It pointed to “highly positive” public benefits from the project, including lower cost energy in the Northern Territory, establishing a new renewable energy export sector to South-East Asia, and spurring new economic activity to deliver the project and among industrial users.
It is estimated that the project would cut the cost of electricity in Darwin by about 12 per cent, and improve quality of life by reducing greenhouse gas emissions. Those benefits were valued at $184 million and $3.15 billion, respectively.
The venture raised $210 million in a series B funding round earlier this year, but must raise multiples of that to reach financial close in early 2024. Macquarie Capital is advising on funding.
Infrastructure Australia the benefits estimate for the project “are premised on the proposal being largely developed on a commercial basis with private funding”, and said those are dependent on Sun Cable securing contracts for its output.
Mr Griffin pointed to “strong industrial demand” in Darwin for power, as well as interest from end users and others in Singapore.
“We are very happy with progress in both markets,” he told AFR Weekend.
The project involves the construction of a huge solar farm in the Barkly region backed up by batteries on site and near Darwin, and a high-voltage cable from the site through Indonesia and to Singapore.
It is estimated the project will deliver $8 billion in investment in Australia and $2 billion in annual export revenues, starting in 2028, roughly the same as the dairy industry today.
Construction is planned to start in 2024, with electricity to be supplied to Darwin in 2027 and full operations by 2029.
Northern Territory Chief Minister Natasha Fyles said the project would position the Territory as “a renewable energy powerhouse” and establish a new energy export industry.
Sun Cable has taken on several heavyweight advisers and partners to help advance the project, including PwC, engineering giant Bechtel, Hatch, risk advisor Marsh, and SMEC, a specialist engineering and design consultancy owned by the Singapore government’s Surbana Jurong Group.
Electricity from the venture is intended to displace imported gas for Singapore, reducing its reliance on a fuel for which prices have surged in recent months and which contributes to global warming when burnt.