Investment giant Macquarie has backed the Asian Renewable Energy Hub (AREH), a A$22bn ($15.5bn) Australian renewable energy mega-project whose ambitions have now expanded to at least 11GW and also counts Vestas among its partners.

Macquarie will provide unspecified development capital to AREH and join the consortium that already includes Intercontinental Energy and CWP Energy Asia, as well as the Danish wind group.

AREH was unveiled initially as a 6GW wind and solar hybrid project designed to export power to Indonesia via a long-distance subsea transmission line from its site in Western Australia.

Announcing its participation, Australia-headquartered Macquarie said the project is now looking at 7.5GW or more of wind power and in excess of 3.5GW of PV, and expects to export most of that locally.

A statement said: “More than half [is] now allocated for existing and new energy users in the Pilbara, including mines, mineral processing and anticipated large scale production of green hydrogen.

“The hub still retains significant generation for direct export to South East Asia via subsea electrical cables, but the emphasis on support for domestic economic growth has grown.”

The partners hope the first stage of the AREH can reach financial close in 2021, with phased build-out over the next six or seven years.

The AREH has been granted ‘lead agency’ status by the Western Australia state government, said the statement.

Transition

Macquarie joins Vestas in 11GW Australian mega-project