8-K: Pacific Green Completes Sale of 250MW Limestone Coast North Battery Energy Park for US$293 Million

Pacific Green Technologies has sold its Limestone Coast North Energy Park to Intera Renewables for US$293 million, marking a significant milestone in its Australian project pipeline.

Summary

• Pacific Green Technologies Inc. has completed the sale of 100% of its shares in the Limestone Coast North Energy Park to Intera Renewables.
• The deal represents an enterprise value of A$460 million (US$293 million).
• The Limestone Coast North Energy Park is a 250MW / 500MWh battery energy storage development in South Australia.
• Notice to Proceed has been issued to Gransolar Group for construction and to Trina Storage for the battery energy storage system.
• Commercial operations are targeted for February 2027.
• Pacific Green will continue as construction manager, providing supply chain management and quality assurance.
• The project is the first of the company's 10GWh Australian project pipeline to reach Financial Close.

Sentiment

Score: 8

Explanation: The announcement is positive due to the successful sale of a major asset, indicating progress in Pacific Green's business strategy and contributing to the renewable energy sector. The deal represents a significant financial transaction and validates the company's development model.

Positives

• The sale provides Pacific Green with significant capital.
• The project is expected to contribute to a sustainable future.
• Pacific Green retains involvement as construction manager, leveraging its expertise.
• The project has secured a long-term offtake agreement with Zen Energy.
• The rapid progression from inception to Financial Close highlights Pacific Green's market-leading development model.

Risks

• Forward-looking statements are subject to various risks and uncertainties.
• Actual results could differ from those projected due to economic and political conditions, and the ongoing impact of the COVID-19 pandemic.
• The company assumes no obligation to update forward-looking statements.

Future Outlook

The company aims to rapidly build a global portfolio of utility-scale battery energy storage systems (BESS), with a current pipeline of 14GWh of energy storage capacity in development, construction or operation.

Management Comments

• Scott Poulter, Pacific Green's CEO, stated that the team has created a template for responsible development and financing of utility-scale storage in Australia.
• Simon Parbery, Executive Director for Palisade, expressed delight in achieving this milestone and partnering with Pacific Green.
• Joel Alexander, Pacific Green Australia CEO and Managing Director, is thrilled to commence construction and deliver one of South Australia's largest energy parks.

Industry Context

This announcement highlights the growing demand for battery energy storage solutions to support renewable energy integration and grid stability in Australia. The deal underscores the increasing investment in utility-scale battery projects.

Comparison to Industry Standards

• The Limestone Coast North Energy Park's 250MW / 500MWh capacity is comparable to other large-scale battery storage projects globally.
• Companies like Neoen (Hornsdale Power Reserve in South Australia) and Fluence are key players in the utility-scale BESS market.
• The project's focus on grid stability and renewable energy integration aligns with industry trends towards decarbonization and energy transition.

Stakeholder Impact

• Shareholders will benefit from the capital generated by the sale.
• The project will support Australia's energy de-carbonation ambitions.
• The project will provide sustainable long-term returns to Intera's investors.
• The project will bring stability to the Australian grid.

Next Steps

• Gransolar Group will begin construction this month.
• Trina Storage will supply the battery energy storage system.
• Pacific Green will continue as construction manager.
• The project is targeting commercial operations in February 2027.

Key Dates