Today marks a big day for AGL Energy Limited (ASX: AGL), but market watchers might not notice the occasion reflected in the company's share price.
Though, that doesn't make it any less significant. Indeed, today might be etched into AGL's history as the day it took a major step towards shutting down its coal-fired power operations.
At the time of writing, the AGL share price is $7.74, 0.26% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is trading in the red this morning, having slipped 0.07%.
Let's take a closer look at what's happening with the iconic energy producer and supplier today.
Image source: Getty Images
AGL takes major step away from coal
The AGL share price is lower on Friday amid the closure of a unit at the company's Liddell power station in New South Wales' Hunter Valley.
The unit is the first of four to go. The remainder are set to be shut down next April after supporting NSW's energy grid through the summer months.
"We announced the retirement of Liddell in 2015 and, seven years later, we are pleased to be in a position to begin the orderly and responsible closure and transition of the power station in line with our climate commitments," said AGL chief operating officer Markus Brokhof.
After Liddell's more than 50-year stint in coal-fired power, the site will become part of AGL's Hunter Energy Hub.
"We're committed to seeing this site continue its legacy as the backbone of the NSW electricity grid as we repurpose the infrastructure to continue delivering energy through the next phase of its life," said Brokhof.
"We are excited about our clean energy plans in the Hunter region, including grid-scale battery, solar thermal storage, wind, hydrogen, and pumped hydro projects."
The company recently entered an agreement with Fortescue Metals Group Limited (ASX: FMG)'s green energy leg, Fortescue Future Industries, to explore a potential green hydrogen facility for the site.
AGL was also recently given the thumbs up by the NSW Department of Planning and Environment to put a 500-megawatt, two gigawatt-hour grid-scale battery at the power station.
Closing the unit will see AGL's annual greenhouse gas emissions fall by an amount equivalent to removing around 400,000 cars from Australia's roads.
The unit's closure comes weeks after AGL announced it's planning to shut its other coal-fired operations earlier than previously anticipated. AGL's Bayswater and Loy Yang A power stations will close in 2033 and 2045 respectively.
Additionally, AGL is continuing to gear up to split into AGL Australia and Accel Energy.
Following the demerger, all the company's thermal sites and future energy hubs will be in the hands of Accel Energy.
AGL share price snapshot
The AGL share price has been outperforming the market in 2022 so far.
It has gained 22% since the start of this year. In that same time, the ASX 200 has slumped by 1%.
Though, the company's share price has fallen 20% since this time last year. That leaves it underperforming the benchmark by nearly 30% over the last 12 months.
