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Nexif Energy $50m project to switch generators from diesel to gas

Generators bought by taxpayers for emergencies but now leased to the private sector will swap to gas when they move to Outer Harbor.

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Seventy jobs have been created over the rest of the year as the formal go ahead is given to convert one set of the diesel generators leased by Nexif Energy from the State Government from diesel to gas.

The generators are being moved from the old GM-Holden site to Snapper Point at Outer Harbor with a target date to be ready by December.

Financial contracts with partner Denham Capital for the $50m relocation were announced on Tuesday.

Energy and Mining Minister Dan van Holst Pellekaan and Nexif chief executive Matthew Bartley.
Energy and Mining Minister Dan van Holst Pellekaan and Nexif chief executive Matthew Bartley.

The fast-start generators will be used as back-up for the Lincoln Gap wind farm, near Port Augusta, allowing the owner of both projects, Nexif Energy, to offer firm supply contracts for electricity whether or not the wind is blowing.

Federal government-owned Snowy Hydro also will buy power from the 154MW plant.

Once in place, ten ongoing jobs will be needed.

“Through investment in dispatchable generation at Snapper Point, we will be able to offer to customers firm baseload style contracts from renewable energy generated predominantly from existing and future stages of our Lincoln Gap wind farm project,” Nexif co-chief executive Matthew Bartley said.

Siteworks in progress at Snapper Point, Outer Harbor, for the relocation of electricity generators leased by Nexif Energy from the State Government. Picture supplied
Siteworks in progress at Snapper Point, Outer Harbor, for the relocation of electricity generators leased by Nexif Energy from the State Government. Picture supplied

“We are in the process of doubling the wind farm and battery project from its existing 222MW to 474MW through the addition of a further 252MW of wind capacity.”

The diesel generators were bought by the previous Labor government to provide emergency supply.

However, the Liberal Government decided to lease them to the private sector with Nexif paying $93.7m over 25 years.

The second set of generators has been leased to Infigen Energy for $125.5m. They will be moved from Lonsdale to Bolivar.

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Original URL: https://www.adelaidenow.com.au/news/south-australia/nexif-energy-50m-project-to-switch-generators-from-diesel-to-gas/news-story/e3ae80c266f0b5f55995fce8f6c27420