One Australian billionaire has sold off a major coal asset and reportedly plans to funnel the proceeds into Aussie-born electric vehicle (EV) charging giant Tritium DCFC Ltd (NASDAQ: DCFC) shares.
Trevor St Baker and business partner Brian Flannery have agreed to sell New South Wales' Vales Point Power Station – responsible for 11% of the state's energy – to Czech group Sev.en Global Investments.
The sale is worth more than $200 million, The Australian reports. St Baker is said to be planning to put the proceeds towards upping his stake in Tritium.
The Tritium share price last traded at US$5.87.
Let's take a closer look at the billionaire's apparent plan to increase his holding in the EV charging favourite.
Could this coal sale fuel Tritium's fire?
Energy billionaire St Barker has sold off a major coal fired power station and apparently intends to reinvest the proceeds into Tritium – a favourite 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 of dividends from its activities over the three years to 2022.
The billionaire told The Australian he will invest some of the cash generated from the sale into Tritium.
Another portion of the proceeds has also been earmarked to go to Aussie EV fast charging stations business Evie Networks.
Both companies are already mainstays in the St Barker Energy Innovation Fund.
St Barker has also held a seat on the Tritium board since 2013.
Despite his apparent interest in the energy transition, St Barker remains confident coal will play an important role in Australia in the years to come. He commented on the sale of Vales Point, saying:
We continue to have a firm view that around the clock dispatchable generation will be necessary for the NEM well into the future.
Sev.en already has a presence in Australia, holding interests in Queensland's Millmerran and Callide power stations.
Tritium has been continuing its growth story this year. It opened its first factory in the United States last month, just five months after announcing its planned build.
