The ranks of executives and engineers at Sun Cable have been dramatically trimmed in recent weeks after a strategic review of what might still one day be the world’s biggest solar and battery storage project.
Multiple sources have told RenewEconomy that “dozens” of staff have been let go from the company in recent weeks following the purchase by a newly formed consortium comprising Mike Cannon-Brookes’ Grok Ventures and Australian-based renewables giant Quinbrook Infrastructure Partners.
The redundancy notices are believed to have been sent to 40 and 50 staff and has been managed by the administrator FTI Consulting, which is running the business until the sale agreement is finalised at the end of the month.
On top of the redundancies, staff under contract with various suppliers and advisory groups have also been let go, and the three founders – David Griffin, Mac Thompson and Fraser Thompson – have stepped aside from executive roles. Former CEO Griffin remains a “special advisor.”
Grok and Quinbrook agreed to buy Sun Cable out of administration in May after it was placed there earlier this year following a dispute between the two main original financial backers – Grok, and Andrew Forrest’s private interests – over the direction of the $30 billion solar, battery and cable project.
The original idea behind Sun Cable was to run a 4,200km sub-sea cable to Singapore, supplying that country with a 20GW solar project backed by up to 42GWh of battery storage – in what would be the biggest project of its type in the world.
Forrest said, and still says, that he doesn’t think the cable idea will stack up and wanted the business to focus on the domestic market, including his ambitious green hydrogen plans. Forrest’s advisors insist he did not lodge a final bid for the business.
Sun Cable is still keen to complete the sub-sea link, and also replicate it across other geographies to supply low cost renewable power to countries without the means to generate their own.
The redundancies and executive changes have been made after a strategic review conducted by Grok and Quinbrook that was completed last month.
Quinbrook has already made clear in its public comments that its immediate focus is on the domestic market.
It is understood the company is looking in the first instance at a scaled down solar project – still possibly in the gigawatt scale as opposed to 20GW – and will focus on domestic supply needs, including for a major green energy and hydrogen precinct in Darwin.
It is thought that Quinbrook – already one of the biggest solar developers in the US and the UK – sees a need for only a small team to focus on a reduced solar project, along with its transmission needs, and to evaluate battery storage needs and wind energy possibilities to diversify the clean energy source.
Grok, the private investment fund of Cannon-Brookes and his wife, still plans to pursue the cable idea to Singapore, known as the AAPowerlink, and possibly other countries. However, there is an acceptance that the team required will not be as big as previously thought.
Sun Cable has already secured land around Elliott, around 800kms south of Darwin (where the climate is less affected by seasonal cloud cover), and an easement for the transmission line to Darwin.
RenewEconomy sought comment from Sun Cable, Quinbrook, Grok and FTI.
