset life of most current battery storage systems.
Water would be pumped 2000 metres to the top of Bells Mountain where it would be stored in a 1.9 gigalitre reservoir that would be created on the top of the mountain. It would flow using gravity through pipes to drive a turbine at the base of the mountain.
The project, which received critical state significant infrastructure status last year, will come online in 2029 if all approvals and investment decisions are made on target.
Pumped hydro projects are set to take over the state's baseload power capacity as four out of NSW's five coal-fired power plants are phased out over the next decade.
