It’s been a tumultuous time for AGL Energy, the $7.7 billion electricity and gas giant backed by billionaire businessman Mike Cannon-Brookes, with plenty of hand wringing about the company’s strategy.
Now that this has been ironed out – and with shares up more than 10 per cent since the start of the year – it appears the energy retailing and generation group is out to make a major acquisition. And Firm Power, a 6GW battery energy storage system is its purchase of choice.
The Australian company, which builds large-scale battery projects to provide so-called firming power to support the energy transition is led by Nick Rose (CEO) and founded by Simon Ingram and Chris Wilson. The purchase will help support AGL’s new strategy to go big on firming power as it transitions away from coal and puts 6GW of BESS projects in its stables as an owner instead of an offtake counterparty.
Lazard Australia and Herbert Smith Freehill advised Firm Power, while AGL had engaged Ashurst. The deal has been led internally by AGL’s chief operating officer Markus Brokhof and chief financial officer Gary Brown, as well as its head of corporate development Peter Tarimo.
During his long tenure at AGL, Tarimo has overseen the establishment of the $1 billion PowAR renewables fund with QIC and the Future Fund, and that fund’s $2.7 billion purchase of Tilt Renewables.
Source: https://www.afr.com/street-talk/agl-energy-prepares-to-unveil-big-batteries-play-20240814-p5k27v