Billionaire-backed Sun Cable signs Bechtel to renewables project
Sun Cable, backed by billionaires Andrew Forrest and Mike Cannon-Brookes, has signed US heavyweight Bechtel to the giant renewables project.
The $30bn Sun Cable power project backed by billionaires Andrew Forrest and Mike Cannon-Brookes has signed deals with major contractors including US giant Bechtel as it targets delivery of the renewable export project to Singapore by 2027.
Bechtel – which built Queensland’s three LNG plants – will be tasked with project delivery of Sun Cable with insurance operator Marsh contracted with risk management, PwC Australia with advisory, Hatch with engineering and SMEC with design consultancy.
The project is expected to begin construction from late 2023, with first supply of electricity to Darwin in 2026 and to Singapore in 2027.
Sun Cable aims to provide up to 15 per cent of Singapore’s needs by exporting electricity from the Northern Territory to Singapore via a 4500-km subsea cable, creating a $2bn annual renewable export industry. The venture aims to send 20 gigawatts of power from the world’s largest solar farm near Tennant Creek to Darwin and would also feature a giant battery as part of the project.
Washington’s leading diplomat in Canberra said the contracts show US and Australian companies could jointly deliver major renewable projects in a bid to meet net zero emission targets.
“President Biden said it well: ‘Nations that work together to invest in a cleaner economy will reap rewards for their citizens’. The Sun Cable project is a perfect example of this in practice,” US Chargé d’Affaires Michael Goldman said. “It shows that leading US and Australian companies, in partnership with nations of the region can build a sustainable, net-zero future. This is great news in advance of Glasgow.”
The project has previously received support from Scott Morrison with Indonesia approving the route of the power project through its territorial waters.
During his visit to Singapore in June, Mr Morrison directly raised the Sun Cable project with Prime Minister Lee Hsien Loong, which he said could “see homes powered here … from solar panels in Australia”.
The scheme is expected to be promoted by Australia to illustrate the importance of ASEAN partnerships in reducing emissions in the Indo-Pacific region.
“This project is designed to significantly accelerate the carbon zero ambitions of the region and we have brought together a dream team to bring it to fruition,” Sun Cable chief executive David Griffin said.
It endured a potential setback last week after a Singapore buyer, iSwitch, that lined up for supplies closed its operations amid soaring energy prices. Still, Sun Cable remains confident it will have commercial customers in place for offtake of the project.
Sun Cable gained major project status from the Major Projects Facilitation Agency and support with both federal government, state and territory approvals. The NT government also awarded the development major project status on July 20 amid hopes it will give a major boost to the nation’s renewable investment, which has taken a hit in the last year.
Mr Forrest, chairman of major iron ore producer Fortescue Metals Group, invested through his Squadron Energy unit, which is also backing Australia’s first gas import plant in Port Kembla.
