Australian solar firm Vast agrees $586 mln merger with Nabors SPAC (updated)

Nabors Industries

14/02/2023 12:38

(Adds detail on CSP technology, paragraph 3)
    By David French
       NEW YORK, Feb 14 (Reuters) - Vast Solar has agreed to
combine with a special purpose acquisition company (SPAC) backed
by Nabors Industries  NBR.N  in a deal which will take the
Australian company public in New York at a valuation of up to
$586 million, the companies told Reuters.
    SPAC Nabors Energy Transition Corp  NETC.N  is combining
with Sydney-based Vast, which has been developing proprietary
technology in concentrated solar power (CSP).
    Unlike more commonplace photovoltaic (PV) solar panels which
convert light into electricity, CSP uses mirrors to focus
sunlight onto a receiver, which gathers the sun's energy as heat
in sodium. 
    Since heat can be stored more effectively, CSP holds energy
for longer periods of time than PV solar, helping to solve the
latter's intermittency when the sun goes down.
    The combination with NETC will provide up to $351 million of
gross proceeds. Vast's business plans include building a
utility-scale CSP plant - known as VS1 - in Port Augusta in
South Australia, due to become operational in 2025, the
companies told Reuters.
    Vast also plans to combine its power generation technology
with a facility on the same site producing green methanol.
    The company believes its CSP technology will have a
significant customer base in hot, arid climates including the
U.S. Southwest, the Middle East and North Africa, and Australia.
    Nabors is a global player in the oilfield services industry.
Like other companies which made their names drilling oil and gas
wells, the Houston-based company is looking to a future where
fossil fuels hold a smaller role in the economy.
    Guillermo Sierra, who leads energy transition strategy at
Nabors, told Reuters the SPAC's combination with Vast would
complement some of Nabors' existing investments in clean energy,
and would offer the company a significant position in a key
future technology.
    "This is not a science experiment, but a responsible entry
point that will allow us to capture a lot of upside," Sierra
said in an interview.
 (Reporting by David French in New York; editing by Jason Neely)
 ((davidj.french@thomsonreuters.com;))