SYDNEY: LGI Limited announced Tuesday it has entered a binding agreement to acquire two operating solar farms in Queensland for $22 million, expanding its renewable energy portfolio to more than 120 megawatts of targeted dispatchable capacity.

The company will purchase 100% of the shares in Maryrorough Solar Pty Ltd, known as Brigalow, and Chinchilla Solar Pty Ltd from IIG Solar Assets Pty Ltd ATF The IIG Solar Asset Trust. The deal carries no associated debt.

The Chinchilla Solar Farm, located in Baking Board, has 14.7 MWac export and 19.9 MWp installed capacity. The Brigalow Solar Farm in Yarrnalea has 27.3 MWac export and 34.5 MWp installed. Together, the sites have 54 megawatts of installed capacity and 42 megawatts of export capacity.

LGI said the acquisition is estimated to contribute annual EBITDA of $2.1 million to $4 million based on current electricity prices, depending on the timeliness of synergies and implementation of its Dynamic Asset Control System.

The purchase price equates to about $0.5 million per megawatt, which LGI said is materially below greenfield development costs for comparable assets. Both sites have land lease terms exceeding 30 years.

“This acquisition is a natural extension of our strategy to grow our renewable generation base within our disciplined capital approach framework,” CEO Jarryd Doran said in a statement. “The 42MW of solar across Chinchilla and Brigalow are proven, operational assets acquired well below replacement cost that complement our existing distributed grid connected footprint.”

LGI said it will fund the acquisition through a combination of available cash and its existing debt facility. The company will maintain a target of net debt to EBITDA below 2x as it builds its portfolio to 120 megawatts.

The company upgraded its medium-term strategic pipeline target to more than 120 megawatts of distributed, renewable, dispatchable capacity from the 80 megawatts previously announced. LGI said it remains committed to developing that earlier pipeline.

LGI intends to transition maintenance and operations of the solar farms in-house and apply its DACS technology across both sites to optimize energy dispatch. Preliminary studies on battery energy storage system integration have begun at both locations, with early results supporting consideration of adding batteries over time.

The company said shareholder approval is not required, no material conditions remain outstanding, and completion is anticipated on Oct. 9, 2026.

LGI Limited is an Australian renewable energy and carbon abatement company listed on the ASX. It operates a portfolio of distributed assets across landfill biogas, solar and battery storage, using its proprietary DACS to optimize returns across energy and carbon markets.