LGI Limited Acquires 42 MW Queensland Solar Farms For $22 Million, Expanding Renewable Energy Pipeline Beyond 120 MW

LGI Limited has announced the acquisition of 100% ownership of Maryborough Solar Pty Ltd and Chinchilla Solar Pty Ltd from IIG Solar Assets Pty Ltd for a total purchase price of $22 million, with no associated debt. The transaction adds 42 megawatts (MW) of solar generation capacity to LGI’s renewable energy portfolio and strengthens its medium-term project pipeline in Queensland, Australia.

The acquisition includes two solar farms located on leased land in Queensland. The Brigalow solar farm has an installed capacity of 27.3 MW, while the Chinchilla solar farm contributes 14.7 MW. Together, the facilities provide 42 MW of solar generation capacity, expanding LGI’s presence in the renewable energy sector and supporting its plans to diversify its energy generation assets.

LGI confirmed that the acquisition has been completed without any remaining outstanding material conditions. The transaction does not require shareholder approval. The company funded the purchase through a combination of available cash reserves and undrawn funds from its existing debt facility, enabling it to complete the acquisition using its current financial resources.

Based on prevailing electricity prices, the expected implementation of LGI’s Dynamic Asset Control System and anticipated revenue synergies, the acquired solar assets are projected to generate annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of between $2.1 million and $4.0 million. The projected earnings will depend on electricity market conditions, operational performance and the realisation of expected efficiencies and additional revenue opportunities.

With the addition of the two solar farms, LGI’s medium-term renewable energy platform pipeline has increased to more than 120 MW. This comprises an existing high-conviction pipeline of 80 MW and the newly acquired 42 MW of solar capacity. The expanded pipeline supports the company’s strategy to increase its renewable energy operations and develop a broader portfolio of generation and storage assets.

LGI plans to integrate the acquired solar facilities with its existing landfill biogas generation operations and battery storage initiatives. This approach is expected to improve the company’s operational scale, diversify its renewable energy sources and create opportunities to participate in additional energy markets, including energy trading.

The company also highlighted the potential operational advantages of the acquired assets. Their installed solar capacity exceeds the applicable network export constraints, providing additional operational headroom when some panels are offline. This arrangement could help reduce operational risks associated with equipment outages while creating opportunities to explore future hybridisation with battery energy storage systems.

The acquisition represents a further step in LGI’s strategy to expand its renewable energy platform by combining solar generation, landfill biogas and battery storage. The company aims to strengthen its earnings potential, improve asset utilisation and explore new commercial opportunities as it develops its integrated renewable energy portfolio.