AGL Rebuffs Billionaire Activist and Says Can Quit Coal Faster

(Bloomberg) -- AGL Energy Ltd. rejected criticisms from billionaire investor Mike Cannon-Brookes over its strategy and said it could accelerate plans to close down its fleet of coal-fired power plants.

Sydney-based AGL is investing in renewables, advancing efforts to curb emissions and expects a plan to split the company into two will allow it to “focus on both the continued transition and the reliable and affordable supply of energy,” Chief Executive Officer Graeme Hunt said Thursday.

Atlassian Corp. founder Cannon-Brookes has taken about an 11% stake in AGL and is seeking support to oppose the firm's plan to divide retail and power generation assets. A single entity could exit coal faster than existing targets and would be better positioned for growth in electricity demand, he argues.

Read more: Tech Billionaire Sets Up AGL Climate Showdown in Australia

AGL currently expects to continue operating its Loy Yang A coal plant until at least 2040, with the Bayswater plant scheduled to close in the early 2030s.

“These revised closure dates are not the end of the story,” Hunt said in the presentation to the Macquarie Australia Conference in Sydney. 

The Accel Energy unit housing the plants “will continue to challenge these closure dates and look to see how they can improve on this,” he said. Moving faster would be reliant on the grid's ability to “accommodate this in an orderly and responsible way,” according to Hunt, who has previously warned a quick transition risks disruptions and higher electricity prices. 

AGL's investors are scheduled to vote on the demerger plan at a June 15 meeting.

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