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ReNu Energy and GrainCrop sign solar deal

Industrial
ASX:RNE      MCAP $4.15M
04 July 2019 23:42 (AEST)

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ReNu and GrainCorp have signed a deal for three solar PV pilot projects at GrainCorp facilities.

The HOA outlined that ReNu and GrainCorp must work together to evaluate and develop three pilot project solar PV sites which will be built, operated and maintained by ReNu.

Benefits of this project included power cost savings, improved energy security, enhanced corporate sustainability and reduced exposure to energy cost volatility.

This recent update stated that ReNu had completed its evaluation of the three pilot project solar PV sites located in Queensland, Victoria and NSW. ReNu is also continuing to negotiate the commercial terms of the Power Purchase Agreements (PPA) with GrainCorp.

Both companies have agreed to an extension of the exclusivity period under the HOA, which is now until September 30 2019, to provide additional time to negotiate the PPA’s.

ReNu has also agreed to an extension with Astronergy Solar regarding ReNu’s purchase of two 5.8MW DC grid connected solar farm developments in South Australia. This was announced on April 26 2019.

ReNu and Astronergy both agreed to the extension of both the developments until August 31 2019 to allow for enough time to complete the due diligence, negotiations and binding agreements for both projects.

Due diligence is continuing steadily on both projects and the companies have been working hard to progress the commercial negotiations.

ReNu has also appointed a new CFO and Company Secretary Matthew Scott. Matthew has more than 25 years’ accounting and commercial experience in the resource, energy, health technology and professional services sectors.

Shares are up almost four percent to sit at 5.9 cents with a market cap of $6.957 million.

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