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Nexif Energy announced Financial Close and Notice to Proceed with expansion of Lincoln Gap Wind Farm in South Australia

Singapore, 10 December 2018 – This next phase of the wind farm, located just outside of Port Augusta in South Australia, will add 86 MW of generating capacity to the 126MW already in an advanced stage of construction at the same location.

When complete, the Lincoln Gap Wind Energy Generation & Storage Project will comprise 59, Senvion turbines (3.6MW each), totaling 212 MW, and a 10MWhr battery storage system from Fluence.  The combined project will have a total generating capacity of more than 212 MW, producing enough energy to power 155,000 households in South Australia. It is also expected to offset approximately 680,000 tonnes of carbon emissions annually.

Nexif Founder and Co-Chief Executive Matthew Bartley says the company is looking positively at a potential further expansion at Lincoln Gap, and a possible hybrid energy hub there.

“This is a continuation of our investment in South Australia where we are incredibly excited to be investing, and to be at the forefront as the first un-subsidized integrated wind farm and energy storage project for the state,’’ Mr. Bartley said.

“There remains potential to further expand Lincoln Gap and we are now working on feasibility studies to determine how large that could be as well as trying to bring technologies together to add solar to the wind energy and battery storage at Lincoln Gap to create a genuine hybrid energy hub.”

To finance construction of stage 2, Nexif Energy has secured additional debt finance for the project totaling A$160M from existing lender Clean Energy Finance Corporation (CEFC) and new lender Westbourne Capital. This has secured employment for over 110 workers for an additional eighteen months in South Australia.

Fellow Founder and Co-CEO Mr. Surender Singh acknowledged the ongoing support of CEFC and welcomed new lender Westbourne Capital to the project.

“Through this pathbreaking integration of renewable wind power generation with battery storage system, Nexif Energy and its financiers have a committed investment of over A$480 million, making it amongst the largest investors in South Australia.” Mr. Singh said.

“We take this opportunity to thank our debt financing partners CEFC and Westbourne for confidence in Nexif Energy. We also look forward to working closely with construction partners Senvion and Fluence for on time completion of this important project,” Singh said.

“Since backing Nexif Energy in 2015, we have continued to expand Denham’s international power investment footprint to create a significant growth platform in Australia and Southeast Asia with low-cost power projects already underway in Australia, Vietnam, and Thailand” said Denham Capital Managing Director Saurabh Anand. “Denham views the region as offering significant growth opportunities and looks forward to more successes with Nexif in the near future”

Construction of Stage 2 of the project will start in March 2019.

Background

The Lincoln Gap Wind Farm is a 222MW initiative comprising 212MW of wind turbines and 10MW of battery storage capable of producing enough electricity to power approximately 155,000 households in South Australia. Involving the construction and operation of up to 59 Senvion 3.6M140 wind turbines and an Advancion battery storage system supplied by Fluence, the project will feed into the national electricity grid via the Electranet transmission network.

Key facts on the Lincoln Gap Wind Farm Project:

• A 10MW battery storage at the wind farm allows the project to more reliably integrate renewable energy into the National Electricity Market, with the large-scale battery delivering fast response storage capacity.
• The windfarm is being built on farmland on a raised plateau next to the Eyre Highway. It is expected to be operational from mid next year.
• The construction workforce ranges from 110 – 140 people, with more than half of this workforce sourced from South Australia.
• Underwriting a significant proportion of the project production are two long-term Large-Scale Generation Certificate (LGC) agreements signed with ERM Power (ASX-EPW) in April 2017 and an innovative long-term offtake agreement with Snowy Hydro.
• In addition to the Lincoln Gap Wind Farm, Nexif Energy is developing a 90MW wind farm in the Waterloo Ranges, approximately 15km west of Glen Innes in the Northern Tablelands region of New South Wales.
• Together, the Lincoln Gap Wind Farm and Glen Innes Wind Farm will, when fully constructed, represent an investment by Nexif Energy in projects representing more than A$600 million invested in Australia.
• More information about the Lincoln Gap wind farm is available from: http://lincolngapwindfarm.com.au/

Nexif Energy was established in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital. The company aims to develop, finance, construct and opportunistically acquire conventional and renewable power generation assets across Australia and South-East Asia. For more information visit www.nexifenergy.com

Denham Capital is a leading energy and resources-focused global private equity firm with almost US$10 billion of invested and committed capital across multiple fund vehicles and offices in London, Boston, Houston, and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving international power, oil and gas, and mining, across the globe. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.