Ampol is taking another step to expand beyond its roots as a petrol and diesel supplier, applying for licences to retail electricity and gas in a move that reflects the further blurring of the lines between suppliers of staple utility and energy services.
The plan by the former Caltex Australia to enter electricity and gas retailing looks set to add to the shake-up already taking place in that sector amid new entrants such as oil and gas major Shell, renewables giant Enel, and local telco leader Telstra, and the proposed demerger of AGL Energy.
It was flagged by Ampol last May in the company’s decarbonisation strategy, which outlined plans to target new opportunities in electricity, hydrogen, gas, biofuels and carbon emissions reductions.
Ampol was also among potential bidders later in the year for Meridian Energy’s electricity retailing and renewables generation business in Australia, which was eventually split between Shell, which bought the Powershop retailing arm, and Infrastructure Capital Group, which bought the generation assets.
“By becoming an energy retailer, Ampol will be able to bring new customer propositions to market off the back of its generation and mobility investments,” Ampol said in its electricity licence application, giving a provisional start-up date of the operation of March 2022.
“By launching Ampol Energy, Ampol will be able to partner with Australians to work towards a low carbon future.”
The company said it would offer electricity and gas products to all jurisdictions of the National Electricity Market, and to household customers as well as to small and larger commercial and industrial businesses.
It advised it would use a “hybrid” model of onshore and offshore customer services support, and has selected a software vendor for its core retail platform.
Ampol Energy is led by James Myatt, a former CEO of retailer Australian Power and Gas, which was acquired by AGL Energy in 2013, and of Mojo Power.
Adam Lourey, EnergyAustralia’s former regulatory response manager, has joined Ampol Energy as regulatory and compliance manager, while Rochelle Schuenker has joined as acting head of retail from Amaysim Group. Matthew Nimmo, formerly of Pacific Hydro, is heading the wholesale business.
The Future Energy division will be headed by Brent Merrick as executive general manager international and new business, with Doug Darley, previously chief financial officer at Ampol’s fuels & infrastructure division, as chief operating officer, new energy.
Ampol’s diversification into other areas of energy supply comes as its core business in petrol and diesel supply is set to come under increasing pressure from the inevitable electrification of transport through increased uptake of electric vehicles.
It has earmarked a minimum of $100 million of investment over the next four years in initiatives supporting the switch to lower carbon fuels, and has in the last few months announced projects in virtual power plants, carbon-neutral fuels, green hydrogen production and EV fast-charging.
An Ampol spokesman declined to comment on how the company expects to build the retail business but said it fits with the plans outlined in the decarbonisation strategy.
“Ampol is exploring how it can evolve its business model to adapt to the future energy needs of its customers,” he said.
“The key areas we are looking at were outlined in our Future Energy and Decarbonisation strategy released in May 2021. They include electrification of mobility, hydrogen, renewables and biofuels. All these areas leverage Ampol’s existing capabilities, privileged infrastructure and strong customer base.”
The Australian Energy Regulator asked for submissions on Ampol’s applications by March 2 as it decides whether to grant licences.
Extracted from AFR