Leading Australian renewable and storage developer seeks buyer in major asset sale
French renewable energy and storage company Neoen is considering selling nearly one third of its Australian portfolio to raise funds for future investments. This move, reported by the Australian Financial Review, would mark a significant shift in the renewable energy market in the country.
The sale of a thirty per cent stake, which is said to be managed by the Bank of America, could potentially become the largest single sale of renewable and storage assets in Australia. This transaction would surpass previous notable deals, such as the acquisition of CWP by iron ore magnate Andrew Forrest’s Squadron Energy.
Key Assets and Projects
Neoen boasts some of the most prominent renewable and storage assets in Australia, including the renowned “Tesla Big Battery” located at Hornsdale. This facility was a pioneer in introducing grid-forming inverters on a large scale. Additionally, Neoen operates the largest battery in the country, the 300 MW, 450 MWh Victoria Big Battery.
Furthermore, the company owns a variety of wind farms like Hornsdale, Bulgana, and Kaban, along with a substantial portfolio of solar farms including Western Downs and the Blyth battery. Neoen is also involved in projects like the Goyder South wind farm, which is set to provide renewable energy to BHP’s Olympic Dam mine.
Market Analysis and Share Price
Despite its success in Australia and other countries, Neoen’s share price has remained stagnant or even declined over the past few years. This trend has persisted, especially in the last 12 months, despite the company’s strategic plans to have 10 GW of assets operational or under construction by 2025.
According to sources in the investment banking sector, the 30 per cent stake in Neoen Australia is estimated to be valued at approximately $1.6 billion. Neoen’s primary shareholder is Jacques Veyrat’s Impala SAS, which is associated with TagEnergy, a firm involved in developing the Golden Plains wind farm in Victoria.
Recent Developments and Financing
Neoen recently finalised a $1.1 billion financing arrangement, led by ANZ, for multiple wind, solar, and battery storage projects in Australia. This includes the Collie battery in Western Australia and assets like the Blyth battery and the Capital battery in the ACT.
The company is actively working on projects such as the Goyder South wind farm, which is anticipated to become the largest wind farm in South Australia upon completion.
ANZ’s global head of Project and Export Finance, Aaron Ross, highlighted this transaction as one of the most significant renewable energy financings in Australia.
Neoen’s potential divestment of a portion of its Australian assets signifies a strategic move to reallocate resources for future growth and development in the renewable energy sector.
