ENGIE and its partner have signed a conditional binding agreement with Hong Kong-based Chow Tai Fook Enterprises (CTFE) to sell the 1GW Loy Yang B power plant Mitsui facility.
The deal is valued at more than A$1.1bn ($835m), reported Reuters.
Situated in the Australian state of Victoria’s Latrobe Valley, the Loy Yang B plant currently supplies around 17% of the state’s total energy.
The coal-fired power plant has a workforce of 151 people.
ENGIE CEO Isabelle Kocher said: “This transaction confirms ENGIE’s positioning in low-carbon generation, energy infrastructures, and integrated customer solutions.”
The latest deal is subject to customary conditions and is expected to be closed by Q1 2018.
Following the completion of the deal, ENGIE’s share in its global coal-based power generation capacities will be reduced from 13% in 2013 to 6%.
ENGIE will also be able to remain active in Australia and New Zealand, with 1,800 employees engaged in low-carbon power generation representing around 1GW of gross capacities, as well as supplying gas and electricity based energy and services to more than 650,000 customers.