Billed as the largest clean energy project in the country, work has ground to a halt at Andrew Forrest’s central Queensland project.
Tattarang Chairman Andrew ‘Twiggy’ Forrest believes he is building a “green energy future” following the launch of Squadron Energy’s wind farm.
“Squadron, which is now the biggest renewable energy player in our country, with the largest suite of projects in front of it,” Mr Forrest told Sky News Business Editor Ross Greenwood.
“We want to see that company produce the lowest cost of energy in the world for Australians as Australia’s largest energy company from renewables.”
The iron ore mogul’s private business arm is funding construction of the development, billed as the largest in the southern hemisphere, which will generate at least 1 gigawatt of power from wind, 400 megawatts from solar and will have a battery up to 2GW in size.
Dr Forrest’s Squadron Energy has taken over operational control of the project from Windlab, itself 75 per cent owned by his private business interests.
The unusual move had seen Squadron carrying out compliance checks as part of a move into the engineering phase with wind turbines being delivered to site.
Squadron has gone a step further and confirmed a full review of the project is now underway.
“As part of the handover to Squadron Energy, we are briefly pausing work and doing a full project management review before on-site activity increases when component deliveries begin,” Squadron Energy chief executive Jason Willoughby said.
“All agreements with contractors remain in place and will continue. We understand the impact pausing work can have and we will keep contractors updated on when they can get back on site.
“The project management review is examining all aspects of best practice delivery including biodiversity, safety and cultural heritage plans.”
Squadron is an arm of the Forrest family’s Tattarang business which owns 36 per cent of the iron ore giant Fortescue Metals Group.
It is not known when work will resume.
The private business inked a $4bn-plus deal to buy CWP Renewables in late 2022.
“Squadron Energy now has the in-house capability available to manage construction of its own projects, following the acquisition of CWP Renewables,” Mr Willoughby added.
“As a result, we are working with Windlab to transition the delivery management of Clarke Creek Wind Farm from Windlab to Squadron Energy.”
The CWP deal will propel Squadron into Australia’s largest renewable player with a 2.4 gigawatt portfolio and a local development pipeline of 20GW. Its portfolio will provide enough electricity to power 8.5 million homes, more than double the number of homes in NSW.
It pits the Forrest fortune up against the deep pockets of Canada’s Brookfield, the company behind a $18.7bn takeover offer for Origin Energy, and with a plan to install 14GW of new green generation over the next decade.
Squadron decided against considering a takeover of either Origin Energy or AGL Energy to pursue growth, pointing to their fossil fuel footprint and unconvincing leadership on the green transition. Squadron plans to roll out its 20GW renewable target, including 7GW of wind and 2.5GW of solar.