Renewables play seeks buyer for 207MW Bundaberg project
The Sunshine State has sprouted another renewables deal. Street Talk understands Energy Development Corporation has been running a sale process for its Bundaberg-based 207-megawatt project Bucca, telling investors to expect nearly $1.2 billion in earnings over a 30-year life.
Bucca includes a 97-megawatt solar photovoltaic system and a co-located 110-megawatt battery energy storage system, which are being pitched as late-stage projects located within the federal government’s Central Queensland Renewable Energy Zone.
EDC is looking to offload its Queensland solar and battery development project. Bloomberg
EDC, which owns the project, is understood to be chasing a buyer that would retain it as a project developer until Bucca is ready to build.
The two sit on 141 hectares of land, held under a 30-year lease with the potential for two extensions of five years each. The solar PV system has signed a grid connection agreement with Australian Energy Market Operator and Ergon, while the vanadium flow battery is expecting grid approval by January. Bucca would be up and running by November 2024, according to the sale flyer.
Tyre kickers were given an ambitious set of forecasts. Over its 30-year economic life, Bucca should bring in about $1.4 billion total revenue and $1.2 billion EBITDA. The project would require $275 million total capital expenditure, according to the pitch.
The forecast went on to say Bucca would have a seven- to eight-year unlevered payback period and 15 per cent to 17 per cent internal rate of return.
Of course that’s a big set of numbers, and would be scrutinised carefully by suitors. The flyer has been with prospective bidders for a while now, and said the vendor wanted to have a deal signed by mid-September.
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