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Key Points:
- AMPYR Distributed Energy will acquire 100% equity in the Narromine Renewable Energy Project through the conversion of a $10 million funding facility into project equity.
- The project, a 6.7MWdc solar farm in central-west New South Wales, has already exported over 1,600MWh of energy in its first two months of operation.
- MPower expects to record a gain of approximately $700,000 after the transaction, pending final review and Foreign Investment Review Board (FIRB) approval.
MPower Group Limited (ASX:MPR), a specialist in renewable energy and battery storage development, has announced that AMPYR Distributed Energy will acquire full ownership of the Narromine Renewable Energy Project in New South Wales. This acquisition comes through a debt-to-equity conversion of project funding.
Debt-to-Equity Conversion Agreement
The deal involves AMPYR converting a $10 million project funding facility into full equity ownership of the Narromine project, located in central-west New South Wales. As a result of this transaction, all funding costs, including principal, capitalized, and accrued interest, will be eliminated. The outstanding principal as of 30 September 2024 was valued at $10 million.
For MPower, this transaction is expected to result in a financial gain of approximately $700,000 upon deconsolidation of the asset. The gain is subject to the final accounting treatment and review by the company’s auditors. The debt-to-equity conversion is binding on both parties and is only awaiting Foreign Investment Review Board (FIRB) approval, which is expected to be obtained in the coming months.
Narromine Renewable Energy Project
The Narromine Renewable Energy Project is a solar farm with a capacity of 6.7MWdc/4.99MWac, located in the central-west region of New South Wales. It features advanced technologies such as bifacial photovoltaic (PV) modules, single-axis tracking, and central inverter technology, allowing it to maximize energy production. The project is expected to generate over 14,000MWh of energy in its first year of operations.
Having achieved commercial operations in July 2024, the Narromine project has already demonstrated strong performance. In its first two full months, it exported more than 1,600MWh of energy, meeting the expectations set by its design specifications.
AMPYR's Role and Future Prospects
With AMPYR Distributed Energy acquiring full equity in the Narromine project, it strengthens its foothold in the renewable energy sector. AMPYR has been actively expanding its portfolio of renewable energy assets, and the acquisition of the Narromine project represents a significant step forward in its long-term strategy.
The conversion of project funding into equity simplifies the project's financial structure and opens the door for further development and growth. Once FIRB approval is granted, AMPYR will have full control over the project’s future direction.
