Japan’s largest petroleum company, Inpex, says it will buy 50% of Enel Green Power Australia (EGPA) in a transaction valued at about AUD 654 million (€450.4 million), including approximately $230 million of debt.

Inpex, which operates the Ichthys LNG plant near Darwin, said the purchase will be made through its newly established subsidiary, Inpex Renewable Energy Australia. In a statement, Inpex said that upon the finalization of the transaction, it expects to jointly control EGPA, overseeing the company’s current renewable generation portfolio and continuing to develop its project pipeline.

“This ensures EGPA will continue to drive the energy transition underway in Australia, accelerating its contribution to achieve the country’s net zero target,” said Inpex.

EGPA’s operational assets include the 34 MW Cohuna Solar Farm in Victoria and its 51% stake in the Bungala 1 and Bungala 2 solar farms, which deliver a combined 220 MW of generation capacity into the grid in South Australia. It has also started building the 93 MW Girgarre Solar Farm in central Victoria and the 76 MW Flat Rocks wind farm in Western Australia.

Enel said it is also developing “a significant portfolio of wind, solar, storage and hybrid projects across Australia, alongside expanding its activities in innovative solutions within its retail and trading operations.”

Earlier this year, it said that it had secured initial approvals from the Australian Energy Market Operator (AEMO) for a 96 MW solar farm and 20 MW battery energy storage system to be constructed at Quorn Park in the central west of New South Wales. It has also announced proposals for a solar and battery hybrid project in Bouldercombe, Queensland, and the retrofit of battery storage at Bungala.

Enel said the transaction is in line with its current strategic plan, which “envisages the implementation of partnerships in certain businesses and geographies to enhance value creation.” The closing of the sale remains subject to certain conditions, including clearance from the Australian Foreign Investment Review Board and Antitrust authorities.