Zen Energy lands Taiwanese investor, eyes battery storage in Australia, abroad

South Australia-based Zen Energy has formed a strategic partnership with HD Renewable Energy Co (HDRE) that will see the parties focus on the development of battery energy storage and green hydrogen projects, both in Australia and overseas.

As part of the partnership, HDRE has agreed to acquire shares in Zen equivalent to 9.7% of its expanded equity base for AUD 43 million.

Zen Chief Executive Officer Anthony Garnaut said the partnership will focus on developing storage assets in Australia, in Taiwan, and potentially other countries, such as Japan.

“We know that partnerships with like-minded organisations, like HDRE, are key to a successful and just renewable transition for all,” said Garnaut. “Our strategy is to focus on storage asset development and operation to hedge against intermittency of renewable generation, such as the major wind drought that occurred in April/May this year [2024].”

The deal will also provide Zen with capital to progress its two major domestic projects: the 111 MW/290 MWh Templers battery being built in South Australia; and the Solar River hybrid project that is to deliver a 230 MW solar farm and 650 MWh battery energy storage system in the state’s mid-north region.

“It has been a difficult year, as many involved in the renewable transition have experienced,” Zen CEO Garnaut added. “[We’re] looking forward to working with our new partners to accelerate Australia’s path to becoming a renewable energy superpower.”

The signing of the partnership with HDRE comes after the two parties inked a cooperation deed in June 2024. The initial collaboration involves a commitment to develop up to 500 MW of offtake commitments to bolster Zen’s energy portfolio and facilitate new project site acquisitions.

For HDRE, the latest deal officially solidifies its place in the Australian market, after the company established a subsidiary there in April 2024, attracted by what it described as a mature market driven by abundant and low-cost renewable energy resources.

In a statement, HDRE referred to “opportunities for multiple collaborations” in storage projects, solar-plus-storage projects, and asset construction.

Founded in 2016, HDRE has diverse business units spanning power generation, electricity retail, and energy storage with assets in Japan, the Philippines, and Taiwan.

From pv magazine Australia.