Australia's AGL selling 50% in 420-MW Macarthur wind farm

Vestas turbines at the 420-MW Macarthur wind farm in Australia. Courtesy of Vestas Wind Systems A/S

Australian power producer AGL Energy (ASX:AGK) said it is in the process of selling its 50% stake in the 420-MW Macarthur wind farm, thus confirming earlier media reports.

The company expects net proceeds of around AUD 500 million (USD 388m/EUR 356m) from the disposal, it said Tuesday. The wind park, completed in 2013, uses 140 units of Vestas turbines. The other 50% in the farm have been in the hands of Malaysia's Malakoff Corp Bhd since June 2013.

The sale is part of a bigger plan to improve return on funds employed (ROFE) and achieve sustainable earnings growth. AGL has set a target of AUD 1 billion in non-strategic and under-performing asset divestments by the end of June 30, 2017. By that time, it also aims to reduce working capital by some AUD 200 million.

Included in AGL's strategic roadmap is also a goal for the power utility to create one million “smart” connections to consumers and businesses by the end of the decade by scaling to become one of the main providers of metering services, rooftop solar systems, energy storage and electric vehicle services.

The company currently has nearly 1.8 GW of renewable power capacity, which represents 17% of its portfolio. Last month it announced its new Greenhouse Gas Policy (GHG Policy) under which it will continue to invest in renewable and near-zero emission technologies, but will not build, finance or acquire new conventional coal-fired power stations in Australia.

(AUD 1 = USD 0.776/EUR 0.711)

Choose your newsletter by Renewables Now. Join for free!