Sun Cable collapse leaves Singapore’s solar link to Australia in the balance
- The US$21-billion mega project to supply the city state with solar power using a 4,200km submarine cable from Australia has fallen short of funds
- Construction was expected to begin in 2024. Sun Cable said on Wednesday it would likely seek recapitalisation or sell the entire business
The company had been aiming to develop a A$30 billion-plus (US$20.68 billion) project to supply solar power to Singapore, with the backing of tech billionaire and climate activist Mike Cannon-Brookes and Australian iron ore magnate Andrew Forrest.
However, the mega project has fallen short of funds as its shareholders were unable to reach a consensus on its future direction and funding structure, prompting the company to appoint FTI Consulting as voluntary administrators.
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Sun Cable is likely to seek expressions of interest for a recapitalisation or sale of the entire business, the company said on Wednesday.
“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.”
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Billionaires Cannon-Brookes and Forrest 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.”
Squadron Energy, Forrest’s investment vehicle which backs Sun Cable, did not immediately respond to a request for comment.
Reporting by Reuters, Bloomberg
