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Administrators FTI Consulting have this week opened up the bidding process for Sun Cable, the company spearheading an ambitious $30 billion international solar transmission project.
Having fallen into administration last month, Sun Cable appointed FTI to head up the voluntary administration process with an aim to either recapitalise the company or sell it to new owners in order to progress the next stage of its Australia-Asia PowerLink (AAPowerLink) project.
FTI Consulting have appointed MA Moelis Australia and Moelis & Company (together, ‘Moelis’) as sale advisor, which is now looking for offers for sale or recapitalisation of the company.
The update comes just over a week after Mike Cannon-Brookes’ Grok Ventures, one of Sun Cable’s major backers, gave the company $65 million of interim funding, understood to provide the company with about six months worth of capital at zero interest.
According to FTI, this funding has allowed the continued development of Sun Cable’s development projects, including the AAPowerLink project - tipped to be the world’s largest intercontinental renewable power system once complete.
“The Administrators have secured funding to allow the continued development of Sun Cable’s development projects, whilst the sale process is undertaken,” FTI Consulting said.
“The Administrators are seeking binding proposals for the sale of Sun Cable by end of April 2023, with targeted completion no later than the end of May 2023.
“Moelis will now commence a process to invite offers for sale or recapitalisation of the company.”
Once up and running, Sun Cable’s project will transmit renewable electricity from the Barkly region of the Northern Territory to Darwin and Singapore, drawing on the favourable sunlight conditions in the nation’s top end.
The project involves a solar generation precinct near Elliott, just north of Tennant Creek in the Northern Territory, with 800km of overhead transmission to Darwin and 4,200km of undersea power cables between the coast and Singapore.
If successful the $30 billion-plus development would give Darwin a significant increase in electricity supply and account for around 15 per cent of Singapore's energy usage, while reducing CO2 emissions by 8.6 million tonnes annually.
FTI Consulting said Stage 1 of the project has materially progressed, having gained federal and local government support and a number of the required approvals.
“The project has also been subject to extensive technical review in conjunction with its project development partners, as well as seeing strong offtake interest that exceeds available supply,” FTI said.
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