OX2 (renewable energy developer) has commenced construction of the Muswellbrook Solar Farm and Battery project in New South Wales, Australia, marking a significant step forward for the Swedish renewable energy developer's ambitions in the country's growing clean energy market.

Project Scale and Location

The Muswellbrook Solar Farm and Battery is situated within the Hunter Central Coast Renewable Energy Zone in New South Wales. The project combines 135 MWac of solar generation capacity with a 100 MW battery energy storage system.

Once operational, the solar farm is expected to produce approximately 347 GWh of clean electricity each year, sufficient to power around 52,000 homes. Construction began immediately following the announcement on May 18, 2026, with project completion targeted for 2028.

A Former Coal Site Repurposed for Renewables

One of the more notable aspects of the Muswellbrook project is the land on which it is being built. The site was predominantly associated with coal mining operations, making it an example of the broader energy transition playing out across the Hunter Valley region, historically one of Australia's most significant coal-producing areas.

Idemitsu Australia co-developed the project alongside OX2 and will remain a long-term landholder of the site once construction is complete. The arrangement underscores a continued relationship between the two parties beyond the development phase.

Financing and Offtake Arrangements

The project has secured a long-term hybrid power purchase agreement with an international offtaker. The agreement covers both the solar generation component and the battery energy storage system, providing revenue certainty across both assets.

On the financing side, MUFG is acting as the Sole Structuring Coordinator and Mandated Lead Arranger, Underwriter, and Bookrunner on the project financing. The involvement of a major global financial institution in the structuring role reflects the scale of capital required to bring a project of this nature to financial close.

Community Commitments

OX2 has also entered into a Voluntary Planning Agreement with Muswellbrook Shire Council, through which the company will fund community benefit programs.

The agreement formalizes OX2's obligations to the local community as part of the development approval process, a mechanism commonly used in New South Wales to ensure infrastructure projects deliver tangible benefits to surrounding communities.

OX2's Growing Australian Footprint

OX2 entered the Australian market in 2023, and the Muswellbrook project represents a concrete milestone in the company's expansion strategy in the region. The developer's current project development portfolio in Australia exceeds 3 GW and spans solar, wind, and storage projects across five states: Victoria, New South Wales, Queensland, South Australia, and Western Australia.

OX2 Chief Executive Officer Matthias Taft said the company is committed to a long-term presence in Australia. "I'm proud of the work that has brought this project to life and of our contribution to strengthening the energy supply in New South Wales. The investment highlights our long-term commitment to Australia and supports our growth as an independent power producer," Taft said.

The Muswellbrook project sits within the Hunter Central Coast Renewable Energy Zone, one of several REZs designated by the New South Wales government to concentrate renewable energy infrastructure and streamline grid connections for new generation and storage projects.

The zone's designation makes it a focal point for investment from developers seeking to bring projects online in a state that has committed to ambitious decarbonization targets.

Independent Power Producer Strategy

The commencement of construction at Muswellbrook is consistent with OX2's stated ambition to grow as an independent power producer, a business model in which developers retain ownership and operational control of assets rather than divesting them once built.

Taft's comments at the project announcement directly reference this strategic direction, signaling that OX2 intends to hold and operate Australian assets over the long term rather than treating them purely as development and sale opportunities.

The hybrid power purchase agreement structure, covering both generation and storage under a single commercial arrangement with an international offtaker, also reflects an increasingly common approach in the Australian market as buyers seek to contract not just for energy but for the firm or shaped power that paired battery storage can provide.

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