Arrium’s new owner GFG Alliance has bought Adelaide’s ZEN Energy in a move designed to “dramatically reduce” power costs
ARRIUM’S new owner GFG Alliance will buy a majority stake in Adelaide renewable power company ZEN Energy in a bid to “dramatically reduce the cost of dispatchable power’’.
ARRIUM’S new owner GFG Alliance will buy a majority stake in Adelaide renewable power company ZEN Energy in a bid to “dramatically reduce the cost of dispatchable power’’.
GFG will buy a majority stake in Zen from its owners which include former federal climate change adviser Ross Garnaut and Economic Development Board chairman Raymond Spencer.
GFG bought Arrium out of administration last month for a figure rumoured to be about $700 million with GFG executive chairman Sanjeev Gupta indicating at the time that the company had big ambitions to grow the mining and steelworks businesses but also expand into power generation.
Mr Gupta said in a statement today that the high price of power in Australia was a “crying shame” and the newly named SIMEC ZEN Energy would be a key part of the strategy to make the Whyalla operations energy self -sufficient, as well as providing solutions nationwide.
“The high cost of energy for Australian consumers is debilitating for the economy and a crying shame for a country so rich in resources,’’ he said.
“We clearly see a need for industrial groups and energy generators to work together. Long-term sustainable energy solutions need to be founded on both economic and environmental principles in order to work properly.
“With our partners, we can deliver a step change in the power industry, bringing innovative solutions and new projects to dramatically reduce the cost of dispatchable power. “GFG Alliance is already one of the biggest users of industrial energy in Australia. Given the issues here, it has been a priority for us to take decisive remedial steps. Combining our power expertise developed in the UK, and Zen’s local knowledge in Australia, is a natural partnership.’’
ZEN, which was founded by Richard Turner who remains involved as a shareholder and director of innovation, started life as a solar installer, but has grown into a company providing full-service renewable solutions including demand management and energy storage.
It has been involved in many of the larger solar projects in SA and nationally.
The Arrium assets at Whyalla and across Australia have been renamed and now are known as SIMEC Mining Australia, SIMEC Infrastrcuture Australia and Liberty OneSteel.
GFG said the companies were substantial energys users.
“SIMEC Zen Energy will become a member of the GFG Alliance and will work closely with SIMEC Energy’s existing global energy team which already has 600 MW of power generating assets in the UK with another 400 MW under development, ranging from solid biomass and liquid bio fuels, to hydro and tidal, to wind and solar, and also cutting-edge waste-to-energy projects,’’ GFG said.
“ZEN Energy will partner with SIMEC to deliver cheaper, more reliable and environmentally sustainable energy for SIMEC’s mining operations in South Australia and Liberty OneSteel’s operations in South Australia, Victoria, New South Wales, Queensland, and Western Australia.
“SIMEC ZEN Energy will also project-manage the development of SIMEC Energy Australia’s new large scale energy projects, including solar PV, battery storage and pumped hydro facilities.’’
Mr Garnaut, who is the chairman of ZEN, said it was a good fit for the company.
“We have been looking for the right capital investor and strategic partner to help realise our plans, and have found the perfect match in Sanjeev and the SIMEC Energy team,’’ he said.
“Their understanding of the energy dilemma this country faces, which is making much of our industry uncommercial and environmentally unsustainable, means we see the market need and opportunity in the same way.
“We are excited about the future, as this will yield benefits for Australian jobs, investors, communities and the environment.”
cameron.england@news.com.au