Cubico Sustainable Investments reached financial close on its two Wambo Stage I and Stage II wind farms that are located in Queensland, Australia. The two wind farms will provide 506 MW of power to help Queensland reach its renewable targets.

Project Details and Financing

The financial close will bring in A$ 650 million in project financing. The funding comes from a consortium of financial institutions. The consortium includes ANZ, Crédit Agricole, ING, NAB, and Westpac. ANZ will also provide bank guarantee facilities. NAB will be the Agent, Security Trustee, and Account Bank.

The financing has been organized into two separate five-year project finance facilities, one for each stage of the project. This investment willporting the development of renewable energy infrastructure in Queensland.

Also read: Redflow and Stanwell partner to boost Queensland’s energy transition with new battery technology 

Location and Joint Venture Partnership

The Wambo Wind farm is located in Western Downs region of Queensland nearby Jandowae. As per the company announcement, Cubico and Stanwell Corporation will form a 50:50 joint venture and develop the wind farm, while Stanwell Corporation shall also be an offtaker for Cubico’s 50% share electricity generated by the wind farm due to the cooperation between the two companies.

The established Cubico developed wind farm will generate more than 500 MW of renewable energy. It will annually power 200,000 houses through electricity produced by the wind farms. The project will help Queensland to achieve its aim of securing 80% of its electricity from renewable sources.

Operational Timeline

Stage I of the Wambo Wind Farm is set to commence operations in 2025, with Stage II following in 2026. Stage II will introduce 41 turbines, including the tallest onshore turbines in Australia. Together, these stages will make WamboCubico’s first operational project in Australia.

Supporting the Energy Transition and Employment Generation

The Wambo Wind Farm investment is a significant part of Queensland’s energy transformation. Along with creating up to 200 construction employment and more permanent positions after the plant is operational, the project will support the state’s green jobs drive.

In Australia, Cubico is well-known for overseeing a 2.5 GW pipeline of solar, wind, and battery storage projects. The corporation is helping Australia’s sustainable energy future and growing its presence there with this initiative.

CFO’s Statement on Project Financing

Matt Donaldson, Chief Financial Officer of Cubico, commented on the achievement, stating, “Securing two project financings simultaneously during construction is a major achievement and reflects the strength of Cubico’s relationships with our banking partners.”

He added, “We are grateful for the support of ANZ, Crédit Agricole, ING, NAB, and Westpac, which has been critical to the successful delivery of this important project.”

Advisory and Legal Support

White & Case (borrower’s counsel), who advised Cubico and King & Wood Mallesons, represented the lenders. Ashurst conducted legal due diligence, while DNV (technical), Aurora (market), WTW (insurance), and EY (tax and financial model audit) provided additional advisory services.

bp and XRG have successfully achieved financial close and established a new joint venture, Arcius Energy, which will develop international natural gas resources. Announced in February 2024, the joint venture is 51% owned by bp and 49% by XRG, ADNOC’s investment arm. The partnership combines the experience and development capabilities of both companies to create a competitive and resilient natural gas portfolio.

Also read: BP to Invest $7 Billion in Carbon Capture Project in Indonesia

Arcius Energy’s initial operations will focus on Egypt, where it will oversee two development concessions and exploration agreements assigned by bp. This move aligns with both companies’ goals of accelerating energy transition and growing a sustainable energy portfolio to meet rising global demand for cleaner energy.

Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG, highlighted the significance of the venture, stating, “The formation of Arcius Energy marks an exciting new chapter in our long-standing partnership with bp, and fully aligns with XRG’s objectives to accelerate the transformation of energy systems and build a world-scale integrated gas and chemicals portfolio to meet rising global demand.”

He added, “This progressive partnership will unlock a lower-carbon transition fuel to build a future where smarter, cleaner and more affordable energy is accessible for Egypt and the world.”

Also read: BP and Equinor Among Key Beneficiaries of £4 Billion UK CCUS Initiative 

A Strong Partnership with bp

Murray Auchincloss, bp’s Chief Executive, emphasized the importance of the collaboration, noting, “Arcius Energy brings together the strengths of our two companies to create a dynamic new platform for international growth in natural gas in the region. ADNOC, and now XRG, is a trusted partner, who we have worked with successfully for over five decades.”

As part of the company’s formation, Arcius Energy has appointed its senior leadership team. Naser Saif Al Yafei, from ADNOC, will serve as Chief Executive Officer, while Katerina Papalexandri, from bp, will assume the role of Chief Financial Officer.