Japan oil and gas giant takes stake in Australian wind and solar

Japanese oil and gas giant Inpex looks set to become the newest player in Australia’s renewables market, in a deal to buy a 50 per cent stake in the solar and wind energy assets of Enel Green Power.

Enel Green Power, a fully owned subsidiary of Italian major Enel, said on Thursday it has signed a deal to sell 50 per cent of all of its Australian “activities” to Inpex. The Australian business is valued at €400 million.

In its own statement, Inpex says the purchase will be made through its newly established subsidiary, Inpex Renewable Energy Australia.

Enel’s Australian assets span three completed large scale solar farms, including the Bungala 1 and 2 projects in South Australia (110MW each), and the small 27MW Cohuna solar farm in Victoria.

In the works, the company has just poured the concrete foundations for the turbines at its 76MW Flat Rocks wind farm in Western Australia.

It is also developing the 93MW Girgarre solar farm in Victoria, and recently claimed to have connection approval for a 96MW solar farm and 20MW battery in the central west of NSW.

The news of the sale does not come as a complete surprise – as RenewEconomy reported in February, there had been speculation that Enel had been shopping around its renewable energy assets in Australia.

The buyer, however, is an interesting twist. Inpex is Japan’s largest oil and gas exploration and production company, and is currently involved in projects across multiple continents, including the Ichthys LNG Project in Australia.

Inpex said on Thursday that, presuming the deal passes muster with the authorities, it expects to jointly control Enel Green Power Australia, overseeing its portfolio, developing its project pipeline and increasing its installed renewables capacity.

“This ensures EGPA will continue to drive the energy transition underway in Australia, accelerating its contribution to achieve the country’s net zero target,” Inpex says.

For Enel’s part, it says the deal with Inpex is in line with its own current strategic plan, which “envisages the implementation of partnerships in certain businesses and geographies to enhance value creation.

“The overall transaction is expected to generate a positive impact of around 87 million euros on the 2023 Group’s ordinary and reported EBITDA,” the statement says.

The closing of the sale is subject to conditions including clearance from the Australian Foreign Investment Review Board and Antitrust authorities.