AGL (ASX:AGL) share price withstands healthcare pressure to exit coal ASAP

Key points

• The AGL share price is in the green today, up 0.7% at the time of writing
• The company is facing renewed calls from the health sector to shut down its coal-powered stations
• AGL will release its financial results on February 10

The AGL Energy Ltd (ASX: AGL) share price is clinging to the green today despite pressure from healthcare professionals to close its coal-fired power stations.

The energy company’s share price is trading at $7.15 at the time of writing, a 0.7% gain. Earlier in the session, AGL shares traded as high as $7.17.

Let’s take a look at what’s happening at AGL Energy.

Coal focus

The AGL share price is clinging to the green today after a stellar month. The company’s share price has increased 16.29% since market close on December 31.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.31% today but has soared more than 7% in the past month.

AGL is facing renewed pressure from healthcare workers to exit the coal business, according to reports in The Age newspaper. A letter signed by 600 healthcare workers and 25 health organisations is calling on AGL to close its coal generators by 2030.

An AGL spokesperson told the publication the company respected their views on the need for action. The company spokesperson said:

The exit of thermal generation must happen responsibly and via a co-ordinated plan across governments, industry, regulators and the community.

We believe our thermal generation assets have an important role to play supporting providing reliable and affordable energy to Australians as the energy industry decarbonises.

The price of thermal coal fell 2.15% in the United States in the past 24 hours to US$222.75 per tonne. However, it is up 56% in the past month.

AGL’s Loy Yang power station, near Traralgon in south-east Victoria, is fuelled by coal and produces about 30% of Victoria’s power. Meanwhile, AGL Macquarie’s power generation network also relies on coal and produces 35% of New South Wales’ electricity.

As my Foolish colleague Brooke reported in January, the company is working on several green initiatives. AGL is involved in the Hydrogen Energy Supply Chain Project producing clean liquid hydrogen from the Latrobe Valley in Victoria to Kobe in Japan.

AGL also recently entered an agreement with Fortescue Metals Group Limited‘s (ASX: FMG) to work on an industrial energy hub capable of producing green hydrogen.

AGL will release its half-year results on 10 February.

AGL share price snapshot

The AGL share price has dropped 38% in the past year but has rebounded 16% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% in the past year but has lost 6% so far in 2022.

AGL has a market capitalisation of roughly $4.7 billion based on its current share price.

The post AGL (ASX:AGL) share price withstands healthcare pressure to exit coal ASAP appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in January
• What is green shorting and which ASX 200 shares are being targeted?
• Why have ASX energy shares become such hot property in 2022?
• Why are AGL (ASX:AGL) shares having such a stellar start to 2022 while the ASX 200 is struggling?
• Top 2 ASX 200 shares of the year so far revealed

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/XLNolmcKE