Project Update Week ending 2 August 2019

Berri Barmera Council solar farm project to be sold 26 July Berri Barmera Council has resolved to seek Mayor Peter Hunt said “despite putting in our expressions of interest for the rights to best effort to deliver a great project for develop the proposed 10 MW Solar Farm on Council, Accolade Wines and the Community, Morritz Road at Berri. This effectively means the timing and justification to continue with that Council will not proceed with developing the project was simply not right in the end. the facility itself and will look to sell the Accolade Wines was bought by new owners in project to renewable energy generation 2018 and in terms of energy procurement and developers. The project has development use, they are considering a number of approval for construction on the former Berri options. We needed an answer and in this Racecourse site and connection into the SA case they made it clear that they could not Power Networks grid through Berri commit further to the project. The upside is Substation, one km from the site. State we have fielded several enquiries to buy the Government funding of $5m had been project including lease rights to the old secured for the project, with return of Racecourse site. We have expert advice that unspent funds to be negotiated. the project has strong commercial value and that is why we have decided to call for Council’s decision to no longer pursue the expressions of interest from parties seeking to development of the Solar Farm directly came buy the intellectual property and after Accolade Wines advised that it was not development rights.” in a position to commit further to the project. The project has been progressed to a ‘shovel The Expressions of Interest for purchase of ready’ stage and as such could be built by the project is timed for release in late August another developer with minimal delay using subject to arrangements being put in place. the designs, approvals and grid connection agreement. Council considered other options Any interested parties are welcome to contact such as allowing further time for Accolade Council’s Manager Environmental Services / Wines to consider the proposal again at a Major Projects Myles Somers on 08 8582 1922 future date or alternatively, Council to discuss being involved in this opportunity. developing the Solar Farm and retailing energy to the wholesale market. Council Source: Berri Barmera Council deemed both alternative options inappropriate given community interests and original funding arrangements, which would not support either option.

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First operations State Minister for Energy and commence with tower cranes Mining opens new ENGIE wind in Australia farm to help power South ALE’s K1650L tower cranes have begun work Australia to install wind turbine generators (WTG) near 29 July Port Augusta in southern Australia, where ENGIE today officially opened its Willogoleche they will help to power 155,000 homes. in Hallett, . One of

the largest renewable energy projects It is the first time this type of crane has been completed in the state, Willogoleche has a used for wind turbine installation in Australia. generating capacity of 119MW, capable of ALE has brought two of the innovative cranes delivering renewable energy to 80,000 homes. to the country, where one recently commenced work at . The wind farm was officially opened today by

The Hon Dan van Holst Pellekaan, State The K1650L tower crane was selected for the Minister for Energy and Mining and ENGIE project due to its high wind speed tolerance Asia Pacific President and CEO, Paul Maguire. and small footprint. The crane’s compactness They were joined at the launch by the Mayor means the size of hardstand can be reduced of the Regional Council of Goyder and by more than 50% in comparison with other representatives of Mitsui & Co, ENGIE’s joint cranes widely used in the wind industry, venture partner on the project. allowing cost and time savings in civil works.

Consisting of 32 turbines and currently the This also helps to reduce the crane’s fourth largest wind farm in South Australia, environmental impact – a particular benefit the opening of Willogoleche is the latest for Australia, where several wind farms are major milestone in the state’s renewable planned close to forested areas. Being able to energy transition. Willogoleche is the first significantly shorten the boom up and down onshore wind farm in the world to install and area is a great contribution to overall project commission GE’s 3.8MW turbines at scale, efficiency because less space needs to be and its 130m rotor blades can operate cleared to position the crane. through a range of wind speeds, allowing

ENGIE to maximise the capacity of each ALE has been contracted to install 14 WTGs at turbine. the Lincoln Gap Wind Farm site, which will begin commissioning the first of its 59 from the site will be delivered via turbines later this year. ENGIE’s retail arm, Simply Energy, which has

more than 700,000 customers in Australia, ALE previously utilised the advantageous including nearly 90,000 in South Australia. capabilities of these tower cranes in Thailand, where, with a hub height of 162m, they were The wind farm represents a $250 million used to install the tallest WTGs in South East investment by ENGIE and follows a $75 million Asia. upgrade to its 500MW Pelican Point Power

Station, one of the most environmentally Source: ALE friendly of its type in Australia. In total ENGIE

has more than 800MW of wind-firming capacity available in South Australia making a critical contribution to the state’s energy security and stability.

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Commenting on the opening of Willogoleche, Variation of Generation Minister Dan van Holst Pellekaan said: “The adds another Licence - Batchelor and significant renewable energy resource to Manton Solar Farms South Australia’s impressive portfolio of wind 29 July and solar generation. “Willogoleche’s 119MW Eni Australia Limited (EAL) is pleased to apply capacity will put downward pressure on prices to the Utilities Commission to vary our by increasing competition in the South Generation Licence in order to add proposed Australia’s energy market.” Generation Plants. EAL has been present in Australia through its subsidiaries since year The addition of further wind power adds 2000. Eni Australia BV is the operator and momentum to the case for associated grid- 100% owner of the Blacktip Gas Project, which scale storage and an interconnector between has supplied domestic gas to the NT since SA and NSW to enable the export of South 2009. In January 2019, EAL completed the Australia’s abundant renewable energy to the acquisition of a construction-ready solar eastern seaboard.” photovoltaic (PV) project near Katherine, in the Northern Territory of Australia, from ENGIE Asia Pacific President and CEO Paul Katherine Solar Pty Ltd, a joint venture Maguire added: “Willogoleche is the latest between Australia's Epuron and the UK- based demonstration of ENGIE’s long-term Island Green Power. This project is currently commitment to South Australia. This under construction and is the basis of EAL's investment significantly increases our local existing Generation Licence. generation capacity to deliver more renewable energy to our growing customer Once completed, this project will be the base in the state. largest solar PV farm in the Northern Territory, consisting of the installation of 33.7 “This opening marks another milestone in our MWp (megawatt peak) of ground- mounted continuing transition across the Asia-Pacific PV panels, as well as a battery storage system region toward low-carbon energy production with a capacity of 5.7 MVA/2.9 MWh. and the pursuit of growth opportunities Katherine Solar is likely to be the largest solar through providing energy efficient and multi- generator connected to the Darwin Katherine technical solutions to customers.” system.

