By Giles Parkinson

Copyright reneweconomy

Australian renewable energy and storage developer Edify Energy says it will accelerate the rollout of its portfolio of giant solar and battery hybrid projects after agreeing to a $1.1 billion sale to Canadian investment group La Caisse.

The purchase was announced on Monday follow a sales process for Edify handled by Lazard Australia, and will deliver a sizeable windfall for the business started up a decade ago by founder and CEO John Cole.

La Caisse, which also has infrastructure investments in Australia, says it will provide the equity to push ahead with what will likely be Australia’s two biggest solar battery hybrid projects, totalling 900 megawatts (MW) and 3,600 megawatt hours (MWh).

One of these – at Smoky Creek and Guthrie’s Gap near Gladstone in central Queensland – has a deal with mining giant Rio Tinto to help power its giant aluminium smelters and refineries that it says need to swap out coal for renewables and storage by the end of the decade.

The other big project – at Ganymirra and Majors Creek project near Townsville – has already been named a winner of a federal government Capacity Investment Scheme auction, so has an underwriting agreement under its belt that should help secure finance and contracts with other parties.

A third big project, Nowingi in Victoria, will combine a 300 MW solar plant with a 2,400 MWh big battery and has recently received environmental approval from the federal government.

Edify has been one of the early movers in the battery market in Australia, building the country’s first co-located battery at Gannawarra – adjacent to but separately connected to a solar farm – and three storage units at the Riverina complex in NSW.

It also landed a first of a kind “system strength” contract for its newly commissioned Koorangie battery in Victoria, and has been busy preparing a fleet of new projects for approval, including at Peninsula and Burroway.

It is now a firm believer – like a growing number of other developers – in the ability of solar and battery hybrids to deliver what big customers like Rio Tinto want, and at a competitive price to wind energy which faces multiple issues form planning, transmission, social licence and rising costs.

“The agreement with La Caisse is a pivotal moment for Edify, providing balance sheet strength to seriously ramp up Edify’s speed of execution of firm dispatchable green generators,” Cole said in a statement.

“I am so very proud of the business that Edify has become and the exceptional team that creates and delivers the solutions to meet and exceed the needs of our customers and the grid.

“In La Caisse, we have found the perfect owner to supercharge the business and take Edify’s enviable market position to the next level.”

The Quebec-bsed La Caisse boasts net assets $C496 billion, or more than $A550 billion, and its purchase continues the huge influx of deep-pocketed international investors into the Australian market, including Brookfield (Neoen and X-Elio) and BlackRock (Akaysha Energy)

Emmanuel Jaclot, an executive vice-president at La Caisse, and head of infrastructure and sustainability, said the Edify projects it will back will strengthen the grid and advance decarbonization.

“This reflects our strong conviction in the critical role these technologies will continue to play in the global energy transition,” he said in a statement.

The purchase remains subject to various change-of-control and regulatory approvals. La Caisse was advised by ICA Partners and Clifford Chance as financial adviser and legal adviser, respectively, while Edify was advised by Lazard Australia and Herbert-Smith Freehills Kramer as financial adviser and legal adviser, respectively.

The Quebec-bsed La Caisse boasts net assets $C496 billion, or more than $A550 billion.

Want the latest clean energy news delivered straight to your inbox? Join more than 26,000 others and subscribe to our free daily newsletter.