The announcement comes as AGL expedited its exit strategy from all coal-fired power.
To support the transition to a world with lower carbon emissions in line with the goals of the Paris Agreement and to achieve net zero for operated Scope 1 and 2 emissions after coal closures, AGL’s annual greenhouse gas emissions are predicted to decrease from 40 million tonnes to Net Zero upon achieving targeted closure.
AGL Chair Patricia McKenzie said AGL’s decarbonisation and energy investment strategy lays out a clear course for AGL’s future and its leading position in Australia’s energy transition.
“We have listened to our stakeholders — in particular, our shareholders, as well as government and energy regulatory authorities. Their views were an important consideration as we reviewed the company’s strategic direction after withdrawing the demerger proposal,” McKenzie stated.
According to McKenzie, the goal of the review was for AGL to consider options for the company’s future as a solid integrated entity in a way that increases long-term shareholder value. She added this was to be accomplished in a challenging energy environment where there is growing pressure to accelerate the rate of decarbonisation while maintaining energy affordability.
“AGL is committing to an ambitious but achievable strategy to deliver a responsible and accelerated low carbon future. We are aiming to reshape our energy portfolio into a cleaner and more flexible one, transitioning away from coal and focusing on new renewable and firming capacity,” she stated.
Meanwhile, the Victorian Government said it would prioritise AGL employees in response to the decision to close the Loy Yang A power plant by 2035.
In a statement, Minister for Energy Lily D’Ambrosio said as it transitions to affordable, clean, renewable energy, it will collaborate with AGL to support locals in finding new jobs close to home and upgrading their skills.
According to Minister D’Ambrosio, it has invested nearly $2 billion since 2014 o add over 4,000 new employment to the labour force in the Latrobe Valley. In the months and years to come, Minister D’Ambrosio said the State Government’s attention would be on assisting Loy Yang A employees, their families, and the local community in navigating the change.
Over 24,000 jobs will be created statewide due to the investments in clean energy, which include the Victorian Government’s goals for offshore wind, the solar houses program, storage goals, a roadmap for replacing gas, and the development of large and small batteries.
As this transition gets underway, Minister D’Ambrosio stated today that the Victorian Government stands with the Loy Yang A employees and thanks them for their contribution to Victoria.
“AGL will work with its broad stakeholder group to deliver these ambitious outcomes. It is particularly important that we support our people who maintain and operate our coal-fired power stations. We will work with our people, their representatives, and government to help develop the skills and capabilities required for new and existing industries as we progress to ensure the transitioning energy sector is supported by a skilled workforce,” McKenzie said.