The US$22 billion project will send tens-of-gigawatts of solar electricity from the Northern Territory to Singapore via a 4200 kilometre high-voltage direct current subsea cable through Indonesia.
The 27-30GW solar farm will cover 12,000 hectares of land on the Powell Creek Station in the NT, and is to be backed up by a 36-42GWh battery with electricity sent to Darwin before heading undersea to Singapore where it is expected to meet 15% of the city-state's yearly electricity demand.
Sun Cable suggests the AA PowerLink will be the largest renewable energy infrastructure project in the world.
Sun Cable joined Australian and Indonesian government representatives this afternoon to announce Indonesia's support for the project, with Sun Cable saying the company would invest around US$2.5 billion in Indonesia over the 70-year life of the project.
Indonesian coordinating minister of maritime affairs and investment, Luhu Binsar Panjaitain welcomed Sun Cable's operation in Indonesia, confirming the government's support for the route of the transmission cables, with the Ministry of Transportation granting the subsea survey permit.
According to a local Indonesian government announcement, the project plans to cross the Belitung, Leper, and Tuing seas before reaching its destination in Singapore.
"In collaboration with Australia, the Indonesian government supports one of the largest renewable energy projects in the world, namely Australia-Asia PowerLink (AAPowerLink)," the Indonesia government said.
Sun Cable CEO David Griffin described the nod of approval as a significant milestone for the project.
"We want this world-leading project to create a step-change in the Indo-Pacific's capability to achieve net zero ambitions and economic growth sustained by renewable energy," he said.
An indicative map of Sun Cable's route.
Final investment decision is slated for 2023, with the project set to export first electricity from 2027. The company expects the AA PowerLink to generate around A$2 billion in exports for Australia each year and see over A$8 billion in direct investment in Australia.
Northern Territory chief minister Michael Gunner welcomed the announcement, noting Sun Cable have established an office in the Territory and have employed more than a dozen firms in Darwin for initial works.
"This is another major step forward for this multi-billion project," he said.
The project has been granted Major Project Status by the Northern Territory and federal governments and has the financial backing of Fortescue Future Industries chairman Andrew Forrest and Atlassian co-founder Mike Cannon-Brooks among others.
"This announcement is a testament to our two countries' close relationship and as a proud investor I congratulate Sun Cable's achievements in working with Indonesia to secure this milestone," Forrest said.
The project expects to generate 1500 construction jobs and 350 operational jobs, as well as support new green manufacturing industries in the Northern Territory. Solar arrays will be built in Darwin and transported to Powell Creek by train, according to a project factsheet.
Sun Cable is currently undertaking an environmental impact statement and expects approvals to be determined by the end of next year.
