AGL Energy Ltd. has agreed to sell its 19.9 per cent stake in Tilt Renewables to its existing government fund partners for AU$750 million.
AGL sold the majority of its 20 per cent stake in Australia’s largest operating wind platform to Queensland Investment Corp. and Australia’s sovereign Future Fund.
Tilt will now be wholly-owned by the government investment funds, while AGL will continue to hold its remaining stake in Tilt following completion of the transaction.
The deal is part of AGL’s initiative to free up capital to fund its future growth. AGL will use the proceeds from the divestment to deliver on its strategy, including to fund its investment in flexible, dispatchable capacity and to provide additional balance sheet flexibility.
The transaction values AGL’s stake in Tilt at AU$321 million as at June 30 and is expected to result in a gain in sale in fiscal 2026 with a final amount to be determined on the closing date, according to AGL.
AGL Managing Director Damien Nicks said: “The transaction demonstrates our commitment to realising value in our portfolio and recycling capital to invest in flexible, dispatchable capacity as we work towards our expanded 6 GW target of new firming and renewable projects by FY30″.
QIC Head of Global Infrastructure Ross Israel said the planned acquisition will strengthen QIC’s position as market leader in Australia’s energy transition.
“By extending ownership, QIC and the Future Fund will have the ability to capitalise on Tilt’s growth potential, supported by strong policy momentum and a clear runway of development optionality,” Israel said.
Tilt currently provides 1.6 gigawatts of renewable generation capacity to AGL under long-term power purchase agreements.
As part of the transaction, AGL and Tilt have formed a strategic partnership to advance Tilt’s expanding asset portfolio and AGL’s decarbonisation strategy. The partnership will facilitate offtake opportunities for a share of Tilt’s existing assets and its development pipeline.
AGL has already agreed to take 45 per cent of the generation from Tilt’s Palmer Wind Farm for a 15-year term and 100 per cent of the generation from Waddi Wind Farm for another 15-year term.
The proposed deal is subject to regulatory approvals, with completion expected by the third quarter of fiscal 2026.