Australian concentrated solar power (CSP) specialist Vast Solar Pty Ltd has entered into an agreement to merge with a blank-check company in order to secure a listing on the New York Stock Exchange (NYSE) and raise up to USD 351 million (EUR 327.5m) in gross proceeds.
The deal is with Nabors Energy Transition Corp (NYSE:NETCU; NETC; NETCW), a special purpose acquisition company (SPAC) backed by Nabors Industries Ltd (NYSE:NBR), the operator of the world's largest land-based drilling rig fleet. Vast is currently owned by AgCentral Energy, which, alongside management, intends to roll 100% of its interest into the combined company.
The aforementioned gross proceeds include up to USD 286 million from NETC’s trust account, USD 15 million from each of Nabors and Vast’s existing owner, and at least USD 35 million of targeted capital from third-party investors.
The merger is seen to close in the second or third quarter of 2023, creating a company with an implied pro forma equity value of between USD 305 million and USD 586 million, depending on the level of redemptions. Vast then expects to be listed on NYSE under the ticker symbol “VSTE”, while keeping its headquarters in Australia.
Founded in 2009, Vast has developed a CSP system with a modular tower design which, unlike conventional CSP technologies, uses sodium as heat transfer fluid (HTF). More specifically, the system captures solar energy in modular tower arrays each of which is made up of as many as 2,500 heliostats, or mirrors, and a solar receiver. The captured energy is then absorbed and transferred by the sodium HTF to a molten salt thermal energy storage system (TESS). Lastly, the stored heat is either being converted into steam to drive a turbine for power generation, or used directly in industrial applications. It can also be used for green fuel production.
The company says it has already proven its technology at a 1.1-MW demonstration plant in Forbes, Australia. The business model it will pursue revolves around the development of CSP projects using its own technology, the supply of equipment and the provision of engineering, procurement and construction (EPC) and operation and maintenance (O&M) services.
Presently, Vast is developing 230 MW of projects, including a 30-MW/288-MWh CSP reference plant and a 20-tonne-per-day solar methanol facility, both in Port Augusta. In addition, it has a multi-gigawatt-scale pipeline of projects.
The company plans to use the proceeds from the business combination to fund project and research and development (R&D) activities, equity investments, deployment of manufacturing facilities, and for general corporate purposes.
“This transaction should allow Vast’s proprietary CSP technology to be scaled and accelerated by leveraging our global energy technology and operational platform. We believe that Vast will play a key role in solving the storage and dispatch challenges faced by renewable energy and in facilitating the transition to green fuels by providing clean process heat,” said Guillermo Sierra, VP of Energy Transition for NETC and VP of Strategic Initiatives for Nabors.
(USD 1.0 = EUR 0.933)
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Vast's CSP demo in Australia. Source: Vast Solar Pty Ltd.
