Keppel faces A$66.5 million civil claim over Australian solar farm project 

CIVIL proceedings have commenced against three of Keppel Corporation : BN4 0%’s subsidiaries – Keppel Renewable Energy (KRE), KRE Anchorage, and Keppel Renewable Energy Australia (KREA) – claiming up to A$66.5 million (S$59.4 million).

On Monday (Apr 24), Keppel said Sunshine Energy Australia and Australia Energy Group (AEG) alleged 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 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 the 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. This led to KRE subsidiaries, along with Harlin Solar and Youssef, reaping the benefit of such an agreement “to the applicants’ detriment”.

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

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

Shares of Keppel closed Friday S$0.19 or 3 per cent higher at S$6.46.