ENGIE to sell its shares in Loy Yang B coal power plant in Australia
ENGIE announces that Alinta Energy’s owner, Chow Tai Fook Enterprises, has today entered into a conditional binding agreement to acquire the total share in the Loy Yang B power station in Australia (ENGIE 70%, Mitsui 30%).
The 1,000 megawatt coal power plant, in Victoria’s Latrobe Valley, provides about 17% of the State’s energy needs and employs 151 people.
Isabelle Kocher, ENGIE Chief Executive Officer, said: “This transaction confirms ENGIE’s positioning in low-carbon generation, energy infrastructures and integrated customer solutions. I would like to thank the Loy Yang B staff for their commitment as we are now going to work with Alinta Energy to ensure a smooth transition.”
After this sale, coal will represent 6% of ENGIE’s global power production capacities, when it represented 13% at the end of 2015.
The proposed transaction is expected to translate into a €666 million reduction in ENGIE’s consolidated net financial debt. It is subject to customary conditions and should complete in Q1 2018 at the latest.
ENGIE remains active in Australia and New Zealand, with 1,800 employees working in low carbon power production (around 1 GW of gross capacities) and the supply of energy (gas and electricity) and services to more than 650,000 customers.
ENGIE is committed to taking on the major challenges of the energy revolution, towards a world more decarbonised, decentralised and digitalised. The Group aims to become the leader of this new energy world by focusing on three key activities for the future: low carbon generation in particular from natural gas and renewable energy, energy infrastructure and efficient solutions adapted to all its customers (individuals, businesses, territories, etc.). Innovation, digital solutions and customer satisfaction are the guiding principles of ENGIE’s development. ENGIE is active in around 70 countries, employs 150,000 people worldwide and achieved revenues of €66.6 billion in 2016. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance).