BUSINESS NEWS: Movements in the build-to-rent sector, carbon management tools, wind farms and biofuel. Plus bad news for Sydney, and opportunities available for our readers.
Superannuation fund launches build-to-rent arm
Among all the hubbub about our appalling lack of affordable housing, now spreading to regional areas thanks to the pandemic effect, it’s good to see talk about super funds thinking how they might invest their enormous funds (our super) into helping with the kind of infrastructure that builds a resilient nation, or social capital. Housing for instance.
So the news from Aware Super recently that it’s launched a $7 billion build-to-rent arm focused on affordable housing for essential workers is a big step in the right direction and we hope a bigger signal to the market about the direction similar behemoths need to tread.
As one of the country’s biggest super funds with $155 billion under management, Aware is also sticking to more traditional property investments in the traditional office, retail and industrial sectors.
One of the projects it’s investing in is the 24 hectare Mamre Road Precinct in Sydney’s west alongside Frasers Property Industrial, alongside a 77 hectare master-planned estate in development The Yards.
Australian Energy Foundation to close
If you’ve been reading The Fifth Estate over several years you could not have failed to notice we’ve written quite a bit about the Australian Energy Foundation (AEF), formerly the Moreland Energy Foundation Limited (MEFL), first established by Moreland City Council from the forced sale of the former cities of Brunswick and Coburg electricity supply authorities under the Kennett Government in 2000, with the goal to reduce greenhouse emissions.
Sadly this wonderfully conceived outfit that was a really a gift to the community with help offered to all and sundry on energy efficiency related matters, is now set to close, citing changing market conditions and the ongoing impacts of the pandemic.
Mayor of Moreland Mark Riley said he was “saddened” by the news but “proud” of the work the foundation has done.
“Moreland City Council had a successful partnership with MEFL and more recently AEF over two decades. The organisation has provided advice and support to help thousands of Moreland residents and businesses reduce their energy bills and make the switch to clean energy.
“We are proud of the wonderful programs that its predecessor, MEFL fostered, such as Solar Cities and the development of the Zero Carbon Evolution and the subsequent 2040 framework.
“MEFL also partnered with Council to deliver Cooling Communities, which won a United Nations Environment Day Award and helped numerous residents and businesses go solar and improve energy efficiency.
“We will continue the organisation’s legacy on climate change action within Council to create a healthy and resilient Moreland, including continuation of the Mike Hill Fellowship in this financial year.”
Seed funding for carbon measurement platform
It can cost some companies hundreds of thousands of dollars we hear to get their ESG house in order.
So one astute outfit has decided to go high end tech to solve the problem. Australian climate tech startup NetNada (from the Spanish “nada” meaning nothing, we presume) has raised a nice little sum of $200,000 in seed funding from Skalata Ventures for a platform that can assess a company’s impact on the environment and suggest reduction pathways.
Founders Lochie Burke (also founder of Kolkata-based River Rangers charity) and Afonso Firmo (also founder of sustainable household product marketplace Little Pepino) say the platform solves the problem of high ESG consultant fees.
“Two million Australian SMEs want to do the right thing, but with typical ESG consultant fees hitting [hundreds of thousand of dollars], they’re priced out completely,” Burke said.
“Sustainability is a huge and complex area. Offsetting carbon, cleaning up supply chains, and searching for green solutions amidst the greenwashing is a minefield for non-experts.”
The team predicts 10 fold customer growth over the next 12 months and already has clients United Resource Management and Renew IT signed on to its platform.
The platform has received an Minimum Viable Product Grant (MVP Grant) from the NSW government, took part in the University of New South Wales Founders and CSIRO ON programs. Planet Ark’s non-executive director and director of entrepreneurship at UNSW David Burt has joined as an advisor.
Igneo takes majority stake in Lal Lal Wind Farm
Igneo Infrastructure Partners-owned Atmos Renewables will take a 60 per cent stake in wind farm asset Lal Lal from InfraRed Capital Partners and Macquarie’s Green Investment Group in a process run by Macquarie Capital.
