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- AGL Energy (AGL) has detailed plans to separate its business into two distinct organisations — tentatively named “New AGL” and “PrimeCo”
- New AGL would be Australia’s largest multi-product energy retailer focussed on leading the transition to a low carbon future
- PrimeCo would be the country’s largest electricity generator, supplying approximately 20 per cent of the National Electricity Market demand
- AGL will begin consulting with shareholders, regulators, government and stakeholders with the aim of finalising the details of the proposed separation by the end of this financial year
- Shares last traded at $10.17
AGL Energy (AGL) has detailed plans to separate its business into two distinct organisations — tentatively named “New AGL” and “PrimeCo”.
According to AGL Managing Director and CEO Brett Redman, the rationale for the proposed separation is underpinned by the need to adapt to the evolving energy industry.
“The accelerating market forces of customer, community and technology are driving the imperative to create this new path and separate AGL into two distinct organisations,” he added.
“The proposed structural separation would give each business the freedom, focus and clarity to execute their own respective strategies and growth agendas, while playing an equally important, but different, role in Australia’s energy transition.”
New AGL would be Australia’s largest multi-product energy retailer focused on leading the transition to a low carbon future.
“Importantly, New AGL would be carbon neutral for scope one and two emissions on day one, with a clear pathway to full carbon neutrality,” said Brett.
PrimeCo would be the country’s largest electricity generator, supplying approximately 20 per cent of the National Electricity Market (NEM) demand.
“PrimeCo’s first focus would be the safe and reliable running of its generation portfolio. As the low-cost backbone of the NEM it would be well positioned from day one to support the Australian economy as the energy market continues to evolve.”
“PrimeCo’s strong base generation position brings with it a capacity to invest in development options including the transformation of existing generation sites into the energy hubs of the future, as well as development of its 1600 megawatts wind development pipeline.”
The business will continue to operate Macarthur, Hallet, Oaklands Hill and Wattle Point wind farms and will also take on new wind development sites owned by AGL.
“The PrimeCo wind sites are whole of life offtakes reflective of PrimeCo’s major energy supply position while the development pipeline provides options for renewal,” explained Brett.
“Most exciting of all for PrimeCo, it would focus on the redevelopment of the Macquarie Generation, Torrens Island and Loy Yang sites as energy hubs.
This will include multiple battery sites at each hub.”
AGL will begin consulting with shareholders, regulators, government and stakeholders with the aim of finalising the details of the proposed separation by the end of this financial year.
Shares last traded at $10.17.