In addition to Willogoleche, ENGIE operates EAL is submitting this application to vary our the 46MW in South existing Generation Licence. EAL wishes to Australia and has renewable energy projects construct and operate 2 x lOMW ground under development in Queensland and New mounted solar PV powered generation South Wales. facilities that will connect to the Darwin- Channel Island transmission system at two Source: ENGIE interconnection points - Batchelor and Manton Dam subzone stations. Electricity generated from these facilities will be sold to Jacana Energy via a Power Purchase Agreement. These projects were initially developed by Infigen Energy and development tasks have been finalised by Tetris Energy, allowing EAL to now acquire two further construction-ready solar farm projects, as occurred for Katherine Solar.

Source: Eni Australia

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TECHNOLOGY Instead, a Megapack installation can use Introducing Megapack: Utility- stored excess solar or wind energy to support the grid’s peak loads. Scale Energy Storage 29 July Tesla developed its own software in-house to Less than two years ago, Tesla built and monitor, control and monetize Megapack installed the world’s largest lithium-ion installations. All Megapacks connect to battery in Hornsdale, South Australia, using Powerhub, an advanced monitoring and Tesla Powerpack batteries. Since then, the control platform for large-scale utility projects facility saved nearly $40 million in its first year and microgrids, and can also integrate with alone and helped to stabilize and balance the Autobidder, Tesla’s machine-learning region’s unreliable grid. platform for automated energy trading.

Battery storage is transforming the global Tesla customers have already used electric grid and is an increasingly important Autobidder to dispatch more than 100 GWh element of the world’s transition to of energy in global electricity markets. And, sustainable energy. To match global demand just as Tesla vehicles benefit from continued for massive battery storage projects like software updates over time, Megapack Hornsdale, Tesla designed and engineered a continues to improve through a combination new battery product specifically for utility- of over-the-air and server-based software scale projects: Megapack. updates.

Megapack significantly reduces the As the world’s transition to sustainable energy complexity of large-scale battery storage and continues to accelerate, the market for provides an easy installation and connection advanced battery storage solutions is growing process. Each Megapack comes from the rapidly. In the past year alone, we have factory fully-assembled with up to 3 installed more than 1 GWh of global storage megawatt hours (MWhs) of storage and 1.5 capacity with our current storage products, MW of inverter capacity, building on Powerwall and Powerpack, bringing our total Powerpack’s engineering with an AC interface global footprint to more than 2 GWh of and 60% increase in energy density to achieve cumulative storage. With Megapack, this significant cost and time savings compared to number will continue to accelerate other battery systems and traditional fossil exponentially in the coming years. fuel power plants. Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh To learn more about Megapack and how our power plant in less than three months on a energy storage solutions for utilities and three-acre footprint – four times faster than a commercial customers are accelerating the traditional fossil fuel power plant of that size. transition to sustainable energy, visit Megapack can also be DC-connected directly tesla.com/megapack. to solar, creating seamless renewable energy plants. Source: Tesla

For utility-size installations like the upcoming Moss Landing project in California with PG&E, Megapack will act as a sustainable alternative to natural gas “peaker” power plants. Peaker power plants fire up whenever the local utility grid can’t provide enough power to meet peak demand. They cost millions of dollars per day to operate and are some of the least efficient and dirtiest plants on the grid.

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Sapphire Wind Farm investment manager, decided to partner with DomaCom for this outstanding project and we crowdfunding completes look forward to bringing other similar projects 30 July to investors and communities in the future”. Highlights: • Australia’s first large-scale public community Mr Andrew Dickson from CWP Renewables investment into a utility-scale wind farm. said “This was the first time we’ve undertaken • At 270MW it is the largest wind farm in an initiative of this nature and scale, but it NSW, and can power 115,000 homes won’t be the last. DomaCom have been a • 75 Wind Turbines - approximately two- great partner.” thirds of the power generation has been already pre-sold in off take agreements Source: DomaCom • Community investment component represented just under $1.8 million and nearly 100 investors Queensland generators - PPA Request for Tender DomaCom Limited (ASX: DCL) is pleased to Clean Energy Strategies (CES) is inviting all announce that the DomaCom Fund has renewable energy Generators who have completed its first crowdfunding into a wind existing or in development projects in farm project. Queensland to participate in an aggregated corporate PPA. Located in the New England region of northern NSW, the CES is seeking a load of between 150MWh – Community Co-investment is in the vicinity of 220MWh on behalf of the Queensland Hotels Inverell and Glen Innes and was opened firstly Association Union of Employers, which to residents in the Federal Division of New represent 1700 pubs, accommodation hotels England to participate in the offer. The wind and bottle shops. farm is owned and operated by Grassroots Renewable Energy, which is a joint venture A firmed solution is preferred, however CES is between CWP Renewables and Partners open to how the transaction is structured and Group. is accepting of both synthetic firming solutions and via partnerships with retailers. Completed in November 2018, the Sapphire Wind Farm has a capacity of 270MW making The closing date for the tender responses is it the largest wind farm in New South Wales, 13 September 2019. and is capable of powering 115,000 homes For further information and the RFT and displacing 700,000 tonnes of carbon documents contact: dioxide per year. Kristina Photios Director DomaCom CEO Arthur Naoumidis said, “The Clean Energy Strategies Sapphire project is further evidence of Mob: +61 414 801 855 DomaCom’s capacity to syndicate a variety of Email: [email protected] investment opportunities across a range of asset types, and further demonstrates the ability of communities to come together to fund projects that they care about. In the case of Sapphire investors will receive a yield of 6% p.a. paid quarterly for 9 ½ years on a minimum investment of $1,250”.

