Mytilineos advances Australian solar ambitions with major finance package

Greek resources and renewables company Mytilineos announced it has reached financial close on three Australian PV projects, two in Queensland and one in New South Wales (NSW), with a combined generation capacity of 238 MWp as it continues to develop its solar pipeline in the country.

The portfolio includes the 110 MWp Moura Solar Farm being developed near the town of the same name in central Queensland. Mytilineos said construction of the solar farm has already been completed and the asset is now undergoing hold-point testing and expected to begin generating power in 2023.

Also included in the portfolio is the 53 MWp Kingaroy Solar Farm, also in Queensland, and the 75 MWp Wyalong plant being developed in the NSW Riverina region. The company said construction of the Wyalong Solar Farm is “substantially progressed” with the project expected to be completed in the first half of this year. Early works have begun on the Kingaroy project with main works expected to be carried out during 2023.

The financing package, from backers ANZ and Westpac, is structured as a combination of term facility, construction facility and ancillary facilities totalling $234 million (USD 156 million).

Mytilineos Renewables Executive Director Nikos Papapetrou said the new funding will enable additional projects to be financed and constructed in 2023 and beyond, further consolidating the company’s position in the wider Australian and Pacific market.

“Australia is a key market for Mytilineos’ global renewables development strategy, extending across the Asia-Pacific, Europe, and Latin America regions,” he said. “We are pleased with the trust given to the company and to our vision in the region and we look forward to many more successful financings for our future projects”.

According to the company, its Australian portfolio totals 400 MW and is part of a worldwide pipeline of solar and energy storage projects under various stages of development that exceeds 4 GW.

Once completed, the Moura, Kingaroy and Wyalong solar farms are expected to produce about 500 GWh of renewable energy annually.

Mytilineos said the majority of that power has already been sold in a series of long-term power purchase agreements (PPAs). More than half of the output of the Moura Solar Farm has been allocated through a long-term PPA with Queensland government-owned generator CS Energy while Smartest Energy, an electricity retailer owned by Japanese investment company Marubeni, has an offtake agreement in place for power produced at the Kingaroy installation. Publicly owned telecommunications company NBN Co has inked a deal to acquire about half of the output from the Wyalong Solar Farm.

This is Mytilineos’ second project financing in Australia, having reached financial close on three 40 MWp solar farms in NSW in late 2021.

ANZ Corporate Finance Executive Director Mark Clover said Mytilineos’ expansion in Australia is “encouraging” for the renewable energy market and aligns with the bank’s goal of funding and facilitating $100 billion in sustainable solutions by 2030.