Renewable energy developer Sun Cable Pty Ltd, the company behind the AUD-30-billion (USD 20.78bn/EUR 19.38bn) Australia-Asia PowerLink (AAPowerLink) project between Australia and Singapore, has gone into voluntary administration.
The company said on Wednesday it has appointed administrators from FTI Consulting to navigate the process, which is seen as a measure that will provide additional capital for the further development of its flagship project. The decision for the move was taken following “the absence of alignment with the objectives of all shareholders.”
“Whilst funding proposals were provided, consensus on the future direction and funding structure of the company could not be achieved,” Sun Cable said.
The administrators will only work with the company’s management team and key shareholders, among which are billionaire Mike Cannon-Brookes, through his private investment company Grok Ventures, and iron ore magnate Andrew Forrest’s Squadron Energy. Both of them took part in Sun Cable’s AUD-210-million Series B capital raising last March.
A call for expressions of interest for either a recapitalisation or sale of the business are likely results of the administration.
“Sun Cable continues to represent an outstanding strategic opportunity to operationally deliver the largest renewable energy project in the world, [..]” the troubled company said.
The AAPowerLink envisages the import of electricity into Singapore from a solar park of between 17 GWp and 20 GWp that will be built in Australia’s Northern Territory. The complex will also be coupled with 36 GWh to 42 GWh of energy storage capacity. Power exports are to be carried out via a 4,200-km (2,610-mile) undersea transmission cable.
Sun Cable aimed to begin construction in 2024 and start supplying electricity to Darwin in 2027. Full operations were targeted by 2029. According to its CEO David Griffin, the scheme is “well placed for completion.”
Sun Cable has a project portfolio totalling 11 GW, in addition to AAPowerLink.
(AUD 1.0 = USD 0.693/EUR 0.646)
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