The deal and the projects
European Energy A/S agreed to push forward a portfolio topping 1 gigawatt across New South Wales. In a Thursday statement, AirTrunk laid out the plan: a 260 megawatt solar facility, a battery rated at no less than 800 megawatts, and a 350 megawatt wind farm, all sited in the Hunter-Central Coast Renewable Energy Zone.
European Energy and AirTrunk are negotiating a multi-year power purchase contract aimed at supplying the New South Wales electricity needs of Blackstone Inc.-backed AirTrunk. That would encompass AirTrunk's proposed Kurri Kurri data center, which AirTrunk plans to build on the grounds of a former aluminum smelter.
Policy and timing
Canberra wants data center developers to line up their own renewable supply as the fast growing sector runs into local resistance in urban areas. Regulators are changing the grid connection rulebook too, with the Australian Energy Market Commission announcing reforms on Thursday to prepare for data centers' share of demand climbing to 13% by 2035 from about 3% now.
AirTrunk said the renewable projects are slated to begin operations between 2030 and 2032. Remaining steps include locking in grid-connection terms, securing approvals, and completing additional technical reviews.
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The bottom line
For portfolios riding the buildout of AI and clean energy, this agreement maps a sizable NSW pipeline while AirTrunk weighs contracting to anchor its statewide load, including Kurri Kurri. The timing depends on permits and grid hookups, but the demand trend is pointed in one direction.
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