Australian AGL might be in acquisition mood

Alexander Richter 3 Feb 2009

Australian AGL (ASG:AGL), an integrated energy company is most likely on an acquisition trail on renewable energy assets which includes geothermal ones soon, so The Australian.

Australian AGL (ASG:AGL), an “integrated energy company… buying and selling gas and electricity; construction and/or operation of power generation and energy processing infrastructure”;among others is most likely on an acquisition trail soon, so The Australian.

“AGL is already Australia’s largest owner of renewable energy, with about 27 per cent of its total generation capacity in clean energy investments such as wind farms and hydro-electric plants.”  The company’s CEO Michael Fraser “has big plans to boost the company’s renewable energy assets to ride the expected long-term growth in the sector, with plans to expand in wind farms, hydro-power and coal seam gas as well as less proven technologies such as geothermal (hot rocks).”

The company “can see, in the long term, that between 40 to 50 per cent of its generation capacity will come from renewables.” AGL is “the only Australian energy company generating from a full suite of proven renewable technologies. “We are already the largest private owner and operator of renewable energy assets in Australia, with nearly 1000MW of renewable generation capacity.  “We can see the potential for a fourfold increase in our renewable generation capacity over the longer term.”

The company entered an alliance with Australian geothermal energy player Torrens Energy, in July 2008. As part of the deal AGL holds a 9.99% stake in Torrens Energy Ltd. (ASX:TEY) and entered into a “geothermal alliance agreement to commercialize base load geothermal projects clsoe to the National Electricity Market.”

Source: The Australian