British billionaire Sanjeev Gupta, who purchased the Whyalla steelworks in South Australia earlier this year, has acquired a majority stake in renewable energy based company Zen Energy.
The company focuses on renewable energy and storage technology solutions. The new joint venture between Zen and GFG Alliance will be known as SIMEC Zen Energy.
In a statement, GFG Alliance said the move as “an opportunity to invest in large-scale power projects to meet its own industrial requirements and support the domestic economy”.
Mr Gupta, who is executive chairman of GFG, described the high cost of energy for Australian consumers as “a crying shame for a country so rich in resources”.
“Given the issues here, it has been a priority for us to take decisive remedial steps. Combining our power expertise developed in the UK and Zen’s local knowledge in Australia, is a natural partnership,” he said.
Zen Energy chairman calls it a perfect match
Zen chairman Ross Garnaut described the joint venture as a “perfect match”. “Their understanding of the energy dilemma this country faces, which is making much of our industry uncommercial and environmentally unsustainable, means we see the market need and opportunity in the same way,” he said.
Mr Gupta promised to invest well over $1 billion in the Whyalla steelworks, in the short to medium term with “far grander plans” in sight. He said the company had an immediate plan to invest in the steelworks’ existing co-generation plant to bolster its energy capacity.
GFG Alliance has 500 megawatts of operating power in the UK and another 500 megawatts under construction.
Zen Energy looking to develop and improve national energy market
Zen has an experienced management team looking to develop and improve the national energy market through partnerships with governments, industries and households.
Building on their experience in designing and installing solar and battery storage solutions for residential and commercial customers, ZEN offers power supply solutions to large industrial customers. Zen works closely with some of Australia’s largest energy users to reduce costs, increase reliability, and increase the amount of low-emissions energy used in industry.
Zen uses a combination of energy sourced from new and existing power plants, demand management technologies and energy storage to deliver energy supply solutions at a competitive price. Zen also manages the development of new renewable energy projects.