ZEN chosen for first round of ARENA Community Battery Grant


1 July 2024.

Community-based renewable energy solutions are key to building climate resilience, ZEN Energy CEO Anthony Garnaut said following confirmation today the company has received conditional approval of an Australian Renewable Energy Agency (ARENA) Community Battery Grant.

ZEN’s community battery project is one of 370 that ARENA has chosen to fund in its first, $143 million-dollar, round of grants. ARENA received an unprecedented amount of applications received with a total grant request of $1.3 billion.

The Community Batteries for Household Solar program will improve access to distributed battery storage for households and community organisations across Australia.

Receiving a conditional ARENA Community Battery Grant will enable projects to prove the financial and emissions reduction benefits of integrating energy storage in and around the daily lives of people, Anthony said.

“ZEN’s community battery project will help to improve community energy-independence and contribute to the knowledge necessary to become more resilient to climate damage.

“We wish to see community batteries enable cheaper, cleaner energy storage for households and businesses, and provide valuable knowledge that can be shared across Australia to fast-track the implementation of these local batteries.”

Media enquiries: Paul Sheridan, 0410 516 656, paul.sheridan@zenenergy.com.au

In-depth community research reveals the challenges of change to renewable energy.


3 June 2024.

A majority of Australians, particularly younger people, place the collective benefits of action on climate change and lower electricity prices ahead of their individual concerns about the impacts of development, as Australia’s transition to renewable energy gathers pace.

This and other first results of This is Transition, a 12-month study of community opinions, values and motivations impacting the country’s shift from coal and gas-fired electricity to renewable power have today been published. The study, conducted by highly regarded research firm, Essential Research, has been commissioned by Australia’s first 1.5°C energy company, ZEN Energy.

This is Transition has also identified warning signs that public support is at risk if communication to communities about the ability of renewable technologies to replace fossil fuel generation isn’t consistent or reinforced over time.

Key findings include:

  • 57% of Australians believe the main benefits of the renewable energy transition will be meaningful action on climate change, lower energy costs and new career opportunities. Only 17% do not believe there will be any economic benefits.
  • 54% of Australians, and 61% of young Australians 18-34 years, believe meeting national commitments to cutting climate emissions and transitioning to renewable energy should be prioritised over local community concerns about project development. 52% of people aged 55 years and older believe local community concerns should be prioritised.
  • The number one concern about new energy project development is impacts on the natural environment, including wildlife (61%), while the main concern for 27% of people is visual impacts of development and transmission lines.
  • Australians believe there are two main reasons why the country’s energy transition is facing difficulties: that the technology isn’t advanced enough, and that governments haven’t provided enough leadership.
  • 53% of Australians want renewable energy developers to collaborate with and involve them in decision-making, but only 10% of people support decision-making power being handed over to communities.
  • In quantitative discussions, the majority of respondents said community consultation is often tokenistic and only a genuine partnership will result in a project being accepted by a local community.

ZEN Energy CEO Anthony Garnaut said the findings of This is Transition reinforces the challenges individual renewable projects are having and highlighted the need for consistent leadership from industry and government.

“This research demonstrates that people don’t view the transition in isolation or on a project-by-project basis. It reinforces ZEN’s focus on solutions that will secure a healthy, safe future for all.

“The findings show Australians have consultation fatigue and only genuine partnerships will earn a project a social licence. ZEN understands this is a transition that cannot afford to fail. We encourage all developers to engage early, involve people in decision-making and co-design of projects.”

Media contact: Paul Sheridan, paul.sheridan@zenenergy.com.au, 0410 516 656.

ZEN is proud to be part of the 2024 Vivid Sydney Festival!
We are excited and proud to have been selected to be part of the 2024 Vivid Sydney Festival!

May 2024

ZEN’s proposed 1GW Western Sydney Pumped Hydro project is one of 19 projects chosen as practical, tangible and scalable projects necessary to transform Sydney into a truly sustainable city.

A New Normal Sydney is an initiative to demonstrate how our cities can evolve from simply being a consumer of water and energy, that also create a lot of waste, to becoming a self-sufficient producer that sends zero waste to landfill. Leaving Sydney a city that will never runs out and keeps its own lights on.

A former coal industry site, an old coal washery at Nattai in south west Sydney, will be re-purposed for ZEN’s Western Sydney Pumped Hydro project (WSPH), included in the New Normal initiative as the example of large scale clean energy generation and storage possible in Sydney. Once operational, the project will supply 500,000 homes and businesses with on-demand power for up to eight continuous hours.

