ZEN, GFG form en­ergy JV

The Australian Energy Review - - NEWS - EL­IZ­A­BETH FABRI

ARRIUM’S new owner, GFG Al­liance, has bought a ma­jor­ity stake in re­new­able en­ergy com­pany ZEN En­ergy as part of its ‘strate­gic en­try’ into the Aus­tralian mar­ket.

Led by Bri­tish In­dian bil­lionare San­jeev Gupta, GFG has pur­chased a 50.1 per cent in­ter­est in the re­new­able power and bat­tery stor­age busi­ness through his fam­ily’s SIMEC en­ergy, in­fra­struc­ture and re­sources en­tity.

SIMEC ZEN En­ergy, the new name for the joint ven­ture, will work to­wards de­liv­er­ing cheaper, more re­li­able and en­vi­ron­men­tally sus­tain­able power for GFG’s min­ing op­er­a­tions in South Aus­tralia, NSW, Vic­to­ria, QLD and WA.

The com­pany will also project-man­age the devel­op­ment of SIMEC En­ergy Aus­tralia’s new large-scale so­lar PV, bat­tery stor­age and pumped hy­dro fa­cil­i­ties.

The deal fol­lows GFG’s ac­qui­si­tion of Aus­tralia’s largest in­te­grated steel and min­ing busi­ness, Arrium in late Au­gust.

GFG ex­ec­u­tive chair­man Mr Gupta said the group was “de­lighted” to part­ner with ZEN on pro­jects to help “dra­mat­i­cally re­duce the cost of dis­patch­able power”.

“The high cost of en­ergy for Aus­tralian con­sumers is de­bil­i­tat­ing for the econ­omy and a cry­ing shame for a coun­try so rich in re­sources,” Mr Gupta said.

“We clearly see a need for in­dus­trial groups and en­ergy gen­er­a­tors to work to­gether.

“Long-term sus­tain­able en­ergy so­lu­tions need to be founded on both eco­nomic and

“We clearly see a need for in­dus­trial groups and en­ergy gen­er­a­tors to work to­gether.”

“We have found the per­fect match in San­jeev and the SIMEC En­ergy team.”

en­vi­ron­men­tal prin­ci­ples in or­der to work prop­erly.

“With our part­ners, we can de­liver a step change in the power in­dus­try.”

ZEN chair­man Ross Gar­naut said the com­pany has been look­ing for the right cap­i­tal in­vestor and strate­gic part­ner to help re­alise its plans.

“ZEN has spent many years build­ing the strat­egy, busi­ness mod­els and man­age­ment and tech­no­log­i­cal ca­pac­i­ties to in­tro­duce new so­lu­tions to Aus­tralia’s en­ergy prob­lems of weak com­pe­ti­tion, high costs, low re­li­a­bil­ity and un­nec­es­sary pol­lu­tion,” Mr Gar­naut said.

“We have found the per­fect match in San­jeev and the SIMEC En­ergy team.

“Their un­der­stand­ing of the en­ergy dilemma this coun­try faces, which is mak­ing much of our in­dus­try un­com­mer­cial and en­vi­ron­men­tally un­sus­tain­able, means we see the mar­ket need and op­por­tu­nity in the same way.

“We are ex­cited about the fu­ture, as this will yield ben­e­fits for Aus­tralian jobs, in­vestors, com­mu­ni­ties and the en­vi­ron­ment.”

GFG Al­liance ex­ec­u­tive chair­man San­jeev Gupta. ZEN En­ergy chair­man Ross Gar­naut.

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