Australian energy firm AGL to shut all coal power stations by 2050
* About-face after buying coal power stations in 2014
* Will add to pressure on Australia's coal industry
* Environmental lobby sceptical (Adds reaction from environmentalists, background)
By Byron Kaye
SYDNEY, April 17 (Reuters) - AGL Energy Ltd, Australia's No.2 power retailer and its biggest carbon polluter, said on Friday it would not buy any more coal-fired power stations and would close all its existing coal-fired power plants by 2050.
The company, which became Australia's biggest owner of coal-fired power stations when it bought two plants from New South Wales state for A$1.5 billion ($1.17 billion) in 2014, announced the apparent about-face in a new "greenhouse gas policy".
Although the shutdowns may be far in the future, the AGL policy introduces a domestic element to a slowdown already confronting the Australian coal industry as exports to China drop and that country shifts towards cleaner energy options.
It also suggests that AGL, which has campaigned in the past to lower a national renewable energy target, wants to show it can contribute to greenhouse gas reduction without the need for government regulation.
The conservative government and centre-left opposition have been deadlocked since last year on whether to lower the renewable energy target, while AGL has suggested the target be rethought completely.
Coal delivers nearly two-thirds of Australia's energy and AGL has stakes in three of the country's biggest coal-fired power stations. It sells energy to nearly 4 million people, a sixth of the population.
AGL's recently appointed chief executive officer, Andy Vesey, said the company's move out of coal-fired power would be "an ongoing, progressive process, managing the efficient operations of our assets, and the transition of our people into new generation technologies and careers".
"It is important that government policy incentivises investment in lower-emitting technology while at the same time ensuring that older, less efficient and reliable power stations are removed from Australia's energy mix," he said in a statement.
However, the move won only grudging praise from environmentalists.
"It's good that they're finally listening to the nine out of 10 Australians who want more renewable energy but it's a shame that they're going to keep pumping carbon into the atmosphere until 2050, when most of their dirty power plants would have been shut anyway," said James Grugeon, director of market impacts at GetUp!, an activist group.
"It's a step forward after several steps backwards."
Nick Brass, director at Energy Matters Pty Ltd, a solar power firm owned by Sunedison Inc, said the policy was well-meaning but added: "Coal power by 2050 is not going to be an economic issue, let alone a climate issue. They're taking the opportunity to get a nice bit of PR from a fact."
AGL shares were down 1.1 percent in afternoon trade, in line with the broader Australian share market.
($1 = 1.2865 Australian dollars) (Reporting by Byron Kaye; Editing by Alan Raybould)
