Australia's largest energy producer, AGL, is reportedly considering scrapping its controversial plan to separate its coal-fired power stations into a standalone unit. The demerger, which was set for a shareholder vote on June 15, required 75% approval but may lack sufficient support.
Sources indicate that AGL could instead announce a strategic review on Monday, potentially opening the door for a full sale of the company. Tech billionaire and green activist Mike Cannon-Brookes, who holds an 11.3% stake in AGL, has led a high-profile campaign against the demerger.
Cannon-Brookes previously attempted to acquire AGL in partnership with global asset manager Brookfield, offering $9 billion to accelerate the company's transition away from coal. However, AGL rejected the bid, opting to pursue its own demerger and decarbonisation plans.
The Atlassian co-founder has warned that Australian power bills are set to rise due to global coal and gas price increases driven by the war in Ukraine. He advocates for a faster shift to renewable energy sources, such as wind and solar, to reduce costs and improve reliability.
Energy experts suggest that offshore wind farms could play a key role in Australia's decarbonisation, with projects like Star of the South off Gippsland capable of replacing ageing coal plants. Australia has a 'second mover advantage' as technology costs fall and new federal laws provide regulatory certainty.
