Synertec Corporation (ASX: SOP) has executed a non-binding Letter of Intent (LOI) with a major Australian energy operator for Phase 1 of an operational technology and digital systems project.
The project is valued at multi-million dollars and is largely expected to be delivered over two years, with minor works in year three.
Early works, including mobilisation and systems integration planning, have been approved while definitive terms are finalised.
The LOI follows a competitive tender process and a framework agreement signed in October 2025.
Strategic Partnerships
Synertec recently entered a non-binding Memorandum of Understanding with Hitachi Energy to pursue battery energy storage system (BESS) and microgrid projects.
The company's FY26 3Q update indicated progress on Powerhouse BESS construction and factory-to-field scaling, with revenue expected to double in FY27 to more than $5.0 million.
Previous awards include contracts for Sydney Water operational technology upgrades exceeding $1 million and a contract for a Shell QGC Powerhouse renewable microgrid system.
The company was also appointed to Sydney Water Corporation's SCADA and electrical services panel, providing access to a potential $245 million in project work over five years.
Outlook and Key Considerations
Synertec has advanced a significant project opportunity with a non-binding LOI and approved early works, signalling potential for substantial multi-million dollar revenue.
However, the LOI is non-binding and there is no certainty that the definitive Statement of Work will be executed or that the full project will proceed.
Customer confidentiality has been requested by the energy operator at this stage, and the company has acknowledged execution and timing risks associated with finalising definitive agreements.
Investor focus will remain on the execution risk and certainty of converting this non-binding agreement into a definitive contract, alongside the company's broader strategic objectives in the energy transition.
