Hudson Creek Power Station and Batchelor Solar Farm
Explore how Merricks Capital's $37 million NAIF loan is driving the development of a 12MW gas power plant and 10MW solar farm in the Northern Territory, boosting energy efficiency and creating jobs while supporting the region's renewable energy goals.
July 2020
Energy
Darwin region, NT
A loan to finance a 12 MW gas power plant in Darwin and 10 MW solar farm in Batchelor, 100 km south of Darwin. Merricks Capital is the equity sponsor.
About Merricks Capital
Founded in 2007, Merricks Capital is a prominent investment management firm based in Melbourne, Australia. With a core focus on prudent fund and investment management, the company navigates diverse avenues encompassing real estate, infrastructure, and credit investments.
Merricks Capital excels in pinpointing exceptional investment prospects, strategically allocating capital to yield substantial returns for its clients and investors. This adeptness extends to financing real estate endeavours, steering infrastructure development, and offering vital credit solutions to businesses.
Project Overview
NAIF’s investment will help fund:
- Hudson Creek Power Station, a 12 MW capacity gas power plant in Darwin, and
- Batchelor Solar Farm, a 10 MW capacity solar farm, 100 km south of Darwin
Power generated by the facilities will provide Rimfire, the largest private electricity retailer in the Territory, with up to 90% of its future electricity generation needs.
How We Helped
NAIF’s loan for the Hudson Creek Power Station and Batchelor Solar Farm will help modernise Darwin’s energy networks and reduce reliance on older and less-efficient gas and diesel generators.
Public Impact
The project is forecast to create 162 jobs during construction, and 34 ongoing jobs. Total project value is forecast as $74 million, with public benefit predicted to be $224 million.
Other benefits include the introduction of modern solar and gas generation infrastructure into the NT electricity network, which is currently predominantly reliant on older, more expensive and less efficient gas and diesel generators. The project will also help the NT meet its renewable energy target of 50% per cent by 2030.
The commitment of NAIF to support the private sector in delivering cheaper and greener power is a perfect example of how Australia can replenish its ageing power fleet and do our part for the environment
Adrian Redlich
CEO, Merricks Capital
Related Links
Indigenous Engagement
- The Larrakia people
Darwin, known traditionally as Garramilla, is on Larrakia Country in the Northern Territory. Larrakia Country spans from Cox Peninsula in the west, Gunn Point in the north, the Adelaide River in the east, and as far south as Manton Dam. The original name of the language group now known as Larrakia is Gulumirrgin, the Larrakia are saltwater people, they have a rich history of trade, intermarriage, and shared ceremony with neighbouring groups such as the Tiwi, Wagait, and Wulna. Important cultural sites like Stokes Hill, Mindil Beach, Rapid Creek and Casuarina Beach remain sacred to the Larrakia and are part of an enduring cultural landscape. The Larrakia Traditional Owners are pivotal to the Darwin community including the Larrakia Nation Aboriginal Corporation (LNAC) who play a central role in preserving culture, protecting country, and supporting the social and economic advancement of Larrakia people on Larrakia Country.
Indigenous Engagement Strategy Commitments
- Committed to partnering with Larrakia organisations to deliver cross-cultural awareness training and support locally run programs and projects, and to sponsor First Nations organisations and events in the Darwin region to strengthen community ties.
- Pledged to become an Ally member of the Northern Territory Indigenous Business Network (NTIBN) and committed to establishing a partnership with NTIBN. Through the partnership, Merricks Capital will help establish a biannual Renewable Energy Indigenous Ecosystem Forum focused on collaboration, skills transfer, and innovation in clean energy.
- Provide financial assistance to help First Nations electricians obtain Clean Energy Regulator certification, contributing to skills development and workforce growth in the renewable energy sector.
Indigenous Engagement Strategy Outcomes
- In 2021 and 2022, Merricks Capital faced significant challenges delivering outcomes in their Indigenous Engagement Strategy (IES) due to COVID-19 travel restriction and subsequent delays with the construction of the project.
- In 2023, Merricks revised their IES with a stronger focus on engaging the Larrakia Nation Aboriginal Corporation (LNAC) and the NTIBN, including a commitment to support a renewable energy First Nations ecosystem forum with NTIBN to foster collaboration and skills transfer.
- In 2024, Merricks and project partners undertook cross cultural awareness training and provided various sponsorship including $5,000 towards NTIBN’s Blak Business Awards, $30,000 towards LNAC’s NAIDOC activities, and $15,000 to LNAC’s Larrakia Rangers as part of sea country monitoring in Darwin Harbour. NTIBN identified Boka Electrical and Dynamic Solutions NT as candidates for the commitment to upskill First Nations electricians that Merricks will support with accredited training. Furthermore, Merricks began working with operations and maintenance operators at both Hudson Creek Power Station and Batchelor Solar Farm sites to explore First Nations procurement opportunities via the NTIBN portal.
