AGL Demerger “Green Lipstick On A Pig”

Greenpeace Australia Pacific is again turning up the pressure on AGL after the company confirmed its intention to demerge.

Any warm and fuzzies AGL may have cultivated after recently announcing it was installing a bunch of solar systems for St. Vinnies in Victoria has been overshadowed by controversy generated from an announcement yesterday confirming the intention.

In a nutshell, it’s proposed AGL Energy Limited is to be split into two separately ASX-listed businesses. Accel Energy will carry the electricity generation portfolio – much of which is coal power – and AGL Australia will be the retail and flexible energy trading, storage and supply business.

But of course, AGL Australia will still be sourcing electricity from Accel Energy. Accel Energy will also retain a 15-20 percent shareholding in AGL Australia.

AGL Energy Chairman Peter Botten, who is tapped to be Accel Energy’s Chair, said:

“..AGL Energy is now at an inflection point, as the transition of the energy sector accelerates, driven by the rapid evolution in renewables and decentralised energy technology, customer needs and community expectations.”

According to Investopedia, the term “inflection point” used in business means “a turning point after which a dramatic change, with either positive or negative results, is expected to result.”

AGL’s Board believes the move will be in the best interests of shareholders.

A cynical person might think this is mainly about putting some perceived distance between the AGL brand and its substantial emissions. And on that note..

Accel Energy An “Epic Dud Of An Investment”

Greenpeace Australia Pacific has been targeting AGL in a campaign claiming the company is Australia’s biggest domestic contributor to climate change – and there’s been some legal biffo going on around it. So, there’s not a lot of love lost between the two and it’s no surprise Greenpeace has come out swinging after this announcement.

While AGL has significant renewable assets in its electricity generation portfolio, including wind and solar power, Greenpeace says 85% of the electricity AGL generates comes from coal power – and AGL wants to keep burning coal until 2048. That’s the year it’s currently expected¹ the Loy Yang A power station (pictured above) will close. AGL’s Bayswater Power Station, another coal burner, is scheduled to close in 2035. Liddell Power Station will start closing next year, with the completion in 2023.

Senior campaigner for Greenpeace Australia Pacific Glenn Walke said the “dodgy demerger” was simply AGL trying to hide its greenhouse gas emissions. He also had a warning for investors.

“Accel Energy is an epic dud of an investment, and investors know it – who would fund coal in an increasingly renewable-powered world?” said Mr. Walker. “It’s time to drop the facade and actually get on with the job of switching to renewable electricity generation.”

In light of the announcement, Greenpeace has vowed to increase pressure on AGL. That will be quite a feat given what the organisation has already thrown at the campaign. After what Greenpeace called AGL’s “humiliating loss” in recent legal action relating to Greenpeace’s campaign – and the attention it attracted – AGL’s lawyers might be be a little more cautious in having another go.

Original Source: https://www.solarquotes.com.au/blog/agl-demerger-greenpeace-mb2060/