Aug 23 Reuters APA Group said it will acquire Alinta Energy39;s power assets in Western Australia39;s remote Pilbara region for A1.7 billion 1.1 billion including debt, as it looks to expand in power production.

To fund the purchase, Australia39;s biggest gas pipeline operator plans to raise A750 million with new equity.

APA CEO Adam Watson said the deal was very much a renewable energy market play, tapping into the desire on the part of the government and miners in Pilbara to shift to renewable power generation.

That39;s the model that39;s played out in the more progressive, decarbonisationled regions of the world like the U.K. and the Netherlands, he told Reuters in an interview.

The remote grid sections of Australia need to do the same thing…, he said.

The Pilbara assets include two dualfuel gas and dieselfired power stations the 210 megawatts MW Port Hedland station and the 238 MW Newman power station as well as 200 kilometres of high voltage power transmission lines.

In terms of renewable and storage assets, they also include the Chichester solar farm and 900 megawatts worth of projects in development.

Alinta, which is owned by Hong Kongbased Chow Tai Fook Enterprises, said the sale will help it focus on ambitious projects including the 1 GW Spinifex offshore wind project in Portland, Victoria, and the 900 MW Oven Mountain Pumped Hydro project in New South Wales.

APA39;s acquisition costs include net debt of A65 million.

The fundraising was comprised…