Sims announced today it has commenced a process to sell its shareholding in LMS Energy after a strategic review of its assets identified that the company would be better served putting more funds into its core business of metal recycling.
Sims Managing Director and Chief Executive Officer Alastair Field said Brisbane-based LMS remains a good business but not a core asset and the sale is consistent with the company’s business strategy to recycle capital and grow the core metal business.
“LMS has grown to be a leading bioenergy and methane abatement company in Australia and expanded into new markets including the United States,” he said in a statement. “The business has an experienced, dedicated management team, and I am confident in its continued growth.”
Founded in 1996, LMS was the first Australian company to successfully design and install a solar facility on a landfill site and now owns and operates six PV facilities and 36 plants turning biogas into energy. The facilities, established on landfill sites throughout Australia, collectively generate approximately 600,000 MWh of baseload renewable energy each year.
The company’s solar assets include a 1.5 MW solar system at Albury in New South Wales, a 0.15 MW system at Wollert in Victoria, a 1.15 MW system in the northern suburbs of Adelaide in South Australia and a 0.6 MW array at Seaford Heights in the city’s south.
LMS said its strategy of establishing PV plants on landfill sites helps address land-use concerns associated with the development of large-scale solar farms.
“One of the big knocks against solar panels is how much land they take up compared to how much power they generate,” the company said. “Decommissioned landfill sites can be an excellent platform for generating solar energy as often they can’t be used for other purposes due to potential contamination risks. And they’re already close to electricity grid infrastructure because of electricity generation from landfill biogas.”
LMS chairman John Falzon said the relationship remains strong with Sims and he is excited about the opportunities that lie ahead with a new partner.
“I believe in this business and my family is committed to continuing to grow our business to preserve the planet for future generations,” he said.
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