Squadron Energy has broken ground on Uungala Wind Farm in New South Wales, the company’s billionaire owner Andrew Forrest using the occasion to announce a multi-billion dollar turbine supply deal with GE Vernova and to reaffirm plans to develop a 14GW pipeline of projects around Australia.
The 414MW Uungala wind farm near Wellington in the state’s central west will be the largest in the state, once complete – and until the massive, recently approved 1.5GW Yanco Delta project is built.
The Squadron project, which had been scheduled to start construction last year, gets underway after emerging as one of the winners in the $4.2 billion NSW government tender, the results of which were announced last month. It also comes with an existing off-take agreement with Snowy Hydro an approved connection to the grid.
Squadron says this makes it the only company to reach financial close on a wind farm in Australia and the only company to open a major grid connected wind farm in 2023 – with another 6GW in the pipeline, according to Forrest.
Indeed, Forrest has promised to deliver a 14GW development pipeline of renewable and storage projects – or one third of the renewable energy required for Australia to meet its 2030 82% renewables target, as the iron-ore magnate likes to describe it.
At the Uungala sod-turning, Forrest reaffirmed this pledge with a new announcement that Squadron has signed a $2.75 billion green strategic alliance for wind turbine supply with GE Vernova.
Squadron says the deal will see GE Vernova supply Uungula with $1 billion worth of 6MW turbines and engineering, procurement and construction expertise through its consortium partners NACAP and CCP. It will also supply turbines for Squadron’s next two NSW projects – the Spicers Creek and Jeremiah wind farms.
“This is a huge announcement from a major Australian company that is getting on with the job of building the renewable energy capacity required to deliver the green power Australia urgently needs,” Forrest said on Thursday.
“The time for talk is over, we are investing right now in Australia’s green energy transition and creating jobs and economic development for regional Australia.”
Forrest, who has in the past criticised Australia for failing to match the US on its transformational Inflation Reduction Act policy, said this week that the Albanese government’s Capacity Investment Scheme was the right tool to supercharge renewable energy development.
“No longer will we have to rely on expensive, volatile, planet destroying fuels. We will have secure and inexpensive energy from a huge new industry for Australia.”
GE Vernova’s wind segment leader Vic Abate said that while the IRA had unleashed significant investment in clean energy across the US, there were undoubtedly flow-on benefits for other markets.
“This alliance is a prime example, with Australia securing access to GE Vernova’s technology base and accelerating the path to more reliable, affordable and sustainable energy,” Abate said.
“With global demand accelerating, it is essential for Australia to embrace strategic supply chain initiatives to provide certainty in the rollout of renewable energy.”
And while Squadron already had a well established partnership with GE – the company’s turbines were used at Crudine Ridge, Bango and Murra Warra II – this is an important point, with supply chain problems taking a particularly heavy toll on the global wind industry as manufacturers struggle to meet demand.
At the Uungala wind farm, Squadron CEO Jason Willoughby said the project will create more than 260 jobs for regional NSW and inject about $41 million into the local economy.
“In addition to the economic boost the project will bring, as part of our commitment to community we are offering fast, reliable internet coverage for properties surrounding the project and investment opportunities for residents in the Central-West Orana Renewable Energy Zone.
“Once fully operational, this wind farm will prevent more than 560,000 tonnes of carbon emissions being released into the atmosphere annually, playing an important role in addressing climate change.”
Federal energy minister Chris Bowen, currently under pressure over the federal government’s approach to offshore wind – including over its rejection of Victoria’s port infrastructure plans and the wait for the first round of seabed licences – has welcomed the news of new wind being built in one of Australia’s biggest coal states.
“These projects are further proof renewable energy investors are getting on with the job, capitalising on Australia’s huge renewable potential, and helping transform our energy grid for the 21st century,” Bowen said on Thursday.
“Firmed renewable energy and storage is not only the cheapest form of energy but provides crucial reliability as increasingly old and unreliable coal fired power stations inevitably exit the system.”
