This is a Big Deal
When BOC Australia – a major player in industrial gases – commits to sourcing nearly half of its electricity from solar energy, it signals more than just a green rebrand. This decision is on the back of a recent RIO $2bn move that we discussed here. This is an industrial strategy built on economic sense, competitive positioning, and long-term energy certainty. Backed by its parent company Linde, BOC’s 10-year electricity retail agreement with Zen Energy, supported by a power purchase arrangement with ACEN Australia, is an investment that adds momentum to a broader trend: big industry turning to renewables not for optics, but for value. (1)
The Deal – What’s Been Signed
BOC has struck one of the largest multi-state Electricity Retail Agreements in Australian history. The deal covers its operations across Queensland, New South Wales and Victoria, replacing more than 45% of its grid power with renewable electricity over the next decade (2). The power will come from the New England Solar Farm, currently a 400 MW facility near Uralla in NSW, which will expand to 720 MW upon completion. A large-scale battery project (200 MW/400 MWh) is also under construction on site, adding future firming capacity.
Zen Energy will purchase approximately 23% of the solar farm’s generation, with the power then supplied to BOC through a long-term power purchase agreement (PPA). This setup allows BOC to lock in a competitive electricity rate while decarbonising its energy use. (3)
Why It Matters for BOC
This agreement is more than symbolic. BOC expects to cut its Australian emissions by more than 40% by 2035, aligning with Linde’s (the global parent) global target of reducing Scope 2 emissions by 35% over the same period. That’s not just climate ambition; it’s emissions reduction backed by contractual certainty.
The financial logic is equally clear. Long-term Power Purchase Agreements (PPAs) offer price stability in volatile energy markets, something energy-intensive industries like BOC rely on. Industrial gases require enormous electricity inputs – think liquid oxygen for hospitals, hydrogen for manufacturing, and specialty gases for semiconductor fabrication. Swapping unpredictable wholesale prices for a solar-fixed rate isn’t virtue signalling. In our view it’s balance sheet strategy.
As Theo Martin, BOC South Pacific Managing Director, put it: this is about delivering “lower carbon intensity at a competitive price”, making BOC’s product offering more attractive to customers who themselves are under pressure to decarbonise.
Why It Matters for Zen Energy and ACEN
For Zen Energy, the deal is a flagship moment. It marks BOC as its first global customer, validating the utility’s “Zero Emissions Now” product – a tailor-made retail electricity offering built to meet the needs of large industrial clients committed to net-zero goals.
Zen was also the first Australian energy retailer to commit to science-based targets. This deal, CEO Anthony Garnaut said, is “proof positive” that Zen’s business model – renewables backed by credible emissions reductions – is gaining traction at scale.
For ACEN Australia, the agreement enables deeper investment into grid-scale renewables and battery storage. As per the Renewable Energy website, it also gives financial confidence to expand projects like New England and roll out others, such as the Stubbo solar farm and the 936 MW Valley of the Winds project, recently awarded under the federal government’s Capacity Investment Scheme.
The Investment Case – Why This Deal Sets a Precedent
From an investor’s lens, BOC’s renewable pivot tells a bigger story. It underscores how industrial users, not just utilities or tech giants, are now actively reshaping power markets. According to Climateworks Centre, industrial companies account for around 44% of Australia’s total energy use and 40% of electricity demand. Their buying power, when directed at renewables, changes the shape of the market.
These are long-duration, creditworthy customers locking in volume. And unlike households or even commercial buildings, they operate around the clock and across multiple geographies. Their load is essential. That’s why projects like New England – and the infrastructure supporting them – are investable: they’re underwritten by demand that doesn’t fluctuate with weather, sentiment or public subsidies.
This is also a hedge against regulatory and reputational risk. As governments globally sharpen net-zero frameworks and investors apply ESG screens, industrial firms must show credible decarbonisation pathways. BOC’s move is exactly that. It’s visible, auditable, and forward-looking.
Finally, it’s a market signal. Zen’s ability to broker a deal of this size sets a precedent for other industrials, particularly in hard-to-abate sectors, to follow suit. The model is scalable. It doesn’t rely on bespoke subsidies. And it works commercially – not just environmentally.
The Bottom Line
Global Gas giant BOC’s 10-year renewables deal isn’t just a feel-good corporate story. It’s an investment template. The deal locks in cost certainty, decarbonises core operations, makes BOC’s product offering more attractive, and enables its suppliers – Zen and ACEN – to build more of what Australia’s grid needs: large-scale, clean, reliable power.
For investors, this is where the future of energy infrastructure lies – in long-term offtakes with high-quality industrial customers, backing scalable renewables and storage assets. BOC’s move is a signal. Big industry isn’t just waiting for the transition. It’s investing in it.
References
BOC “BOC Australia and Zen Energy agree to 10-year renewable supply deal” 11 April 2025 https://www.boc.com.au/shop/en/au/BOC-Zen-Energy-10-Year-Renewable-Deal
Sophie Vorrath - Renewable Energy “Australia’s biggest solar farm will help power industrial gas giant in major deal brokered by Zen” 11 April 2025 https://reneweconomy.com.au/australias-biggest-solar-farm-will-help-power-industrial-gas-giant-in-major-deal-brokered-by-zen/
ACEN Australia “ZEN Energy and BOC Australia agree to 10 year renewable energy supply deal” 11 April 2025 https://acenrenewables.com.au/2025/04/zen-energy-and-boc-australia-agree-to-10-year-renewable-supply-deal/
Important Information
EnviroInvest Pty Ltd ACN 685 107 957 (“EnviroInvest”) is an Authorised Representative of Daylight Financial Group Pty Ltd ACN 633 984 773 (“DFGPL”) which is the holder of an Australian Financial Services Licence (AFS Licence No. 521404).
Information in this commentary is current as at date prepared unless otherwise stated. However, please bear in mind that investments can go up or down in value, and that past performance is not a reliable indicator of future performance. For more Important Information please refer to the Disclaimer section of this website.
This communication may contain general financial product advice. It has been prepared without taking into account your personal circumstances, and you should therefore consider its appropriateness in light of your objectives, financial circumstances and needs before acting on it.
If our advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the Product Disclosure Statement (PDS) before making any decision.