Singapore-based energy company Sembcorp Industries has agreed to buy Sydney-based gentailer Alinta Energy from Hong Kong conglomerate Chow Tai Fook Enterprises for AUD 6.5 billion ($4.3 billion) in cash, according to a proposal from Sembcorp Industries.
Subsidiaries Sembcorp Australia and Sembcorp Energy Australia will respectively purchase all the issued share capital of CTFE-owned Pioneer Sail Holdings, the parent company of Alinta, and Pioneer Sail Singapore, which owns Latrobe Capital Power, the owner and operator of the Loy Yang B coal-fired power station.
SCI will takeover operation of Alinta’s 10.4 GW renewable energy and firming development pipeline, which is predominantly in gas and wind generation, but includes a growing battery energy storage system (BESS) portfolio and some contracted solar assets such as in the Wellington North Solar Farm.
Since 2020, Sembcorp has invested over AUD 5.9 billion in renewable energy projects globally, increasing its renewables capacity six-fold, from 3.2 GW to 20.2 GW through greenfield builds as well as strategic acquisitions and partnerships, with a target to reach 25 GW in renewable assets by 2028 with 75% of $16 billion investment plans allocated to renewables.
As part of the Alinta transaction, SCI will maintain Alinta’s brand identity, continue to support it’s business plan which services over 1.1 million electricity and gas customers in Australia and New Zealand, and retain existing management and operational structure.
Alinta Energy Managing Director and Chief Executive Officer Jeff Dimery said Sembcorp’s investment in Alinta is a vote of confidence in Australia, the company and its future.
“Sembcorp understands that reliability and affordability are the foundation of a successful energy transition. Sembcorp brings the investment capacity and experience to help us deliver both,” Dimery said. “CTFE has given us an opportunity to transform our operations as well as the future of Australia’s energy supply. They have also fostered the winning culture we need to succeed.”
Dimery added that he looks forward to working with the Sembcorp team to further grow and accelerate Alinta’s pipeline of renewables and storage opportunities across Australia.
“As a well-capitalized investor with strong operational expertise, Sembcorp will help us scale up responsibly, provide long-term job security for our people, and deliver the projects needed to support Australia’s clean energy future,” said Dimery.
Sembcorp Renewables East President and Chief Executive Officer Alex Tan said by combining Sembcorp’s global renewables expertise and access to capital with Alinta’s strong local workforce and project pipeline, Sembcorp can contribute meaningfully to Australia’s decarbonization goals and support long-term employment opportunities in local communities.
“We remain committed to operating responsibly and sustainably, working closely with government, communities, and Alinta’s experienced management team to deliver a transition that meets national and stakeholder needs,” Tan said.
Under CTFE’s ownership since 2017, Alinta has increased generation capacity by 74% to 3.4 GW, created more than 700 new jobs, and grew its retail customer base by 37% to over 1 million.
CTFE has also reinvested over AUD 1.1 billion to develop a market-leading digital platform for Australian customers to take control of their energy usage, modernise the generation fleet for flexibility and reliability, and establish a 10.4 GW renewables and firming systems pipeline.
Chow Tai Fook Group Chairman Dr Henry Cheng said an eight-year investment in Alinta has played an important role in providing reliable and affordable energy to Australians.
Sembcorp has an extensive 28.3 GW portfolio of energy generation assets comprising renewables, storage and gas assets across 11 countries in the Asia Pacific, the Middle East and Europe. It operates Singapore’s largest utility-scale energy storage system and is the largest solar and energy storage player in the country.
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