Vast Secures New Funding and Launches Capital Raise to Accelerate Port Augusta Green Energy Hub

Rhea-AI Summary

Vast Renewables (VSTE) has secured new funding and launched a capital raise to accelerate its Port Augusta Green Energy Hub development. The company obtained a US$3.5 million convertible note commitment from major investors Nabors Industries and Canberra Airport Group, expected to close by August end.

The Port Augusta Green Energy Hub comprises three key projects: VS1 (30MW concentrated solar thermal plant with 8-hour storage), a 140MW/2-hour lithium-ion battery facility, and the South Australian Solar Fuels (SASF) demonstration facility. VS1 has secured up to A$290 million in conditional Australian Government support, including a A$180 million ARENA grant.

The company has achieved significant milestones including environmental approvals, grid connection progress, and is advancing a collaboration with a major renewable energy sector player.

Positive

• Secured US$3.5 million in convertible notes from major existing investors
• Obtained up to A$290 million in conditional Australian Government support
• Received key environmental and grid connection approvals
• Advancing strategic partnership with major renewable energy player
• Project construction expected to begin later this year

Negative

• Additional capital raise required to complete project delivery
• MB Energy concluding involvement in SASF project

Insights

Renewable Energy Finance Expert

Vast secured $3.5M funding, launched capital raise, and achieved key Port Augusta project milestones, strengthening its financial position for expansion.

Vast Renewables has strengthened its financial position by securing $3.5 million in convertible notes from two major existing investors—Nabors Industries and Canberra Airport Group. This interim financing, expected to close by month-end, provides essential bridge capital while the company pursues a larger institutional fundraising round through newly-appointed Rennie Advisory.

The continued investment from long-term backers represents a significant vote of confidence in Vast's concentrated solar thermal technology and its commercial viability. More strategically important is the company's advancement toward a partnership with an unnamed major renewable energy player with manufacturing capabilities and large-scale project experience—a potential game-changer that could accelerate global deployment and expand Vast's commercial opportunities.

The Port Augusta Green Energy Hub development is progressing with several critical milestones achieved: environmental approval confirmation (EPBC referral decision), technical acceptance for grid connection, and Generator Performance Standards approval for the battery component. The hub's cornerstone project, VS1, has secured up to A$290 million in conditional government support, including a substantial A$180 million ARENA grant.

The integrated hub represents a sophisticated approach to renewable energy development, combining concentrated solar thermal (30MW with 8-hour storage), battery storage (140MW/2-hour), and green fuels production. With construction of both the VS1 and battery projects scheduled to begin later this year, Vast is transitioning from technology development to commercial deployment—a crucial inflection point for clean energy companies.

SYDNEY, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Vast Renewables (“Vast” or the “Company”), a leading Australian clean energy technology company, today announced that it has secured new funding from existing shareholders and launched a capital raise to support the delivery of its flagship Port Augusta Green Energy Hub and growing international project pipeline. Vast also shared several major milestones for its flagship project, Vast Solar 1 (“VS1”), including environmental approvals and grid connection progress.

New investment secured and capital raise underway

Vast has entered into a termsheet for US$3.5 million of convertible notes from two of its largest and longest-standing investors, Nabors Industries and Canberra Airport Group. The financing is expected to close by the end of August. This continued backing reflects strong investor confidence in Vast’s differentiated technology and commercial readiness.

In parallel, Vast has launched a capital raise targeting leading institutional and strategic investors, with Rennie Advisory appointed to lead the process. Vast is also advancing a collaboration with a major player in the renewable energy sector with deep manufacturing capability and proven delivery of large-scale projects in comparable technologies. This partnership is focused on accelerating deployment of Vast’s technology in key global markets and unlocking additional commercial opportunities alongside the current project pipeline.

“The continued support from two of our long-term investors is a powerful endorsement of Vast’s technology and a strong vote of confidence in VS1,” said Craig Wood, CEO of Vast. “This new funding keeps us on track to break ground on VS1 later this year, while our broader capital raise will enable delivery of VS1 and accelerate the rollout of our global project pipeline.”

