From coal to clean: Aussie billionaire's plan to further energise Tritium stake

This billionaire is reportedly planning to put the proceeds of a major coal sale towards Tritium shares.

| More on:
A business handshake with a forest backdrop, indicating a share price rise or deal between clean, green companies.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Aussie billionaire Trevor St Barker, along with business partner Brian Flannery, have sold New South Wales' Vales Point power station
  • The sale is reportedly worth upwards of $200 million
  • St Barker has told media he plans to use the proceeds to increase his stake in Tritium

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.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Share Fallers

Why did this ASX All Ords stock just crash 45%?

Investors are sending the ASX All Ords stock tumbling today. But why?

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Energy Shares

What Bill Gates, ASX uranium shares and the AI revolution have in common

ASX uranium shares could be tapped to make up for banned Russian imports in the US.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Energy Shares

Here's the earnings forecast out to 2027 for Pilbara Minerals shares

Can this lithium miner charge up its profit over the next few years?

Read more »

A miner stands in front oh an excavator at a mine site
Opinions

3 reasons ASX uranium stocks can keep charging higher into 2025

I think the recent sell-down in ASX uranium stocks has been overdone. Here’s why.

Read more »

light bulb surrounded by green hydrogen and renewable energy icons
Energy Shares

What's put the wind up AGL shares on Friday?

AGL has outlined where it expects to invest for the energy transition.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Energy Shares

Why is ASX 200 uranium stock Boss Energy flying higher on Friday?

ASX 200 investors are snapping up Boss Energy shares today. But why?

Read more »

Three coal miners smiling while underground
Dividend Investing

Is the 11% dividend yield from Yancoal shares too good to be true?

Can you ever rely on an 11% dividend yield?

Read more »

sad looking petroleum worker standing next to oil drill
Energy Shares

Woodside shares hit a multi-year low this week, should you buy?

Is this oil and gas giant an unloved opportunity?

Read more »