AGL Energy

1837–2006: Australian Gas Light Company

The Australian Gas Light Company was formed in Sydney in 1837, and supplied town gas for the first public lighting of a street lamp in Sydney in 1841.[10] The company gradually diversified into electricity and into a number of different locations.

ActewAGL, a joint venture between the Australian Gas Light Company and Icon Water, a government-owned enterprise of the ACT Government, was formed in October 2000 as Australia's first utility joint venture.[11] Twenty-five per cent owned by AGL Energy, ActewAGL provides electricity, natural gas, and telecommunication services to business and residential customers in the Australian Capital Territory and south-east New South Wales.[12]

2006–present: AGL Energy

On 6 October 2006, the Australian Gas Light Company and Alinta merged and restructured to create two new listed companies, a restructured Alinta Ltd and AGL Energy Ltd.[13]

In Victoria, in June 2012, AGL Energy acquired Loy Yang A Power Station and the Loy Yang coal mine.[14] Loy Yang A has four generating units with a combined capacity of 2,200 MW.[14]

In New South Wales, in September 2014 AGL Energy acquired Macquarie Generation from the New South Wales Government for $1.5 billion. Macquarie Generation's assets included the 2,640 MW Bayswater Power Station, the 2,000 MW Liddell Power Station, the 50 MW Hunter Valley Gas Turbines and the Liddell Solar Thermal Project.[15] From the two thermal coal power stations and two oil-fired gas turbines, Macquarie Generation supplies approximately 12% of the National Electricity Market and 30% of the New South Wales electricity market.[15] In early stages, Macquarie has commenced development of solar thermal power as a renewable source of energy.

AGL announced in April 2015 and reaffirmed in September 2017 that it intends to close the Liddell Power Station in 2022.[16] The closure of this and other coal-burning power stations in Australia led to Prime Minister Malcolm Turnbull, to seek advice from the Australian Energy Market Operator on extending the life of a number of them,[17] to head off future power shortages.[18] Turnbull said the government had been advised that if the Liddell plant were to close in 2022, there would be a 1,000 MW gap in base load, dispatchable power generation.[17]

In 2018, AGL was among 17 energy businesses that supported the launch of the Energy Charter, a global initiative aimed at bringing together all parts of the power supply chain to give customers more affordable and reliable energy.[19][20]

In 2019, AGL entered the telecommunications industry with the purchase of Southern Phone, a regional telecommunications company.[21] In September 2020, AGL signed an agreement to acquire energy retailer Click Energy from Amaysim for $115 million.[22][23] The company began selling broadband Internet services under its own brand in November 2020 and, in February 2021, it launched AGL Mobile, a mobile phone service provider.[24][25]

In June 2021, AGL announced its intention to split into a bulk power generator and a carbon-neutral energy retailer. AGL Energy was to be rebranded as Accel Energy and hold the company's coal-fired power plants and wind farm contracts, while the electricity and gas retail assets were to be spun off into a separately listed company, AGL Australia.[26] In May 2022, the proposed split was abandoned with the chairman, two board members and CEO resigning, the company citing the proposal was unlikely to gain the required 75% shareholder approval.[27]

In August 2024, AGL announced it would acquire Firm Power, a grid-scale battery project developer, and its affiliated Terrain Solar, a developer of solar and wind farm projects, for $250 million.[28] In February 2026, AGL agreed to sell its telecommunications business to Aussie Broadband for $115 million in Aussie shares plus up to $10 million in shares based on growth targets.[29]

Mergers and acquisitions

This is a listing of AGL's corporate acquisitions and disposals.

Coal and gas fired power stations

Renewable energy

AGL owns 0.1% of Tilt Renewables, Australia's largest privately owned renewable energy company.[47]

Gas

Upstream gas projects

In 2015 the New South Wales Environment Protection Authority ordered the suspension of AGL's Gloucester operations after finding toxic chemicals had been introduced into Hunter Water's systems.[48] The EPA subsequently found no "evidence of harm to the environment or pollution of waters"[49] and AGL was allowed to continue its Gloucester operations.[50]

In February 2016, AGL announced that exploration and production of natural gas assets would no longer be a core business for the company. This followed years of campaigning, including protests at shareholder meetings and a non-violent blockade of exploration sites, by anti-CSG community group Groundswell Gloucester.[51] This announcement included clarification that AGL would not proceed with the Gloucester gas project and that it would cease production at the Camden Gas Project in South West Sydney in 2023, twelve years earlier than previously proposed.[52]

AGL has implemented a decommissioning and rehabilitation program for its well sites and other infrastructure in the Gloucester region.[53] In November 2016, AGL commenced the progressive decommissioning and rehabilitation of wells at the Camden site.[54]

Power generation projects in development

Coopers Gap Wind Farm

In August 2017, it was announced that the Coopers Gap Wind Farm would proceed to construction, with AGL securing funding from the Powering Australian Renewables Fund.[44] When completed the 453 MW Coopers Gap Wind Farm will be the largest in Australia.[55] The final wind turbine at the Coopers Gap Wind Farm was completed in April 2020.

Silverton Wind Farm

In May 2017, it was announced that construction had commenced on the 200 MW Silverton Wind Farm in north western New South Wales.[45]

Barker Inlet Power Station

In June 2017, AGL announced the development of a new $295 million gas-fired generator in South Australia. The Barker Inlet Power Station, will replace two of the four Torrens Island A turbines which are expected to be decommissioned in late 2020. The island's B turbines will continue to operate as usual.[56] The Barker Inlet Power Station was officially completed and handed over to AGL in early 2020.

Crib Point Gas Import Jetty

In August 2017, Crib Point Import Jetty was announced as the preferred location for a new terminal importing gas from other markets.[57] The project was expected to cost $250 million, with construction expected to commence in 2021.[58]

In 2021, the Andrews State Government halted the project, despite gas shortages being forecasted, forcing AGL to announce that it would no longer proceed with the project.

Kanmantoo pumped hydro

In April 2019, AGL announced that it had acquired the right to develop a pumped hydroelectric energy storage project in the mined-out main pit of the Kanmantoo mine on the eastern side of the Adelaide Hills in South Australia.[59] The project is expected to be capable of storing and generating 250MW of electricity from 2024.[60] In early 2020, AGL announced that it would not be proceeding with the Kanmantoo Pumped Hydro project.

Carbon emissions output

AGL currently owns three coal-burning power stations which produce a majority of its power generation.[61] The Australian Government Clean Energy Regulator publishes an annual list of the ten largest emitters of greenhouse gases. In the 2019-20 financial year, AGL came first place on the list, with reported emissions of 42.4 million tonnes,[3] which is equivalent to nine million cars on the road.

AGL is responsible for more than double the carbon emissions of Australia's second-biggest electricity generator, and more than BHP, Rio Tinto, Glencore, and Qantas combined. AGL's coal-burning power stations are responsible for eight per cent of Australia's total national emissions.