Origin shows AGL how it’s done, must now address gas

The Australasian Centre for Corporate Responsibility​ (ACCR) is commenting on Origin Energy’s (ASX:ORG) decision to bring forward the closure date of its Eraring coal-fired power station to 2025, announced today.

Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:

“Origin has finally acknowledged the market signals, and listened to the majority of its shareholders and the general public by accelerating the closure of Eraring.

“Origin has done what AGL has stubbornly refused to do, by closing coal-fired power generation consistent with the goals of the Paris Agreement.

“This decision will have a huge impact on Origin’s carbon footprint, with Eraring comprising approximately 78% of its Scope 1 and 2 emissions (equity basis).

“Origin’s plans to install a 700MW battery at the Eraring site confirm that the future of the electricity grid will be dominated by renewables supported by batteries and pumped hydro - not gas.

“Origin’s plans for a large-scale battery are completely at odds with gas industry claims that Asian markets need gas to replace coal, or to complement variable renewable energy.

“Yet Origin continues to pursue massive gas expansion plans in the Beetaloo, Canning basin and Lake Eyre basins. Development of these basins is completely at odds with the Paris Agreement.

“Origin must ensure that the workforce at Eraring is supported through the closure process, and offered alternative positions or retraining where appropriate.”

Background

ACCR’s 2021 shareholder resolution requesting Origin align its capital allocation with the Paris Agreement was supported by 44% of shareholders.

Origin Energy’s Scope 1+2 emissions, FY2017-21, equity basis (KT CO2e)