French renewable energy developer Neoen looks to sell $1.6bn stake in Australian division
Renewable energy developer Neoen is looking to sell a 30 per cent stake in its Australian unit to accelerate the expansion of wind, solar and storage plants across the country.
French renewable energy developer Neoen is looking to sell a 30 per cent stake in its Australian unit to accelerate the expansion of wind, solar and storage plants across the country.
It comes six weeks after the company pledged to double its zero emission generation pipeline in Australia by 2030 to take advantage of the country’s lofty renewable energy targets.
Neoen has started to work with a financial adviser on the potential sale, which could take place in the second half of 2024 should a buyer be found.
According to reports by Bloomberg, the 30 per cent stake could raise more than €1bn ($1.65bn) and would be part of Neoen’s plan to expand in Australia and elsewhere past 2025 without having to undertake a new share sale by the Paris-based parent company.
Neoen is 42 per cent-owned by French billionaire Jacques Veyrat through his Impala SAS holding company.
A representative for Neoen declined to comment to The Australian on the potential transaction on Monday.
France-based Neoen operates 21 local renewable energy developments, including wind farms, solar projects and large-scale batteries, making it one of the largest players in the industry.
Australia is one of the Neoen’s biggest growth markets, accounting for 47 per cent of its portfolio, and it revealed plans in February to double its zero emission generation pipeline locally by 2030 to 10GW.
Should Neoen reach its target, it will be vying with Andrew Forrest’s Squadron Energy to be the country’s largest renewable energy developer.
Squadron Energy has pledged to develop 14GW of wind and solar by 2030, which is about one-third of the generation Australia will need to meet its transition goals, a target that would certainly be within reach should it and Neoen deliver.
The Australian Energy Market Operator estimates the country needs 57GW of grid-scale solar and wind generation capacity to be installed by 2030. The current capacity is 19GW.
Australia – one of the world’s highest per capita emitters – is currently on course to miss its renewable energy targets, stoking concerns the country will have to prolong the use of coal or risk blackouts.
Neoen shares have slumped more than 10 per cent this year on France’s CAC Mid 60 index to €26.24. Along with other renewable energy developers, the company has been affected by market sentiment that higher interest rates and building costs could undermine returns on solar and wind projects.
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