Lodestone Energy plans to raise $150 million to fund eight more solar farms

Tuesday, 4 June 2024

The Kaitaia Lodestone Solar farm, which shares its location with grazing sheep.

Solar power generator Lodestone Energy is seeking to raise $150 million in additional capital from October to fund the second phase of its solar farm roll-out programme, including the development of eight more solar farms in New Zealand.

Three confirmed South Canterbury farms, to be built as one project, and additional sites in Manawatu, Rotorua and Gisborne-area are expected to be announced later this year.

Lodestone anticipates the new farms will generate 470GWh of new solar for the market as it continues its “agri-voltaic” expansion aimed at maximising the production of electricity and productive farming.

Lodestone Energy says its solar arrays allow land below the structures to be used for farming, such as beef and lamb.

The company raised $55m earlier this year, following up on $600m initial capital raising.

Lodestone Energy managing director Gary Holden said the next few years would be focused on growing a portfolio of farms, and in the longer term look at the potential for an initial public offering (IPO).

“This raise is to complete the equity requirement to build the entire phase two – all eight solar farms. We’re opening this up to the international markets, allowing overseas investors to consider being a part of it across Europe, Canada and the US, Asia and Australia,” Holden said.

“At the moment we think the best thing for our existing shareholders is to stay as a private company raising private capital and building as many as we can, and then seeing what happens.

“Ultimately, because we are selling directly to customers, it might make sense at some point to think of things like an IPO, but it is certainly looking like a private equity model is best for the next few years.”

Lodestone has two farms operational in Kaitaia and Edgecome, and another in advanced development in Waiotahe.

Its farms are located on working farms, with the solar panels lifted high enough off the ground to allow for beef and sheep farming and, in time, horticulture, around the panels.

Lodestone has plans for 20 solar farms, worth more than $1 billion in investment, to hold about 4% share of the solar market.

Holden said he expected all eight farms to be operational by the end of 2027. The company was able to build a farm in 12 months and commission one farm every quarter, he said.

Lodestone planned to have three farms operational by the end of this year and two more next year. It expects to start work on three more in 2025.