Summaries - Australian Financial Review
Tuesday 30/9/2008 Page: 24
Wind assets will be AGL Energy's next investment focus as renewable energy certificate (REC) liabilities pressure AGL to ramp up its green generation as an alternative to buying RECs on the market, estimates Merrill Lynch. A downturn in price is unlikely given the current RECs fervour and the Rudd government's clean energy targets, but the unprecedented 2005 REC slump is still in recent memory.
Alternatively, AGL could sell its power generation portfolio immediately. It has already sold two Hallett Wind Farms in South Australia to Australia and New Zealand Banking Group and Perpetual-Wilson HTM. JPMorgan analyst Mark Greenwood last week detailed the impact of the Federal Government's proposed emissions trading scheme (ETS) on Australia's liquefied natural gas players after saying that Woodside Petroleum chief Don Voelte may have gone over the top with his statement that ETS could kill off the Browse Basin LNG project.
Greenwood proposes that coal seam gas play Queensland Gas Co would take a 18.4 percent hit by 2010 based on a $20 a tonne carbon tax. Santos would be the next hardest hit due to the high carbon content of its Cooper Basin operations.
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