Allens has advised Oyu Tolgoi on its offtake arrangements with the Bilgekh Wind Farm, a 150MW wind farm with an integrated 50MW / 2-hour battery energy storage system being developed by Net Zero Energy in Mongolia.
Under the arrangements, Bilgekh Wind Farm will supply renewable energy to the Oyu Tolgoi copper and gold mine through a long-term remote generation power purchase agreement (PPA). Oyu Tolgoi is jointly owned by the Mongolian Government and Rio Tinto.
Allens advised on the negotiation of the PPA, as well as implementation of the arrangements and integration of the renewable energy supply into Oyu Tolgoi's existing power supply mix. The team also assisted with project due diligence.
The project represents a significant milestone in Oyu Tolgoi's decarbonisation journey and is expected to supply up to 30% of the mine's electricity requirements, reducing the mine's power-related emissions by approximately 30%. It will also improve energy security by increasing reliance on domestically generated electricity, with the project expected to supply around 0.5TWh of renewable energy annually from 2029.
'This agreement is the culmination of years of work by Oyu Tolgoi and its stakeholders to develop a solution that delivers both commercial and strategic value,' said lead partner Melissa Keane.
'The project will support Oyu Tolgoi's commitment to source power domestically and reduce reliance on imported electricity, and provide a long-term pathway to lower emissions through the introduction of renewable energy into Oyu Tolgoi's power supply mix.'
'We're seeing renewable energy projects play an increasingly important role in the decarbonisation of major mining operations as resources companies seek to secure reliable, lower-emissions power while advancing long-term sustainability objectives.'
The Bilgekh Wind Farm is expected to be one of the largest dedicated renewable energy facilities supporting a mining operation anywhere in the world and represents the most significant addition to Mongolia's power generation capacity in more than 50 years.
Allens has a long history advising Oyu Tolgoi on its mine development and power supply arrangements. The PPA drew on cross-disciplinary projects, energy and due diligence expertise from across the firm.
