One of Australia’s most ambitious renewable energy projects has entered into voluntary administration after shareholders could not come to a consensus on the future direction and funding of the plan to power Singapore using a 4,200km submarine cable, which was scheduled to begin construction in 2024.
The A$30 billion ($27.57 billion) Sun Cable, backed by billionaire climate crusader Mike Cannon-Brookes and iron ore magnate Andrew Forrest, will likely seek expressions of interest for a recapitalisation or sale of the entire business, the company said Jan 11. FTI Consulting’s Christopher Hill, David McGrath and John Park have been appointed as administrators, it said.
“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.”
The two billionaires have been key proponents of increasing Australia’s climate ambitions. Cannon-Brookes last year became the biggest shareholder in AGL Energy Ltd. and has worked to hasten the utility’s exit from coal. Meanwhile, Forrest bought a major renewables developer and is seeking to transform his Fortescue Metals Group Ltd., a key global iron ore supplier, into a major producer of green metals and clean hydrogen.
“Sun Cable has achieved so much since it was founded in 2018,” Cannon-Brookes said in the 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.”
In March 2022, Sun Cable completed a A$210 million Series B capital raising with existing shareholders to accelerate the progress of the Australia-Asia PowerLink, as well as other projects in its portfolio. The raising was led by Cannon-Brookes’ investment group Grok Ventures and Forrest’s Squadron Energy.
See also: Sun Cable signs MOU with Indonesia's energy ministry at G20 business summit
Sun Cable plans to lay a 4,200km high-voltage cable to supply enough electricity to meet 15% of Singapore’s demand from a giant solar and battery complex deep in the Outback. The project also plans to supply power to the northern Australian city of Darwin from late 2026.
In November 2022, Sun Cable signed a memorandum of understanding (MOU) with Indonesia’s energy ministry, moving closer to its goal to lay an undersea cable connecting a solar farm in Australia’s Northern Territory to Singapore.
Sun Cable’s Indonesia president director Tim Anderson and Indonesia’s Minister for Energy and Mineral Resources Arifin Tasrif announced the formal collaboration at the B20 Investment Forum and Indonesian Net Zero Summit on Nov 11. Known as the business arm of the G20, the B20 is the official G20 dialogue forum for the global business community.
The collaboration was formalised with an MOU between Sun Cable’s Anderston and Senda Hurmuzan Kanam, the head of BBSP KEBTKE, Indonesia’s study and test centre for electricity, new and renewable energy and energy saving.
