Coal barons Trevor St Baker and Brian Flannery have cashed in on their highly profitable investment in the ageing Vales Point coal fired power station in NSW, agreeing to a sale of their interest in Delta Energy to a Czeck family investment group.
The terms of the sale to Sev.En Global Investments have not been revealed but will undoubtedly deliver a handsome profit to St Baker and Flannery, who bought power station for just $1 million in 2015, and quickly revalued it to $722 million following the jump in prices after the closure of Hazelwood.
Vales Point is currently scheduled to close in 2029, and while some analysts expect it could close sooner St Baker insists that coal generation has a role in the grid for years to come.
“We continue to have a firm view that around the clock dispatchable generation will be necessary for the NEM (National Electricity Market) well into the future,” said St Baker, who is also known for his investment in EV fast charging company Tritium and more recently an electric vertical take off company.
“As owners for the last eight years, Esprey and St Baker Family Trust have positioned the business to continue essential operations through the energy transition, but recognise that there are opportunities to grow the business.”
He said this could be better accomplished in a portfolio with Sev.en’s other base-load capable generation interests, which includes a 50 per cent interest in the Intergen business in Queensland that owns the Milmerran and Callide coal fired power stations.
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 close this or any other generator.
“Sev.en Group is a global experienced and responsible operator of conventional power plants,” he said. “We make strategic investments with long-term commitment. We always look for ways to make our business more sustainable, support the local communities and take care of the 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 US, Blackhawk Mining.
