31 Jul 2023

APA Sign Agreement to Commence Early Works to Supply Energy to Arafura's Nolans Project

Leading Australian energy infrastructure business, APA Group, today signed an agreement with Arafura Rare Earths to commence early works for a proposed high efficiency cogeneration plant to supply energy to Arafura’s Nolans Rare Earth Project.

Arafura’s Nolans Project includes a rare earth mine, processing plant and related infrastructure to be constructed 135 kilometres north of Alice Springs.

The early works agreement follows a formal competitive tender process through which APA was selected as the preferred Independent Power Provider by Arafura.

Under the early works agreement, APA will undertake engineering design and project development planning work for the proposed cogeneration plant, which is planned to include a gas turbine generator to supply electricity and a waste heat recovery system to supply steam.

The cogeneration plant would potentially be connected to APA’s nearby Amadeus Gas Pipeline. The proposed cogeneration plant and related long-term power purchase agreement is subject to further negotiations between APA and Arafura and approvals by each party.

Arafura has secured offtake agreements with a Tier 1 global electric vehicle manufacturer and wind turbine manufacturer, with the project to support the growing demand for critical minerals needed to support the energy transition.

“As the energy sector continues to transition the global demand for critical minerals, which are essential to a range of clean energy technologies, will increase significantly in coming years,” APA CEO and Managing Director Adam Watson said.

“The Nolans Project is particularly rich with neodymium and praseodymium – minerals that are key to the production of a range of green technologies including electric vehicles, wind turbines and consumer electronics.

“We are excited to play this role in the global decarbonisation process and contribute towards bringing these critical minerals to market.

“We will also work with Arafura to explore how we can deliver a bundled energy solution, pairing reliable gas firming with renewables, for the project.

“This is part of APA’s commitment to partnering with our customers across the resources sector to deliver efficient, cost-effective, reliable and low emissions energy for today and tomorrow.”

APA and Arafura have both committed to Net Zero operational emissions in their respective Climate Transition Plans (further details of which are available on APA’s website). It is expected that energy from the cogeneration plant for Nolans Project would be complemented by renewable energy in the future.

Early works for the project will commence immediately and are expected to be completed by early 2024.


Media: Michael Cox – 0429 465 227


About APA Group (APA)

APA is a leading Australian Securities Exchange (ASX) listed energy infrastructure business. We own and/or manage and operate a diverse, $22 billion portfolio of gas, electricity, solar and wind assets. Consistent with our purpose to strengthen communities through responsible energy, we deliver approximately half of the nation’s gas usage and connect Victoria with South Australia, New South Wales with Queensland, and Tasmania with Victoria through our investments in electricity transmission assets. We also own and operate renewable power generation assets in Australia, with wind and solar projects across the country. APA Infrastructure Limited is a wholly owned subsidiary of APA Infrastructure Trust and is the borrowing entity of APA Group.


For more information visit APA’s website, apa.com.au.