en.Wedoany.com Reported - Australia's largest solar and battery hybrid project has reached financial close, a deal that will power major aluminum smelters and refineries and is expected to influence grid development discussions. The project, advanced by Edify Energy, owned by Canada's Caisse de dépôt et placement du Québec (La Caisse), is backed by a consortium of 14 Australian and international lenders. Located in Central Queensland, the project comprises two adjacent sites, Smoky Creek and Guthrie's Gap, and will combine 600 megawatts (MW) of solar generation capacity with a total of 600 MW / 2400 MWh of battery energy storage systems.
These two projects are a key component of mining giant Rio Tinto's plan to shut down the aging Gladstone coal-fired power station by 2029 and transition to green energy and storage facilities from Smoky Creek, Guthrie's Gap, the Upper Calliope solar farm, the Bungaban wind project, and other subsequent projects. Edify Energy CEO Ben Warne stated that Smoky Creek and Guthrie's Gap are pivotal projects in the energy transition, delivering cost-effective, reliable, and dispatchable renewable energy. They are also the first projects to reach financial close under La Caisse's ownership, reflecting the scale of ambition from both parties to make a meaningful contribution to the energy transition.
The two projects have signed a 20-year offtake agreement with Rio Tinto, under which 90% of their output will power the Boyne Island smelter and two refineries located in Gladstone. Additionally, the projects have secured underwriting agreement support from the Australian federal government's Capacity Investment Scheme. This deal is crucial for the federal government's target of achieving 82% renewable energy by 2030, a goal facing increased challenges due to the Queensland Liberal National Party (LNP) state government abolishing its own renewable energy targets and creating obstacles for new projects.
The LNP's energy roadmap makes clear that the only wind and solar projects it wants to proceed in the state are those supporting the transition of the Gladstone smelters and refineries, which are the state's largest energy users. This policy has "called a halt" to many other wind and battery projects, some of which remain in limbo after more than a year of uncertainty. The Smoky Creek and Guthrie's Gap projects represent one of the largest renewable energy offtake deals in Australia's industrial sector and serve as a model for solar-firmed power supplying large-scale industry.
Edify Energy stated that the Smoky Creek and Guthrie's Gap solar farms will provide utility-scale solar generation integrated with battery storage and advanced grid-forming inverters, specifically designed to deliver low-cost, reliable, dispatchable renewable energy. Together, these projects will strengthen Queensland's energy system, support industrial demand, and help improve supply reliability as aging thermal generators retire. The company has commenced preliminary site works, with Malaysia-headquartered DT Infrastructure winning the main construction contract for the projects. The company is also building the Carmody's Hill wind farm in South Australia and the Jinbi solar farm in Western Australia.
Edify Energy indicated the project has strong support from landowners, the local community of Banana Shire, and the Gaangalu Nation people. During peak construction, the project will create up to 800 jobs and support local apprenticeships and skills training. The company noted that the projects will maximize local procurement, supporting local suppliers and Australia's domestic steel industry. Supported by a community benefits program spanning over 35 years, the projects aim to leave a lasting, positive legacy in the region. The company also described this "greenfield renewable energy portfolio financing package" as a first for Australia, providing a scalable foundation for future projects.
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