Renewable energy developer OX2 has started construction on its Muswellbrook solar farm and battery project in New South Wales, comprising 135 megawatts (MWac) of solar generation alongside a 100-megawatt battery energy storage system (BESS).
Located within the Hunter Central Coast Renewable Energy Zone (REZ), the project is expected to generate approximately 347 gigawatt-hours of clean electricity annually. This output will provide enough renewable energy to power roughly 52,000 Australian homes.
In a symbolic shift for the region, the project is being constructed predominantly on land previously used for coal mining operations.
Resource company Idemitsu Australia co-developed the precinct with OX2 and will remain involved as the site’s long-term landholder.
“I’m proud of the work that has brought this project to life and of our contribution to strengthening the energy supply in New South Wales. The investment highlights our long-term commitment to Australia and supports our growth as an independent power producer,” says Matthias Taft, CEO OX2.
The project has already secured commercial viability with the Muswellbrook solar farm signing a long-term hybrid power purchase agreement with an international offtaker.
The deal covers both the solar output and the battery storage capacity. Global banking giant MUFG is backing the development as the sole structuring coordinator, lead arranger, underwriter, and bookrunner for the project’s financing.
To ensure local residents benefit from the transition, OX2 will fund community development initiatives via a Voluntary Planning Agreement (VPA) locked in with the Muswellbrook Shire Council.
Construction on the precinct has commenced, with full completion and grid commissioning slated for 2028.
Since entering the Australian market in 2023, OX2 has rapidly built a massive three-gigawatt development pipeline spanning solar, wind, and storage projects across five states.