Steel manufacturer Molycop has signed a long-term Power Purchase Agreement (PPA) with energy retailer Flow Power.
Using energy from the Bomen Solar Farm and the Sapphire Wind Farm, both of which are located in NSW, the manufacturer will have more than half of its energy needs met by these two renewable projects.
The Sapphire Wind Farm has been operational since November 2018 and the Bomen Solar Farm is expected to be running by the second quarter of 2020. Both will provide power to the Newcastle steelworks until 31 December 2030.
With an expected uptake of 100,000MWh per year, the agreement will make Molycop one of the largest purchasers of renewable energy.
“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, but also enables us to gain greater control over volatile energy costs,” said Michael Parker, president of Molycop Australasia.
In addition to the benefits that flow directly from this agreement, Molycop will also now be able to provide a sustainable solution for their customers and those who their products support through supply chain agreements.
“From a sustainability standpoint, Molycop is not only supporting two important renewable energy projects, but we are further enhancing our credentials as a responsible and sustainable organisation. We already utilise 95% recycled feed for our steelmaking process, material that would otherwise be exported, and we are offering customers an expanding range of recycling services,” said Parker.
Molycop will also take advantage of new demand response rules that allow their operations to be more energy efficient, as Matthew van der Linden, managing director of Flow Power highlighted.
“Flow Power is proud to be working with Molycop to unlock value from their energy sourcing. It’s fantastic to see Molycop take the next step on their energy journey. By combining renewable offtake and demand response, our unique model will future-proof energy needs while supporting the changing energy system,” said van der Linden