“We are delighted that CWP Renewables and Partners Group, a global private markets

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Clean energy executives the industry’s leaders, as well as looking to the future as Australia moves towards a zero- planning for the future after emission energy sector. two years of record growth 30 July Speakers at the conference include: Australia’s renewable energy sector has just - NSW Energy and Environment Minister Matt had its two biggest years in history but the Kean future of the industry remains messy and - Tesla Chair Robyn Denholm uncertain, as shown by a survey of senior - Energy Security Board Chair Kerry Schott AO executives released at the Australian Clean - EnergyAustralia Chief Executive Catherine Energy Summit in Sydney today. Tanna - Goldwind Australia Chief Executive John Clean Energy Council Chief Executive Kane Titchen Thornton said $20 billion of private - Victorian Energy Minister Lily D’Ambrosio investment had flowed into large-scale - Australia’s Chief Scientist Dr Alan Finkel AO renewable energy in 2018 and it was the - Pacific Hydro CEO and Clean Energy Council biggest ever year for rooftop solar. But the Chair Rachel Watson large-scale Renewable Energy Target (RET) has now been achieved and there is no long Mr Thornton said while renewable energy term policy to give investors certainty beyond investment no longer requires new subsidy, it 2020. does require long-term energy policy certainty. “While the indicators in the latest Clean Energy Outlook Index are still strong, the level “The momentum of this industry is incredible, of confidence in the future of clean energy but without some form of national policy investment has fallen since December 2018. leadership investment in new clean energy Close to two thirds (62 per cent) of the will be more challenging.. I’m looking forward executives responding expected to increase to hearing perspectives about what the future staffing levels in the next 12 months, holds from some of the most insightful people compared to 83 per cent in December,” Mr in the country and beyond,” he said. Thornton said. The Australian Clean Energy Summit runs at “The industry is navigating a range of the ICC Sydney on Tuesday and Wednesday challenges. The top concern for those 30-31 July. The full program is available at surveyed was grid connection and network https://www.cleanenergysummit.com.au/age access, followed by a lack of federal policy and nda. The full results of the Clean Energy then unnecessary regulation. Outlook confidence index are available on the Clean Energy Council website. “While the industry is working closely with the Australian Energy Market Operator and the The Clean Energy Council would like to thank energy networks to address the challenges Goldwind Australia, the major sponsor of the with the grid, these are complex issues which event. take time, planning, major investment and political support. Consequently the average Source: Clean Energy Council confidence level has declined slightly to 6.6 out of 10, down from 7.1 six months ago,” he said.

About 800 delegates will gather at the Australian Clean Energy Summit at the ICC in Sydney today to hear insights from some of

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PROJECT NEWS CEFC looks to stronger, cleaner Taminda Solar Farm grid after positive year of Chan Abbey Holdings’ proposed 9 MW Taminda Solar Farm in northern NSW has investing to reduce emissions been conditionally approved by the Northern 30 July Regional Planning Panel and Tamworth A message from CEFC CEO Ian Learmonth Regional Council. The panel’s report said the Reflective and Illumination Glare Report On behalf of the CEFC, I am pleased to provide identified the potential for adverse glare will this update on our commitments in FY19, and be minimal, except potentially for the to share information about our priorities for Tamworth Racecourse. The report the year ahead. recommended necessary mitigation measures which were adopted in the conditions. FY19 HIGHLIGHTS Additional conditions were added by the − CEFC commits almost $1.5 billion to new panel to further mitigate the issue. clean energy investments in year to 30 June 2019 NEW PROJECT − Record $320 million in CEFC finance repaid in one year, for re-investment in new projects Gunsynd Solar Farm − FY19 performance to underpin increased Location: Goondiwindi, southern Queensland focus on grid stability and large-scale storage Capacity: 120 MW Developer: SkyLab Australia INVESTING IN A STRONG CLEANER GRID LGA: Goondiwindi Regional Council The CEFC is looking to extend into new Description: Approximately 346,000 panels & frontiers in low emissions energy generation 40 inverters to be installed on a development after another strong year of investing in clean site covering 185ha. energy solutions Australia-wide. Key priorities Contact: Cameron Meekin for FY20 and beyond will include projects and Managing Director technologies to deliver a stronger, more Skylab Australia reliable grid, to take advantage of Australia’s Email: [email protected] robust renewable energy resources and to support the transition to a distributed energy NEW PROJECT model. Hexham Wind Farm Location: Hexham, VIC Following strong progress in the development Capacity: Up to 700 MW of the large-scale solar and wind sectors, our Developer: Wind Prospect investments will also increasingly target new Status: Stakeholder engagement underway technologies where there is less appetite from Description: Up to 125 turbines located on mainstream investors – including pumped predominantly cleared land used for cattle storage and large-scale batteries, behind-the- and sheep farming, with some dairy farming meter generation and grid solutions. and cropping. An existing 500kV transmission line to the Mortlake Terminal Station is close INVESTING WITH COMMERCIAL RIGOUR by. We made new investment commitments of Contact: Community Engagement Officer almost $1.5 billion in the 12 months to 30 Tel: 1800 934 322 June 2019, across 30 transactions with a total Email: [email protected] value of $6.3 billion. Website: www.hexhamwindfarm.com.au For the first time since we began investing in 2012, we deployed a record $1.3 billion into the clean energy sector in a single 12-month period. In addition, a record $320 million in

