Renewable energy producer Neoen has signed a power purchase agreement with Australian utility CleanCo Queensland, for 110MW of wind energy.

The agreement will allow Neoen to build the 157MW Kaban wind farm in Ravenshoe town, 80km south-west of Cairns, Australia.

Once completed, the Kaban Green Power Hub will have the capacity to generate 457GWh of clean energy annually. This will supply clean energy into Powerlink Queensland’s transmission network.

The energy generated by the facility could power up to 95,900 Queensland homes.

The Northern Australia Infrastructure Facility is also expected to support Neoen’s investment of $264m (A$370m) for this project.

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Construction works for the Kaban Green Power Hub will begin next year. During the construction phase, the project will create more than 150 jobs in the region of Far North Queensland.

The wind farm will feature 28 wind turbines. These will connect to the existing 275kV overhead transmission line through a new substation, after the facility begins operations in 2023.

Neoen Australia managing director Louis de Sambucy said: “This agreement underscores our deepening involvement in the state’s clean energy transition, and we are proud to support Queensland’s progress towards its ambitious target of 50% renewable energy by 2030.

“We look forward to Kaban delivering an economic boost to Far North Queensland, supporting the region’s recovery from Covid-19.”

The latest power purchase agreement is the second agreement executed between the two companies this year, following the 352MW power purchase agreement for Western Downs Green Power Hub, Australia’s largest solar farm.

For CleanCo Queensland, it is said to be the third renewable energy offtake agreement since the utility’s start in December 2018.

The contract will also support the company’s target of 1GW of new renewable generation by 2025.