Essay by Eric Worrall
Sun Cable, which planned to export up to 20GW of solar power from the Australian outback to Singapore, has entered voluntary administration after an unresolvable dispute between donors.
Sun Cable collapses after row between billionaire investors Andrew Forrest and Mike Cannon-Brookes
From business reporters David Chau and Michael Janda
Sun Cable, the company behind a massive solar farm and electricity export project planned for the Northern Territory, has entered voluntary administration.
- The company’s goal was to build the largest solar project in the world
- His plan was to build a massive 20 gigawatt solar farm in the NT
- Sun Cable also wanted to build a 4,200-kilometer submarine cable to Singapore
The company, whose primary investors include billionaires Mike Cannon-Brookes and Andrew “Twiggy” Forrest, issued a vague explanation as to why it collapsed:
“The appointment followed the lack of alignment with the objectives of all shareholders,” it said.
“Although financing proposals were presented, no consensus could be reached on the company’s future direction and financing structure.”
The ABC understands that Sun Cable’s principal investors, Mr. Forrest and Mr. Cannon-Brookes, have had disagreements over the company’s funding and direction.
Read more: https://www.abc.net.au/news/2023-01-11/sun-cable-enters-administration/101845100
I don’t have details of what went wrong, but given the gap between the capital raised and the amount needed, I’m guessing the problem was a dispute between the funders over how much of their own money to invest in the project and which bits should be built first to advance the project.