AGL, Australia’s biggest climate polluter, today admitted its profits could take a $73 million hit following the breakdown of a major unit at its Loy Yang A coal-burning power station – the latest stumble in the inevitable domino effect of its financial and environmental failure, Greenpeace Australia Pacific says.
AGL’s Loy Yang A in Victoria’s Latrobe Valley has been without a quarter of its capacity following an electrical fault knocking out Unit 2 which may last through to August and has now lost supplies from a second unit late last week. The energy company also noted the losses are not recoverable through insurance.
Glenn Walker, Greenpeace Australia Pacific senior campaigner, said the financial hit served as a warning for shareholders over AGL’s financially and environmentally ruinous dodgy demerger.
“AGL’s announcement that it will take a $73 million hit after the fault in its Loy Yang A coal-burning power stations demonstrates its lack of strategy, with the company hiding behind a proposed demerger to continue burning dirty, expensive, and unreliable coal.
“The fact that AGL is unable to secure insurance to cover major losses such as these shows the market recognises the lack of value in the company’s crumbling and stranded assets. Instead of closing their failing coal-burning power stations, AGL is instead set to saddle shareholders with responsibility for them, all while ignoring the financial benefits of energy transition.
“It seems no amount of embarrassing failures, financial faux pas, or environmental disasters will divert AGL’s current leadership from their dodgy demerger plans. The only way for shareholders to protect the value of their investments and force the company to seize the potential of the energy transition is to vote no to AGL’s proposal.
“AGL must scrap its proposed demerger and deliver real, lasting shareholder value by embracing the energy transition and replacing its dirty coal-burning power stations with renewables by 2030,” he said.
AGL plans to continue burning coal at Loy Yang A until 2045 far beyond the timeline needed to ensure a safer climate, with the UN and IEA both warning that Australia’s coal power stations must close by 2030 to ensure a safer climate and economic future for our country.