SA Government signs gas agreement with major energy producer

The South Australian Government has signed an agreement with Nexif Energy which will provide the state with 154MW of gas. 

Nexif Energy, backed by Denham Capital, will lease and relocate five gas turbine generating units owned by the State Government from their current site at the former Holden factory to a new permanent power station site at Outer Harbor. 

These units will be commercially operated by Nexif Energy as a fast start and flexible peaking power station through the term of a 25-year lease. The new power station will be developed on a fast track basis and will involve conversion of the units from diesel to natural gas as the primary fuel. 

Operation of the units at the new power station site is scheduled to commence from December 2020.

Nexif Energy is also working on plans to convert the units to combined cycle through the addition of a steam turbine so that the new power station could also operate as an efficient and flexible mid-merit power plant as early as 2022.

Nexif Energy Founder and Co-Chief Executive Officer, Matthew Bartley, said, “The announcement builds on our already strong presence in South Australia. 

“As the owner of the Lincoln Gap 212MW Wind Farm and 10MW Battery Energy Storage project near Port Augusta, this agreement complements our plans to double Lincoln Gap’s wind capacity from the existing 212MW up to about 457MW. 

“Through this investment in dispatchable generation, we’re aiming to offer firm baseload style contracts from renewable energy generated predominantly from existing and future stages of our Lincoln Gap project.”

Nexif Founder and Co-Chief Executive Officer, Surender Singh, said, “This will bring our operating portfolio in South Australia to 376MW and represents a step forward towards our vision of delivering clean, reliable power to South Australia.”

Denham Capital Managing Director, Saurabh Anand, said that the agreement represents a significant milestone in Denham’s plans to invest in a portfolio of more than 1000MW of renewable and dispatchable generation projects in Australia and Asia by 2021.

The initial 212MW stages of the company’s Lincoln Gap wind farm that is in operation and under construction totals 59 wind turbines and comprises a 10MW battery storage system capable of producing enough electricity to power approximately 155,000 households in South Australia once fully complete. 

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