Renewable energy developer Ark Energy has reached a financial investment decision (FID) for its AU$1.3 billion Richmond Valley solar farm and battery energy storage system (BESS) in northern New South Wales.
Located roughly 25 kilometres south of Casino, the development marks the first build-to-own initiative in Ark Energy’s portfolio to achieve FID.
The decision unlocks a financing package comprising AU$586 million in equity funding and AU$716 million in debt financing.
The capital will fund the priority stage of the hybrid project, which pairs a 200-megawatt AC solar farm with a long-duration lithium-iron phosphate battery storage system capable of supplying up to 275 MW with 2,200 megawatt-hours of storage capacity.
Ark Energy CEO Michael Choi described the approval as a vote of confidence in the project’s economic fundamentals and direction.
“This approval represents a strong endorsement from Korea Zinc and confirms its continued commitment to supporting the Richmond Valley project and Ark Energy’s growth ambitions,” Choi said.
“We are thrilled to have reached this major milestone and look forward to moving the project into the next phase of financial close and construction.”
The milestone comes after a streamlined four-year development process during which Ark Energy secured state planning approval, Commonwealth environmental clearance, grid connection, and a Long-Term Energy Service Agreement under the NSW Electricity Infrastructure Roadmap.
During peak construction, the build is expected to support more than 850 direct and indirect jobs while injecting approximately AU$180 million into the local economy.
Ark Energy has also committed to providing community benefit funding of AU$850 per installed megawatt of solar generation annually for the life of the asset.
Environmental commitments include establishing a 30-metre-wide biodiversity corridor to reconnect the Ellangowan and Bungawalbin State Forests.
Financial close is targeted for September, with construction set to commence in October and operations expected by January 2029.