Singapore's Keppel Renewable Energy is to buy a 45% stake in a solar farm in Harlin, 100km northwest of Brisbane.
It will acquire the 45% stake for a nominal sum of A$540 ($410) and provide a loan of A$3.24 million ($2.45m) to the project to fund costs for developing the project, a statement said.
Construction work will start in two years and is scheduled to complete in 2023. Once it starts operating, the solar farm will be connected to Australia's National Energy Market (NEM) and will provide renewable energy through NEM to businesses that seek sustainable energy solutions, including Keppel-related businesses in Australia.
The 2,055-hectare project will be the largest solar farm by area in Australia, with 500 megawatts (MW) capacity. It will produce enough electricity for more than 142,000 local homes.
Keppel Renewable Energy is a wholly owned subsidiary of Keppel Corporation, a company which focuses on energy and environment, urban development, connectivity and asset management.
Infrastructure expert James Harris of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “This is not a surprising development from the Keppel Group. They have a strong appetite for good investment opportunities in renewable energy. Australia is a market they readily understand and feel comfortable with. It is likely we will see other Singapore and Asian based investors moving into this space.”
In October another Singapore company announced it would build the world’s largest solar farm in term of electricity generation, a $14 billion, 10 gigawatts (GW) project to be completed by 2026 in Australia. The project will link Singapore directly with Australia to import solar power to the island nation from Australia.
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