SmartestEnergy Australia has signed a power purchase agreement (PPA) with Providence Asset Group (PAG), an Australian ESG investor, to deliver 500GWh of solar power into the national electricity market.
Under the terms, SmartestEnergy, a subsidiary of Marubeni Corporation, will purchase the energy of over 30 community-based solar farms across Victoria and New South Wales owned by PAG.
When all the solar farms are operational the combined electricity generation will be roughly 500GWh.
The initial agreement covers a 30-month period, with the potential for a 10-year extension on the PPA after this point.
PAG also plans to use green hydrogen storage and production units at its solar farm locations. According to PAG, the LAVO I HEOS green hydrogen systems will be “the first of their kind in Australia and across the world”.
Co-founder and chief investment officer at PAG, Alan Yu, said the deal “provided an ideal base to demonstrate the technical and commercial benefits that commercial scale solar farms coupled with the LAVO | HEOS system can deliver.”
The LAVO I HEOS technology was developed in Australia by The University of New South Wales (UNSW) and LAVO with the seed investment from Providence Asset Group venture capital.