REFILE-AGL to decide plant sale after govt details CO2 plan

(Refiles to adds first name of CEO)

PERTH, Aug 20 (Reuters) - AGL Energy Ltd (AGK.AX: Quote, Profile, Research, Stock Buzz), Australia's largest energy retailer, will decide whether to sell its stake in the coal-fired Loy Yang A power plant only after the government unveils plans on a carbon trading scheme, its chief executive said on Wednesday.

AGL, which has a 32.5 percent stake in the Loy Yang power station in Victoria state, said it was difficult to place a value on any coal-fired generation plants without further information on how owners would be compensated for the start of the country's carbon trading regime.

"In the current climate, anybody trying to work out the value of coal-fired generators is going to be challenged," Michael Fraser said on a conference call after the release of AGL's full-year results. [ID:nSYD53607]

"We will come back and look at Loy Yang post some further clarity on those issues."

Australia, one of the world's biggest per-capita polluters, plans to introduce an emissions trading system which will start up in July 1, 2010.

The regime would cover 75 percent of emissions in the A$1 trillion economy and some coal-fired plants will be compensated for the additional cost, the government said in a report last month.

But the government has not said how much the polluters would be compensated, what the overall emissions cap should be or put a price on carbon emissions apart from a working assumption of A$20 a tonne, used for inflation impact estimates.

Still, AGL's Fraser said the government's proposed carbon trading policies would be beneficial for the firm as it could potentially increase the net present value of its renewable energy portfolio, including windfarms and geothermal projects, by more than A$200 million.

Fraser also said the firm may sell its 27.5 percent interest in coal seam gas producer Queensland Gas Company Ltd (QGC.AX: Quote, Profile, Research, Stock Buzz) (QGC), which was acquired for about A$320 million in late 2006 but is now worth about A$900 million.

Fraser told Reuters that AGL, which has flagged the sale of its 3 percent stake in the ExxonMobil (XOM.N: Quote, Profile, Research, Stock Buzz)-led liquefied natural gas project in Papua New Guinea, has received less than 10 offers so far and he expected the tax-free proceeds would be "well in excess" of the A$500 million AGL initially paid.

Shares in AGL closed 3.5 percent higher at A$14.40. ($1=A$1.15) (Reporting by Fayen Wong; Editing by Kim Coghill)