ReNu Energy is looking to add first large-scale PV projects to its portfolio of solar and bioenergy generation assets. The Brisbane-based IPP has executed two term sheets with Astronergy Solar Australia for the acquisition of two 5.8 MW DC (4.95 MW AC) grid connected solar developments in South Australia.
Located near Kadina and Bungama, the two solar farms are in the final stages of obtaining all necessary development and connection approvals, according to ReNu. It is anticipated that all project approvals will be in place by 30 June, and that construction will be completed and generation commenced in Q4, 2019.
As next steps, the two companies will work to complete due diligence, negotiate and enter into legally binding agreements, including Sale & Purchase Agreements (SPA) for each project. The completion of each project SPA will be conditional upon ReNu Energy obtaining suitable finance to acquire and construct the project, and all necessary regulatory and shareholder approvals.
“We have stated on a number of occasions that we are focused on becoming cash flow positive for the first time in the company’s history in 2019, and we believe these projects represent a great opportunity for us to deliver on our target,” ReNu Energy CEO Craig Ricato said.
Earlier this month, ReNu Energy announced that it aimed to raise around $5.5 million – before costs – via a pro-rata non-renounceable shareholder entitlement offer for growing and expanding the company’s bioenergy and solar PV businesses.
ReNu Energy’s electricity generation assets include the 600 kW Amaroo Solar PV Project, in the ACT, the 1.1 MW AJ Bush Bioenergy Project in Queensland, the 1.6 MW Goulburn Bioenergy Project in NSW, and 2.2 MW of solar PV embedded network projects across four regional shopping centres in NSW and South Australia.
For Astronergy, the potential purchase of the two solar farms would mark a watershed for its local operations, with its footprint now extending across Australia, Europe, Asia, Africa and North America.
“Astronergy is actively engaged in the solar industry and the successful acquisition by ReNu Energy marks a big milestone for Astronergy in the Australian market,” said Lu Chuan, the CEO of Astronergy. “We would like to invest more in Australia in the future and explore more opportunities with our partners.”