South Australia’s Groundbreaking Renewable Energy Project
A pioneering solar and battery project near Port Pirie is set to revolutionise South Australia’s energy landscape, with a unique financing package marking a significant milestone. The Bungama project, under the ownership of Amp Energy based in Toronto, will boast a massive 339 MW solar farm and a 250 MW, 500 MWh battery storage system, both of which would be unrivalled in the state if operational today.
The groundbreaking financing for this venture, provided by Australian institutions CBA and Westpac, along with Export Development Canada, represents a first for battery storage in the country. Amp Energy’s major international investor, Carlyle, is also contributing to the capital for this innovative project.
Driving Towards Renewable Energy Goals
Daniel Kim, formerly of Ark Energy and now leading Amp Energy, emphasised that the Bungama project will play a vital role in propelling South Australia towards its ambitious target of achieving 100% “net” renewables by the end of 2027. This initiative not only supports the state’s renewable energy objectives but also enhances energy reliability and grid security.
Project Phases and Future Plans
Bungama is just the beginning of a series of solar and battery projects planned by Amp Energy to facilitate their green hydrogen and “power to X” ventures in the state. The project is being executed in stages, with the construction of a 150 MW, 300 MWh battery in progress as part of Stage 1. Subsequent phases will see the completion of the battery and the integration of the solar component.
Kim expressed his enthusiasm for this milestone, highlighting its significance in Amp’s mission to establish a top-tier Power-to-X platform in Australia and accelerate the energy transition.
South Australia already leads the world with over 72% of its energy sourced from renewables, a remarkable feat for a region devoid of hydro or geothermal resources. The Bungama project, alongside other upcoming initiatives, such as the Goyder South wind farm and various battery projects, will contribute significantly to achieving the state’s renewable energy targets.
Amp Energy’s extensive portfolio includes operational solar farms in NSW, with future projects encompassing substantial battery storage, solar PV, wind energy, and the ambitious Cape Hardy green hydrogen project.
Carlyle’s Richard Hoskins anticipates Amp Energy’s emergence as a prominent developer and operator of renewable energy and battery storage projects in Australia, underscoring the importance of providing capital for such critical initiatives.
Key players such as CBA and Westpac recognise the pivotal role of the Bungama battery in a region characterised by high levels of wind and solar energy. The project’s financing on a full merchant basis signifies a significant milestone in commercial lending for such ventures.
Notable suppliers and contractors, including Wärtsilä and Enerven, are integral to the project’s success, with operations expected to commence early next year.
Advisory support from Victor Martinez, Ashurst, and White & Case has been instrumental in navigating the complexities of project development and financing, ensuring the successful realisation of the Bungama project.
