World’s Largest Solar Project Falters After Aussie Billionaire Backers Disagree On Future Direction
Mike Cannon-Brookes, co-founder and chief executive officer of Atlassian Pty Ltd., reacts during the … [+] Financial Review ESG Summit in Sydney, Australia, on Friday, June 15, 2022. Billionaire campaigner Mike Cannon-Brookes insists AGL Energy Ltd. needs to shutter its coal-fired power plants by the middle of next decade to meet global climate targets and bolster profitability. Photographer: Brent Lewin/Bloomberg
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Sun Cable—among Australia’s most ambitious solar projects that plans to export electricity to Singapore via a 4,200-kilometer submarine cable—has entered into voluntary administration after shareholders disagreed on the future direction and funding of the project.
Backed by activist billionaire Mike Cannon-Brookes and mining tycoon Andrew Forrest, the A$30 billion ($21 billion) project that’s been billed as the world’s largest solar farm will likely seek expressions of interest for either recapitalization or sale of the business, Sun Cable said on Wednesday. The company has appointed FTI Consulting as voluntary administrators.
“The appointment followed the absence of alignment with the objectives of all shareholders,” Sun Cable said. “Whilst funding proposals were provided, consensus on the future direction and funding structure of the company could not be achieved.”
Sun Cable’s decision comes six months after the company attempted to raise funding in July with the appointment of Macquarie Capital and Moelis & Co. as joint financial advisers. In October, the company said it received commitments from potential customers in Singapore.
“Sun Cable has achieved so much since it was founded in 2018,” Cannon-Brookes, chairman of Sun Cable, said in a statement. “I’m confident it will play a huge role in delivering green energy for the world, right here from Australia. I fully back this ambition and the team, and look forward to supporting the company’s next chapter.”
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Cannon-Brookes—whose fortune comes mainly from his stake in Atlassian, a collaboration software company he cofounded—has been doubling down investments in renewable energy and other sustainable projects. He plans to invest a further A$1 billion into the sector on top of the A$1 billion he’s already invested through Grok Ventures. Cannon-Brookes and his wife Annie have pledged to donate A$500 million to nonprofits seeking to alleviate climate change.
In May, the tech billionaire bought an 11.3 stake in AGL Energy, making him the largest shareholder in the Australian utility. Cannon-Brookes has since appointed his nominees to the company’s board in a bid to accelerate the phase out of AGL’s coal-fired power plants.
