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One Australian billionaire has sold a major coal asset and reportedly plans to funnel the proceeds into an Australian-born electric car giant. Tritium DCFC Ltd (NASDAQ: DCFC) shares.
Trevor St. Baker and business partner Brian Flannery have agreed to sell Vales Point Power Station in New South Wales – responsible for 11% of the state’s energy – to the Czech group Sev.en Global Investments.
The sale price exceeds $200 million, Australian reports. St. Baker is said to be planning to use the proceeds to increase its stake in Tritium.
Tritium’s stock price last traded at US$5.87.
Let’s take a closer look at the billionaire’s apparent plan to increase his stake in the plug-in electric vehicle favorite.
Could this coal sale light the Tritium fire?
Energy billionaire St Barker has sold a major coal-fired power plant and appears to be looking to reinvest the proceeds into tritium, a favorite for the energy transition.
St Barker and Flannery reportedly bought the station for $1 million in 2015. They are also said to have pocketed $130 million dividends from its activities for three years until 2022.
The billionaire told Australian he will invest some of the money from the sale into tritium.
Another part of the proceeds was also directed to the Australian business of fast charging stations for electric vehicles Evie Networks.
Both companies are already a mainstay in the St Barker’s Energy Innovation Fund.
St. Barker’s too took place on the board of Tritium since 2013.
Despite the obvious interest in the energy transition, St Barker remains confident that coal will play an important role in Australia in the coming years. He commented on the sale of Vales Point, saying:
We remain strongly of the view that 24/7 dispatchable generation will be necessary for NEM well into the future.
Sev.en already has a presence in Australia and has interests in the Millmerran and Callide power stations in Queensland.
Tritium continues its growth story this year. This opened his first factory in the United States last month, just five months after the planned build was announced.