On 2 August 2013, The Clean Energy Finance Corporation (CEFC) announced the financing of several new solar projects at Port Augusta in South Australia, Moree in New South Wales and Beaudesert in South East Queensland.

Sundrop Farms have announced in-principle agreement for CEFC to co-finance a major greenhouse development near Port Augusta, South Australia which will use solar-thermal technology to desalinate seawater to provide irrigation, and to heat and cool the greenhouses.

Sundrop Farms is building a 20-hectare greenhouse facility which will produce over 15,000 tonnes of tomatoes a year for metropolitan markets across Australia.

This world leading application of solar technology is particularly suitable for sustainable horticulture in arid regions. CEFC financing would be for approximately one quarter of the project cost, with remaining financing currently being finalised.

CEFC CEO, Oliver Yates said, “CEFC is pleased to be helping to catalyse finance for this exciting project. It is an example of the types of applications to which the clean energy technology can be applied to transform the Australian economy and create new industries in regional areas. Once implemented, this project would be a worldwide demonstration of sustainable horticulture practices that address growing food security, water and clean energy challenges. Australia is starting to embrace the opportunities clean energy technology can provide, and to appreciate how these technologies can be applied across many sectors of the economy from farming through to manufacturing.”

The project should be completed by mid-2015 and when fully operational will employ about 200 people. The construction phase will also provide substantial opportunities for local and State-based businesses.

The Sundrop Farms System™ uses solar energy to desalinate seawater, relying mainly on renewable inputs and allowing food to be grown in regions usually considered not suitable for agriculture. The system creates a high quality, tasty product.

Sundrop Farms founder and CEO, Philipp Saumweber said, “We have now completed a highly successful commercial trial of our system in Port Augusta and have received positive feedback from national customers. CEFC’s finance provides an important foundation for the project, facilitating investment from other banks.”

About Sundrop Farms

Sundrop Farms is a leader in sustainable horticulture for the arid world, growing high-value crops in greenhouse settings utilizing abundant and renewable resources – seawater and sunlight. The revolutionary Sundrop Farms system integrates solar collectors, desalination technology, electricity production and climate control, solving many food and water security issues in agriculture. An experienced, dynamic and passionate team is transforming Sundrop Farms into becoming a global leading provider of natural fresh produce and environmentally responsible horticultural solutions.

Learn more at http://www.sundropfarms.com

CEFC to finance solar PV power plant at Moree

The Clean Energy Finance Corporation (CEFC) has reached agreement to provide $60 million of senior debt finance to Moree Solar Farm for the development and construction of a 56MW solar photovoltaic power plant.

The Moree Solar Farm is a large scale single-axis tracking PV solar energy project located 10km south of Moree in northern New South Wales. The site covers approximately 350 hectares and the project secured approval by the NSW Government in July 2011. The Moree Solar Farm will provide enough solar power for approximately 15,000 homes and abate over 95,000 tonnes of CO2 equivalent.

The Moree Solar Farm is sponsored by Fotowatio Renewable Ventures (FRV) and Pacific Hydro.

CEFC CEO Oliver Yates said that CEFC participation in this transaction will provide a precedent in the Australian market for financing large scale solar PV on a merchant basis. Solar energy is more predictable than wind energy and tracking will allow the facility to capture a higher volume of peak priced electricity.

Mr Yates said, “Moree Solar Farm will utilise high efficiency polycrystalline panels. The CEFC financing can bridge the required debt funding in the immediate term to enable the sponsors to proceed to construction and provide flexibility to secure a PPA in the future.”

“This utility scale project should help drive down future construction costs as industry participants gain experience building large scale solar projects. The supplier selection process for this project is getting underway and the CEFC expects its participation will encourage greater development of a local supply chain,” Mr Yates continued.

