Squadron Energy to spend $20b on renewables by 2030
Andrew Forrest’s Squadron Energy will spend as much as $20 billion by 2030 to build out its renewable projects, CEO Jason Willoughby said, illustrating the scale of the company’s ambitions.
Squadron has recently expanded to become Australia’s biggest renewables’ player after its $4.2 billion purchase of CWP Renewables late last year. The purchase was the biggest so far for Andrew and Nicola Forrest’s private investment company, Tattarang, run by John Hartman.
Jason Willoughby, Squadron Energy’s CEO says coal-fired power station needed to be urgently phased out. Peter Rae
“The shareholders have contributed $5 billion dollars into the Squadron business already. So it’s a big investment,” Mr Willoughby told The Australian Financial Review Energy & Climate Summit. “We think the majority of that new capex is funded by debt. And then we’ve got the equity capability to fund the balance.”
Squadron has 1.1 gigawatts of renewable energy generation in operation and a development pipeline of wind and solar of 20 gigawatts. The CWP purchase was funded by Tattarang and Mr Willoughby would not be drawn on whether Squadron would be taking on outside investors to help with its development pipeline.
Squadron reported a $220.3 million loss, from a $45 million loss one year earlier, although the majority of expenses were related to the acquisition of CWP from Partners Group in December. Earnings before interest, tax, depreciation, amortisation and fair value movements were $41.3 million.
Dr Forrest and Fortescue have been increasingly outspoken on climate change. Mr Willoughby warned that keeping coal-fired power stations going will be economically damaging for the country especially considering record hot temperatures globally.
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