Commonwealth Bank has partnered with Providence Asset Group to fund a portfolio of 10 community-based solar farms in regional Victoria with a $33 million project financing agreement.
These community-based solar projects are operational and cumulatively produce 100 per cent renewable energy to power approximately 20,000 households each year.
Providence Asset Group is developing a further 29 solar projects in New South Wales, bringing the total portfolio to 40 sub 5MW solar farms across regional Victoria and New South Wales. Each solar farm will be fitted with the patented LAVO HEOS (Hydrogen Energy Storage System), a pioneering hydrogen storage solution co-developed with UNSW and manufactured in Australia. Providence aims to trial the first deployment in Stanhope, Victoria, as early as Q4 2021, and aims to deploy progressively across the portfolio during 2023-2024.
Providence Asset Group Co-Founder & CIO Alan Yu said the development of low-cost hydrogen storage is creating a new and exciting opportunity for Australian residences and businesses.
“Providence Asset Group is proud to be at the forefront of the energy transition in Australia, applying the innovative storage technology of the LAVO HEOS with our existing and planned portfolio of regional solar farms,” he said.
“Providence Asset Group recognises the enormous opportunities that exist in our regions and we’re excited to be partnering with regional communities to deliver more affordable and sustainable energy solutions. It’s particularly gratifying for us to be making this investment in Victoria at this time, too, which has been so challenging for Victorians during the pandemic,” he said.
Supporting Australia’s transition to a more sustainable future is a strategic priority for CBA and the bank has a track record of helping bring utility-scale solar farms to the market, said Sally Reid, Executive General Manager, Global Client Solutions.
“We’re delighted to extend our support of renewable energy generation to community-based solar projects and help communities in regional Victoria advance their transition journey,” Ms Reid said. “CBA is committed to supporting Australia’s renewable energy technology innovation and helping our clients build the nation’s future infrastructure.”
Neil Fraser, Executive Director, Natural Resources and Energy, at CBA, added: “We’re excited about the work Providence Asset Group is undertaking in the development of renewable energy technology, in particular the piloting of the LAVO HEOS hydrogen battery technology across its portfolio. This is a pioneering Australian technology which has the potential to be an important part of the future energy mix required to meet the needs of a net-zero economy.”
About Providence Asset Group:
Founded in 2018, Providence Asset Group (PAG) is an independent investment firm financing and accelerating clean energy technology across multiple platforms.
Our purpose is to empower communities, businesses and industries to transition to clean energy by solving global problems through high impact innovations and climate technologies. We are the cornerstone investor and incubator for LAVO™, delivering residential, commercial and utility-scale green hydrogen storage and transportation solutions.