AGL has been thrown into crisis after suspending long-held plans to spin off its coal-fired power stations, a move tech billionaire Mike Cannon-Brookes has labelled as a “great day for Australia”.
AGL Energy chief executive Graeme Hunt and Atlassian founder Mike Cannon-Brookes.The board has lost confidence that its plan to split up AGL’s retail and coal-focused power generation businesses would gain the required 75 per cent approval when it goes to a vote on June 15. Instead, the board said it would launch a strategic review of the company’s future direction, overseen by a board sub-committee, and report back to shareholders in September.
“Board and management renewal must occur through an orderly, expedited transition period with appropriate external advice,” it said. AGL’s coal- and gas-fired power stations are the biggest sources of greenhouse gas emissions in Australia, accounting for 8 per cent of the nation’s carbon footprint.“We embrace the opportunities of decarbonisation with Aussie courage, tenacity & creativity, he wrote. “Lots of work but we can do this.”
, creating a carbon-neutral retail and clean power company to be known as AGL Australia, which would be able to attract investors who are increasingly distancing themselves from fossil fuels. Meanwhile, they had argued that housing AGL’s giant power stations into a separate company, Accel Energy, would enable a greater focus on transforming coal sites into energy hubs that could also house renewables and batteries.
“The bloodbath in the boardroom of AGL today was years in the making and well overdue,” said Harriet Kater of the Australasian Centre for Corporate Responsibility. “AGL Energy has spent approximately $160m to date on the failed demerger proposal,” RBC Capital Markets analyst Gordon Ramsay said. “Perhaps some of this spend may still be useful, as there is potential to use some of the ‘extensive analytical work’ and ‘thorough assessment of the strategic plans’ that were developed for AGL Australia and Accel Energy for new analysis.
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