Nexif Energy, backed by Denham Capital, has signed an agreement with the State Government of South Australia to deliver 154MW of reliable gas generation to the state.
Nexif Energy will lease and relocate five gas turbine generating units owned by the State Government from their current site at the former Holden factory to a new permanent power station site at Outer Harbour. These units will be commercially operated by Nexif Energy as a fast start and flexible peaking power station through the term of a 25-year lease.
The new power station will be developed on a fast track basis and will involve conversion of the units from diesel to natural gas as the primary fuel. Site preparations and relocation, erection and commissioning of the five units will require a workforce of up to 70 people. Operation of the units at the new power station site is scheduled to commence from December 2020.
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Nexif Energy is also working on plans to convert the units to combined cycle through the addition of a steam turbine so that the new power station could also operate as an efficient and flexible mid-merit power plant as early as 2022.
Nexif Energy founder and co-chief executive officer Matthew Bartley said, “As the owner of the Lincoln Gap 212MW Wind Farm and 10MW Battery Energy Storage project near Port Augusta, this agreement complements our plans to double Lincoln Gap’s wind capacity from the existing 212MW up to about 457MW.
“Through this investment in dispatchable generation, we’re aiming to offer firm baseload style contracts from renewable energy generated predominately from existing and future stages of our Lincoln Gap project.”
Nexif founder and co-chief executive officer Surender Singh said, “This will bring our operating portfolio in South Australia to 376MW and represents a step forward towards our vision of delivering clean, reliable power to South Australia”.