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posted on:
February
11
2016

AGL in renewables push after gas exit

 

Source: The Australian, 11 Feb 2016


AGL Energy has stepped up its push into green energy with a $20 million stake in a US battery maker and a new fund to develop large scale renewable projects.


The investments come just days after the company announced it will quit gas exploration and production, following the collapse in oil and gas prices.


That decision dragged AGL to a half year loss of $449 million, due to $640 million in writedowns on its NSW and Queensland gas assets and other related charges.


The energy producer and retailer said it will buy a minority stake in California's Sunverge Energy, giving it exclusive rights to sell the company's renewable storage product in Australia.


AGL, Australia's biggest owner of coal fired power stations, has also launched a fund to develop up to $3 billion of large scale renewables projects.


An initial contribution of $200 million in equity will be made to the fund, plus AGL's Nyngan and Broken Hill solar projects in NSW.