Keppel faces $59.3 million civil claim over Australian solar farm project

SINGAPORE – Civil proceedings have commenced against three of Keppel Corp’s subsidiaries – Keppel Renewable Energy (KRE), KRE Anchorage and Keppel Renewable Energy Australia (KREA) – claiming up to A$66.5 million (S$59.3 million).

On Monday, Keppel said Sunshine Energy Australia and Australia Energy Group (AEG) allege that KRE breached a mutual confidentiality agreement regarding a solar power project, and that its subsidiary KRE Anchorage was “knowingly involved”.

Keppel in December 2020 announced plans to acquire a 45 per cent stake in Harlin Solar from veteran developer Anthony John Youssef, through KRE Anchorage, to develop, construct and operate a solar farm in Queensland, Australia.

KRE Anchorage was to take the lead role in developing and managing the construction and operation of Harlin Solar Farm.

Under the civil claim, Sunshine Energy and AEG alleged that KREA had entered into an agreement with Harlin Solar regarding the development of this solar farm – the KRE subsidiaries, along with Harlin Solar and Mr Youssef, obtained the benefit of such an agreement “to the applicants’ detriment”.

Keppel said its subsidiaries deny all the allegations and “will vigorously defend the claim”.

The group does not expect the proceedings to have a material impact on the group’s operations and overall financial performance.

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