Hydro Tasmania acquires holding in Momentum Energy
Australia’s leading renewable energy business Hydro Tasmania has bought a 51 per cent share in TMT Ventures portfolio company Momentum Energy. Hydro Tasmania is Australia’s leading renewable energy business, generating renewable energy through 27 power stations and associated dams. Hydro Tasmania is 100 per cent owned by the State of Tasmania and has total generating capacity of 2,510 MW and total assets of $4.8 billion.
Over the last three years Momentum has delivered strong financial growth at an average of 200 per cent per annum to become one of the fastest growing second-tier energy retailers. TMT Ventures is very pleased to have such a strong partner in Hydro Tasmania alongside it as they jointly look to continue Momentum’s growth.
“With energy dominating the public agenda, this relationship with Hydro Tasmania comes at a pivotal time for Momentum Energy, providing us the opportunity to compete with other vertically-integrated energy retailers and in the future offer customers exciting new renewable energy options.” said Chairman Bryan Mogridge.
“We see this partnership as being extremely beneficial to customers, associates and shareholders as it provides certainty to our dedicated staff, will accelerate our growth and perfectly position Momentum Energy for increased delivery to customers of low-emission electricity and value-added services.”
As a result of the transaction TMT has sold down half of its stake which has largely returned TMT’s invested capital, and with Hydro Tasmania on board TMT looks forward to significant growth in the business over the next few years. The transaction shows that even in difficult times quality assets are still attracting interest.