Molycop, incorporating Comsteel, has announced the signing of a long-term Power Purchase Agreement (PPA) with Flow Power, which will see half of its NSW energy needs come from renewables.
This agreement runs until December 31, 2030, and is backed by offtake agreements with the Bomen Solar Farm and the Sapphire Wind Farm, both located in regional NSW.
The Bomen Solar Farm is currently under construction and is expected to be fully operational in the second quarter 2020 while the Sapphire Wind Farm has been in full operation since November 2018.
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Under the PPA, Molycop’s expected offtake of renewable energy is 100,000MWh per year, which covers more than half of its electricity consumption in NSW. This will make Molycop one of the largest purchasers of renewable energy in Australia.
In Australia, the company manufactures and supplies products and services to the mining and rail transport industries.
Molycop Australasia president Michael Parker said the agreement not only provides strong support to Australia’s pipeline of renewable energy infrastructure projects that will also benefit the wider community, but also enables Molycop 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.
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“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. 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,” Mr Parker said.
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 its energy sourcing and forecasting expertise.
Flow Power managing director Matthew van der Linden said, “By combining renewable offtake and demand response, our unique model will future-proof energy needs while supporting the changing energy system”.
