AirTrunk signs Hunter renewables exclusivity deal

AirTrunk and European Energy Australia have signed an exclusivity agreement to progress two renewable energy projects in the Hunter region of New South Wales, targeting more than a gigawatt of combined generation and storage capacity.

The proposed projects comprise a 260 MW solar farm, an 800-plus MWh battery, and up to 350 MW of wind generation in the Hunter-Central Coast Renewable Energy Zone. Together, the companies said, they could add more than one gigawatt of new renewables and storage to NSW's electricity system.

The two companies are discussing a potential long-term power purchase agreement (PPA) to support AirTrunk's NSW energy requirements, including its proposed data centre campus at Kurri Kurri.

The solar and battery projects are expected to begin operating in 2030, with the wind project to follow in 2032. European Energy Australia plans to connect them to Ausgrid's upgraded 132 kilovolt network in the Hunter-Central Coast Renewable Energy Zone.

The Australian Government expects new data centres to secure new and additional clean energy generation and storage to offset their demand, while the NSW Data Centre Guidelines expect operators to fund the additional energy supply their projects require without shifting net costs to households, businesses or communities.

AirTrunk said the Hunter projects and the proposed PPA form part of its response to those expectations.

"Digital growth must bring new energy with it," said Robin Khuda, founder and chief executive at AirTrunk.

"The Australian Government's expectations and NSW's guidelines set a high bar for the industry. This partnership is an important step towards delivering on that commitment."

"It's great to see AirTrunk and the tech sector embracing renewable energy - partnerships like this allow us to bring more renewables online and add more energy to the grid," said Catriona McLeod, managing director at European Energy Australia.

The Hunter announcement builds on the two companies' existing collaboration. The 31 MW Mulwala Solar Farm, developed under an earlier arrangement between AirTrunk and European Energy Australia, officially opened this week and is now supplying renewable electricity to the NSW grid.