Alpha HPA
Alpha HPA is a publicly-listed company that produces and exports high-purity alumina, a low-volume, high-value commodity used in semiconductors and lithium-ion batteries.
Need
Alpha HPA needed funding to build a new production facility at its existing site in Gladstone, Queensland.
Solution
We provided a $200 million loan, primarily funded through the Government’s Critical Minerals Facility, to support Alpha HPA in developing its new processing facility.
Alpha HPA is on a mission to support global decarbonisation through its world-first Smart SX technology, delivering ultra-high purity aluminium products with a dramatically lower carbon profile. As the company scales to meet global demand, we’re supporting with the finance to help accelerate its export growth and impact.
Ultra-high purity alumina and aluminium materials are essential in the manufacture of semiconductors and lithium-ion batteries, making it a critical component in the technology and renewable energy sectors. Alpha HPA, using a world-first process, is delivering these critical materials with market-leading purity and a 70 per cent lower carbon footprint.
Despite its small scale, Alpha HPA has a significant global footprint. From its inception, the company has been export-oriented, with a strong presence in the semiconductor sector and a growing customer base in battery safety and lithium extraction markets.
To meet increasing global demand, Alpha HPA needed to invest in a new processing facility that would boost its production capacity from 360 to 10,000 tonnes per year. Given the project’s scale and cost, Alpha HPA required a more diversified funding approach, combining both equity and debt.
Without this funding support, the project would not have moved into construction and would not be on track for delivery, with the first production planned for 2027.
Craig Jones
CFO of Alpha HPA
Government financiers fill the gap
Alpha HPA’s innovative process and contribution to the global energy transition meant we were able to support with the finance it needed to expand.
We provided a $200 million loan, primarily funded through the Government’s Critical Minerals Facility, as part of a $400 million loan facility with the Northern Australia Infrastructure Facility (NAIF). This included a $320 million construction term loan and an $80 million cost overrun facility, ensuring Alpha HPA had the necessary financial backing to proceed with its expansion.
The funding was not only crucial for the project’s advancement but also served to provide comfort for other stakeholders. Following the announcement of the loan approval, Alpha HPA had the opportunity to raise equity capital through public markets, as investors were reassured by the financial backing from NAIF and us.
Craig Jones, CFO of Alpha HPA, noted that the flexibility we offered in tailoring a finance solution to Alpha HPA’s unique market circumstances proved to be “pivotal” to the project’s success.
“It was critical. The project tested what appetite there was from other sources of debt capital to fund the project, and there wasn't the sort of appetite to fund the commercialisation of a new process technology that would have been acceptable to Alpha HPA. Without this funding support, the project would not have moved into construction in a timely manner – critical to capitalise on the current market opportunity,” Craig explained.
“The scale of funding is also quite significant – $200 million with a tenor of up to 11 years was extremely helpful,” he added.
“Without the size and tenor of the loans being what they were, the solution also wouldn't have been as suitable for our company.”
Reflecting on the experience with Export Finance Australia, Craig said the process was “extremely collaborative.”
“Export Finance Australia was a very patient and collaborative supporter of Alpha HPA. The team took the time to understand our company in detail, then helped us understand what the options were and navigate a process to ultimately end up with a deal and a funding solution that worked for us."
Alpha HPA’s journey showcases the Government support available to help Australian companies grow, innovate and make their mark on the global stage. With our backing, Alpha HPA is poised to continue its trajectory of growth and innovation, contributing to Australia's reputation as a leader in the specialty chemicals industry.
