- 01LGI agrees to buy two Queensland solar farms for $22m.
- 02Adds 42MW export capacity; 54MW installed.
- 03Annual EBITDA forecast: $2.1m–$4m; pipeline exceeds 120MW.
LGI Limited (ASX: LGI) has entered a binding agreement to acquire the operating Chinchilla and Brigalow solar farms in Queensland, adding 42 megawatts of export capacity for $22.0 million with no associated debt.
The two assets have 54MW of installed capacity along with the 42MW of export capacity, with more than 30 years remaining on each land lease.
At current electricity prices, LGI estimates the assets will contribute annual EBITDA of $2.1m to $4.0m, depending on the timing of revenue synergies and implementation of its Dynamic Asset Control System (DACS).
The acquisition increases LGI’s targeted medium-term strategic pipeline to more than 120MW of distributed, renewable and dispatchable capacity while remaining committed to developing its previously announced 80MW high-conviction pipeline.
LGI anticipates completion of the deal on 9 October, with no shareholder approval required or outstanding material conditions.
Solar Farm Acquisitions
Chinchilla Solar Farm at Baking Board has 19.9MW installed and 14.7MW export capacity and commenced commercial operations in 2019, while Brigalow Solar Farm at Yarranlea has 34.5MW installed and 27.3MW export capacity and began operating in 2021.
The farms generated 20,981 megawatt-hours and 33,229MWh respectively in 2025, with 31 years remaining on Chinchilla’s lease and 33 years on Brigalow’s.
Both are 100% spot-exposed, while their combined installed capacity above network export limits reduces the risk of falling below maximum export levels if some panels are offline.
LGI expects bringing operations and maintenance in-house will not require incremental resources because the farms are near its existing assets in Toowoomba and Warwick, while excess installed capacity could support future battery energy storage system (BESS) integration.
Applying DACS across both sites is intended to optimise dispatch and price outcomes, while preliminary BESS studies have provided early viability support for considering battery additions over time.
Funding Growth Strategy
LGI will fund the $22m purchase price using cash at bank and undrawn funds from its existing debt facility, while targeting net debt to EBITDA below 2x through the remaining portfolio build-out.
At approximately $0.5m per MW, the consideration is materially below greenfield development cost for comparable assets, according to LGI, which has been assessing solar opportunities more intensively over the past year as valuations softened alongside energy prices.
LGI estimates FY27 EBITDA of about $1.6m, assuming nine months of contribution from the acquired assets, while the broader portfolio expansion is expected to broaden access to energy-trading end-markets and potential offtake partners.
“With this acquisition, the company upgrades its medium-term strategic pipeline target to over 120MW of distributed, renewable, dispatchable capacity, while remaining fully committed to developing the 80MW high-conviction pipeline previously announced,” chief executive officer Jarryd Doran said.
“Solar generation assets operate using inverter-based technology like batteries, which integrate logically into LGI’s diverse energy platform asset strategy, combining dispatchable (24/7) landfill biogas fuelled generation with fast-dispatch BESS, and now solar to successfully build out our firming capacity under DACS control.”
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