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CEFC finance was repaid in FY19, underscoring Our portfolio of investment commitments was our ability to earn a positive return on our almost $6.6 billion at 30 June 2019, after investments and reinvest our finance on allowing for repayments, amortisation and behalf of the Australian community. cancellations on almost $7.2 billion in total commitments made since inception. New commitments in FY19 included $940 million in renewable energy and $524 million Through these commitments, we have across a broad range of energy efficiency and deployed more than $5 billion to projects low emissions projects. Each dollar of CEFC Australia-wide since 2012, of which almost finance committed in FY19 was matched by $560 million has been repaid and is available more than $3 from the private sector. for new investments. Since we began investing, each dollar of CEFC We are proud to have delivered a record $400 commitments has been matched by more million in finance for some 5,800 smaller-scale than $2 in private investment, a clear projects in FY19, working with our co-finance demonstration of our progress in drawing partners to support projects valued from additional finance into clean energy solutions. $10,000 to $5 million. At 30 June 2019, our portfolio of investment Through the Clean Energy Innovation Fund, commitments was targeting lifetime cuts to we also strengthened our position as greenhouse gas emissions of more than 260 Australia’s largest investor in the early stage million tonnes of CO2-e. We welcome the cleantech sector, with total investment continued trust of private investors in working commitments of $69 million at 30 June 2019. with us to reduce emissions.

We broadened our equity portfolio in FY19, EXTENDING INTO NEW FRONTIERS with equity investments now representing 20 This track record is not a signal that we can per cent of commitments since inception, stand still. Australia is forecast to have one of complementing our debt portfolio. We the most decentralised electricity systems in recognise that, as an equity investor, we the world by 2050. This evolution will require increase our ability to influence longer-term support for the development of new emissions reduction across new and existing technologies and industries so they can assets. benefit from CEFC finance as they gain commercial traction with private investors. As expected, the scale of new investment commitments in FY19 was lower than the We see a critical need for coordinated record $2.3 billion achieved in the previous investment in generation, storage and year. This reflected broader market transmission infrastructure as part of a stable conditions, including the build out of the and reliable grid. In particular, pumped hydro Renewable Energy Target. Grid and and other forms of dispatchable renewable transmission constraints also contributed to a energy are under consideration and, from our lower rate of new investments in large-scale perspective, can play a vital role in Australia’s renewables. sustainable transition to net zero emissions.

OUR PORTFOLIO SINCE INCEPTION While the large-scale solar and wind sectors We are pleased to report that, with our co- are showing increasing maturity – with the investors, CEFC finance has played a role in ability to tap a strong market for equity and driving $24 billion in commitments to new debt – the investor appetite for merchant risk investments in clean energy projects since remains constrained, placing a potential brake inception, supporting significant growth in on continued market growth in the face of an large-scale renewables in particular. ageing, constrained transmission network.

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Early progress in large-scale storage PROJECT NEWS investments is welcome, but this market is also Aramara Solar Farm still evolving, with fully commercial models yet A referral for the proposed 130 MW Aramara to develop. We also see an important role for Solar Farm in North Aramara, Queensland has CEFC finance in this exciting market. been submitted to the federal Department of

the Environment & Energy for public ACCELERATING SUSTAINABLE NET ZERO comment. China’s Boer Energy has acquired EMISSIONS the project from original developer Eco- Looking beyond energy generation, we will Energy World Australia, who received a continue to be at the forefront of new Development Permit for the project from the investment in a wide range of projects to Fraser Coast Regional Council in September drive down emissions, touching on all areas of 2016. The detailed design, specific layout and our economy, including agriculture, electricity generating capacity have not been infrastructure, property, transport and waste. confirmed at this stage, however it is

envisaged the project will involve a typical During FY19 we stepped up our efforts to solar farm with arrays, switch yards, battery assist market participants better understand storage, control building, and car park area to the emissions and financing benefits of clean facilitate the operation of the solar farm energy investments. within the nominated 326 hectare

development area. Our research reports and real-life investment insights continued to be well received and have covered a range of issues – from electric Senvion announces agreement vehicles to agriculture, bioenergy, the built with its lenders as it continues environment and manufacturing. We will continue this practical focus in FY20 and its accelerated M&A process beyond, working together with other 31 July experienced investors and developers. - Senvion concludes agreement with its lenders which gives sufficient financial THE INVESTMENT HORIZON support until at least end of August We welcome the increasing focus on - M&A process further accelerated in order to sustainability and net zero emissions from achieve results soon businesses, both large and small, as well as - All business areas under review institutional investors and innovative entrepreneurs. Regulatory interest in Senvion today announced that it has reached emissions reduction is also having a positive an agreement with its lenders which gives impact on investment decisions. financial support for the continuation of its business until the end of August and The pathway to net zero emissions requires potentially for a period thereafter if ongoing sustained investment and action across all talks with lenders can be concluded areas of economic activity, founded on a successfully. This agreement enables Senvion stable and reliable grid. We look forward to to further accelerate its M&A process in order continuing to work alongside other investors, to achieve results soon. Discussions with project developers, cleantech entrepreneurs potential bidders are at an advanced stage. and all levels of government in this important endeavour. Yves Rannou, CEO of Senvion, said: "In tandem with the hard work and commitment Please see our FY19 Investment Update for of everybody at Senvion, we have been further information. exploring our options to secure the best possible outcome for the company. However, Source: CEFC as negotiations have not yet been concluded,

Page 9 (Click on relevant project links to go to online Project Database) we will further accelerate the M&A process Gearing up for a green gas and in parallel initiate a review of all business areas to secure Senvion's profitable core future business. The goal is to finalise our advanced 31 July investor discussions in the short term. I am The greening of the New South Wales gas grateful for all the support of our dedicated network has taken a significant step forward. employees and would like to thank our lenders for their continued financial support." Leading energy infrastructure company Jemena has confirmed the purchase of the As a contingency for an unsuccessful outcome state’s first electrolyser which will utilise to the company's efforts to sell Senvion as a renewable energy to produce green gas for whole, or substantial parts of it, the cooking, heating and hot water in homes and management has to prepare for all businesses. eventualities. To this end, management will shortly be meeting with employees' The 500kw electrolyser will be located in representatives to begin the negotiations Western Sydney. The technology will utilise regarding social plans and balance of interest solar and wind power to create carbon- schemes for all business areas or substantial neutral hydrogen gas to be stored in the parts of it if an investor cannot be found in Jemena Gas Network – the largest in time. Australia.

