Announcing the leadership of the new company on Wednesday, AGL said Accel, formerly known as PrimeCo, would be focussed on the redevelopment of its coal-fired power stations into what it described as low-carbon industrial energy hubs.
The plan to split the company down the middle was announced in March, seeing Accel seperate from New AGL, now known as AGL Australia - which will be customer focussed, and encompass AGL's gas firming plants, its hydropower portfolio, virtual power plants, gas trading, internet, and mobile services.
Former AGL CEO Brett Redman, one of the architects of the split, unexpectedly decided afterwards he didn't want to stick around another five-plus years to see things through, leaving AGL chairman to step in, and appoint new board member Botten as chair.
Accel Energy, will hold the company's coal-fired power stations and its wind assets and will retain a 15-20% shareholding interest in AGL Australia.
Alongside Botten, current AGL Energy interim-CEO and former BHP executive Graeme Hunt will become managing director and CEO of Accel Energy, while at AGL Australia, former APA director Patricia McKenzie will become chair and Christine Corbett is set to become MD and CEO.
AGL plans to put the scheme to a vote by shareholders at a general meeting - as it looks to complete the de-merger by the end of the 2022 financial year, subject to relevant approvals.
It also said it will terminate its dividend program for the remainder of FY21 and FY22 and underwrite the dividend reinvestment plan on ordinary dividends until the demerger.
After the demerger, AGL Energy shareholders will hold one share in each of Accel Energy and AGL Australia.
While Botten noted AGL's business model had created significant value for shareholders for decades, the deteriorating market conditions for its coal-fired power stations due to the rapid uptake of renewables and the shifting societal expectations meant the company was now at an "inflection point" and needed to act.
"After careful consideration, the board has confirmed that AGL Energy should move forward as two independently-listed companies as the board believes this will be in the best interests of shareholders," he said, adding that the move would enable each business to focus on their respective strategies to decarbonise.
"For Accel Energy, this means focussing on the transition of its existing electricity generation assets and investment in the long-term rejuvenation of its valuable operating sites as low-carbon industrial energy hubs, as well as new clean energy projects."
Hunt said AGL Energy has received strong financing commitments from its banking group and new lenders to establish independent borrowing facilities for both Accel Energy and AGL Australia.
"We remain committed to, and confident of achieving, investment grade credit rating for both new businesses," he said.
Activist groups remain unconvinced, with the Australian Centre for Corporate Responsibility director Dan Gocher questioning the suitability of Botten and Hunt's oil and gas experience to transition the company to renewables.
"Investors will be rightly concerned about the leadership's climate competence and capacity to successfully transition that company out of fossil generation," he said.
Last month, shareholders at ExxonMobil voted in three new members to the company's board, put forward by activist shareholder group Engine No.1, over similar concerns.
Botten did spend some time of his many years in Papua New Guinea progressing a biomass project within the Oil Search portfolio, though it has seen delays since COVID-19.
Meanwhile Greenpeace, which successfully defended in court a campaign it ran featuring AGL's logo, deriding it as Australia's biggest climate polluter, continued its criticism calling the demerger "purely cosmetic".
"This demerger is tantamount to rearranging the deckchairs on the Titanic, with AGL, Australia's biggest climate polluter, trying to hide its greenhouse gas emissions behind clever company reporting tricks," Greenpeace APAC senior campaigner Glenn Walker said.
AGL is down 3.8% at A$8.76
