First Solar, Ingenero to Build Off-Grid Solar Farm for Rio Tinto's Weipa Bauxite Mine in Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--Weipa Solar Farm Pty Limited (Sydney, Australia), a special-purpose joint-venture formed by First Solar Australia Pty Limited (Sydney, Australia) and Ingenero Pty Limited (Brisbane, Australia), plans to build a 6.7-megawatt (MW) solar farm in two stages of 1.7 MW and 5 MW, respectively. The off-grid solar farm will supply electricity to Rio Tinto Alcan's (NYSE:RIO) Bauxite Mine in Weipa in Cape York, Queensland.

Power to the mine site is currently supplied by 26 MW of diesel generators. With the rising fuel costs combined with high transport costs, Rio decided to go with renewable solar energy to drive down costs. The first stage of 1.7 MW will offset 20% of peak electricity costs. With the second stage of 5 MW and storage, Rio hopes to balance out the intermittency and reduce daytime diesel consumption.

A total of 18,000 solar photovoltaic (PV) modules will be mounted on steel and aluminium structures in Phase I, generating 2,620 megawatt-hours (MWh) each year for use in the mine and the processing plant. About 54,000 panels will be added later for 5 MW.

First Solar will supply its advanced, thin-film PV modules and other balance of system components, in addition to providing operation and maintenance services for the duration of the project. Ingenero will be responsible for the design, construction and installation. Rio Tinto has signed an off-take agreement to buy power from the solar farm for 15 years.

The project's total value is approximately $23.4 million. Australian Renewable Energy Agency (ARENA) has provided $3.5 million for the first stage of the project; following completion of the first stage, the project will attract an additional $7.8 million.

Construction on the 1.7-MW stage is expected by the third quarter of this year, and completion is expected by early 2015. The completion of the second stage is expected by the first quarter of 2017.

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