Australian energy infrastructure business APA Group has acquired Alinta Energy Pilbara in an effort to grow further into the Pilbara resources sector.
Under the agreement, APA will acquire 100 per cent of Alinta Energy Pilbara for an enterprise value of $1.72 million.
According to the company, the acquisition will allow APA to grow and develop remote-grid energy solutions for the resources industry.
“Alinta Energy Pilbara has existing long term power purchase agreements with a number of Australia’s most significant resources companies and an attractive pipeline of projects to bring new renewable energy solutions to market,” APA said in a statement.
APA said it had identified the resources sector as a key target customer group to help decarbonise their energy systems.
“The acquisition of Alinta Energy Pilbara delivers APA a significant new growth platform in the attractive remote grid energy sector,” APA chief executive officer and managing director Adam Watson said.
“It’s consistent with our strategy to be the partner of choice in delivering infrastructure solutions for the energy transition and links directly with our focus on customers in the resources sector.
“The business is underpinned by high-quality assets and a stable base of blue-chip customers operating in one of the world’s leading mining geographies.”
Alinta Energy Pilbara owns 543 megawatts of operating generation and storage assets and more than 200km of operating electricity transmission lines.
The acquisition will also allow APA to gain an 11.8 per cent ownership interest in the Goldfields gas pipeline, bringing its total ownership to 100 per cent.