Leading Australian energy infrastructure business, APA Group (ASX: APA), announced on Monday a staged plan to build an 88 MW solar farm at Mica Creek in Mount Isa.
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APA has confirmed it will build the 44 MW stage one of the Mica Creek Solar Farm with an investment of more than $80 million, which is underpinned by a new 15 year solar offtake agreement with existing APA customer and leading zinc miner, MMG Dugald River (MMG), to supply renewable energy.
APA also entered into a 32-year lease agreement with the Queensland Government to locate the solar farm on a site near APA's Diamantina Power Station complex. The first stage of the solar farm is expected to be operational by the first quarter of 2023, while APA is in advanced discussions with a number of customers to commit to the development of stage two.
APA CEO and Managing Director Rob Wheals said the FID and solar offtake agreement with MMG reflects APA's commitment to providing affordable, reliable and low emissions power to this minerals rich region of Queensland, further strengthening the region's economic activity.
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"The Mica Creek Solar Farm will deliver lower emissions power underpinned by the reliability of APA's gas-fired power, while reducing the average cost and emissions of power across Mount Isa," Mr Wheals said.
"This solar agreement is the result of us working closely with MMG to ensure we meet their needs as a valued customer, so they can in turn continue to support a growing and leading zinc operation in Queensland.
"As always, we will continue to work with our customers to support their requirements, consistent with APA's purpose to strengthen communities through responsible energy.
"APA has been working with Economic Development Queensland in relation to a lease to support the solar farm, and is very pleased to work with the Queensland Government to support the ongoing development of the North West Minerals Province."
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APA's solar offtake agreement has been negotiated at a commercially competitive tariff, consistent with utility solar pricing, and will reduce the average delivered cost of power for MMG.
APA will also support MMG with its energy needs with the provision of firming gas power from its Diamantina Power Station complex, under its existing contract.
APA has proudly invested more than $1 billion in energy assets in the North West Minerals Province, underscoring our commitment to delivering safe, reliable and affordable energy security to the region.
"We are proud to be providing our customers and the community with flexible, affordable, low emissions energy solutions." Mr Wheals said.
Dugald River Mine General Manager, Tim Akroyd, said the provision of renewable energy will reduce energy related to emissions by approximately 33 percent, and allow the business to investigate options for future growth and asset planning.
"Incorporating renewable energy is both environmentally and economically beneficial. Not only does it contribute to our carbon reduction initiatives, but also reduces our energy costs and offers greater diversity in energy supply."
"We run a 24/7 operation in a remote location under extreme weather conditions. Having multiple power sources safeguards our business so we can run without risk of interruption."
"Moving towards a low carbon economy and reducing cost also supports our ore body extension initiatives and potential future growth options," said Mr Akroyd.
Further emission reductions, cost savings and growth initiatives will also be enabled by the CopperString2.0 project which has the potential to deliver baseload, grid-connected energy alternative to residents and businesses in the region.
"We look forward to continuing our support for CopperString2.0 as a baseload energy alternative and believe the addition of renewable energy now will also be complimentary to grid connection through CopperString2.0," said Mr Akroyd.
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