Australian renewables firm Carnegie Clean Energy (CCE) is planning to sell its solar and microgrid business, Energy Made Clean (EMC), to investment house Tag Pacific
Image: The proposed transaction will result in creation of a new Tag subsidiary named MPower. Photo: Photo by rawpixel on Unsplash.
The two firms have signed an Implementation Deed which sets out the terms and key steps for the acquisition of EMC by Tag in exchange for a 32% stake in the buyer.
The proposed transaction is expected to result in creation of a new Tag subsidiary named MPower, which would be one of region’s largest engineering, procurement and construction (EPC) and build, own, operate (BOO) business in the off-grid and fringe-of-grid solar, battery and microgrid markets.
Employing more than 130 people, MPower will have presence in Western Australia and New South Wales as well as active projects across the rest of Australia, New Zealand and the Pacific.
Carnegie CEO and managing director Dr Michael Ottaviano said: “This is a compelling opportunity to unlock the significant potential from the microgrid market in Australia, New Zealand and the Pacific, bringing together two of the leading entities in Australia to create a national champion.
The sale is a part of Carnegie’s plan to focus on commercializing its CETO wave energy technology. It will also retain 100% stake in the Garden Island Microgrid and 50% interest in Northam Solar Farm.
Tag CEO Nathan Wise said: “We are excited by the opportunity to bring together two leading renewable and battery storage businesses and to welcome Carnegie’s shareholders into our group.”
“The microgrid market is growing rapidly and consolidation in the sector is inevitable. The enlarged MPower business will be well placed to take a leadership position and dominate this market. We have plans to grow the combined group rapidly across our EPC, Build Own Operate (BOO) and Products divisions.”