Cannon-Brookes keeps world’s biggest solar project alive with $65m zero interest loan

Giles Parkinson 23 January 2023

Software billionaire Mike Cannon-Brookes is to keep the operations of the world’s biggest solar and battery project afloat for the next six months with a $65 million zero interest loan while the company is prepared for sale.

Sun Cable, the company behind the proposed 20GW solar farm, up to 42GWh of battery storage and a 4,200km transmission link to Singapore, was put in administration last week after a falling out between Cannon-Brookes and fellow shareholder and billionaire green energy evangelist Andrew Forrest over the business plan.

Cannon-Brookes has made it clear that he believes in the project founders and their vision for a link to Singapore, and other similar projects, while Forrest wants to dump the cable idea and focus on green hydrogen and other opportunities in line with his own vision of a green energy future.

The disagreement over business models, and the inevitable clash of egos, forced Sun Cable into administration – essentially clearing the decks for one of the two billionaires to make their own bid for the company, possibly in league with new partners.

On Friday, as RenewEconomy reported, a funding deal was agreed to allow Sun Cable to continue operations while the administrators, FTI Consulting, prepare the company for sale.

That funding deal was for a $65 million zero interest loan, for six months, from Grok Ventures, the private investment company of Cannon-Brookes. The administrators chose that over a competing offer from Forrest’s interests.

It is not clear that the loan agreement – which will be finalised in coming days – will give Cannon-Brookes any particular advantage in the upcoming sales process. What it does seek to guarantee, however, is that key staff and project knowledge are not lost to the company. That is likely to be doubly important to Cannon-Brookes and other shareholders who want to pursue the whole vision of renewable energy exports, rather than focusing on the domestic market. Sun Cable has no revenue to speak of, so without a hefty loan the administrators would have been forced to slash the operating costs of the business, including key staff, and potentially close offices. “The asset is less attractive after staff have gone and knowledge is lost,” noted one insider. Grok Ventures confirmed the six month, interest free loan proposal in a statement, noting it would allow Sun Cable to continue realising its strategy and reach key project milestones.

“The Grok interim funding proposal – which was submitted alongside others – has been accepted by FTI Consulting and will be finalised in the coming days,” a spokesperson said. “This proposal is indicative of Grok’s ongoing commitment to the success of Sun Cable and the AAPL project.”

It seems 1 too many captains at the helm