AGL Energy eyes exit from Australian Pipelines and Gas Association amid green shift
AGL Energy is poised to quit its membership of a national peak gas body, with the power giant seeking to fast-track a move to green electricity.
AGL Energy is poised to quit its membership of a national peak gas body after launching a review on lobby groups, with the power giant seeking to fast-track a move to green electricity.
The power operator, with climate-focused investor Mike Cannon-Brookes as its largest shareholder, is expected to call time on its membership of the Australian Pipelines and Gas Association.
Sources said the decision had in part been influenced by the gas pipeline group telling The Australian the “enormous” $66bn taxpayer bill for electrifying homes and businesses had been frequently downplayed. The APGA said on March 2 that Australia’s road to renewables must take into account the nation’s cost-of-living crisis.
AGL, aiming to reinvent itself from Australia’s biggest coal generator to a green power company, may quit the APGA as it looks to match up its more ambitious climate goals with industry associations, according to sources.
“As part of AGL’s revised strategy we are reviewing all of our industry memberships, including that of the APGA,” an AGL spokesman said.
“Consistent with our long-term strategy, exploration and production of natural gas assets will no longer be a core business for the company.”
The APGA, the peak body for gas pipeline infrastructure, said it would be disappointed if AGL followed through with a decision to leave the industry body.
“APGA has not received official correspondence from AGL’s nominated contact regarding cessation of its membership. However, if this is the case, we thank AGL for its long membership with the APGA,” chief executive Steve Davies said. “We will be disappointed to lose AGL’s input on our Research & Standards committee, which plays a pivotal role in decarbonising the gas infrastructure industry.”
Mr Davies told The Australian last week the “enormous price tag” of fully electrifying all homes had been “frequently downplayed”, pointing to costings by the Parliamentary Budget Office for independent senator David Pocock that calculated it would cost $11.3m over the forwards to help a single ACT suburb electrify.
Mr Davies said the total price of electrifying all 5.1 million households across the nation currently on gas suggested the total taxpayer bill could exceed $66.3bn.
AGL said its recent strategic update “explained our unwavering focus on our customers, supplying affordable energy, supporting electrification and their transition to a low carbon future”.
“We will focus our advocacy and membership on efforts to accelerate the decarbonisation of the electricity system, electrifications of homes and businesses of our customers.”
AGL laid out a plan in September to exit coal by the middle of 2035, bring forward the closure dates of both its big Bayswater and Loy Yang A coal plants, and has set an interim target of owning 5 gigawatts of renewable and firming assets by the end of the decade.
Mr Cannon-Brookes, AGL’s largest shareholder, has staged a high-profile campaign through his privately owned Grok Ventures to refresh the board amid a broader effort to accelerate a transition to renewables.
The billionaire managed to install four new directors at its annual general meeting in November, and follows him previously derailing its demerger, sparking the exit of both its chief executive Graeme Hunt and former chairman Peter Botten.
Energy and Climate Change Minister Chris Bowen is in talks with the Greens to develop an electrification package to help households and businesses transition off gas, after Labor struck a deal with the minor party to ensure passage of its $1.5bn energy support package in December.
The Australian understands negotiations are ongoing over what is included in the package and how it will be funded.
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