ELECTRICITY

Alinta moots powergen spinoff

BOB Browning’s knack for exploiting market opportunities seems to be continuing after he revealed Alinta Ltd was considering separating its power generation assets from its pipeline network in a listing possibly worth up to $1 billion.

Browning was reported to have said the move was being considered to separate the co-generation and wind farm functions from the Alinta corporate structure, as the company factored in a rapid east coast expansion which could see its assets under management quickly rise to as much as $2 billion.

In a widely criticised deal in March, Alinta paid Duke Energy $1.69 billion for its pipeline and power generation business. But the markets backed the move with Alinta quickly regaining the market capitalisation dropped when the size of the deal was initially reported.

Browning was speaking at the start of construction on a $200 million, 54-turbine wind farm project in Geraldton, being built by the Babcock and Brown-backed Renewable Power Ventures.

Alinta has a 20-year electricity off-take agreement in addition to naming rights to the facility.

The company is reported to be on the verge of launching a major advertising campaign directly aimed at wooing disenfranchised Western Power clients.

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