ReNu Energy to sell its 30% stake in Goulburn and Beaudesert projects
In Australia, independent power producer (IPP) and energy product provider ReNu Energy Ltd has announced that it has entered into a Securities and Asset Sale and Purchase Agreement (SPA) with Resonance Water Finance UK Ltd (Resonance) for the sale of its 30 percent interest in the Goulburn, New South Wales (NSW) and Beaudesert, Queensland (QLD) bioenergy projects for a total consideration of AU$500 000 (≈ EUR 302 815).
According to a statement, due to external factors at each site, the bioenergy projects have underperformed during the last 12 months, experiencing reduced operating and processing hours. A combination of drought, bushfires, processing plant infrastructure damage, and more recently the effect of the coronavirus (COVID-19) pandemic has resulted in lower electrical demand and effluent levels for processing.
This has led to reduced biogas production and electrical generation and reduced revenue for the Alliance. These conditions are expected to continue for the foreseeable future. A capital contribution is also needed to meet ongoing operational requirements.
As a result, ReNu Energy entered into discussions with Resonance for the sale of its 30 percent interest in both projects and has accepted an offer for AU$500 000 (≈ EUR 302 815).
The SPA is not subject to any conditions precedent and is expected to complete in early August. The Board considers the transaction to be in the best interests of ReNu Energy shareholders.
In reaching our decision to enter into an agreement with Resonance, the Board and Management have explored and considered a number of alternatives, including retaining our interest and making the agreed capital contribution, offering to purchase Resonance’s interest and divesting part of the interest to a third-party. Having assessed these alternatives and taking into account ReNu Energy’s available cash, our focus on closing out the Cooper Basin remediation activities and actively seeking out new project opportunities, the Board and I believe that this transaction represents the best option to advance the interests of our shareholders, said Boyd White, Chairman, ReNu Energy.