Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Newcastle Herald
Newcastle Herald
National

AGL Energy to accelerate exit from coal

AGL Energy's Liddell power station in the Hunter Valley. File picture

Australia's largest electricity generator AGL Energy - operator of the Liddell and Bayswater power stations in the Hunter Valley - will go "net zero" after abandoning plans to split into two companies.

Australia's biggest carbon emitter on Thursday announced a plan to shut down all coal-fired generation by the end of fiscal year 2035, with annual greenhouse gas emissions to reduce from 40 million tonnes to net zero.

AGL chair Patricia McKenzie said the company will have "net zero" emissions from operations following the closure of all AGL's coal-fired power stations, including Liddell and Bayswater power plants in NSW and the Loy Yang power station that provides almost a third of Victoria's power.

"This represents one of the most significant decarbonisation initiatives in Australia," she said.

The financial implications of bringing forward the closure of Loy Yang include an impairment charge of $700 million.

Billionaire shareholder Mike Cannon-Brookes scuppered the energy giant's planned demerger, which would have created an energy retailer and hived off ageing coal-fired operations that would have operated for longer.

Incoming interim CEO Damien Nicks said the closures represented a major step forward in decarbonising Australia's economy.

AGL plans to invest up to $20 billion by 2036 in new renewable and energy storage assets, funded by assets on the balance sheet, offtake agreements and partnerships.

This includes a target to have up to 5 gigawatts of new renewables in place this decade, up from a planned 3.2 gigawatts pipeline of projects.

Mr Nicks said the "ambitious" strategy would provide clear long-term value for AGL and its shareholders.

AGL also updated guidance for the current financial year, saying earnings would remain "resilient" with the generator well-positioned to benefit from higher electricity prices.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.