Australian steel giant BlueScope is turning to solar to help power its Port Kembla Steelworks, signing a 7-year power purchase agreement to take the bulk of the output from the 133MW (AC) Finley Solar Farm to be located 100km west of Albury.

The landmark deal with ESCO Pacific and Schneider Electric continues the rush of major corporate buyers towards solar technologies, with Finley expected to supply the equivalent of 20 per cent of BlueScope’s Australian electricity purchases, “significantly” reducing costs and providing price certainty.

It also follows a commitment by UK billionaire Sanjeev Gupta to power his steelworks in Whyalla with solar and storage, a commitment that will result in more than 1GW of large-scale solar and storage.

Another major energy user, Sun Metals, has also switched on a 124MW solar plant in north Queensland to supply one-third of the power needs of its zinc refiner and to underpin a major expansion of its operations.

Numerous other major corporate buyers have also turned to wind and solar, with the likes of CUB aiming to go 100 per cent, and packaging giant Orora sourcing wind and solar for 80 per cent of its electricity needs, accentuating the vast chasm between economic reality and Canberra political rhetoric.

“This PPA is one of Australia’s largest corporate offtake agreements, and is the largest with a solar farm to date,” BlueScope’s head of Australian Steel Products John Nolan said in a statement.

“(It) complements our firm electricity supply arrangements, which provide the reliable electricity supply we need for manufacturing processes that must operate 24/7.

“The PPA will help keep downward pressure on our energy costs, and will support the gradual transition to renewable energy.”

There a certain irony in the fact that the deal has been struck by Bluescope, which is seen as one of the more recalcitrant of the big energy users in Australia.

Price details were not released, but it could be expected that Bluescope would pay about 8c-9c/kWh fr ts power, and the solar deal would be around 6c/kWh, including the renewable energy certificates.