We’ll cut Origin’s carbon intensity by 80pc, Brookfield tells investors

afr.com:

Origin Energy’s carbon emission intensity will be reduced by 80 per cent in the next seven years if shareholders approve a near-$20 billion sale of the electricity and gas utility to a consortium of private equity firms.

That’s the pitch from Brookfield, the Canadian investor that will own Origin’s power generation business if the bid succeeds against the opposition of AustralianSuper, the company’s largest shareholder.

The transition plan – following an earlier commitment from Brookfield to spend between $20 billion and $30 billion on shifting away from fossil fuel power generation – is part of a presentation given by the investment firm’s advisers to large Origin shareholders in an attempt to gain their support.

A stockpile of coal at Eraring. Brookfield says it will substantially accelerate plans to decarbonise Origin’s energy business.  Bloomberg

The presentation outlines commitments to the Australian Competition and Consumer Commission, which agreed to allow the takeover despite concerns that it would substantially lessen competition, that Brookfield would set annual development targets for a green build-out plan within four months of closing an acquisition of Origin. It would also set annual emissions reduction and emissions intensity targets at that time.

“Brookfield along with its institutional partners and global institutional … has set out a green build-out plan to invest between $20 billion and $30 billion,” the presentation to Origin investors, dated this month, reads.

That would be enough to finance the development of up to 14 gigawatts of renewable generation and storage capacity by 2033, 10GW above “an optimistic forecast of what Origin energy markets is likely to achieve absent the proposed acquisition,”