Family office sues Qld government energy operator for $1bn

A Czech-based family office is taking the Queensland government-owned operator, CS Energy to the Federal Court of Australia, accusing it of mishandling operations and management at a power station resulting in losses exceeding $1 billion.

Concerned by the actions of CS Energy as the operator of Callide C - a 50/50 joint venture with Sev.en Global Investments (Sev.en GI) through its subsidiary IG Power, Sev.en GI has commenced legal proceedings against CS Energy and its wholly owned subsidiary Callide Energy.

IG Power claimed over 1700 days of generation capacity has been lost in the last five years from the explosion of the C4 generator, the collapse of the C3 cooling towers and the explosion of the C3 boiler between the two generation units at Callide C.

The claim seeks to hold CS Energy and Callide Energy accountable, and the legal proceedings follow an "extended period" of dialogue between the related parties.

Within the joint venture structure, operational control and responsibility for the operation and maintenance of the Callide C Power Station rest with CS Energy, the family office said.

"... during which Sev.en GI and IG Power have pursued alternatives to litigation. Regrettably, these efforts have been unsuccessful," Sev.en GI said.

Sev.en GI said it has been a key supporter of the rebuilding efforts since the initial incident in 2021 and has subsequently provided financial backing before ultimately acquiring 50% stake in the power station in May 2025.

Commenting, Sev.en GI's country manager Mark Sykes said the legal action was not a decision the firm has taken lightly.

"Sev.en Global Investments has been a long-term investor in Australian energy infrastructure and we have commenced these proceedings only after an extended period of engagement and careful consideration," he said.

In response, CS Energy said it will be defending against the claims.

"CS Energy has been aware for a number of years of potential claims by Sev.en for alleged losses relating to historical events since 2021 at Callide C Power Station," the statement read.

"CS Energy will defend the legal action brought by Sev.en Global Investments in relation to any such claims.

"CS Energy is committed to the safe, reliable and compliant operation of Callide C in the best interests of Queenslanders and the Crisafulli Government's Energy Roadmap."

Established by the Queensland government in 1997, CS Energy has operations across central Queensland, the Western Downs and southeast Queensland, with an energy portfolio of more than 3600 megawatts spanning thermal power stations, renewable energy, firming and storage.