About FRV

FRV is a global solar company that develops, builds and operates solar plants. It is one of the largest solar energy companies in the world and since its formation in 2006, it has participated in the development of more than 350 MW of solar energy in the United States, Spain and Italy. Additionally, the company has a significant development pipeline of over 750 MW including projects in Europe, Australia, South Africa, India, Latin-America and the Middle-East, both in photovoltaic and CSP technologies.

With a world class team, FRV has successfully financed projects for approximately $1.9 billion in the US, Spain and Italy, with over 20 leading international banks.

About Pacific Hydro

Pacific Hydro is a leading renewable energy company, producing clean power from natural resources. For 20 years, Pacific Hydro have lived their vision – powering a cleaner world – by identifying, delivering and operating renewable energy projects and providing clean power and carbon abatement products and services to customers across the globe.

Pacific Hydro is a wholly owned subsidiary of the Industry Funds Management (IFM) Australian Infrastructure Fund. IFM is an investment management company wholly owned, through Industry Super Holdings Pty Ltd, by a large number of Australian superannuation funds.

Through its ownership structure, Pacific Hydro provides sustainable infrastructure investment opportunities for around 5 million Australian members of Industry Superannuation Funds.

CEFC finances Quantum leap for bioenergy

The CEFC is financing an upgrade of bioenergy production at the Beaudesert, Qld, plant of AJ Bush, Australia’s largest renderer, which is helping it improve productivity while reducing carbon emissions.

CEFC CEO Oliver Yates said that this project, involving installation of additional purpose built biogas engines to boost onsite generation was a valuable demonstration of the business case for bioenergy in Australian manufacturing and agribusiness, with strong business benefits and highly cost-effective emissions reductions.

“Bioenergy is very cost effective means of reducing carbon emissions from both direct methane and electricity or gas offset. A dollar invested in a biogas project can produce five to 10 times the CO2-e savings of some other technologies, which helps explain the strong market interest we are experiencing as more businesses seek to take advantage of their bioenergy potential,” he said.

CEFC strategic alliance partner and leading biogas-based renewable energy company Quantum Power is upgrading the plant it operates for AJ Bush & Sons at Beaudesert in Queensland to reduce AJ Bush’s grid electricity consumption and the associated carbon emissions by 35 per cent.

The finance for the project was developed with Low Carbon Australia which has now been integrated into the CEFC.

Quantum Power’s CEO Richard Brimblecombe said the $1.2 million upgrade involved installation of additional purpose built biogas engines capable of producing 1 MW of generation and maximising the use of the site’s biogas resources. Following the upgrade, Quantum Power will have total generation capacity of 2MW at the AJ Bush Beaudesert site, making it the largest biogas installation at a food processing plant in Australia. Electricity is supplied to AJ Bush under a Power Purchase Agreement at a discount to the delivered cost of electricity from the grid.

“By building, owning and managing generators for farmers, meat and food processors, we’re enabling businesses to benefit from recycling operational waste as an energy source, without having to operate and maintain generators themselves. Finance through the CEFC helps us make these projects happen sooner,” Mr Brimblecombe said.

The increased energy generation capacity, combined with $12.4 million in upgrades AJ Bush is planning with Australian Government Clean Technology Food and Foundries Investment Program grant support of $6.2 million, will help the renderer reduce its environmental impact, ensure it remains competitive and help it continue contributing to the local and national economies,” says AJ Bush & Sons (Manufactures) Manager David Kassulke.

CEFC CEO Oliver Yates said the CEFC had received a strong response from the bioenergy sector and was pursuing a range of investment opportunities focused on overcoming financial impediments for investment and new financing and market delivery models for a range of bioenergy projects and biogas technologies in Australia.

Project details

• CEFC finance: $600,000
• Overall project cost: $1.2 million
• Carbon emissions of grid electricity usage reduced by 35 per cent
• Carbon equivalent emissions of biogas to atmosphere reduced by 23,000 tonnes
• Total annual projected operating cost savings $400,000
• Improved local air quality and amenity, with reduced odour as a result of AJ Bush covering additional anaerobic digesters.