The Federal Government’s Northern Australia Infrastructure Facility (NAIF) has announced investment approval of its seventh project in the Northern Territory, with a $37 million loan to help construct new power generating facilities.
The NAIF loan to Australian-based investment manager Merricks Capital Pty Ltd will help fund:
- The Hudson Creek Power Station, a 12 megawatt (MW) capacity gas-fired power plant in Darwin, and;
- The Batchelor Solar Farm, a 10MW capacity solar farm near Batchelor, 100 kilometres 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.
Under the terms of NAIF’s funding, the project 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. It is expected that a total of 162 jobs will be created during construction.
NAIF’s latest approval means more than $830 million in loans have been announced to seven projects in the Territory, through either full or conditional loan approvals.
NAIF CEO Chris Wade said the power generation project promises to deliver modern, more efficient and cleaner power generation in the Territory.
“NAIF has now approved or conditionally approved more than $830 million in funding to projects in the Territory with more deals on the way,” he said.