Denham, Nexif sell Australia, SE Asia energy assets for $1b
Resources-focused GP Denham Capital and power infrastructure company Nexif have agreed to sell jointly held energy assets across Australia and Southeast Asia at an enterprise value of USD 1bn.
The assets being sold are managed by Nexif Energy, a Singapore-based clean energy investment platform established in 2015 by Denham and Nexif. Thai power producer Ratch Group will acquire the portfolio, committing USD 605m in equity.
The transaction represents the seventh exit for Denham’s USD 3bn sustainable infrastructure platform, which encompasses 7,500 megawatts of production capacity across more than 80 projects globally. It is also the firm's second exit in both Australia and the Philippines.
Historically active in various non-energy resources projects, US and Australia-based Denham has gradually firmed up its positioning as an energy transition investor. This includes mining for metals and minerals that play a role in energy transition or related materials.
Earlier this week, the firm announced its oil and gas interests would be hived off into an entity called Trace Capital. It reflects a broad shift toward renewable energy in private equity, driven significantly by industry and government commitments to net-zero emissions policies.
“Going forward, Denham will focus solely on supplying the critical materials, infrastructure and clean energy generation facilities to power the evolving green economy,” Stu Porter, founder and CEO of Denham, said in a statement.
Nexif Energy was conceptualised to capitalise on the expertise, brand, and capital backing of its sponsors. It has built up to an overall energy production capacity of almost 2.7 gigawatts, of which 500 MW is either operational or under construction. About 1.3 GW is expected to be under construction by next year.
The platform is notable for its focus on hybrid power systems combining renewable and gas-fired thermal generation technologies, as well as energy storage. It predicts that this model will become increasingly common globally.
Key assets include the Lincoln Gap wind farm in Australia, which hosts 212 MW of turbine capacity and 10 MW of battery storage. Supported by a gas-fired station, it is said to be capable of producing enough electricity to power 155,000 households.
Vietnamese projects include the Song Giang and Coc San hydroelectric stations as well as onshore and offshore wind and solar installations. There is also a long-term contract for solar production in the Philippines and a gas operation in Thailand called Rayong
The portfolio will continue to operate under a new Nexif-Ratch joint venture. The two companies are existing collaborators, having worked closely on developing Rayong.
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