Solar power firm Lodestone appoints Forsyth Barr for next capital raise

The solar panels at Lodestone Energy’s massive Kaitāia solar farm - the largest in the country so far.

Solar generation company Lodestone has appointed New Zealand’s Forsyth Barr and Australian financial services firm Barrenjoey to lead its next capital raise to fund the development of more solar farms across the country.

The company’s previous capital raise was led by Jarden Principal Investments.

The “Series D” raise is expected to launch in the third quarter of this year and will be used to fund Lodestone’s Phase 2 solar programme, the company said.

This would include the development of eight more solar farms across New Zealand, bringing 470 gigawatt hours (GWh) of new solar to the local market.

Managing director Gary Holden said it was an important step in Lodestone’s journey to continue delivering large-scale solar to Aotearoa New Zealand.

Lodestone’s Phase 2 is set to be larger in scale, with three confirmed South Island farms and additional sites expected to be announced this year.

The company would continue to adopt an “agri-voltaic” design across all its sites, which it says maximises the production of electricity and maintains productive farming.

“We’re delivering renewable solar energy at pace, with two solar farms in Kaitāia and Edgecumbe already complete, our third farm in Waiotahe set to be generating by the end of the year, and construction planned to commence in Whitianga soon,” Holden said.

“This capital raise will be integral to the delivery of our Phase 2 projects, helping us drive New Zealand’s renewable energy transition forward, and keep electricity prices in check for customers who purchase electricity from the farms.

“Forsyth Barr and Barrenjoey both bring exceptional knowledge and experience to the table, enabling us to deliver projects which create a greener Aotearoa for generations to come,” Holden said.

This appointment comes after Lodestone successfully completed an equity raise of $55 million earlier this year led by Jarden Principal Investments, funding the pre-construction of its Phase 2 projects. Lodestone has raised $600m in total capital across its Phase 1 and 2 portfolios.

Kerry Greer, co-head of investment banking at Forsyth Barr, said Lodestone was poised to continue the rapid deployment of utility-scale solar farms nationwide.

Lodestone Energy - founded in 2019 - is the country’s utility-scale solar generation company.

The company aims to contribute a substantial amount of solar production to the national grid and be the leader in bringing solar-based energy contracts to customers.

Lodestone has two utility-scale solar farms generating electricity, with construction under way on the third in the Bay of Plenty, and set to commence in Whitianga and Dargaville in 2024.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.