(AOF) – Neoen, one of the main independent producers of exclusively renewable energy, has given the teams of Tesla, a specialist in large capacity batteries, and UGL, in charge of producing auxiliary electrical and mechanical equipment (Balance of Plant), the instruction to start construction of Western Downs Battery. With a capacity of 200 MW / 400 MWh, this battery is located in South West Queensland, Australia. In accordance with its develop-to-own model, Neoen will own and operate it for the long term.
Western Downs Battery is Neoen’s fourth large capacity battery in Australia.
Western Downs Battery will benefit from the existing infrastructure of the Western Downs Green Power Hub, which includes a 460 MWp solar power plant, the construction of which is almost complete.
Western Downs Battery is located in close proximity to Western Downs Substation. Powerlink is in charge of the connection work, including the construction of the high voltage power line connecting the battery to the network. The first construction works have started and the commissioning of the battery is scheduled for the end of 2024/beginning of 2025.
This new battery will modernize and increase the reliability of Queensland’s electricity grid, providing various essential functions, such as peak energy supply or rapid frequency regulation. It will also promote greater penetration of renewable energy in this state.
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Key points
– First French independent producer of exclusively renewable energies founded in 2008;
– Turnover of €333.4 million, generated in 15 countries, including 50% in Australia, and 49% from solar, 41% from wind and 10% from storage;
– Portfolio of 13.9 GW, including 5.4 GW of assets in operation or construction;
– “Development to own” business model: integrated with a presence in the 4 phases of the life of the assets – development, financing, project management and operations: operating in countries with network parity, with contracts for the sale of long-term PPA electricity,
– Capital held at 46.51% by Impala (holding of the Veyrat family) and 1.61% by Cartusia (holding of the Barbaro family), acting in concert, ahead of the FSP (6.5%) and the BPI (4 .7%), Xavier Barbaro being Chairman and Chief Executive Officer of the 8-member Board of Directors;
– Balance sheet still tight with debt leverage, increased by new projects, standing at 7.5 but cash of €559 million.
Challenges
– 2021-2025 roadmap with objectives set twice in 2022: capacity in operation or construction of + 10 GW including 5 GW in 2023, annual investments of around €5.3 billion, hence regular fundraising funds, increase in operating income of +20% in 2022 then double digits;
– Innovation strategy: carried out in partnership with customers during pilot projects, innovative in essence, identifying cost reduction and energy storage technologies;
– “Sustainable Framework” environmental strategy: Corporate pillar for reducing the carbon footprint, Projects pillar for managing environmental issues and recycling facilities, launch of green loans;
– Strong position in the storage of lithium-ion batteries, developed in partnership with Tesla in the Australian unit of Hornsdale, in Providence in El Salvador and in Illikkâlâ in Finland;
– Rise in capacity in operation to 3,584 MW at the end of June, in solar and wind power in France.
Challenges
– Activity driven by regulations favorable to renewable energies;
– Capital gains expected from “farm-out” or partial or even total disposals of secured assets;
– Execution of solar projects, of 92.5 MW won in France and 80 MW in Ireland, and wind construction in Sweden and Finland;
– After a 36% increase in turnover and a 69% decline in net profit in the 1
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semester, 2022 target increased by an operating profit of between 380 and 460 million, i.e. a margin of 80 to 90%.