LGI Limited (ASX:LGI): A$22 Million Solar Acquisition Expands Queensland Generation Portfolio

Aditi Sarkar

06 October 2026 08:18 PM AEDT

LGI Limited (ASX:LGI): A$22 Million Solar Acquisition Expands Queensland Generation Portfolio

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Highlights

LGI has agreed to acquire two operating Queensland solar farms for A$22.0 million.
The Assets provide a combined 54MWp of installed capacity and 42MWac of export capacity.
The Acquisition is expected to be funded from available cash and an existing Debt facility.
Completion is anticipated on 9 October 2026, with no outstanding material conditions reported.
LGI expects to integrate the assets into its existing operating platform and apply its dispatch optimisation capabilities.

LGI Limited (ASX:LGI) is an Australian renewable energy and carbon abatement company that develops and operates solutions using biogas from landfill, electricity generation and related energy infrastructure. On 6 October 2026, the company announced an agreement to acquire two operating solar generation assets in Queensland, extending its portfolio beyond its existing biogas-based operations and adding new solar capacity.

Two Operating Solar Assets Added to the Portfolio

The transaction covers the Chinchilla and Brigalow solar farms for a total purchase price of A$22.0 million. Together, the two assets provide 54MWp of installed capacity and 42MWac of export capacity. Chinchilla contributes 14.7MWac of export capacity and 19.9MWp of installed capacity, while Brigalow contributes 27.3MWac and 34.5MWp respectively.

LGI stated that the assets are already operational and are being acquired without debt attached to them. The company also indicated that the purchase price equates to approximately A$0.5 million per megawatt of export capacity.

Revenue Exposure and Operating Integration

The solar farms are fully exposed to spot market conditions rather than long-term power purchase agreements. Their Revenue streams include electricity sales into the National Electricity Market, Large-scale Generation Certificates, frequency control ancillary services and Australian Carbon Credit Units from eligible greenhouse gas abatement activities.

LGI estimates that the two assets could contribute annual EBITDA of A$2.1 million to A$4.0 million. The range reflects assumptions around electricity prices, the timing of revenue synergies and the implementation of the company's Dynamic Asset Control System, which is designed to support dispatch optimisation across energy and carbon markets. These figures are company estimates rather than realised earnings.

Funding and Completion Timetable

LGI said the A$22.0 million purchase will be funded from available cash and an existing debt facility. Shareholder approval is not required and the company reported no outstanding material conditions at the time of the announcement. Completion is anticipated on 9 October 2026.

The company also expects operational integration to be supported by the proximity of the acquired assets to its existing Queensland operations. Maintenance and Operating Activities are planned to be incorporated into LGI's in-house team, which may allow the company to use existing personnel and systems across a broader asset base.

Portfolio Development

Following the acquisition, LGI said its medium-term pipeline target exceeds 120MW of distributed, renewable and dispatchable capacity. The company has identified opportunities across biogas, solar and battery infrastructure, although any future development remains subject to separate Investment decisions, approvals and funding requirements.

The difference between installed and export capacity at the two solar farms may also provide technical flexibility for future energy storage integration. LGI has not committed to installing batteries at either site in the acquisition announcement.

Key Insights

LGI's proposed acquisition expands its renewable generation base with two operating solar assets and adds 42MWac of export capacity. The transaction also broadens the company's exposure to electricity and environmental markets while retaining its existing focus on renewable energy and carbon abatement. The near-term points confirmed by the announcement are the A$22.0 million acquisition price, the planned funding structure and the anticipated 9 October 2026 completion date. Earnings contributions remain dependent on market conditions and the successful integration of the assets.

FAQs

Q: How will LGI fund the acquisition?

A:LGI said the purchase will be funded from available cash and an existing debt facility.

Q: When is completion expected?

A:Completion is anticipated on 9 October 2026, subject to the transaction proceeding as announced.

Q: What is LGI acquiring?

A:LGI has agreed to acquire the Chinchilla and Brigalow solar farms in Queensland.

Q: What is the purchase price?

A:The agreed purchase price is A$22.0 million.

Q: How much export capacity will the assets add?

A:The two solar farms have a combined export capacity of 42MWac and installed capacity of 54MWp.

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