Molycop, incorporating Comsteel, has signed a long-term Power Purchase Agreement with energy retailer Flow Power. It runs to 31st December 2030 and is backed by offtake agreements with the Bomen Solar Farm and the Sapphire Wind Farm, both located in regional NSW. The Sapphire Wind Farm between Glen Innes and Inverell has been in full operation since November 2018, while the Bomen Solar Farm is currently under construction near Wagga Wagga and is expected to be fully operational in the 2nd quarter of 2020.
Under the agreement, Molycop’s expected offtake of renewable energy is 100GWh per year, more than half of its electricity consumption in NSW. This will make it one of the largest purchasers of renewable energy in Australia.
During its 100 years of operation Molycop has played an important role in economic and social development in many of the countries in which it operates. In Australia, Molycop manufactures and supplies high-quality products and services to the mining and rail transport industries, and Comsteel is the only domestic manufacturer of railway wheels and axles. Molycop’s entry into this agreement represents a new chapter in this tradition, reflecting its support for the renewable energy investment that has been made in regional NSW.
“This agreement is an important milestone for Molycop,” Molycop Australasia President Michael Parker says. “It not only provides strong support to Australia’s pipeline of renewable energy infrastructure projects that will also benefit the wider community, but also enables us to gain greater control over volatile energy costs”.
Many of Molycop’s customers have a strong focus on building sustainable and responsible operations. This focus and expectation also extend into their supply chains to their suppliers. By entering this long-term agreement Molycop is supporting the transition to renewable energy, which will also substantially reduce the carbon emissions associated with the generation of electricity.
“From a sustainability standpoint, Molycop is not only supporting two important renewable energy projects, but we are further enhancing our credentials as a responsible and sustainable organisation,” Parker says. “We already utilise 95 per cent recycled feed for our steelmaking process, material that would otherwise be exported, and we are offering customers an expanding range of recycling services.”
Molycop chose to partner with Flow Power due to its offer of both wind and solar offtakes and access to the ARENA Demand Response program, as well as their energy sourcing and forecasting expertise.
“Flow Power is proud to be working with Molycop to unlock value from their energy sourcing,” Flow Power Managing Director Matthew van der Linden says. “It’s fantastic to see Molycop take the next step on their energy journey. By combining renewable offtake and demand response, our unique model will future-proof energy needs while supporting the changing energy system.”
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