21 Feb 2017

APA Group (ASX:APA), Australia’s largest gas infrastructure business, today announced that it has entered into a longterm (12 year) offtake agreement with Alinta Sales Pty Ltd (“Alinta”) that will underpin the construction of the 130MW Badgingarra Wind Farm. The agreement is for Alinta to purchase all of the energy and the Large-scale Renewable Generation Certificates (“LGCs”) generated by the wind farm.

The Badgingarra Wind Farm will be located adjacent to APA’s 80MW Emu Downs Wind Farm and the recently announced 20MW solar project creating a 230MW renewable energy precinct. The three facilities will share operational synergies with APA’s existing operations. Financial close is expected in mid-2017 and is subject to conditions precedent including finalisation of a transmission connection agreement with Western Power. This is an important project for Western Australia, as it will connect more renewable energy to the South West Interconnected System (SWIS).

Construction is expected to be completed in early 2019. The approximate $315 million capital cost will be funded from APA’s currently available cash and operating cash flows.

APA Group Managing Director, Mr Mick McCormack, said, “We are excited to announce this project which further expands the existing Emu Downs Wind Farm that APA acquired in 2011. APA benefits from a long history of wind data at this site, well known for its strong wind resource and proximity to suitable transmission connection. Together with the solar farm project that we recently announced, APA is continuing to grow its capabilities in owning and operating renewables infrastructure which is helping support Australia’s transition to a more carbon efficient future. These are unique development opportunities available to APA that are commercially viable and fit our investment criteria. It is also pleasing to be able to expand our relationship with Alinta, which is already a significant APA customer in Western Australia.”