Vast Renewables, a clean energy technology company involved in the Port Augusta Green Energy Hub, has been placed into administration just three months after raising US$3.5 million ($5.3 million) from two of its major shareholders to progress the flagship project.
KPMG Australia’s Peter Gothard and Amanda Coneyworth have been appointed voluntary administrators of the company and its wholly owned Australian subsidiaries.
However, the administrators say the move does not affect Vast’s US-based entities or SiliconAurora Pty Ltd, which controls the Port Augusta Green Energy Hub including a 140-megawatt battery development.
Vast Renewables’ current operations are continuing as normal while the administrators investigate the state of the business and instigate a potential sale process.
Among the major projects under way by Vast Renewables is Vast Solar 1 (VS1), a 30-megawatt concentrated solar thermal power plant which is a utility-scale long-duration energy storage project in Port Augusta.
“KPMG is working closely with Vast’s management team to explore pathways that maximise the value of Vast’s major project VS1, and its interest in the Port Augusta Green Energy Hub,” says Gothard, turnaround and restructuring partner at KPMG.
“The administrators will be launching an urgent expression of interest campaign in the coming days, seeking parties interested in purchasing or recapitalising the business.”
Vast is a renewable energy and clean fuels platform focused on concentrated solar thermal power.
The company’s propriety CSP v3.0 technology is being incorporated into a pipeline of zero-carbon power projects including VS1.
The company announced in August that it had raised US$3.5 million through the issue of convertible notes to two of its largest and longest-standing investors, Nabors Industries and Canberra Airport Group.
The convertible notes were issued in tandem with an undisclosed capital raise targeting institutional and strategic investors.
Vast Renewables at the time said it was also advancing a collaboration with "a major player in the renewable energy sector with deep manufacturing capability and proven delivery of large-scale projects in comparable technologies".
The partnership was focused on accelerating deployment of Vast’s technology in global markets and unlocking new commercial opportunities for the business.
“The continued support from two of our long-term investors is a powerful endorsement of Vast’s technology and a strong vote of confidence in VS1,” Craig Wood, CEO of Vast Renewables, said at the time.
“This new funding keeps us on track to break ground on VS1 later this year, while our broader capital raise will enable delivery of VS1 and accelerate the rollout of our global project pipeline.”
The Port Augusta Green Energy Hub comprises a number of integrated projects designed to deliver clean, dispatchable energy and enable decarbonisation of transport and industry.
VS1, a concentrated solar thermal plant with eight hours of storage, previously secured up to $290 million in conditional federal government support, including a $180 million grant from The Australian Renewable Energy Agency (ARENA).
The 140-megawatt, two-hour lithium-ion battery project is being developed in partnership with Adelaide-based 1414 Degrees (ASX: 14D), to provide critical storage and grid stability.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support