Given Trevor St Baker's long list of green investments, including ASX battery share Novonix Ltd (ASX: NVX), onlookers are dumbfounded as to why the billionaire is pushing for a 20-year extension of a coal-fired power station.
The move made by the billionaire investor comes a day after Origin Energy Ltd (ASX: ORG) announced its plans to bring forward the closure of Australia's largest coal-fired power station by seven years to 2025.
Origin wants to close Eraring power station — which supplies a fifth of NSW's energy — as renewables increasingly challenge the viability of coal.
So, why is St Baker seemingly 'switching sides' against fossil fuels now?
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Expecting an energy shortfall
The founder and deputy chair of the St Baker Energy Innovation Fund has announced plans to buck the current power station trend.
Unlike Origin Energy and AGL Energy Limited (ASX: AGL), St Baker will be pushing for the Vales Point power station, which he is co-owner of, to stay open for an additional 20 years. This would see the Lake Macquarie coal-fired power station keep its turbines running until 2050.
This development is somewhat peculiar considering a large portion of the investor's wealth is tied up in companies with decarbonisation qualities. For example, between St Baker and his fund, over $361 million is backing ASX battery technology share Novonix.
On top of that, the fund holds 31.5 million shares in recently listed electric vehicle fast-charging company, Tritium DCFC Limited (NASDAQ: DCFC). This stake would be worth around A$365 million based on the current Tritium share price.
However, the successful businessman is adamant the early retirement of coal-fired power stations is cause for concern.
St Baker said:
There is no way Australian industry can survive these rapid-fire closure announcements. These power stations should stay in service at least until their retirement dates so we can have a smooth transition in the market.
The above sentiment is also shared by federal energy minister Angus Taylor. Following the announced early retirement plans of Eraring station, Taylor said:
This risks higher prices, like the 85 per cent increase we saw after the closure of the Hazelwood Power Station, and a less reliable grid.
Could it be Déjà vu?
One of Trevor St Baker's biggest windfalls occurred outside of ASX shares. Instead, it involved him partnering up with Brian Flannery to buy Vales Point back in 2015 for a poultry $1 million. At the time, the power station was considered worthless.
Soon after that, in 2017, the value soared to $732 million thanks to the closure of Hazelwood power plant. The closure resulted in a tighter energy market and improved wholesale electricity prices. The plant's value is believed to have fallen again since 2017.
St Baker might be hoping history repeats itself with the NSW market set to lose one of its biggest electricity suppliers.
Hard times for St Baker's stake in ASX share
In 2021, St Baker watched his wealth explode as the Novonix share price skyrocketed 659%. However, the company hasn't had such a great start to the year in 2022.
Despite listing on the Nasdaq and securing a supply agreement with KORE Power, the Novonix share price has tumbled 47%.
