New Century Resources Limited has announced that it has signed a Memorandum of Understanding (MOU) with APA Group for the supply of up to 8MW of solar power to the Century Mine in North Queensland.
The non-binding MOU outlines that the 8MW of renewable solar power would be supplied from the under-construction Mica Creek Solar Farm
The MOU also notes the potential for the amendment and optimisation of New Century’s existing Power Purchase Agreement (PPA) to include a new energy product supplied from the under-construction 88MW Mica Creek Solar Farm.
It is hoped that by combining this new renewable solar energy generation with the current supply from the Diamantina Power Station complex, there will be a reduced average delivered cost of power to New Century, while materially reducing the associated carbon emissions.
For example, New Century’s Mount Isa carbon emissions from power generation could be reduced by up to ten per cent.
The MOU represents a milestone in New Century’s commitment to improved ESG performance and identifying opportunities to reduce the carbon intensity of the company’s operations.
The parties will now collaborate on additional renewable generation opportunities in the region, with the aim of further reducing carbon emissions and providing long-term clean energy supplies with price certainty.
New Century’s Managing Director, Patrick Walta, said, “We are delighted to be working with the APA Group on identifying opportunities to reduce the carbon intensity of the Century Mine and of the broader NWMP.
“In 2021, New Century set out an ambition for transparently reporting on our ESG performance through our Sustainability Report and for improving the way our operations interact with the environment and with society.
“The MOU with the APA Group represents a milestone in our efforts to address the carbon intensity of our Century operations and to reduce operational costs at Century through cooperative endeavours with our suppliers.”
APA Group Executive Strategy and Commercial, Darren Rogers, said this MOU is part of the APA’s broader commitment to developing new renewable projects in the North West Minerals Province, and helping the resource sector to decarbonise.
“APA is pleased to be working with New Century as a valued customer on this MOU and on identifying opportunities for new renewable energy solutions to its operations in North West Queensland. As we continue to investigate and develop new renewable projects in the region, we will work with New Century and other resource sector operators in the region, to supply renewable energy solutions for the sector, and contribute to reducing the carbon intensity of the industry,” Mr Rogers said.
“This MOU supports APA’s vision to expand our renewables portfolio in the region and help our customers reduce their emissions as they – like APA – seek to decarbonise their operations. Once the PPA amendment is agreed and signed, APA will have three major customers supporting the 88MW Mica Creek Solar Farm, demonstrating the enthusiasm of customers in the region for integrated energy solutions that can both meet their energy needs and help reduce their operational emissions.”
The terms of the MOU require New Century and APA Group to work towards an amendment to the current PPA by 30 September 2022 or by a later date as agreed by the Parties.
