Australian power and gas producer Origin Energy has agreed to acquire a 1.5GW wind project with integrated battery storage in New South Wales (NSW), Australia.
The deal with Virya Energy involves the Yanco Delta development, a significant wind and energy storage project in the Riverina district.
The company will pay A$125m ($81.4m) upfront to Virya. An additional variable payment of A$175m is contingent on achieving specific development milestones.
Located 10km north-west of Jerilderie, the Yanco Delta project will include 208 wind turbine generators and an 800MW/800MWh Li-ion BESS.
The project received development approval from the NSW Government in December 2023 and approval under the Environmental Protection and Diversity Conservation Act in February 2024.
Grid access and award will be finalised in 2024, with the selection of technology and delivery partners in 2025.
The final investment decision and commencement of construction are projected for 2025–26, with commissioning scheduled between 2027 and 2029.
Origin CEO Frank Calabria stated: “Yanco Delta is a large-scale, advanced and therefore highly strategic wind development project. With the key planning and regulatory approvals secured, and with significant plans for supporting infrastructure and transmission in place, the acquisition of Yanco Delta represents a major step forward in our journey to transition Origin’s portfolio to cleaner energy.
“Origin has made rapid progress in building out a portfolio of renewable and storage projects at varying stages of development, and Yanco Delta represents a unique opportunity to bring a material volume of renewable energy supply into the market relatively quickly, to help meet the needs of our customers.
Origin will finance the acquisition and development costs through corporate debt.
It is also exploring capital-efficient financing options for construction, including partnerships with capital providers.
In February 2024, the company expanded its renewable portfolio through the acquisition of Walcha Energy, which is developing the Ruby Hills wind and Salisbury solar projects with a combined planned capacity of 1.3GW.
These projects are located near Origin's recently acquired Warrane property in NSW.
