Australian Energy Producers conference at PCEC. Pictured talking is Jeff Dimery, Managing Director and Chief Executive Officer at Alinta Energy.
A significant acquisition has taken place in the energy sector as Singapore-based Sembcorp Industries has agreed to purchase Alinta Energy for $6.5 billion. This deal marks a strategic move for Sembcorp as it aims to enhance its presence in the renewable energy market. The acquisition will see Sembcorp take ownership of Alinta, which is Australia’s largest privately-owned energy retailer, from Hong Kong’s Chow Tai Fook Enterprises.
Sembcorp, which is publicly traded in Singapore, has made substantial investments in renewable energy projects globally, totaling over $5.9 billion since 2020. This investment has allowed the company to increase its renewable capacity from 3.2 gigawatts to 20.2 gigawatts through various projects, acquisitions, and partnerships. The purchase of Alinta will combine the retailer’s local market expertise with Sembcorp’s global capabilities in renewables, creating a platform to accelerate the growth of renewable energy in Australia.
Strategic Expansion into Renewables
Alinta Energy operates power stations across several regions, including Victoria, Queensland, Western Australia, and New Zealand. The company is particularly recognized for owning the largest retail gas network in Western Australia. Alinta generates approximately 900 megawatts of power annually through facilities such as a gas-fueled power plant at Alcoa’s Pinjarra alumina refinery and the co-owned Yandin wind farm in Dandaragan.
The companies have expressed a commitment to ensuring grid reliability while driving renewable growth. They stated that the acquisition provides Sembcorp with access to a portfolio of development opportunities encompassing 10.4 gigawatts of renewable and firming systems. Sembcorp’s ambition is to expand its renewable capacity to 25 gigawatts by 2028, with Australia playing a pivotal role in this plan.
Importantly, the acquisition includes recognition of Alinta’s coal-fired Loy Yang B power station as a necessary asset during the energy transition to cleaner sources. Sembcorp emphasized the importance of balancing decarbonization efforts with the need for reliable and affordable energy.
Leadership and Future Prospects
The management team at Alinta, led by CEO Jeff Dimery, will remain in place following the acquisition. Dimery welcomed the investment from Sembcorp, viewing it as a strong endorsement of both Alinta and the Australian energy market. He noted that Sembcorp’s operational expertise would facilitate responsible scaling, job security, and the delivery of projects vital for supporting Australia’s clean energy future.
The completion of this acquisition is contingent upon approvals from Sembcorp shareholders, the Foreign Investment Review Board, and the Australian Competition and Consumer Commission. As the energy landscape evolves, this acquisition is poised to play a significant role in shaping the future of Australia’s renewable energy initiatives.
