Neoen secures landmark $1.1B debt financing for Australia

Three Neoen workers wearing high-vis clothing and hardhats on a construction site (debt financing)
Image: Neoen

Neoen Australia has secured landmark debt financing of a 1.5GW diversified renewable energy portfolio of eight wind, solar and battery storage assets, raising over AU$1.1 billion.

Related article: Neoen first to reach 3.3GW renewables capacity in Australia

The deal is one of the largest for a renewable energy portfolio in Australia. It covers a significant portion of Neoen’s high-quality, diversified portfolio of Australian solar, wind and battery storage assets.

The debt raised allows the refinancing of approximately $700 million of single asset-level debt with the remainder dedicated to the financing of new assets, the first of which is Collie Battery Stage 1 (219MW/877MWh) in Western Australia.

The portfolio of operating assets incorporates three solar farms (Numurkah Solar Farm in Victoria, Western Downs Green Power Hub in Queensland and Coleambally Solar Farm in New South Wales) and four wind farms (Bulgana Green Power Hub in Victoria and Hornsdale Wind Farms 1, 2 and 3 in South Australia).

The first new asset financed though this packaged debt is Collie Battery Stage 1, Neoen’s first major project in Western Australia and its first 4-hour long duration battery globally. It has a 197MW/4-hour capacity services contract with the Australian Energy Market Operator (AEMO). Construction of Collie Battery is underway and on track for completion in Q4 2024.

Neoen Australia CEO Louis de Sambucy said, “We are delighted to announce this landmark financing of a portfolio of Neoen assets, and we sincerely thank all our lenders for their trust and commitment.

Related article: Neoen wind farm and battery to help power BHP mine

“This transaction demonstrates the unique combined value of our portfolio and strengthens our business model of long-term owner and operator. It provides a solid foundation for achieving our ambition of 10GW in Australia by 2030.”

Previous articleAusNet launches $10M Energy Resilience Community Fund
Next articleARENA chips in $24M for Origin’s Mortlake Battery