Slide for Project Revitalised: Securing Renewable Energy For Southeast Asia
SunCable resolved its funding deadlock, transitioned to new ownership and implemented a new operating model to progress the AAPL.
Funding Secured
Keeping the Australia-Asia Power Link Project Alive
Funding Secured
Keeping the Australia-Asia Power Link Project Alive
Key Contacts
How do you prevent a funding deadlock from halting a transformational energy project?
SunCable is the developer of the Australia-Asia Power Link (“AAPL”), a first-of-its-kind giga-scale intercontinental power project that will provide green energy from Australia to Southeast Asia.
In 2018, SunCable laid out plans for the AAPL project, which would capture Australia’s vast renewable energy resources to power Southeast Asia’s energy transition and support the development of a globally competitive sustainable development precinct in Northern Australia. SunCable then secured an AUD210 million Series B capital raise backed by Australian billionaires Mike Cannon-Brookes and Andrew Forrest and was set to forge ahead with raising more than AUD35 billion to bring to life the largest integrated solar generation and transmission link project in the world.
However, as development work progressed, SunCable missed several project-related milestones, which meant that it could not access existing equity commitments. Divergent views among the lead investors regarding the preferred future direction of the project meant that replacement funding could not be obtained. As a result of this impasse, the directors were forced to appoint Administrators to the company. To preserve the value in the AAPL project, as Administrator, FTI Consulting delivered a rapid, independent process to facilitate an immediate injection of capital to save the AAPL project and to resolve its long-term future.
Our Impact
FTI Consulting raised AUD65 million in interim funding in the first two weeks of the administration, preserving the project’s value and ensuring that critical project development works could continue. SunCable was successfully sold to an affiliate of Grok Ventures in May 2023, allowing all creditors of SunCable to be paid in full.
By the Numbers
Saving One of the World’s Largest Renewable Energy Projects
12,000
Hectares
The AAPL features a 12,000-hectare renewable generation precinct in the Northern Territory’s Barkly region.
800
Kilometres
The AAPL will send electricity to Darwin via an 800 km overhead transmission line.
4,300
Kilometres
Electricity will be sent from Darwin to Singapore via a 4,300 km sub-sea cable.
Slide for Person sitting at a desk with multiple monitors displaying renewable energy data, solar panels, and wind turbine models, analyzing information in a bright office.
The project is on track towards a final investment decision, expected in 2027. Electricity supply would commence in the early 2030s.
In crisis and transformation,real-world experience delivers.
Our Role
Acting quickly and decisively to raise funding, reduce project costs and undertake a rapid transaction process
FTI Consulting professionals were appointed Voluntary Administrators of SunCable as a result of an impasse between its lead investors.
The team secured interim funding and stabilised the company in the short term and commenced an independent and global sales process to identify a new owner for the company.
FTI Consulting experts conducted a rapid cost and capital expenditure review and implemented reductions and controls to manage within the interim funding facility.
Following completion of the sale, our experts assisted in restructuring the business post-transaction, ensuring future viability through headcount rationalisation, premises consolidation and contract restructuring.
Throughout this process, FTI Consulting managed communications with a multitude of stakeholders, including shareholders, employees, contractors and governments across Australia, Singapore and Indonesia.
Real-world experience that delivers.
See why FTI Consulting is the leading global expert firm for organizations facing crisis and transformation.
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