Viva Energy Group Limited ('Viva Energy') announced today that it has entered into a long term Power Purchase Agreement (PPA) with Acciona who own and run Mt Gellibrand, one of Victoria's newest and largest wind farms near Colac, 65km west of Geelong.
The agreement, which is a financial contract, secures pricing for Viva Energy on approximately 100GWh per annum of electricity, which represents around a third of Viva Energy's Geelong Refinery's annual electricity needs. Further, it supports the Mt Gellibrand Wind Farm in Victoria which is home to around 30 percent of all wind farm generation in Australia, with the refinery being one of the States largest electricity users.
Viva Energy CEO Scott Wyatt said, 'Access to reliable and affordable electricity is critical for our refining operations which need to operate continuously and be able to compete with large scale refineries overseas.'
'Over the last few years the cost of electricity supply in Victoria has more than doubled and has become increasingly subject to pricing spikes due to weather and reliability events causing disruptions to generation and supply.
'Our research has shown that renewable energy is very competitive with existing sources of generation and can be a viable and sustainable part of the energy mix for a business like ours.
'This agreement with Acciona is a win-win outcome for us both as it helps lock in a stable electricity price over the long term, while supporting a local renewable energy source not far from the refinery.'
Acciona Energy Australia Managing Director Brett Wickham said, 'Companies like Viva Energy know the value of securing a reliable price for energy. We are pleased to be working with them on this corporate PPA, which helps underwrite our Mt Gellibrand wind farm, and share their commitment towards greater energy efficiency and sustainability for industrial processes.'
The PPA commenced in January 2019.
About Viva Energy
Viva Energy is one of Australia's leading energy companies and supplies approximately a quarter of the country's liquid fuel requirements. It is the exclusive supplier of high quality Shell fuels and lubricants in Australia through an extensive network of more than 1,200 service stations across the country.
Viva Energy owns and operates the strategically located Geelong Refinery, in Victoria, which converts imported and locally sourced crude oil into petroleum products including gasoline, diesel, jet fuel, aviation gasoline, gas, solvents, bitumen and other specialty products.
Viva Energy operates bulk fuels, aviation, bitumen, marine, chemicals and lubricants businesses supported by a nationwide fuel supply chain with an extensive import, storage and distribution infrastructure network, including a presence at 52 airports and airfields. Visit www.vivaenergy.com.au
About Geelong Refinery
Built in 1954, the Geelong Refinery has been an integral part of the Geelong community for more than 60-years. It is a key driver of Victoria's economy, supplying more than half of the State's fuel requirements, employing about 700 people and spending more than $200 million each year in wages and procurement of services.
The Geelong Refinery, one of four refineries remaining in Australia, has a capacity to refine 120,000 barrels of oil per day to produce petrol, diesel, jet fuel, bitumen, LPG, propylene, solvents, avgas and marine fuel oil. Crude oils and feedstock for the refinery come from a variety of sources including locally from Bass Strait, the Otways and the Cooper Basin, as well as internationally from Asia, the Middle East and occasionally West Africa.
About Acciona in Australia
ACCIONA is a global leader in sustainable solutions for infrastructure and renewable energy projects. Since establishing a presence in Australia in 2002, ACCIONA has invested more than AUD$1 billion through local investment opportunities and project development. As a national business ACCIONA employs more than 1,000 people in its renewable energy, infrastructure and water projects across the country.
About the Mt Gellibrand wind farm
Project Configuration: 44 x AW3,000 3MW turbines
Start of Active Construction: Early 2017 Completion Date: Late 2018
Capacity: Up to 132 MW
Energy Production: Equivalent up to 60,000 households
Project Value: Approximately $258 million
Tip Height: 150 metres
The $258m project generated significant economic activity in the region providing over 100 construction jobs and approximately 10 full time operational positions.