Queensland energy retailer LPE has raised $7.5m to join a ‘biohub’ in Bundaberg

ASX-listed energy retailer LPE will join a Bundaberg renewable power ‘biohub’ after raising $7.5m from investors.

Sunshine Coast-based energy retailer LPE has just raised $7.5m to join a “biohub’’ at Bundaberg which will generate renewable power from a combination of solar, battery, biogas, and hydrogen sources.

Sunshine Coast-based energy retailer LPE has just raised $7.5m to join a “biohub’’ at Bundaberg which will generate renewable power from a combination of solar, battery, biogas, and hydrogen sources.

The staged project, already partly built and scheduled for completion in 12 months, will see the listed company sell power to five tenants in the complex.

LPE announced Monday that it generated the funding via a placement from sophisticated and institutional investors, who paid 10 cents per share and also received a listed option for each stock acquired.

The company described the offer as “very well supported,” with total bids received well exceeding the original raise target of $6m.

LPE Chairman Justin Pettett

The money will primarily be used to develop what the company described as a “vertically integrated renewable energy generator system to power crypto mining and data centres to improve and accelerate returns’’. At least $5m will be spent on capital works.

Among the tenants will be cryptocurrency miner STAK Mining, as well as Bundaberg Hydrogen, biogas and biohydrogen laboratories and a data centre and freight logistics firm.

LPE said the deal will allow it to be better aligned with larger-scale renewable generation and also give it the option to convert $3m of its capital works funds into a half-stake in STAK Mining.

Chairman Justin Pettett said it’s “an exciting time” for the company, which saw revenue spike 27 per cent in the last financial year to $55m. It also returned to the black with a modest $918,000 net profit.

“LPE’s involvement in the development of the biohub will not only generate additional income with a healthy margin on our Capital Works Funds, together with energy sold into the BioHub, but will also give the company the option to build a potentially highly lucrative, vertically integrated revenue stream within our retailing business by energising a 100 per cent renewable powered crypto miner,’’ he said.

“The biohub and crypto mining option is attractive to new and existing investors coupled with our growing retailing business of over 46,000 customers…and our innovative solar virtual power plants launching this quarter.”

LPE shares closed down slightly to 10 cents on Monday after emerging from a trading halt.