Neoen lands $1.1 billion in finance as green bank backs its first four hour battery

French renewable energy and battery storage developer Neoen says it has raised more than $1.1 billion in new debt finance for its Australian assets, including its first four hour battery currently being built in Western Australia.

Neoen is the biggest independent renewable energy developer in Australia with 3.75 GW of capacity operating or under construction, and the bulk of the debt package sourced from 11 different Australian and international institutions is for seven existing wind and solar asset totalling around 1.3 GW in the National Electricity Market.

These include the Numurkah, Western Downs and Coleambally solar farms, and four wind farms – Bulgana in Vitoria and the three stages of the Hornsdale wind complex in South Australia.

As part of the package, Neoen has also secured $55 million from the Clean Energy Finance Corp to support its first four hour battery project, the 219 MW, 877 MWh Collie battery that is due to be completed later this year.

The Collie battery is one of a number of new battery projects that have been contracted to time shift the output of the states rich solar resources from the middle of the day to the evening peaks.

It is the sixth big battery that has been backed by the CEFC, and the fifth big battery owned and developed by Neoen.

These include the Victoria Big Battery (300 MW/450 MWh), the Hornsdale Power Reserve (150 MW, 193 MWEh), and the new Blyth battery (237 MW, 474 MWh), both in South Australia, and the 100 MW/ 200 MWh Capital battery in the ACT.

The other big battery backed by the CEFC is Akaysha Energy’s 850 MW, 1680 MWh Waratah Super Battery, which will be the biggest in the country when commissioned next year.

“Neoen’s Collie Battery demonstrates how big batteries can ease transmission congestion and provide crucial support to the energy grid,” CEFC head of solar and battery storage Niall Brady said in a statement.

“As aging coal power plants retire and renewable energy continues to grow to meet Australia’s growing energy demands, storage provides critically important grid firming capacity to underpin reliable energy.”

Neoen says $700 million of the debt is for existing assets, with the rest set aside for new developments, including the Collie battery.

It says the package debt is being provided by Australian banks ANZ, CBA, and Westpac, as well as the CEFC, plus the Bank of China, China Construction Bank Corporation, The Hongkong & Shanghai Banking Corporation, ING, Mizuho, MUFG Bank, and Societe Generale.

Neoen plans to have 10 GW of assets operating or under construction by 2030 – significantly more than each of the country’s main energy utilities ,and intends to have a portfolio of solar, wind and battery storage in every state.

“This transaction demonstrates the unique combined value of our portfolio and strengthens our business model of long-term owner and operator,” said Neoen Australia boss Louis de Sambucy.

“It provides a solid foundation for achieving our ambition of 10 GW in Australia by 2030.” 

Xavier Barbaro, Neoen’s chairman and CEO said it is the largest financing deal achieved by Neoen in its 15 year history. “It demonstrates Neoen’s unparallelled ability to create value, thanks to its maturing and diversified asset portfolio, and thus provide a catalyst for our future growth in Australia and around the world,” he said.