Source: Senvion “We are making a significant investment in technology to demonstrate the network is PROJECT NEWS ready to deliver clean, safe and sustainable green gas to customers,” said Gabrielle Sycamore, General Manager, Strategy and A major civil milestone was achieved this Commercial, Jemena. week at the Dundonnell Wind Farm with the completion of the first concrete foundation “New South Wales’ first electrolyser will pour. Crews didn’t put a foot wrong all day, ensure we can develop processes to store working in and around each other to pour renewably generated energy in existing roughly 580 cubic meters of concrete into the network infrastructure for use when the sun turbine footing. Civil works also continued at doesn’t shine and the wind doesn’t blow,” Ms several work fronts across the wind farm site, Sycamore said. with cut to fill earthworks for access tracks and hardstands progressing. Five hardstands Moving to a decarbonised gas future have been prepared and 14 turbine The electrolyser, developed in Belgium and foundation excavated, seven of those now Canada by Hydrogenics, and brought to ready for the placement of reinforcing steel, Australia by renewable energy systems with more excavations underway. Production specialists, ANT Energy Solutions, will drive of gravel and rock products continued at the Jemena’s Western Sydney Green Gas Project, Quarry. a $15 million trial, co-funded by the Australian Renewable Energy Agency (ARENA). The Source: Tilt Renewables project will produce renewably generated hydrogen gas for use in NSW homes and businesses within the next five years.

Importantly, the project will demonstrate the co-mingling, storage and distribution of hydrogen and natural gas in the existing network, which has the capacity to store the equivalent of 8 million Powerwall batteries. In

Page 10 (Click on relevant project links to go to online Project Database) doing so, the project will test intermittent and Letter to shareholders variable energy conversion to renewable gas, 31 July providing on-demand energy in the gas Dear Shareholder, distribution network. It is with great pleasure that the Board of

Directors of Carnegie provide you with the “Gas is vital to many Australian companies enclosed Prospectus to raise a minimum of and communities including the $196 billion $5.5 million which, if successful, will see a mining and manufacturing industry and more resumption in trading of Carnegie on the ASX than 6.5 million homes. Customers are and a continuation of our plans to develop the increasingly looking for sustainable energy CETO wave energy technology. Application solutions and Jemena believes renewable forms are also enclosed and the Offer closes gases such as hydrogen and biomethane can on 4 September 2019. play an important role in meeting the NSW

Government’s objective of net zero emissions This Prospectus will see us complete our by 2050,” said Ms Sycamore. period under administration and set us on our

way to delivering a commercial ready CETO Jemena is also working with councils, partners wave energy technology with a simplified and stakeholders to ensure public and private balance sheet and without the loss making transport fleets can access hydrogen for use EMC solar business. in fuel cell electric vehicles.

As a shareholder of Carnegie, you have the Source: Jemena opportunity to participate in this

recapitalisation via a rights issue to existing PROJECT NEWS shareholders at an issue of $0.001 per share Kentbruck Green Power Hub with the right to take up 4 more shares for Neoen Australia submitted to state every 1 share you currently hold. Our plan is government regulators a referral for its simple, to move the technology development proposed up to 900 MW wind farm and into a hi-tech pathway of building a digitised battery storage facility to be located in an virtual prototype using emerging actively managed and harvested pine computational means such as artificial plantation in Victoria’s south west, between intelligence (Machine Learning) and Portland and Nelson. The key components of leveraging our important strategic the Kentbruck Green Power Hub will relationships. This pathway is intended to be comprise: significantly quicker and require substantially • A wind farm, consisting of up to 157 wind less funds. turbines and associated infrastructure • A battery storage facility, comprising a In addition to the Prospectus, you will have lithium-ion (or other battery technology) recently received separately a Notice of Meeting battery with up to 500 megawatts (MW) / and proxy form for a shareholder meeting 1,000 MW hours of storage scheduled for Friday 30 August 2019. We will • A connection to the electricity grid via an provide a corporate and technical update at that underground and/or overhead transmission meeting and hope you can attend. line. The Board and Management are excited An indicative timeline for the implementation about the future of Carnegie and we look of the Project comprises: forward to your participation. • December 2020 – Secure all planning and environmental approvals Yours sincerely • June 2021 – Construction commencement, Terry Stinson, Chairman to occur over a period of around 2 years • June 2023 – Commission the Project. Source: Carnegie Clean Energy