Canada’s Northleaf Capital Partners will retain the other 40 per cent stake in the Australian wind farm partnership.
Lal Lal Wind Farms is a 60-turbine development under construction southeast of Ballarat Victoria. Once completed, it will be capable of producing 228 megawatts of clean energy.
The sale price was not disclosed, but the wind farm is estimated to be valued at about $400-450 million including debt.
Igneo did not provide comment on the value of the transaction.
In April, the company acquired 100 per cent of solar business Elliott Green Power Australia via auction for an undisclosed sum from Elliott Management Corporation.
The company acquired a portfolio of the Childers, Susan River and Nevertire solar farms with a combined capacity of 302 megawatts.
Atmos now has a portfolio of seven operating wind farms, five operating solar farms and three co-located battery storage development projects.
High “energy” sugarcane powers Nufarm’s bio energy expansion
Nufarm has announced an expansion of its bio energy platform, through the acquisition of leading Brazilian industrial biotech group GranBio’s “energy cane” production assets and customer contracts for US$25 (A$36.6) million.
Energy cane is a novel cane crop developed to increase sugarcane biomass by 150 per cent, specifically for biofuel and bioelectricity generation.
Chief executive Greg Hunt said the deal is part of the group’s strategy to invest in sustainable innovative technologies that help growers get more from their land.
“The acquisition is expected to deliver modest underlying [earnings before interest, taxes, depreciation, and amortisation] in the short-term however it has significant potential to contribute to Nufarm’s earnings growth over the medium to long-term as global expansion ramps up to meet demand for sustainable biofuels,” Hunt said.
GranBio chief executive Bernardo Gradin said: “The long-term alliance with Nuseed will accelerate and improve the agricultural and technological advancement of energy cane worldwide. It will create a very powerful global solution to secure large-scale, non-food biomass as a reliable feedstock to biofuels such as Net Zero 2G ethanol and 2G sustainable aviation fuel.”
Buildings and transport named as Sydney’s areas of focus for net zero
A new major report from the Committee for Sydney has revealed that the city is not on track to meet its net zero 2030 or 2050 obligations. The data shows that both the buildings and transportation sectors are failing to meet their obligations on electrification and need to lift their game.
The report, in collaboration with Ausgrid, Dexus, Endeavour Energy, the Department of Planning and Environment and the Greater Cities Commission, looked at Sydney’s current and potential future emissions trajectory, and the options we have to set it on the right track.
It found that buildings and transport are Sydney’s biggest emitters.
Grants for businesses to cut energy costs
Up to $20,000 is up for grabs from the NSW government to help businesses cut energy costs by identifying ways to fine-tune processes and upgrade equipment.
A $1.5 million round of grants will fund up to 50 per cent of installation costs for businesses to install new submeters to monitor equipment performance.
It is part of a $12 million metering package from the NSW Net Zero Plan, to be released over the next 5 years.
Director of program and market development Steve Procter said understanding a business’s energy use is an important step in knowing whether old equipment should be updated.
“Metering is a critical first step in energy management because a lack of metering, monitoring and energy management capabilities stops business starting energy efficiency projects,” Procter said.
“Metering helps cut energy use, particularly at peak times, manages energy costs and detects faults and equipment failures.”
Grants close 2 December unless funding is taken up earlier.
Opportunities available on GBCA Expert Reference Panels
The Green Building Council of Australia (GBCA) is looking for additional members for its Expert Reference Panels, which provide specialist advice on topics related to Green Star.
The council is also introducing new panels to help with the implementation of Green Star Buildings and the development of Green Star Fitouts.
Among the sectors looking for new talent are: sustainable precincts, energy and carbon, nature and biodiversity, resilience, people and wellbeing, new buildings, and fitouts. Sign up here until 30 September.