QEM has signed a binding agreement with Enel Green Power Australia (EGPA) for the sale of the Julia Creek renewables project, located immediately adjacent to QEM’s Julia Creek vanadium and oil shale project in north-west Queensland.
Under the agreement, EGPA will pay $3 million to acquire wind and solar monitoring equipment, more than 18 months of data, and intellectual property regarding engineering, environmental, geotechnical, flood plain and other project studies.
The company will also make two contingent payments totalling $4 million that will be payable in separate tranches upon the project reaching a positive final investment decision and achieving key development milestones.
“QEM is delighted to be associated with a team which can draw on its vast global experience in renewable power development,” QEM managing director Gavin Loyden said.
“In addition to the direct benefits for QEM in having access to renewable power for our vanadium project, the whole region will enjoy significant direct and indirect benefits from this scale of development.”
EGPA has agreed to pay QEM a revenue-based royalty of between 1–2 per cent generated by the Julia Creek renewables project, starting from its commercial operations date. The company will also offer QEM a 10-year offtake agreement for the supply of up to 25-megawatts firm capacity for its mine operations.
“EGPA’s approach to creating value for the communities in which they operate is very aligned to QEM’s own commitment in Julia Creek,” Loyden said. “We are excited to progress community initiatives together.”
Selling the Julia Creek renewables project will allow QEM to focus on its vanadium and oil shale project.
“We are incredibly pleased to be working in partnership with QEM to deliver the Julia Creek renewables project,” EGPA chief executive officer Werther Esposito said.
“With outstanding wind and solar resource, the proposed project has the potential to be one of Queensland’s largest renewable energy projects.
“The project is expected to contribute to significant supply and employment opportunities for the surrounding community, creating a positive economic impact on the local area.”
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