LGI Limited reported a 14% rise in FY25 EBITDA to $17.4 million, driven by operational growth and expanded renewable capacity. The company also secured a landmark 15-year contract to build and operate a 12MW/24MWh battery system at the Belrose landfill site in NSW.
- 14% increase in FY25 EBITDA to $17.4 million
- 43% growth in electricity generating capacity with new Canberra and Sydney facilities
- 15-year contract to build and operate 12MW/24MWh battery at Belrose landfill
- Revenue growth of 10% to $33.9 million, driven by electricity and carbon credit sales
- Renewable energy pipeline expanded from 47MW to 56MW
Strong Financial and Operational Performance
LGI Limited (ASX, LGI) has delivered a solid FY25 performance, reporting a 14% increase in statutory and underlying EBITDA to $17.4 million, comfortably within its guided range. This growth was underpinned by a 10% rise in net revenues to $33.9 million, fueled primarily by electricity sales and Australian Carbon Credit Units (ACCUs). The company’s focus on operational efficiency was evident, with a portfolio availability rate of 98%, surpassing its 95% target.
Expanding Renewable Capacity and Carbon Abatement
LGI achieved a 43% increase in electricity generating capacity during the year, commissioning upgrades at its Canberra (Mugga Lane) site and a new facility at Eastern Creek in Sydney. Biogas recovery rose 11% to 127.7 million cubic meters, translating into a 13% increase in electricity generation to 109 GWh and a 14% rise in ACCUs to 493,000 units. These metrics highlight LGI’s growing footprint in renewable energy and carbon abatement projects.
Strategic Battery Energy Storage System Contract
A significant development for LGI is the 15-year contract with the Waste Asset Management Corporation (WAMC) to build, own, and operate a 12MW/24MWh grid-scale battery energy storage system (BESS) at the Belrose landfill site in Northern Sydney. Scheduled for commissioning in early 2027, this project aligns with LGI’s strategy to diversify its renewable portfolio and support Australia’s energy transition by providing flexible, grid-connected power solutions. The BESS will leverage LGI’s proprietary Dynamic Asset Control System technology to optimise revenue from electricity spot markets and grid services.
Pipeline Growth and Contract Extensions
LGI’s contracted sites increased to 34, with six new agreements signed during FY25, including five carbon abatement projects expected to add approximately 60,000 ACCUs annually. The company also secured a 25-year contract extension with Shoalhaven City Council, reinforcing long-term revenue visibility. With the addition of the Belrose battery project, LGI’s near-term committed pipeline capacity expanded from 47MW to 56MW, positioning the company for further growth.
Outlook and Future Priorities
Looking ahead, LGI expects underlying EBITDA growth of 25% to 30% in FY26, subject to market conditions and project timing. The company plans to focus on delivering the Canberra battery project, expanding battery and landfill gas facilities on contracted sites, and pursuing new landfill gas management opportunities. This outlook reflects LGI’s confidence in leveraging its operational momentum and expanding its renewable energy footprint.
Bottom Line?
LGI’s FY25 results and strategic battery contract set the stage for accelerated growth amid Australia’s energy transition.
Questions in the middle?
- How will regulatory approvals and grid connection costs impact the Belrose BESS project timeline?
- What are the risks to LGI’s FY26 EBITDA guidance given market volatility and project execution uncertainties?
- How might LGI’s expanding battery storage capabilities influence its competitive position in the renewable energy sector?