Merricks Hudson Creek Power Station and Batchelor Solar Farm

Merricks Capital Pty Ltd, Hudson Creek Power Station and Batchelor Solar Farm

A loan to finance a 12MW gas power plant in Darwin and 10MW solar farm in Batchelor, 100km south of Darwin. Merricks Capital Pty Ltd are the equity sponsor. (Investment Decision July 2020)

About the project

NAIF’s investment will help fund:

  • Hudson Creek Power Station, a 12MW capacity gas power plant in Darwin, and
  • Batchelor Solar Farm, a 10MW capacity solar farm, 100km south of Darwin

Power generated by the facilities will provide Rimfire, the largest private electricity retailer in the Territory, with up to 90 per cent of its future electricity generation needs.

Other benefits include the introduction of modern solar and gas generation infrastructure into the NT electricity network which is currently predominantly reliant on older, more expensive and less efficient gas and diesel generators and a contribution towards the NT’s renewable energy target of 50 per cent by 2030.

Indigenous engagement

Under the terms of NAIF’s funding, the proponent will work with the Larrakia Nation Aboriginal Corporation (LNAC) to deliver cross cultural awareness training to employees and contractors and a range of other initiatives. Commitments include:

  • Ongoing engagement with six monthly meetings with CEOs of key Indigenous stakeholders to explore opportunities and collaboration including Larrakia Development Corporation (LDC), Larrakia Nation Aboriginal Corporation (LNAC), Iron Bark and Dice.
  • Larrakia Nation Aboriginal Corporation (LNAC) to deliver cross cultural awareness training to employees and contractors.
  • Annual support to upskill three Indigenous electricians to achieve Clean Energy Regulator Certification –through a partnership with Dice Australia (a 100 percent Indigenous owned NT electrical company).
  • Procure products through Ironbark’s Rapid Clean (a not-for-profit organisation supporting Indigenous communities in the Darwin Daly region).
  • Explore partnerships with the Larrakia Development Corporation (LDC) to support a renewable energy solution for the new Larrakia Cultural Centre.
  • Sponsorship of the annual NAIDOC Ball and support for community events.
  • Explore options for a flora & fauna project with Larrakia Rangers, CSIRO and Ironbark.

The energy projects will enable opportunities to develop positive, ongoing, collaborative relationships with the Larrakia people and the local Aboriginal community.

Through the Indigenous Engagement Strategy, Merricks are committed to engaging with the local community by:

  • undertaking cultural competency training;
  • contributing to capacity building in the local energy sector;
  • contracting local Indigenous businesses;
  • exploring future employment opportunities; and
  • providing community support for key events and projects.

IES reporting

Indigenous Engagement Strategy public summaries provide a short version of the IES and are available here:

* Financial assistance to the project is subject to a number of conditions including the finalisation of the Northern Territory Government’s consideration and agreement for the approved funds to be advanced.

 

Economic Impact and Public Benefit

A total of 162 jobs are forecast during construction and 34 ongoing jobs. Total project value is forecast as $74m, with $224m forecast public benefit.

Other benefits include the introduction of modern solar and gas generation infrastructure into the NT electricity network which is currently predominantly reliant on older, more expensive and less efficient gas and diesel generators and a contribution towards the NT’s renewable energy target of 50 per cent by 2030.

 

Ministerial media release
Link to proponent

 “The commitment of NAIF to support the private sector in delivering cheaper and greener power is a perfect example of how Australia can replenish its aging power fleet and do our part for the environment,”

Merricks Capital CEO Adrian Redlich