Gunvor Signs 600MW, 12-Year South Australian Power Deal With Firmus
The agreement shows global commodity trading firms entering long-dated Australian renewable offtake as contracts shift toward rewarding delivery timing over raw generation volume.
Swiss commodity trading firm Gunvor has agreed to take power from a 600MW South Australian project under a 12-year supply agreement with Firmus, one of the larger long-dated renewable offtakes yet disclosed in the Australian market.3
South Australian spot power settled at A$137.52/MWh on Tuesday (2026-09-22). At those levels, the spread between volatile spot exposure and firm, shaped long-term supply creates enough commercial incentive for both sides of a decade-plus bilateral agreement. Australia's renewable energy market is entering a phase where electricity's value is increasingly determined by the ability to deliver power when and where it is needed, not by total generation volume, wattclarity.com.au reported on Wednesday (2026-09-23).3
ERM argued in early 2025 that the energy transition was overlooking a critical market. Wattclarity.com.au cited the Firmus-Gunvor agreement as a concrete example of PPA design adapting to that reality, shifting from contracts priced on total energy delivered to structures that carry a premium for delivery timing and reliability. At 600MW and 12 years, the deal is not a pilot.3
The generation infrastructure required to support shaped delivery has been advancing in parallel. Edify Energy reached financial close in May (2026-05-21) on the Smoky Creek and Guthrie's Gap Solar Power Stations, combining 720MWp of solar with 2,400MWh of battery storage — the largest solar-battery hybrid combination in Australia at that date. Battery co-location gives developers the operational flexibility to shape output against contracted delivery profiles that flat-profile solar or wind cannot reliably meet.1
South Australia is simultaneously contracting for gas across the same timeframe. Santos secured a 10-year deal in early July (2026-07-05) to supply 200 petajoules of domestic gas to the state from 2030, finalizing a preliminary agreement signed earlier in the year, Rigzone reported. Santos' capital commitment is AUD 357 million ($247.79 million), with joint venture partner Beach Energy adding around AUD 250 million. Santos expects infrastructure changes under the contract to reduce its share of field spending by AUD 600 million across the life of the assets.2
The Cooper Basin contributed 12 million barrels of oil equivalent to Santos' production last year, per the company's annual report, anchoring the supply base behind the South Australian commitment.2
Wallumbilla hub gas settled at A$10.87/GJ on Tuesday (2026-09-22). Gas supply into South Australia from 2030 and the growing stock of battery-backed renewable capacity being contracted via structures like the Firmus-Gunvor deal are both competing to fill the firm-supply gap in the state's generation mix. How each ramps relative to the other will set the price environment in which long-dated shaped PPAs in South Australia are renewed or replaced when they expire.2,3
The presence of Gunvor, a Swiss commodity trading firm, on the buy side of a 12-year South Australian renewable supply agreement signals a broadening of the buyer base beyond domestic utilities and retailers. Whether other international trading houses follow with comparable structures will be visible in PPA disclosure activity over the next 12 to 18 months. The benchmark for that trend is whether the delivery-timing premium embedded in South Australian contracts sustains as new battery capacity and Santos gas supply both enter service from 2030.3,2