Pacific Energy expands east coast presence with new hybrid power system for Iluka

07 May 2025
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Pacific Energy has been awarded the contract to deliver a 30MW hybrid power generation facility by Iluka Resources for its new Balranald mineral sands mine in southwestern New South Wales. The system is the second of its kind to be delivered in NSW by west-coast headquartered Pacific Energy, just one hour south of its new hybrid facility at Tronox’s Atlas-Campaspe mine.

Balranald’s hybrid power system will comprise a 10.6MW solar farm, 14.4MW of diesel power, and a 5.4MW/3.2MWh grid-forming battery energy system that will be designed and manufactured in-house by Pacific Energy. The power system will be capable of hydrocarbons-off functionality and will be delivered under a 12-year build-own-operate agreement.

Pacific Energy has engaged PBE Rutherford to install a 2km overhead powerline connecting the solar farm to the power station. The contract builds on the partnership developed between the two companies for similar work at the Tronox project.

Pacific Energy will also be installing a temporary power station at the Balranald site by the end of May to deliver power while the permanent power station is under construction.

Pacific Energy Chief Executive, Jamie Cullen, said the company was pleased to be continuing its longstanding partnership with Iluka and to be growing its footprint in the east.

“Collaborating with Iluka on the Balranald project underscores the continued trust in our partnership, which dates back to 2009 in South Australia, when we established the Jacinth-Ambrosia power station and have since undertaken a solar expansion under our long-term contract there,” Mr Cullen said.

“We’re really pleased to be working with a client who sees the value in maximising energy efficiencies and integrating a renewable energy component that will ultimately play a role in the transition to a lower carbon economy.

“Our Balranald system will be the second off-grid hybrid power system we’ll be delivering to a miner in New South Wales, marking another important milestone in Pacific Energy’s operational expansion and national growth strategy.”

Iluka’s West Balranald deposit is one of the world’s highest grade critical minerals deposits, containing significant quantities of rutile and zircon, as well as smaller but material quantities of rare earths. With the deposit located at 60 metres below the surface and within a hyper-saline water table, traditional extraction techniques were not deemed economically or technically feasible. In response, Iluka has developed a new remotely operated underground mining technology to access the deposit, and this will be deployed at commercial scale for the first time at Balranald.

Iluka commenced early works on site in H2 2023 and remains on track for commissioning in H2 2025. Site works for Pacific Energy’s permanent power system are expected to commence in June, subject to approvals, with the power station due to come online by the end of 2025 and the solar due for completion in March 2026.