Clean energy developer LGI Ltd. has entered into a binding agreement to acquire two operational, grid-connected solar farms in Queensland for AU$22 million.
The transaction sees LGI acquire 100 per cent of Maryborough Solar Pty Ltd., owner of the Brigalow solar farm, and Chinchilla Solar Pty Ltd from IIG Solar Assets.
Combined, the two facilities offer 54MW of installed capacity and 42MW of grid export capability. Located in Yarranlea and Baking Board, the solar farms sit conveniently near LGI’s existing footprint in the Toowoomba and Western Downs regions.
Based on current electricity market conditions, the acquisition is expected to generate an annual earnings contribution of between AU$2.1 million and AU$4 million, depending on operational synergies and the integration of LGI’s proprietary Dynamic Asset Control System (DACS).
The AU$22 million purchase price equates to roughly AU$500,000 per megawatt, significantly lower than the greenfield development cost for comparable assets. Both sites feature high-quality engineering and possess remaining land leases exceeding 30 years.
LGI CEO Jarryd Doran said the proven, operational solar assets complement the company’s existing distributed portfolio.
“This acquisition is a natural extension of our strategy to grow our renewable generation base within our disciplined capital approach framework,” Doran said.
He added that combining 24/7 landfill biogas, fast-dispatch battery storage systems (BESS), and solar allows LGI to build out flexible firming capacity under DACS control. Preliminary studies are already underway to evaluate adding battery storage to both locations.
The acquisition aligns with the company’s strategy to develop and operate a diversified renewable energy platform. Following completion of this transaction and the medium-term build-out of its targeted pipeline, the company’s combined operating portfolio will exceed 120MW of distributed, renewable, dispatchable capacity.
The company confirms shareholder approval is not required in connection with the acquisition, there are no outstanding material conditions to be satisfied, and completion is anticipated on 9 October.
Following this transaction, LGI has upgraded its targeted medium-term strategic pipeline from 80MW to over 120MW of distributed, dispatchable renewable capacity.
The purchase will be funded using existing cash reserves and debt facilities, while maintaining a target net debt-to-earnings ratio below 2x.