Alpha HPA has successfully completed a $175 million equity raising, with funds to be used to immediately commence the execution of Stage 2 of its HPA First project in Gladstone.

The company on Monday announced its final investment decision (FID) for the $550 million development, saying this would establish the world’s largest single-site high-purity alumina products refinery.

The subsequent share placement was increased from $120 million to $175 million in the face of strong demand.

Proceeds will be used to finalise detailed engineering, order long-lead items, commence civil and construction works, and for general working capital purposes.

The equity raising, alongside the government debt facilities and government grants, are part of a broader funding package Alpha is progressing to fully fund Stage 2.

“This decision to proceed with the commercialisation of Stage 2 of the HPA First project and the successful project financing represents a major step-change in our business growth,” Alpha managing director Rimas Kairaitis said.

“We are delighted to have received strong demand from both existing shareholders as well as a number of new domestic and global institutional investors.

“We look forward to commencing Stage 2 project execution, and moving another step closer to establishing Australia’s first, sovereign, large scale, commercial capability to manufacture high purity aluminas and related products to support technology growth sectors driving the global energy transition.”

Alpha is already in production at its HPA First Stage 1 Precursor Production Facility (PPF) in Gladstone.

On Monday, it released a definitive feasibility study and final investment decisions for Stage 2, being the full commercial scale deployment of the process technology on the same site.