Arrium's new owner, GFG Alliance, has acquired ZEN Energy as part of its strategic entry into Australia. Operating through its its energy division SIMEC Energy, British Indian billionaire Sanjeev Gupta's company GFG Alliance has taken a majority stake in solar company ZEN to power its newly purchased Arrium steel and mining business, and support the growing domestic need for energy. "The high cost of energy for Australian consumers is debilitating for the economy and a crying shame for a country so rich in resources," Mr Gupta said. "Long-term sustainable energy solutions need to be founded on both economic and environmental principles in order to work properly. With our partners, we can deliver a step change in the power industry. "GFG Alliance is already one of the biggest users of industrial energy in Australia. Given the issues here, it has been a priority for us to take decisive remedial steps." Mr Gupta has previously outlined the cost of power in operating Arrium. "The cost of energy at this plant, where we're sitting, is too high. That needs to change. But we will change that ourselves, rather than looking to the government to change it," he said. ZEN Energy is a small-scale solar energy generation and storage business, and counts former government climate change adviser Ross Garnaut on its board. "[GFG's] understanding of the energy dilemma this country faces, which is making much of our industry uncommercial and environmentally unsustainable, means we see the market need and opportunity in the same way," Mr Garnaut said. "We are excited about the future, as this will yield benefits for Australian jobs, investors, communities and the environment." GFG rescued Arrium in August, buying the company out of administration. When asked the value of GFG's 50.1 per cent stake in Zen, the company declined to comment. The newly named business SIMEC ZEN Energy will work towards improving energy security for GFG's South Australian operations, and reduce power costs for its other businesses nationwide. It will also project-manage the development of SIMEC Energy Australia's new large-scale energy projects, which include solar, battery storage and pumped hydro. "The opportunity to invest in large-scale power projects to meet its own industrial requirements and support the domestic economy was a key driver for GFG's strategic entry into Australia," GFG said in a company statement. ZEN operates by utilising a combination of energy sourced from new and existing power plants, demand-management technologies, and battery storage equipment. So far its largest project is a 1.27- megawatt commercial installation at South Australia's Trinity College.