Power Purchasing Agreement (PPA) Secures Net Zero Future

July 10, 2024

NCIG Secures Net Zero Future with Power Purchasing Agreement (PPA)

Newcastle Coal Infrastructure Group (NCIG) today announced a significant step towards achieving Net Zero operational emissions by signing a 10-year Power Purchase Agreement (PPA) with a leader in renewable energy generation.

This PPA supports the development of a solar farm in the Upper Hunter region. It will supply NCIG with enough clean energy to power its Kooragang Island facility entirely from renewable sources from 2030 onwards.

The announcement follows NCIG’s recently released Net Zero Transition Plan, which outlines a clear path towards achieving Net Zero operational emissions by 2030. This PPA is a major milestone in this ambitious plan.

The PPA allows NCIG to shift from relying on incremental progress through the ongoing purchase of Large-Generation Certificates (LGCs) to a robust investment structured to support attaining Net Zero operational emissions by 2030.

“We’ve been diligently evolving our sustainability practices for the past eight years,” said NCIG CEO Aaron Johansen. “While we’ve successfully met our energy offset commitments using LGCs for the past three years, we wanted to meet our future commitment by securing long-term renewable energy supply and supporting new infrastructure investment in our region.”

Currently, NCIG uses approximately 80 GW/h of electricity annually, sourced from the national grid and partially offset using LGCs. In FY24, NCIG purchased and retired enough LGCs to account for 30% of energy use, amounting to approximately 24 GW/h.

“This partnership not only guarantees we reach our Net Zero operational emissions goal by 2030, but it also paves the way for other local businesses to embrace a sustainable future and allows us to secure long-term pricing for our energy,” added Johansen.

NCIG’s Approach to Sustainability

NCIG acknowledges the inherent development uncertainties associated with executing an agreement with a prospective development. However, the potential rewards—achieving Net Zero operational emissions by 2030, creating local jobs, and growing the renewable energy supply pool—far outweigh these uncertainties.

This agreement marks a significant step forward for NCIG’s sustainability journey. By embracing renewable energy and partnering for positive change, NCIG is securing a cleaner future for its operations and the Hunter region.

Learn more about our approach to sustainability and review our annual Sustainability Reports for more information about our pathway to Net Zero operational emissions.