Decmil Group Limited (ASX: DCG) has entered into a Memorandum of Understanding (MOU) with Maoneng Australia for its 250MW Sunraysia Solar PV project located near Balranald in New South Wales.
The exclusive MOU will see Decmil and Maoneng work together on early engineering design and finalisation of an Engineer Procure Construct (EPC) contract valued at approximately $275 million.
Subject to agreement on commercial terms and the project successfully achieving financial close, the EPC contract will be awarded by the end of March 2018.
Expected to commence shortly after award, the project is set to be one of Australia’s largest utility scale Solar PV power plants and represents a significant expansion of Decmil’s presence in the renewable energy market as an EPC contractor.
Sunraysia will be one of the first solar farms in NSW to use batteries to store energy. This will provide greater energy reliability and allow the solar farm to produce electricity during periods of peak demand rather than only during sunlight hours.
Decmil Managing Director and Group CEO, Scott Criddle, said Decmil has been building its capability in renewable energy in recent years, based on nearly 40 years of experience and expertise in regional engineering construction.
The Sunraysia project is Maoneng’s second significant project in the Australian market, the first being the Mugga Lane Solar Park developed and built under the ACT Government’s Reverse Solar Auction.