Engineering and construction company Decmil (ASX: DCG) is set to enhance Victoria’s clean energy capabilities having been awarded a $51m construction contract at the Ryan Corner Wind Farm.
Already with extensive experience in wind farms to date, the contract was awarded as a joint venture between Decmil and RJE Global where Decmil will fulfil $51m of the scope and RJE the remaining $20m.
“This award is testament to our proven track record in successfully delivering wind farm projects, following the successful electrification of the Warradarge and Yandin wind farms this fiscal year,” said Decmil CEO, Dickie Dique.
“The contract also further strengthens our long-standing relationship with RJE, who worked with us as subcontractors for the Warradarge and Yandin projects.”
“Decmil is well positioned to capitalise on the long-term trend of increasing investment in blue-chip projects within the Australian renewable energy sector.”
The contract was awarded by GPG, a subsidiary of Spanish-based energy company Naturgy Energy Group which develops energy infrastructure projects all over the world.
Ryan Corner, located 300km from Melbourne, near Port Fairy, will be the third wind farm developed by GPG in Australia which has already lined up customers for the project with Snowy Hydro having already committed to 75% of output from Ryan Corner.
Under terms of the awarded contract, Decmil will design and construct the civil and electrical balance of the plant for the 52-turbine wind farm; including wind turbine bases, access tracks, site cabling and a switch room with their works expected to be completed by the end of 2021.
While some trading platforms are showing DCG shares having risen 900% following news of the DCG contract, it is the first day of trading on their shares under a 1:10 share consolidation.
Australian clean energy projects have recently been the target of international energy conglomerates as evidenced by the takeover of clean energy company Infigen Energy to Spanish giant Iberdrola for $841 million.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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