Origin Energy has agreed to sell its Cullerin Range wind farm in NSW to Duet Group for $72 million, as part of an ongoing program to offload non-core assets.
It will continue to source electricity from the project after signing a long term offtake agreement.
The 30 megawatt wind farm, located near Goulburn in southern NSW, was set up in 2009.
The sale is part of Origin’s plan to raise $800 million through divestment of non-core assets that began in September 2015, aimed at strengthening its balance sheet amid a slump in oil prices.
The company has said asset sales would include infrastructure and wind energy assets, and its interests in oil and gas fields in the Cooper and Perth basins.
Including the Cullerin sale, Origin has so far raised $468 million through asset sales.
The gas and power retailer made a loss of $254 million in the first half of 2015/16 on the back of the oil price slump, which also forced it to raise $2.5 billion through an equity raising in 2015, and outline massive cost cuts in an effort to pare back debt.
Origin’s balance sheet has been weighed down by the development of the giant Australia Pacific LNG (APLNG) project in Queensland.
It has preferred to invest in solar projects as part of its shift toward renewables, and in May agreed to buy the entire output from an under development solar farm in Queensland.
Origin shares were up one cent at $5.35 at 1305 AEST, while Duet Group was down 2.5 cents at $2.435.
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