Sembcorp seeks investor for 550MW Marri Wind Farm
Sembcorp is reported to be seeking an external investor for Alinta Energy’s proposed 550MW Marri Wind Farm in Western Australia, as the company considers how to fund the capital-intensive renewable energy development.
According to Street Talk, Sembcorp has appointed Lazard Australia to manage a sell-down process for the project. The move comes nine months after Singapore-listed Sembcorp acquired Alinta Energy for $6.5 billion.
Early-stage sale documents presented to prospective investors indicate Alinta intends to retain an equity interest in Marri and remain closely involved in its construction and operation. The final ownership structure is expected to depend on the outcome of the investor process.
Marri project targets construction from 2027
The proposed Marri Wind Farm is located at Dandaragan, about 140 kilometres north of Perth. Current project information shows a planned capacity of up to 550MW, with as many as 82 wind turbines and an expected operating life of more than 30 years.
Construction is targeted to start in 2027, subject to a final investment decision. The project timeline indicates construction could take up to three years.
Marri is still progressing through environmental and development approvals. Alinta’s project timeline states that environmental approval and development applications were submitted in 2025 to the Department of Water and Environmental Regulation and the Shire of Dandaragan.
According to the sell-side material, an offer to connect the project to the grid through the 330,000-volt South Mimegarra terminal is expected by Christmas.
The development is expected to cost more than $1.5 billion to build.
Long-term power purchase agreements secured
Although construction has not yet begun, Marri has secured two customers. Alinta Retail and the Western Australian government’s Water Corporation have each signed 15-year power purchase agreements, according to the report.
The agreements mean the project already has contracted electricity customers while Alinta progresses approvals, its final investment decision and the proposed equity sell-down.
For renewable energy investors, the process could provide an opportunity to take an ownership position before construction while Alinta retains an interest and participates in project delivery and operations. The eventual ownership structure, however, has not yet been determined.
External capital forms part of Alinta’s broader approach
The Marri process follows previous moves by Alinta to bring outside capital into major energy developments. The company previously sought to sell a 20 per cent to 50 per cent stake in its proposed 1GW Spinifex offshore wind project in Victoria, later partnering with Japanese utility JERA’s renewables business, JERA Nex.
Alinta also sold its Western Australian remote power business to APA Group for $1.7 billion in 2023 and subsequently sold its proprietary billing platform to IFM Investors.
An Alinta spokesman told Street Talk that the company regularly reviews capital structures for major development projects, including Marri, and said it was not running similar processes for its other development projects.
Sembcorp, which acquired Alinta from Hong Kong’s Chow Tai Fook, was reported as having a market capitalisation of S$11.1 billion, equivalent to about $12.2 billion.
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Based on reporting by Street Talk.