Molycop and Flow Power sign landmark renewable power purchase agreement

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Image Credit: molycop.com
Media Release

Molycop, incorporating Comsteel, has announced the signing of a long-term Power Purchase Agreement (PPA) with energy retailer, Flow Power. This agreement runs until 31 December 2030 and is backed by offtake agreements with the Bomen Solar Farm and the Sapphire Wind Farm, both located in regional NSW. The Bomen Solar Farm is currently under construction and is expected to be fully operational in the 2nd quarter 2020 while the Sapphire Wind Farm has been in full operation since November 2018.

Under the PPA, Molycop’s expected offtake of renewable energy is 100,000MWh per year which covers more than half of its electricity consumption in NSW. This will make Molycop one of the largest purchasers of renewable energy in Australia.

During its 100 years of operation Molycop has played an important role in economic and social development in many of the countries in which it operates. In Australia, Molycop manufactures and supplies high-quality products and services to the mining and rail
transport industries. Molycop’s entry into this PPA represents a new chapter in this tradition, reflecting its support for the renewable energy investment that has been made in regional NSW.

Michael Parker, President Molycop Australasia, said “This agreement is an important milestone for Molycop. It not only provides strong support to Australia’s pipeline of renewable energy infrastructure projects that will also benefit the wider community but also enables us to gain greater control over volatile energy costs”.

Many of Molycop’s customers have a strong focus on building sustainable and responsible operations. This focus and expectation also extend into their supply chains to their suppliers. By entering this long-term agreement Molycop is supporting the transition
to renewable energy which will also substantially reduce the carbon emissions associated with the generation of electricity.

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“From a sustainability standpoint, Molycop is not only supporting two important renewable energy projects, but we are further enhancing our credentials as a responsible and sustainable organisation. We already utilise 95% recycled feed for our steelmaking
process, material that would otherwise be exported, and we are offering customers an expanding range of recycling services” said Mr Parker.

Molycop chose to partner with Flow Power due to their offer of both wind and solar offtakes and access to the ARENA Demand Response program, as well as their energy sourcing and forecasting expertise.

Matthew van der Linden, Managing Director Flow Power, said “Flow Power is proud to be working with Molycop to unlock value from their energy sourcing. It’s fantastic to see Molycop take the next step on their energy journey. By combining renewable offtake and
demand response, our unique model will future-proof energy needs while supporting the changing energy system”.

Image Credit: molycop.com