Together, these 19 projects will unlock a $120 billion transformation of Greater Sydney, create over 80,000 jobs, and help secure Sydney’s future as one able to withstand future shocks and emerge a climate resilient global city.

The exhibition will run until June 15 at The Harwood Building, Mary Ann St, Ultimo.

Principal Partner: NSW Environment Protection Authority.

Historical partnerships for a unique project.

May 2024

ZEN has recently announced the proposed project Western Sydney Pumped Hydro, transforming a cold old washery into a sustainable future.

WaterNSW has granted ZEN access to Lake Burragorang, Sydney’s largest water storage, to conduct numerous investigations to determine the viability of building a 1,000 megawatt pumped hydro project. To be allowed access, WaterNSW had to first be satisfied a pumped hydro project would not damage water quality.

Subject to planning and environmental approvals, as well as community support, we believe construction could commence in 2027. Western Sydney Pumped Hydro (WSPH) could then be supplying 500,000 homes and businesses with on-demand renewable electricity by 2031.

Large capacity renewable energy storage projects such as Western Sydney Pumped Hydro will significantly contribute to the security and reliability of Sydney’s and NSW’s energy supply, aligning with the NSW Electricity Infrastructure Roadmap.

An industry-leading $1 million per year Community Benefits Scheme will be created. Community consultation will also include co-design of aspects of the project.

Working together on a sustainable future.

Lake Burragorang, on Gundungarra Country, already serves Sydneysiders with clean drinking water, but soon could provide them with reliable clean energy as well.

Collaborations that have an impact

Ross Garnaut, a board member of ZEN, has championed pumped hydro technology as key to Australia’s renewable energy transition and identified the unique site for the proposed Western Sydney Pumped Hydro project. Few sites are better suited to such a project.

The former coal washery land at Nattai is large enough for an upper reservoir to be built, and is also cleared and rehabilitated land, minimising the environmental impacts of a pumped hydro project.

The project site sits 400m above Lake Burragorang on an escarpment of ancient sandstone, which makes the elevation ideal for an efficient project and provides confidence that necessary tunnelling to transfer water between reservoirs will occur in stable geology. And, Sydney’s electricity transmission system is close by – ZEN is seeking to connect to the grid through underground cables along existing road easements.

ZEN is partnering with WaterNSW, which has granted us access to the catchment area to conduct feasibility studies and with SADA Group, which has owned and rehabilitated the site.

It is early days for this proposed project, but with partnerships like these, we are laying the foundations for something special that everyone will benefit from.

Project’s Timeline

It’s very early days and an announcement about the project simply means the start of numerous studies, consultation, and design development.

All going well, ZEN expects construction could begin in 2027, subject to community and stakeholder support, investigations and approvals. The project could then come online in 2031.

We are committed to, and looking forward to, sharing the development process and shaping the project design and its benefits with locals, including Traditional Owners, Wollondilly Council, and other interested and important stakeholders.

ENDS.

Turning Western Sydney’s coal mining past into a clean energy future

 

11 April 2024

Sydney’s biggest water storage, Lake Burragorang, could soon help NSW take a big step toward achieving its transition to renewable energy and stabilise electricity supply at peak demand times.

ZEN Energy, Australia’s first 1.5°C energy company, is proposing to turn degraded coal industry land at Nattai on the escarpment above the lake into a clean energy powerhouse, delivering on-demand electricity to the equivalent of 500,000 homes and businesses.

At 1,000 megawatts (1GW), the Western Sydney Pumped Hydro project will be able to store and supply up to eight continuous hours of ‘firming’ energy, essential to stabilise the state’s electricity grid and power prices as it transitions to renewable energy generation.

Located 24km away from Warragamba Dam and drinking water treatment, the project will also be mostly underground: pumping water from Lake Burragorang through tunnels to a reservoir located on the former coal industry land. When demand is high, water is released to drive underground turbines and send renewable power into the electricity grid.

A $1 million per year Community Benefit Scheme will be created and the project will generate 1,500 jobs during construction and 80 operations jobs.

Coal was mined from the Burragorang Valley from 1930 to 1992 and the project site was used as a coal washery, operated by Burragorang Valley Coal, until 2001 and since then undergone rehabilitation. The Dunbier family, which owned the company, is now partnering with ZEN to turn the site’s fossil fuel past into being part of the state’s clean energy future.

