Embattled engineering firm Clough is understood to have withdrawn from the $4bn contest to build a major renewable energy zone in NSW.
The contest to develop zones in the state’s central-west Orana region had narrowed in May to three consortiums, which included a joint venture between Elecnor and Clough, known as Secure Energy, Essential Energy and the Plenary Group.
But sources say Clough has walked away due to its own challenges elsewhere.
Clough and Webuild were awarded a $5.1bn contract for the civil and electric-mechanical works. The Australian also revealed last month that the pair had filed $2.2bn of additional payment claims.
Clough counts South Africa’s Murray & Roberts as its parent company and some have considered that its support is critical to its future.
The other consortiums vying for the Orana REZ contract were ACE Energy, which includes Acciona, Cobra and Endeavour Energy, and Network REZolution, made up of CIMIC and APA Group, advised by Macquarie.
The zones are part of the state’s move to transition from coal-fired energy to cleaner forms of generation such as solar and wind farms over time.
The contract is due to be awarded next year.
The Orana REZ will be the first of five across NSW and will unlock three gigawatts of capacity by the mid-2020s.
The network operator will design, finance, build, operate and maintain the network infrastructure for the Central-West Orana REZ.
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