Port Augusta Green Energy Hub progressing towards construction

Located in South Australia, the Port Augusta Green Energy Hub will be home to a suite of integrated projects designed to deliver clean, dispatchable energy and enable decarbonisation of transport and industry:

• VS1: A 30MW concentrated solar thermal plant with 8 hours of storage, VS1 has secured up to A$290 million in conditional Australian Government support, including a A$180 million ARENA grant. The project will deliver low-cost, low-carbon power on demand, and is on track for construction to begin later this year.
• 140MW / 2-hour lithium-ion battery: Developed in partnership with 1414 Degrees, this project provides critical storage and grid stability and is also on track to commence construction later this year.
• South Australian Solar Fuels (SASF): A green fuels demonstration facility that aims to produce low-carbon hydrogen-derived fuels for aviation and shipping. With the pre-FEED stage now complete, MB Energy will conclude its involvement as the project progresses to FEED. Vast continues to lead development, supported by the award of A$700,000 in funding announced in March from the Australia-Singapore Low Emissions Technologies (ASLET) initiative for maritime and port operations. 
  
  

Significant development milestones have been achieved across the Hub, including:

• EPBC referral decision confirming the Hub is not a controlled action under national environmental law
• Technical acceptance for VS1’s grid connection application
• Generator Performance Standards approval for the battery energy storage system
  
  

About Vast

Vast is a leading Australian on-demand renewable energy and clean fuels platform. Vast’s proprietary technology delivers 24/7 carbon-free heat and power at utility-scale to decarbonise the grid, green fuels production, and hard-to-abate industries. Visit www.vast.energy for more information.

Contacts

For Investors:
Caldwell Bailey
ICR, Inc.
VastIR@icrinc.com

For US media:
Matt Dallas
ICR, Inc.
VastPR@icrinc.com

Forward Looking Statements

The information included herein and in any oral statements made in connection herewith include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, regarding VS1, SASF, Vast's future financial performance, Vast's strategy, future operations, financial position, estimated revenues and losses, projected costs, capital expenditures, prospects, plans and objectives of management are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "project," "should," "will," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on Vast management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, Vast disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. Vast cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Vast. These risks include, but are not limited to, general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; Vast's ability to obtain financing on commercially acceptable terms or at all; Vast’s ability to manage growth; Vast's ability to estimate project costs and to execute its business plan, including the completion of the Port Augusta Green Energy Hub (including VS1 and SASF), at all or in a timely manner; potential litigation, governmental or regulatory proceedings, investigations or inquiries involving Vast; changes in applicable laws or regulations and general economic and market conditions impacting project costs and/or demand for Vast's products and services. Should one or more of the risks or uncertainties described herein and in any oral statements made in connection therewith occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Additional information concerning these and other factors that may impact Vast's expectations can be found in Vast's filings previously made with the SEC. Vast's SEC filings are available publicly on the SEC's website at www.sec.gov.

FAQ

What is the size of Vast Renewables' (VSTE) new funding commitment?

Vast secured a US$3.5 million convertible note commitment from Nabors Industries and Canberra Airport Group, expected to close by end of August 2025.

How much government support has Vast's VS1 project received?

VS1 has secured up to A$290 million in conditional Australian Government support, including a A$180 million ARENA grant.

What are the main components of Vast's Port Augusta Green Energy Hub?

The Hub consists of three main projects: VS1 (30MW solar thermal plant), a 140MW/2-hour lithium-ion battery facility, and the South Australian Solar Fuels (SASF) demonstration facility.

When will Vast Renewables begin construction on the Port Augusta Green Energy Hub?

Construction of both VS1 and the battery storage facility is expected to begin later in 2025.

What recent regulatory approvals has Vast received for the Port Augusta project?

Vast received an EPBC referral decision confirming the Hub is not a controlled action under national environmental law, and obtained technical acceptance for VS1's grid connection and Generator Performance Standards approval for the battery system.