Coal barons Trevor St Baker and Brian Flannery have cashed in on their highly profitable investment in the aging coal-fired Vales Point power station in New South Wales, agreeing to sell their stake in Delta Energy to a Czech family investment group.
Terms of the sale to Sev.En Global Investments have not been disclosed but will undoubtedly bring a handsome profit to St Baker and Flannery, who bought the power station for just $1 million in 2015, and have it quickly revalued to $722 million after the price jump after Hazelwood closed.
Vales Point is currently scheduled to close in 2029, and although some analysts expect it could close sooner, St Baker insists coal generation will play a role in the network for years to come. come.
“We continue to strongly believe that 24-hour dispatchable generation will be necessary for the NEM (national electricity market) in the future,” said St Baker, who is also known for his investment in the utility. fast charging EV Tritium and more. recently an electric vertical take-off company.
“As owners for eight years, Esprey and St Baker Family Trust have positioned the business to continue essential operations through the energy transition, but recognize there are opportunities for business growth.”
He said this could be best achieved in a portfolio with Sev.en’s other baseload capable generation interests, which includes a 50% stake in the Intergen business in Queensland which owns the coal-fired power stations. of Milmerran and Callide.
Sev.en CEO Alan Svoboda said the purchase of Delta Energy would significantly boost its presence in Australia, and gave no indication of any intention to shut down this generator or any others.
“Sev.en Group is an experienced and responsible global operator of conventional power plants,” he said. “We make strategic investments with a long-term commitment. We are always looking for ways to make our business more sustainable, support local communities and take care of employees. »
The company also owns four gas-fired power stations in the UK, two coal generators in the Czech Republic and one of the largest metallurgical coal producers in the United States, Blackhawk Mining.
Giles Parkinson is the founder and editor of Renew Economy, as well as the founder of One Step Off The Grid and the founder/editor of The Driven, focused on electric vehicles. Giles has been a journalist for 40 years and is a former economics editor and associate editor of the Australian Financial Review.