The 120 megawatt (MW) solar farm at Wandoan in the state of Queensland is expected to be completed in early 2021. Shell will be the anchor customer for power from the project, partly for its nearby QGC coal-seam gas operation that feeds its QCLNG plant on Curtis Island.
"We believe solar will play an increasing role in the global energy system, especially when partnered with a reliable energy source such as gas," Shell Australia Chairman Tony Nunan said in a statement.
The company declined to comment on how much the solar project would cost.
The move follows Shell's acquisition last year of Australian industrial electricity retailer ERM Power and a stake in Australian solar developer ESCO Pacific. It has said it plans to boost annual spending on its power strategy to between $2 billion and $3 billion by 2025.
(Reporting by Sonali Paul; Editing by Tom Hogue)
