LGI acquires 42MW of operating Queensland solar assets for $22.0 million
LGI Limited (ASX:LGI) has entered into a binding agreement to acquire 100% of the shares in the Brigalow and Chinchilla solar entities from IIG Solar Assets Pty Ltd ATF The IIG Solar Asset Trust. The two grid connected solar farms in Queensland total 42MW of operating solar assets, and the price is $22.0 million with no associated debt.
Completion is anticipated on 9 October 2026. LGI confirmed shareholder approval is not required and there are no outstanding material conditions to be satisfied.
The acquisition will be funded through a combination of available cash and the Company’s existing debt facility. The announcement does not disclose the split between the two.
Deal snapshot
The two farms have a combined 54MW of installed capacity and 42MW of export capacity. Details for each site are below.
| Asset | Location | Export capacity | Installed capacity |
|---|---|---|---|
| Chinchilla | Baking Board QLD | 14.7 MWac | 19.9 MWp |
| Brigalow | Yarranlea QLD | 27.3 MWac | 34.5 MWp |
| Combined | Queensland | 42MW | 54MW |
Key terms of the deal include:
- Land lease life remaining on both sites of over 30 years.
- A price of approximately $0.5 million per MW.
- A purchase price that LGI describes as materially below greenfield development cost for comparable assets.
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Earnings upside and pipeline upgrade
Based on current electricity prices, the acquisition is estimated to contribute annual EBITDA of $2.1 – $4.0 million. The range is dependent on the timeliness of synergies realisation and the success of Dynamic Asset Control System (DACS) implementation.
The wide range means outcomes will depend on execution. A low entry cost per MW combined with that range gives measurable upside if DACS delivers.
LGI has also upgraded its targeted medium-term strategic pipeline to over 120MW of distributed, renewable, dispatchable capacity. The previous figure was the 80MW high-conviction pipeline announced earlier, and the Company remains fully committed to developing that pipeline.
The addition of battery energy storage system (BESS) hybridisation could achieve further enhancements to earnings. Preliminary BESS studies have been initiated at both sites, with early viability supporting a case to consider expanding the sites with batteries over time.
Jarryd Doran, Chief Executive Officer
“This acquisition is a natural extension of our strategy to grow our renewable generation base within our disciplined capital approach framework…”
The CEO also described the assets as “proven, operational assets acquired well below replacement cost” that complement LGI’s existing distributed grid connected footprint.
How solar fits LGI’s DACS-controlled platform
DACS is LGI’s proprietary system. It collectively dispatches generation and storage to optimise returns across energy and carbon markets.
Dispatchable generation can be called on at any time, while variable generation depends on conditions such as sunshine. LGI’s platform combines dispatchable (24/7) landfill biogas fuelled generation with fast-dispatch BESS, and now solar, to build out its firming capacity under DACS control, according to Mr Doran.
Solar generation assets operate using inverter-based technology like batteries, which the CEO said integrate logically into LGI’s diverse energy platform asset strategy.
Each site also has greater installed generation capacity than export capability (54MW installed against 42MW export). This reduces the risk of operating below maximum export levels and creates a platform to consider BESS.
For investors, the mix is designed to capture better price outcomes, not just volume.
Strategic rationale and market tailwinds
The Chinchilla and Brigalow assets are located close to LGI’s existing operations in the Toowoomba and Western Downs regions. LGI intends to transition their maintenance and operation in-house, and to apply DACS across both sites to optimise energy dispatch and improve price outcomes.
The acquisition also broadens access to end-markets for energy trading and introduces a wider set of potential offtake partners.
LGI developed solar projects prior to listing on the ASX. Over the past year it intensified its assessment of solar opportunities, undertaking due diligence on multiple assets as valuations have softened in line with energy prices.
The two facilities stood out for their high-quality construction and robust engineering. LGI said this provides confidence in their ability to operate reliably for the remainder of their lease terms.
Electricity demand in the National Electricity Market continues to grow annually. LGI cites three drivers:
- Households transitioning to electric vehicles.
- The electrification of industrial processes.
- Emerging high-consumption sectors such as data centres.
On the supply side, variable renewable generation is entering the market and conventional thermal generation is approaching end-of-life, with declining reliability.
Capital discipline
LGI is targeting net debt to EBITDA of below 2x throughout the remaining portfolio build out to 120MW. Growth is therefore paired with a stated leverage ceiling.
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