One of Australia’s richest people has taken control of an ambitious green energy project after falling out with one of Australia’s other richest people.
Mike Cannon-Brookes, the co-founder of software giant Atlassian, now runs the Sun Cable solar export project after a financial tussle with Andrew “Twiggy” Forrest who made his fortune through Fortescue Metals.
Sun Cable has proposed to build a $35 billion solar farm in the heart of the Northern Territory, with a cable to provide green energy to Darwin and Singapore.
Mr Cannon-Brookes and Mr Forrest were the two biggest investors in the huge scheme.
But in January, the plan collapsed after neither billionaire was willing to continue sinking funds into Sun Cable on the other’s terms.
Sun Cable came unstuck following an “absence of alignment” between the shareholders’ objectives, a spokesman said at the time.
“While funding proposals were provided, consensus on the future direction and funding structure of the company could not be achieved.”
A bidding war ensued between the pair with Mr Forrest’s Squadron Energy initially trying to wrest control of Sun Cable.
But Mr Cannon-Brookes’ Grok Ventures has emerged victorious.
With infrastructure investor Quinbrook he will now take over the company.
Mr Forrest had said he was “unconvinced of the commercial viability” of Sun Cable.
But Mr Cannon-Brookes lauded the deal.
“We’ve always believed in the possibilities Sun Cable presents in exporting our boundless sunshine, and what it could mean for Australia,” he said.
“It’s time to stretch our country’s ambition. We need to take big swings if we are going to be a renewable energy superpower. So swing we will.”
Despite walking away from the project, Mr Forrest congratulated Mr Cannon-Brookes.
“While Squadron Energy did not participate in the final binding bid process for Sun Cable, we are delighted that other investors like Grok are playing a role in tackling global warming, by replacing fossil fuel investment with green energy projects.
“Squadron decided the capital allocation did not align with Squadron’s strategic goals”.
Both men have been instrumental in exploring cleaner energy industries in Australia.
Mr Forrest is investing in hydrogen energy, which promises to be help the mining industry produce less pollution.
Mr Cannon-Brookes made his debut into the energy market via a dramatic takeover of gas producer AGL Energy, which he – after much deliberation and the election of a more sympathetic board – overhauled into something resembling a green company.
Sun Cable’s signature project is the Australia-Asia PowerLink (AAPowerlink).
With construction set to begin next year, AAPowerlink is intended, upon completion, to supply 20 gigawatts of solar power to Darwin via overhead cables, and power to Singapore via submarine cables.
“This project will generate enough renewable electricity to power more than three million homes a year,” a project information leaflet distributed in 2021 claimed.
“This is the equivalent of cutting CO2 emissions by 11.5 million tonnes or removing 2.5 million cars off the road each year.”