AGL gets green light for big battery at Liddell coal site

“This planning approval marks a significant milestone for the transition of the Liddell site,” he said. “We look forward to working with partners to progress other developments on and around the site, including a wind farm, a solar storage system, pumped hydro, a waste-to-energy plant and our recently announced green hydrogen pilot with Fortescue Future Industries.”

Loading

It comes as AGL is progressing plans for a split of its business. Under the proposal, a company called AGL Australia would own its retailing division and some cleaner generation assets, while a new entity to be called Accel Energy would house its fleet of carbon-intensive coal- and gas-fired power stations. As part of the demerger, AGL has mapped out plans to diversify these ageing thermal power sites into “hubs”, which may include big batteries, hydrogen production and carbon capture and storage.

Last month, AGL became the target of a $9 billion takeover offer from tech billionaire Mike Cannon-Brookes and Canadian asset manager Brookfield, which are seeking to scuttle the demerger, fast-track the closure of AGL’s coal-fired power stations and spend $10 billion to $20 billion investing in large-scale clean energy projects.

AGL’s board has knocked back the bidding consortium’s offers so far, arguing the offer understated the value it believes will be unlocked through the demerger, including its vision for energy hubs.

The first unit of Liddell is due to close in April 2022, with the following units to close in April 2023, AGL said.

If shareholders approve AGL’s proposed demerger in a vote later this year, the Liddell battery would be an asset of Accel Energy.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.