Sydney Airport has signed an eight-year power purchase agreement (PPA) with CWP Renewables and Origin Energy in a deal advised by Allens.
Under the deal, the Sapphire Wind Farm and Crudine Ridge Wind Farm will supply Sydney Airport with renewable energy at a fixed price. The Sapphire Wind Farm is a 273 megawatt wind farm located near Glenn Innes in regional NSW, while the Crudine Ridge Wind Farm is a 134 megawatt wind farm located near Mudgee in regional NSW.
The PPA is part of Sydney Airport's commitment to lower its car bon footprint, and is one of a number of steps towards its targeted 50 per cent reduction in carbon intensity by 2025.
Electricity contracted under the agreement represents up to 75 per cent of Sydney Airport's electricity consumption. The PPA is backed up by Origin, who will provide firming electricity to Sydney Airport under an electricity supply agreement.
“PPAs are a growing trend as more and more corporates see the benefits of securing longer-term, fixed-price electricity procurement arrangements,” said Kate Axup, partner at Allens. “It is encouraging to see businesses focused on securing renewable power as part of their energy mix. We were delighted to work with Sydney Airport on this significant transaction.”