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Southern Cross Electrical Engineering (ASX:SXE) – otherwise known as SCEE – has announced its acquisition of a $160M contract from the WA government.
SCEE is now the company largely in charge of the Collie battery project. Collie, a former WA coal mining town, has been selected to house a large grid-scale energy storage battery project.
Via a ‘Balance of Plant’ (BOP) contract, SCEE will be responsible for civil and structural work, firefighting systems, 220kms of cabling, the installation of 640 battery container units, and further work at the Port of Bunbury.
The company will also build-out maintenance and security rooms for staff. The project will be connected to the WA grid via two 330kV transmission lines.
The contract was awarded by state-owned Synergy and clocks the biggest contract in SCEE’s history.
The Collie battery project is intended to store power from wind and solar in massive battery cells overnight, meaning that towns connected to the project can use solar power at night in volumes large enough to mitigate the need for gas-fired turbine generation.
“Across the SCEE Group we have so many touch points into Australia’s path to achieve net zero emissions by 2050 but the scale of this award firmly positions us as a significant part of that energy transition,” SCEE chief Graeme Dunn said.
“Indeed, this project is the largest initial award by contract value in the group’s history, even surpassing the initial value of the Western Sydney International Airport terminal awarded to Heyday in 2021.”
SXE shares last traded at $1.23/sh.