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Update on Murra Warra Wind acquired intangible assets before minority interests. Apart from Murra Warra, no other Farm issues have emerged since 2 May 2019 that 1 August will negatively impact that guidance. Background On 28 May 2019, Downer EDI Limited The Chief Executive Officer of Downer, Grant (Downer) made an announcement in relation Fenn, said Downer was one of Australia’s to the in Victoria. largest and most experienced providers in the Downer’s partner on the project, Senvion renewable energy market. GmbH (Senvion), had filed self-administration proceedings in Germany. Downer noted that “Downer has successfully delivered 14 wind Downer and Senvion share liability under the farms since 2003 and during July we project jointly and severally, that work was completed work on the Beryl Solar Power progressing, and that Downer had initiated Plant in New South Wales and the Numurkah discussions with all key stakeholders to Solar Farm in Victoria,” Mr Fenn said. establish a process for securing delivery of outstanding equipment and completing the “Importantly, both these solar projects were project. completed profitably and in line with expectations. We have reviewed and adjusted Current status of the project and our risk management processes, particularly quantification of the financial impact around joint and several liability, following the The current status of the project is: Murra Warra experience and we remain - Downer’s balance of plant work has been committed to building on our leading position completed on schedule and on budget; in renewable energy.” - 36 of the 61 wind turbine generators have been erected with 13 already generating Source: Downer electricity; - Downer has entered into agreements to secure title and possession to all equipment needed to complete the project; and 1414 Degrees to progress grid - Downer has reached agreement with scale tech for SmartFarms Senvion for assistance in relation to the 1 August commissioning of the wind turbine • MoU signed with Nectar Farms generators. Management Limited • MoU signed with Ampcontrol SWG Pty Ltd Downer has now quantified the financial • MoU signed with BE Power Solutions Pty Ltd impact of Senvion’s insolvency. Total losses in relation to Downer’s obligation to complete 1414 Degrees Limited (ASX:14D), has the Murra Warra Wind Farm are expected to partnered with heavyweight technical, be $45 million before tax ($31.5 million after agribusiness and finance partners to identify tax). This includes the cost-to-complete and and develop SmartFarm projects using its contingency relating to construction, Thermal Energy Storage Solution (TESS). performance and liquidated damages. Downer will recognise the impact of its losses Working in collaboration with integrated relating to the Murra Warra Wind Farm in its electrical and electronic technology provider, financial statements for the year ended 30 Ampcontrol SWG Pty Ltd, and renewable June 2019. energy project developer, BE Power Solutions, 1414 Degrees is examining a range of joint On 2 May 2019, Downer confirmed its project opportunities across Australia, previously stated guidance for the 2019 including at a greenfield site in the Northern financial year of $352 million consolidated net Adelaide Plains. That project would see the profit after tax and before amortisation of

Page 12 (Click on relevant project links to go to online Project Database) company integrating its grid scale energy energy storage system (TESS) would be more storage solution, TESS-GRID, into a protected economical than concentrated solar power cropping farm development by east coast (CSP) as a replacement for fossil fuelled horticulture company, Nectar Farms advanced greenhouse farms. Management Limited (Nectar Farms). BE Power is currently developing more than “Nectar Farms is in the process of establishing 300MW of renewable energy projects across an $80 million advanced protected cropping grid connected solar PV, utility scale batteries, SmartFarm facility in Victoria, involving 10 pumped hydro and biogas power disciplines. hectares of glasshouses and a large nursery. The company has extensive experience The business is now working with 1414 developing, financing and operating Degrees on a similar development,” said Dr renewable energy projects. Kevin Moriarty, Executive Chairman of 1414 Degrees. Ampcontrol, which approached 1414 Degrees to assess the TESS technology for inclusion in “We see enormous synergy between Nectar the Nectar Farms project, is a global business Farms - which has a stated aim to protect the delivering electrical, electronic and control environment through clean energy, resource solutions to improve safety and efficiency in conservation and clever planning - and the mining, renewable, infrastructure and entrepreneurial model of 1414 Degrees. industrial applications.

“The integration of our technologies would Dr Moriarty said early feasibility stages of the result in the first SmartFarm development of northern Adelaide site were expected to its kind globally, delivering another progress during the current quarter. The site opportunity for our state to lead innovation, sits adjacent to a distribution substation at an address energy costs and stability, and SA Water site housing a generator embedded support job creation.” on the National Electricity Market (NEM), and the plan is to use the substation for electricity On May 1, 2019, 1414 Degrees Limited signed supply and generation from the TESS-GRID an MoU with Ampcontrol SWG Pty Ltd and BE while providing heat to Nectar Farms. Power Solutions Pty Ltd to collaborate to undertake feasibility and potential “The Nectar Farms project presents a terrific developments of projects including protected opportunity for the potential of our cropping renewable powered glasshouse technology to revolutionise the approach of (SmartFarm) developments. Australian and international industry to energy storage and heat generation. Several 1414 Degrees Limited signed a Memorandum other development sites in SA and Victoria of Understanding (MoU) with Nectar Farms on will be assessed” said Dr Moriarty. July 27, 2019, to undertake feasibility for a protected cropping farm, SmartFarm, using “We have been modelling the revenues to be TESS technology. The joint activities to be expected from operating the TESS-GRID and undertaken include (but are not limited to) our smaller TESS-IND technology on the NEM. obtaining a greater understanding of each Scenarios for energy trading range from those business’ strategies; jointly approaching based on contracts for supply from an funding agencies and financial institutions; aggregator to direct exposure to wholesale and engaging in product development activity, pricing – and combinations of both.” including feasibility, development and construction. Source: 1414 Degrees

The SmartFarm project follows from the ARUP study that concluded 1414 Degrees’ thermal

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Enhancing information on new This will enable AEMO to publish more detailed, up-to-date data on proposed and generation projects to support existing generators on its generation least-cost investment information pageon its website. 1 August The Australian Energy Market Commission has The Commission’s draft rule also extends published a draft rule to give developers access to key technical information to certain better and more up-to-date information types of developers who are not “registered about what new generation projects are in participants”. This reflects the emergence of the pipeline. This may help businesses make new business models where some developers better investment decisions on where to are selling generators before connecting to locate new generators and assess project the grid. viability. AEMO, which is receiving an unprecedented AEMC Executive General Manager Security volume of generation enquiries, welcomed and Reliability Suzanne Falvi said the draft the draft rule. rule is a good outcome for both developers of new generation and electricity consumers. AEMO Chief System Design and Engineering Officer, Dr Alex Wonhas, said: “Australia is “More than 50 gigawatts of new wind and experiencing unprecedented transformation solar projects are in development, which is across the energy sector, including a large roughly equivalent to the national electricity growth of new generators connecting to the market’s entire current capacity,” said Ms grid. Falvi. “This draft rule change will further help “The smooth entry of these new generators developers access the information they need relies on developers having up-to-date to enable prudent investment decisions to information about where and when other participate in our energy future,” he said. developers are proposing to locate generators to help avoid traffic jams in generation. The Commission has set out an implementation timeframe that would enable “More efficient decisions on where to invest the changes to be implemented in stages by in new generation ultimately benefits end February 2020. consumers by promoting reliable supply at lower costs,” Ms Falvi said. Submissions to the draft determination are due by 12 September 2019. Currently, as part of the grid connection process, developers provide transmission This work is part of the AEMC’s system network businesses with key project security and reliability action plan. information such as the type of generator proposed, the technology it uses, the Source: AEMO maximum power it can generate, and the project’s timing.

