British-Indian tycoon Sanjeev Gupta’s GFG Alliance acquires Australian energy firm
SIMEC ZEN Energy will work to improve energy security and reduce the cost of power.Updated: Sep 20, 2017 23:09 IST
Indian-origin business tycoon Sanjeev Gupta’s UK-based GFG Alliance on Wednesday reached an agreement to acquire a majority stake in Australia’s ZEN Energy as part of a strategic partnership.
The deal was struck through GFG Alliance’s energy division SIMEC Energy with ZEN, described as a prominent emerging Australian energy company providing businesses and households with affordable, reliable and tailor-made solutions.
SIMEC ZEN Energy, the new joint venture, will work to improve energy security and reduce the cost of power for GFG Alliance and other businesses in Australia.
“The high cost of energy for Australian consumers is debilitating for the economy and a crying shame for a country so rich in resources. We clearly see a need for industrial groups and energy generators to work together,” said Gupta, executive chairman of GFG Alliance.
He said that long-term sustainable energy solutions had to be founded on both economic and environmental principles in order for them to work properly.
Gupta added: “Combining our power expertise developed in the UK, and Zen’s local knowledge in Australia, is a natural partnership. ZEN Energy is proudly Australian and brings unparalleled market and technological knowledge to address the challenges faced by the Australian power sector. We are delighted to partner with them on projects and look to invest for further growth. Our main focus, as in the UK, will be renewable energy.”
Building on its experience in designing and installing solar and battery storage solutions for residential and commercial customers, ZEN offers power supply solutions to large industrial customers.
ZEN works closely with some of Australia’s largest energy users to reduce costs, increase reliability, and increase the amount of low-emissions energy used in industry, GFG Alliance said.
ZEN uses a combination of energy sourced from new and existing power plants, demand management technologies and energy storage to deliver energy supply solutions at a competitive price.
It also manages the development of new renewable energy projects.
Ross Garnaut, chairman of ZEN Energy, said: “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.
“We have been looking for the right capital investor and strategic partner to help realise our plans, and 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.”
SIMEC ZEN Energy will become a member of the GFG Alliance and will work closely with SIMEC Energy’s existing global energy team which already has 600 MW of power generating assets in the UK with another 400 MW under development, ranging from solid biomass and liquid bio fuels, to hydro and tidal, to wind and solar, and also cutting-edge waste-to- energy projects.
ZEN Energy will partner with SIMEC to deliver cheaper, more reliable and environmentally sustainable energy for SIMEC’s mining operations in South Australia and Liberty OneSteel’s operations in South Australia, Victoria, New South Wales, Queensland, and Western Australia.
SIMEC ZEN Energy will also project-manage the development of SIMEC Energy Australia’s new large scale energy projects, including solar PV, battery storage and pumped hydro facilities.
First Published: Sep 20, 2017 23:09 IST