Top End goes backwards on renewables as cattlemen fret about SunCable’s capital raising

A new report has pointed to the failure of the Northern Territory to keep up with the rest of the country in the race to renewables, as local express concerns about the future of the $40 billion SunCable project.

The Cattlemen’s Association fears follow reports that SunCable has failed to reach its fund raising targets, but the company, majority owned by software billionaire Mike Cannon-Brookes, says a $157 million capital raise that was officially launched in April is still alive. 

A SunCable spokesperson Renew Economy it has enough funding to continue development activities and the current raise is “well progressed with several parties.”

“The capital we are raising will fund the next stages of development, which include preparations toward enabling the project to reach financial close,” a statement said.

SunCable has pencilled in 2027 as the year for a final investment decision.

The NT Cattlemen’s Association worries were stirred by a report last week in The Australian newspaper suggesting the cap raise wasn’t going well, which cited anonymous sources saying there was little interest in funding the new round. 

“Despite not securing the capital required to progress the project, SunCable continues to actively engage with landholders, seeking access agreements and disrupting existing business operations,” NCTA chief Romy Cary told the NT News.

“This approach is premature and deeply problematic. Landholders are being asked to make long-term commitments to a project that has not demonstrated financial viability or provided meaningful detail on the benefits to the Territory.”

She also expressed frustration that a large number of big projects in the Territory do not have clear benefits arrangements for locals, such as lowering power prices. 

SunCable in deep planning stages

SunCable’s massive flagship project, the Australia-Asia PowerLink (AAPowerLink), wants to export 1.75 gigawatts (GW) of electricity generated in the Northern Territory to Singapore. 

Its last capital raise was successfully closed in 2022 for $210 million, and the project is now deeply in the planning and permitting stage of development.

The project has conditional approval from Singapore’s energy market authority to supply energy, and  Australian federal environmental approvals for the first stage of the project, which includes the section of the project’s sub sea cable that is in Australian waters.

Talks with Indonesia are tentatively progressing. The cable will need to cross Indonesian territorial waters to reach Singapore – but Indonesia currently has a monopoly on energy supplies to the city-state.

“The Indonesian government has been a strong supporter of the Australia-Asia Power Link, and we are working constructively with them and the relevant authorities to progress the project,” SunCable said in a statement.  

“We have been approved to undertake — and have completed — subsea surveys to give the project confidence in the proposed cable route. The project continues to advance, undertaking key development activities focused on securing approvals, progressing technical work, and exploring commercial opportunities.” 

SunCable was originally centred around a plan to build 20 GW of solar near Tennant Creek and up to 42 GWh of battery storage, and supply Singapore via a 4,200km high voltage sub-sea cable.

Those plans have changed, firstly after a falling out with another green billionaire, Andrew Forrest, who wanted the project to focus on green hydrogen opportunities. Then, after bringing in Australian based Quinbrook Infrastructure, the shape of the project has changed again.

It is now likely to be split between solar and wind, with up to around 12 GW of each technology, which will require less battery storage as the wind will produce during the evening.

NT going backwards on renewables

But as SunCable works through the enormous volume of work required to get a large scale project off the ground, a new report shows the Northern Territory has a lot of work ahead to catch up to the rest of Australia in renewable energy. 

The Northern Territory sources only 11 per cent of its energy from renewables, and aside from SunCable’s project, doesn’t have much else happening in the clean energy space. 

“The Territory has the natural assets to become Australia’s renewable energy leader, but we need to move faster in the race to renewables,” says Environment Centre NT’s Bree Ahrens in a statement. 

“By coming last in the race to renewables, the Territory is missing out on jobs for local tradies, electricians, and solar suppliers.”

The States of Transition report was released on Monday and says the NT would reach just 22 per cent renewables by 2050 on its current trajectory – but politically the Territory is now going backwards in this space. 

In March the new Finocchiaro government scrapped the renewable energy target of 50 per cent by 2030, and it has backflipped on an election promise to implement a 2030 emissions reduction target.

The report recommends the Territory reintroduce legislated renewable energy targets alongside policies, and offers more support for rooftop solar and home batteries.

“More battery storage, greater investment in the grid and bringing back our renewable energy target will help cut bills and deliver more reliable power for Territorians,” Ahrens says.

“The CLP Government… must be held to account for our dismal progress in the transition to renewable energy and setting the Territory up for climate disaster.

“The Territory’s nature is under threat from the twin climate and biodiversity crises. We need to act urgently to speed up the transition to renewables, while ensuring our iconic Territory landscapes are protected by robust planning and nature laws.”

• * This article has been updated to include comments from SunCable.
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