The draft rule requires transmission businesses to share this information with the market operator, the Australian Energy Market Operator (AEMO).

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Queensland – Australia’s of the Government’s Renewables 400 program. greatest fan of renewable energy “We’re well on track to reach our target of 50 1 August percent renewable energy by 2030.” Australia’s soon-to-be largest wind farm is already propelling power on Queensland’s AGL General Manager Development and Western Downs, with almost 50 turbines now Construction Dave Johnson said AGL looked feeding energy into the National Electricity forward to safely completing commissioning Market. of Australia’s largest wind farm.

Energy Minister Dr Anthony Lynham today “We thank and greatly appreciate the joined AGL to inspect the first group of continued support and cooperation of all key towering turbines to come online, only a year stakeholders such as the Queensland after first breaking ground at Coopers Gap. Government, the Western Downs and South Burnett councils and local landowners, which “Standing 180 meters high, with blades 67 have been crucial in getting to this stage,” he metres long, these turbines are an impressive said. force equipped to harness the renewable power of Queensland’s wind,” Dr Lynham “We greatly appreciate the support and said. guidance of the Australian Energy Market Operator and to “Work is well underway to get all 123 planned finalise the grid connection and ensure the turbines up and running early next year, wind farm is safely commissioned. which is bringing $850 million of investment, 200 construction jobs, and up to 20 ongoing “A significant proportion of the investment in operational jobs to the region.” this project from AGL and the Powering Australian Renewables Fund has been spent The , 250 kilometres with local businesses and contractors.” north-west of between Dalby and , has a total capacity of 453 BACKGROUND megawatts. It is the largest wind farm by Queensland has more than 2400 megawatts capacity in Australia with enough energy to of large‑scale renewable energy capacity power 264,000 Australian homes. operating already. Almost 900 megawatts more of large-scale renewable capacity is All that power is delivered into the electricity currently financially committed or under grid via a new 275-kilovolt substation, built construction. and run by Queensland’s publicly-owned transmission operator Powerlink. Together, these projects represent more than $5 billion in capital investment and more than “The Palaszczuk Government is putting the 4500 constructions jobs in regional right policies in place to help deliver large- Queensland. scale renewable projects like Coopers Gap,” Dr Lynham said. Source: Queensland Government

“Solar is already massive in Queensland and wind is on the rise, with two operating wind farms at Windy Hill and Mt Emerald, two under construction including here at Coopers Gap and we’ve just announced that five wind farms have been shortlisted for the final stage

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Schedule for the closure of AGL AGL’s new 210MW gas-fired Barker Inlet will be operating from plants in NSW and SA November 2019, providing capacity before 2 August Torrens A is retired. It is a requirement under AGL has today informed the Australian Energy AGL’s development approval for the Barker Market Operator (AEMO) of the schedule for Inlet power station to close all four units at closing its Liddell power station in the Upper Torrens A in a staged and orderly approach Hunter region of NSW and its Torrens A power over time. station near Adelaide in South Australia to provide advance notice of the station closures AGL is continuing to progress a series of in accordance with reporting requirements. power firming projects in NSW including the 100MW upgrade to the Bayswater power In both cases, AGL has told AEMO it has been station, assessing the feasibility of 250MW of able to confirm a schedule that will help the pumped hydro at Bells Mountain and seeking national energy market cope with the critical approvals for a 250MW gas power station at summer months. Newcastle.

AGL has previously indicated that Liddell In South Australia, AGL is currently would close in 2022, which after 50 years of investigating the feasibility of a 250MW operation will have reached the end of its pumped hydro plant at Kanmantoo and technical life. earlier this year delivered the 30MW ESCRI battery on the Yorke Peninsula as part of a AGL has today informed AEMO that the first joint venture with Electranet. unit at Liddell will close in April 2022. However, following an independent Source: AGL Energy engineering assessment, AGL has determined that the remaining three units will close in April 2023, supporting system reliability throughout the 2022-23 summer months. ReNu Energy signs agreement with CleanPeak Energy to sell AGL has also informed AEMO of the closure its existing solar operations schedule for Torrens A, which is more than 50 2 August years old. AGL had previously announced a Highlights plan to mothball two of the four units by • ReNu Energy has entered into a Securities November 2019. Purchase Agreement with CleanPeak Energy

for the sale of the ReNu Energy subsidiaries However, to help mitigate generation impacts which hold its existing solar assets and energy across the system following the outage of Unit retail authorisation for $5.775 million less net 2 at Loy Yang A and to ensure that the Barker debt. Inlet Power Station is operationally stable prior to mothballing these units, AGL is ReNu Energy Limited (ReNu Energy) (ASX: seeking permission from the State RNE) announces that it has entered into a Government to continue to operate over the Securities Purchase Agreement (SPA) with upcoming summer. CleanPeak Energy Pty Ltd (CleanPeak Energy),

under which CleanPeak Energy would acquire Under the schedule provided to AEMO, the the subsidiaries of ReNu Energy which hold its first two Torrens A units will be closed in Embedded Network operations, the Amaroo September 2020. A third unit will be closed in Solar PV facility and the energy retail September 2021 and the final unit in authorisation. September 2022.

