Loy Yang 2012

AGL reviewing options for future investment in Loy Yang A power station and coal resource

AGL Energy Limited (AGL) today confirmed it was reviewing options for its future investment in the Loy Yang A power station and adjacent coal resource.

AGL currently owns 32.54% of Great Energy Alliance Corporation Pty Limited (GEAC), owner of the Loy Yang A power station and more than 1.6 billion tonnes of coal resource.

The current ownership structure of GEAC is:

AGL 32.54%
TEPCO 32.54%
Ratch - Aust Corp Ltd 14.03%
MTAA 12.61%
AustralianSuper 5.78%
Statewide Superannuation 2.50%

AGL is in discussion with the other shareholders about the future ownership structure of GEAC. This follows a review by Tokyo Electric Power Company (TEPCO) of all its assets and the passing of the Clean Energy Future Act.

AGL may increase its ownership interest in GEAC but this would be contingent upon any transaction providing returns in excess of AGL's investment hurdle rate, an accretion to underlying earnings per share from the first year of ownership, and satisfaction of outstanding issues, including but not limited to:

  • reaching agreement with other shareholders
  • ACCC approval and the removal of current Federal Court undertakings which limit AGL's ownership of GEAC to a maximum of 35%, and
  • AGL Board approval.

Negotiations are incomplete and there is no certainty that a transaction will proceed.

AGL will keep the market informed of developments as required under its continuous disclosure obligations.

About AGL

AGL is Australia's largest integrated renewable energy company and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.