British billionaire Sanjeev Gupta, who purchased the Whyalla steelworks earlier this year, has now bought a majority stake in Adelaide-based energy company Zen Energy.

Zen's work is focused on renewable energy and storage technologies.

The joint venture between Mr Gupta's GFG Alliance and Zen will be known as SIMEC Zen Energy.

In a statement, GFG Alliance described the move as "an opportunity to invest in large-scale power projects to meet its own industrial requirements and support the domestic economy".

Mr Gupta, who is executive chairman of GFG, described the high cost of energy for Australian consumers as "a crying shame for a country so rich in resources".

"Given the issues here, it has been a priority for us to take decisive remedial steps. Combining our power expertise developed in the UK and Zen's local knowledge in Australia, is a natural partnership," he said.

Zen chairman Ross Garnaut described the move as a "perfect match".

"Their 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," he said.

Last month, Mr Gupta toured the Whyalla steelworks, promising to invest well over $1 billion in the business in the short to medium term with "far grander plans" in sight.

At the time, he said the company had an immediate plan to invest in the steelworks' existing co-generation plant to bolster its energy capacity.

GFG Alliance has 500 megawatts of operating power in the UK and another 500 megawatts under construction.