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During the last 12 months extensive alternatives before it, the Board and I believe investigations have been undertaken of the that this transaction represents the best potential debt and equity funding options option to protect the long term interests of available to the Company, including offering a our shareholders.” significantly discounted Rights Issue to its existing shareholders in May 2019 and ReNu Energy CEO and Managing Director, speaking with a wide range of potential Craig Ricato said: “This transaction represents funding parties. These activities have not the best opportunity for ReNu Energy to been successful in securing the necessary continue to grow the business, whilst also level of funding required by the Company to allowing it to address its geothermal continue the planned development within all exploration program remediation obligations areas of the existing portfolio. in the Cooper Basin and repay current debt.”

As a result, the Company has been seeking Completion of the transaction is conditional alternative means to reduce operating costs on various conditions precedent including, if and capitalise the business, and has accepted required, shareholder approval under the an offer from CleanPeak Energy to acquire the Listing Rules and regulatory change of control Company’s existing Embedded Network consents, and other customary commercial operations, including the energy retail conditions in relation to material contracts, authorisation, and the Amaroo Solar PV working capital and net debt requirements. facility for a consideration of $5.775 million less net debt. The securities purchase agreement also contains other terms and conditions which Following the completion of the transaction, are customarily found in transactions of ReNu Energy will continue to own and comparable size and type, including provisions operate its bioenergy projects, undertake its requiring purchase price adjustments for net Cooper Basin geothermal remediation debt and working capital variations, program and review its strategic plan, whilst customary representations and warranties further reducing its overhead costs, including (including limitations on warranty liability), a the size and composition of the Board, in line tax indemnity and non-compete with its reduced asset portfolio. In this regard, arrangements for up to 2 years after Mr Anton Rohner has agreed to step down completion. from his position as Non-Executive Director effective immediately. The Board wishes to Each ReNu Energy director considers the thank Mr Rohner for his valuable contribution proposed transaction to be in the best during his term as a non-executive director of interests of shareholders of the company and, the Company. The Board does not intend to if shareholder approval is required under the fill his position at this time. Listing Rules, presently intends to recommend that shareholders vote to approve the ReNu Energy Chairman, Steve McLean said: proposed transaction and to vote all shares “In reaching our decision to enter into an held or controlled by them in favour of the agreement with CleanPeak, the Board and proposed transaction, in each case except Management have explored and considered a where an independent expert opines that the number of alternatives, including seeking proposed transaction is not fair and major equity investors and reviewing reasonable to shareholders. alternative proposals from other potentially interested parties. Having not been successful A break fee of $200,000 is payable by ReNu in raising the necessary funds required to Energy in certain circumstances, including build out our portfolio and acquire further withdrawal of unanimous Board support assets to move the company into a cash flow (except if an independent expert opines that positive position, and having assessed other the transaction is not fair and reasonable to

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ReNu Energy shareholders) and non- to our other proposed customer plants, satisfaction of certain closing conditions because the displaced LPG is more valuable, precedent including a material adverse event. and the carbon-free heat from the TESS-IND solution would significantly reduce Source: ReNu Energy emissions.”

The parties have agreed to collaborate on 1414 Degrees scoping a new research and development of the project, including the technology and capabilities of a sustainable power deal with pilot TESS-IND on site. 1414 Degrees will now Stone & Wood undertake a detailed feasibility study for the integration of its energy storage technology, 2 August expected to be completed by the end of the • TESS-IND integration study for Stone & year. Wood brewery in northern New South Wales

• TESS-IND units would successively replace “We are constantly looking for ways to reduce four LPG boilers our impact on the environment, including • Opportunity introduced under 1414 Degrees ways to continue our shift towards MoU with Enova Community Energy renewables. We are excited and optimistic

about the potential of the new technology 1414 Degrees Ltd (ASX:14D) and Stone & that 1414 Degrees can bring, and look forward Wood Brewing Company Pty Ltd (Stone & to some positive findings from the feasibility Wood) yesterday agreed to undertake a study,” said Ben Summons, Managing Director feasibility study for the integration of 1414 of Stone & Wood. Degrees’ electrically charged Thermal Energy

Storage System (TESS-IND) into the Enova Community Energy Ltd (Enova) Company’s Murwillumbah brewery in introduced Stone & Wood to 1414 Degrees as northern New South Wales. an industrial heat customer under the

memorandum of understanding (MoU) Stone & Wood is actively scoping innovative between the parties to investigate jointly and more sustainable energy solutions, and providing energy solutions to Enova and its 1414 Degrees’ TESS-IND can provide reliable industrial heat customers. heat sourced from renewables on the grid.

The brewery has a daily heat demand from “The opportunity to work with Stone & Wood processing its beer and is expecting to expand and 1414 Degrees on the feasibility study for production. Feasibility would identify the the TESS-IND is in keeping with Enova potential to sequentially replace or Community Energy’s commitment and vision supplement existing gas boilers currently used to innovating in the energy sector. We’re to generate heat with a TESS-IND. delighted to be involved in this R&D project

with 1414 Degrees and Stone & Wood, two “Stone & Wood is recognised as the most organisations that are also expanding the successful brewing start-up in Australia. Its parameters of what sustainability can and will strong commitment to sustainability makes look like,” said Felicity Stening, CEO, Enova this is an ideal commercial location for our Energy. technology to assist in the brewery’s emissions reduction using renewable energy,” The joint venture with Enova would include said Dr Kevin Moriarty, Executive Chairman of firming renewable electricity supplied under 1414 Degrees. long term power purchase agreements, using

1414 Degrees’ TESS to ensure reliable “The Stone & Wood brewery is a financially electricity and heat solutions for sale to attractive site for the 10MWh TESS-IND consumers. commercial pilot, particularly when compared

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“1414 Degrees is excited about its partnership Enova is a community-owned energy retailer with Enova, which has shown great vision to operating in regional New South Wales, with work with us on developing this opportunity plans to shortly expand to metropolitan areas by identifying an ideal industrial customer,” within the state and other states and said Dr Moriarty. territories. Enova offers a range of renewable energy plans for households as well as “We look forward to working closely with businesses. Enova across the coming weeks to model the financials and structure a business plan for Source: 1414 Degrees the joint venture.”

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