Numerous studies, consultation and co-design with Traditional Owners, local residents and other stakeholders will now occur. If all approvals and a social licence are secured, construction could begin in 2027 and be operational by 2031.

Initial studies have established that the project would have no detrimental impact on water quality or cause any change to water levels in Lake Burragorang, including no flooding of the shoreline and surrounding natural environment. This was critical to securing WaterNSW’s approval for ZEN to progress the project.

“The vast water reserves of Lake Burragorang can supply Sydneysiders with clean drinking water and clean, renewable energy as well,” said ZEN CEO Anthony Garnaut.

“Large-scale energy storage projects like Western Sydney Pumped Hydro are key to keeping the lights on and energy prices in check in NSW as our coal-fired power stations age and retire over the next decade.”

“Western Sydney Pumped Hydro marks ZEN’s entry into renewable energy development in New South Wales. This is a key milestone for us as we grow and envision a 1.5-degree world for all.”

Importantly, consultation with key stakeholders, particularly Traditional Owner representatives, has already begun. These will continue as the project evolves and ZEN is seeking to co-design many aspects of the project with local residents.

“ZEN is committed to, and looking forward to, sharing and shaping the project design and its benefits with locals, Traditional Owners, Wollondilly Council, and other interested and important stakeholders,” Mr Garnaut said.

ENDS.

ZEN ENERGY SUCCESSFULLY COMPLETES $160M CORPORATE DEBT RAISING

 

22 March 2024

Australia’s first 1.5°C energy company has successfully completed its debt capital raising. The outcome confirms increasing interest and confidence among high net worth and institutional investors in ZEN’s business strategy.

ZEN’s ambitious growth plans have been supported by organisations including private debt investment manager Longreach Credit Investors, ethical superannuation fund Future Group, ASX listed financial service provider Income Asset Management (IAM), leading WA property investment firm Hesperia, Samuel Terry Asset Management and impact investors.

ZEN closed Tranche A of the capital program at $54M in September 2023. The successful conclusion of the Tranche B capital raising closed the overall program at $160M. This comes just after ZEN’s announcement that it has reached financial close on its 100% owned energy storage asset, a 111-megawatt, 291 megawatt-hour battery located at Templers, 60km north of Adelaide.

A third of the funds raised were from existing investors, shareholders, and employees, demonstrating the depth of support for ZEN’s business model.

Investor confidence in ZEN enables the business to continue to pursue its ambitious growth plans, which centre around enabling large energy users to reduce their carbon footprint in an efficient manner.

Quotes attributable to ZEN’s CEO, Anthony Garnaut:
“We welcome the latest group of institutional and impact investors, including Longreach and Future Group, into ZEN’s ecosystem of partners with aligned sustainability goals.

“Meeting our capital raising goal means we can continue to scale our business model, including by taking the next step in building out our portfolio of renewable energy and storage assets.

“With this injection of capital, ZEN will also be able to scale our existing and attract new sustainability driven customers, accelerating their journey to the zero carbon future.”

Quotes attributable to Longreach Credit Investors Chief Commercial Officer, Alex Nisbet: “Longreach Credit Investors is pleased to have supported ZEN in this debt raising. ZEN is well positioned to be a key player in driving the renewable energy transition in Australia and is another example of the high-quality Australian businesses and management teams that we seek to partner with.”

Quotes attributable to Future Group Executive Director Investments, Sharon Davis:
“Future Group injected $30M of capital into ZEN Energy, enabling the business to retain 100 per cent ownership of its first major asset, the 291-megawatt-hour Templers Battery in regional South Australia.

“Using superannuation’s $3.4 trillion can unlock climate solutions and investments. Zen Energy’s ESG-driven business reflects the values of Future Group’s, leading the investment movement to advocate for a future worth retiring into.”

Quotes attributable to Income Asset Management (IAM) Executive Director – Debt Capital, Tim Smith:
“IAM is a proud supporter of ZEN’s ambitious renewable energy strategy and have been delighted to be a joint lead manager on this transaction. We believe it is a significant milestone in the context of Australia’s rapidly evolving private credit market. This transaction is a testament to the ZEN management team and a large step toward achieving its long-term aspiration of becoming an investment grade issuer.”

Media contact:

Paul Sheridan
0410 516 656
paul.sheridan@zenenergy.com.au