<
https://www.theguardian.com/australia-news/2022/may/30/agls-coal-implosion-shows-what-a-disorderly-transition-to-clean-energy-looks-like>
"The spectacular implosion at AGL Energy, Australia’s biggest corporate
greenhouse gas polluter, has been years in the making and should have
ramifications across Australia’s political and business classes.
The short story is that this is what a disorderly transition to a clean economy
looks like – the kind that we have long been warned will happen if governments
don’t plan for the future.
AGL had planned to “demerge” itself into two separate companies, with one
taking responsibility for more than 4.5 million retail customers and the other
its electricity generators – notably, its three ageing coal-fired power plants,
the last of which isn’t due to shut until 2045.
The retail business should have a bright future. The coal plants don’t. The
idea was to separate them to boost the former by separating it from the
declining value of the latter. AGL management said the split would “unlock
value for shareholders”.
The demerger was due to go to a shareholder vote next month, and needed 75%
support to pass. AGL management has now conceded it has no chance of reaching
that, having been stymied by the software billionaire and renewable energy
investor Mike Cannon-Brookes, who earlier this month took control of 11.3% of
its shares.
Cannon-Brookes wants the company to stay as one, shut its coal plants by 2030
and spend up big on renewable energy and energy storage, arguing it is the best
way to keep electricity prices down for consumers while turning a profit. He
successfully made the case to enough major shareholders that a demerger would
be, in his words, a “terrible outcome for shareholders, communities and the
climate”.
AGL continues to argue that the demerger was the best way to go, and that most
shareholders support it. But the chief executive, Graeme Hunt, and three board
members including the chair, Peter Botten, are headed for the exit and the
future of the company is in chaos."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
