A collapsed renewable solar energy plan to export electricity from the NT to Singapore still has enormous potential, Energy Minister Chris Bowen says.

January 12, 2023

The Albanese government says a renewable solar energy plan to export electricity from the Northern Territory to Singapore has “enormous potential” despite the company behind it collapsing.

Sun Cable, backed by billionaires Andrew Forrest and Mike Cannon-Brookes, entered voluntary administration on Wednesday amid reports of a spat between the two major investors.

Energy Minister Chris Bowen said it was primarily a commercial decision about the company’s management structure and he was “upbeat and excited” about the $30 billion Australia-Asia PowerLink project’s future.

“It doesn’t represent either of the big investors’ behalf or anybody else’s behalf, any sort of lack of faith in the future,” he said on Thursday.

“Sun Cable has enormous potential for Australia as a renewable energy export powerhouse.”

Mr Bowen said he had been in talks with senior Sun Cable executives and he remained a big supporter of the project.

“They tell me that there is absolutely no reduction in their ambition, there is no change in their plans for this to be going forward as a very important investment in Australia,” he said.

“I certainly hope that they make their corporate decisions and then get on with the job.”

The project involves the development of a 17- to 20-gigawatt solar farm in the NT, capable of powering about 15 million homes, and a 36 to 42GW battery.

Sun Cable also plans to build the world’s largest battery and an undersea cable to transmit the electricity about 4200km via Darwin to Singapore.

Construction was set to begin next year with full operation scheduled for 2029.

Sun Cable said on Wednesday it would enter voluntary administration in the hope of unlocking extra capital to develop the massive project.

It said unnamed shareholders had disagreed, and the direction and funding structure of the company could not be achieved.

Acting NT Chief Minister Nicole Manison said on Thursday Sun Cable had assured the government its issues would be resolved within three months and the project would go ahead.

“The advice we had from Sun Cable yesterday was that are still proceeding forward business as usual,” she said.

Ms Manison said it was a complex project that would not be delivered easily and further issues were likely to arise, but the NT government would continue to support it.

“This is going to be a globally significant project … Fantastic for the NT,” she said.

“It’s (also) going to help tackle the issue of climate change.”

NT Opposition spokesman for industry said Sun Cable’s demise would hobble the Fyles government’s plan to grow the territory’s economy to $40 billion by 2030.

“In six years, Labor has not delivered a single major project and all the major projects they were backing for the $40 billion pledge are under a cloud or folded,” he said.

Mr Cannon-Brookes previously said he remained confident the project would go ahead.