ICA Partners joins Barrenjoey for Origin Energy role

Origin told the market in April it would acquire the Yanco Delta wind farm for up to $300m.

Another advisory firm has been added to Origin Energy’s $1bn-odd process to find a backer for its Yanco Delta wind-powered generation development.

DataRoom understands that Barrenjoey had been selected for the sale process, while ICA Partners is also involved.

The project is expected to cost more than $3bn. It is likely a suitor prepared to provide passive funding, such as a pension fund, is being sought.

Analysts say about two-thirds of the project is likely to be funded with debt, leaving Origin searching for a candidate to inject $1bn into the business.

Origin, which has an $18.5bn market value and a share price of about $10.80 at a time of soaring energy costs, announced the purchase of the renewable energy project in April.

It comes as part of Origin’s transition to renewables and away from fossil fuels, such as coal-fired power stations, as part of the government’s target of net zero carbon emissions by 2050.

Origin told the market in April it would acquire Virya Energy’s Yanco Delta wind farm – one of the largest and most advanced wind and energy storage projects in NSW – for up to $300m.

The project is located on a 33,000ha site 10km northwest of Jerilderie in the Riverina, in the NSW government-designated South West Renewable Energy Zone (REZ).

It consists of a 1.5 gigawatt wind farm and a 800 megawatt-hour battery, and is near key transmission infrastructure.

The project has received regulatory approvals.

Origin earlier said it would assess a range of capital-efficient options to finance construction of the project, including through partnerships.

Barrenjoey previously advised Origin with Jarden when it was in the crosshairs of Brookfield’s $16bn buyout proposal last year – which was rejected.