Good morning, ladies and gentlemen. I'm Vik Bansal , Chairman and Director of the Board of LGI, and it is my pleasure to welcome you all to the company's 2024 AGM. Before we begin the meeting, I would like to acknowledge the traditional owners of the lands from which you're joining this meeting and pay my respect to the elders past and present. I'll now introduce my fellow directors who are here with me. I've got Mr. Adam Bloomer on my left, Dr. Jessica North, Mr. Tim McGavin, Mr. Andrew Peters, and Ms. Abigail Cheadle. Can I also introduce our Chief Executive Officer, Mr. Jarryd Doran, our CFO and Company Secretary, Mr. Dean Wilkinson, our Co-Sec, Mr. Hasaka Martin, and Company Auditors, BDO, represented by Mr. Richard Swaby. We are also joined by representatives of the Company Share Registry Computershare.
No written questions were submitted from the shareholders for BDO with respect to the conduct of the audit and the auditor's report as per the process set out for this in the Notice of AGM. However, I am certain that Richard and BDO would be pleased to address any questions shareholders might have during the meeting. Slide four. It is now just past 11:00 A.M., the nominated time for the meeting, and I'm advised that a quorum of shareholders is present, and I'm pleased to declare the meeting open. Before we deal with the formal business of the meeting, we would like you to provide shareholders with an updated account on the company's progress in the 2024 financial year and our outlook for the current financial year. My address will be followed by a presentation from our Managing Director, Adam Bloomer.
LGI is a unique company which stands at the convergence of waste and energy, with both sectors offering vast opportunities for agile organizations and leadership at both management and board level. Your company and management has again reported a strong set of financial results and continues to deliver on commitments that were made two years ago at the time of our IPO. LGI's performance is driven by its key elements: volume of Australian Carbon Credit Units, flexible generation assets, and large-scale generation certificates, while it continues to lay the groundwork for the long-term growth. In Australia, we continue to have a significant number of landfills across the country which continue to emit environmentally degrading gas which needs to be managed. This offers LGI an opportunity to grow organically by capturing more gas which can be utilized to create a continuous source of distributed clean power for the future.
LGI's offering continues to appeal to landfill owners as a compelling investment, but also a productive use case in adequately managing the assets and associated environmental issues. Throughout FY 2024, LGI successfully added new customers, and I expect the company to continue to do so. Notwithstanding some of our successes, the AEMO, or the Australian Energy Market Operator, along with many market commentators, expressed the view that investment in new renewable energy supply is not keeping pace with the 2030 energy targets. AEMO also stated that investment in firming technologies is critically required to manage the intermittent capability of wind and solar generation. LGI's expanding portfolio of dispatchable renewable energy generation provides us with a scalable opportunity to provide firming solutions. With the addition of battery technology, as demonstrated at our Bunya site, LGI is well placed to leverage the market opportunities identified by AEMO.
While the overall operating environment for LGI across renewable energy and carbon abatement will continue to evolve, macro factors will continue to create positive tailwinds for LGI. From changing government policy to achieving net zero by 2050, through to reduced carbon emissions and the strengthening of the safeguard mechanism, I'm confident in the future opportunities set which exist for the business. LGI supports the government intent to improve the integrity of ACCUs, following the recommendations from the Independent Review of Australian Carbon Credit Units, led by Professor Chubb in 2022. For the landfill gas methodology, this is likely to involve higher and annually increasing the baseline for all landfill gas to power projects and some existing flaring projects. LGI has been involved as an industry participant in discussions with the Department of Climate Change, Energy, the Environment, and Water.
We hope and understand that the enabling legislation for improved integrity in the landfill gas method will be signed by the minister this calendar year. Large industrial organizations will have to commit to a combination of significant capital expenditure and carbon credit as they deliver to their own promise of goal zero. This combined with the anticipated improved integrity reforms from the federal government should lead to premium pricing for verifiable carbon credit funds which are created by LGI. Your company has a very successful track record of designing, building, and commissioning biogas capture, carbon abatement, and power generation assets. LGI has a young fleet of generation units and batteries. The average life of our plant is less than 10 years. We have also designed and developed our own automated operating system that allows us to optimize electricity revenue and will enable us to integrate batteries into our network.
The LGI management team has done an excellent job throughout the year, growing the business while maintaining a focus on existing customers and market. I would like to thank all our staff and my fellow directors for another strong performance this year. Likewise, their success in growing the business while maintaining their focus and sense of service to all stakeholders. Equally, thank you to all shareholders for your continued support for the company and our mission to save the planet one landfill at a time. I will now hand over to Mr. Adam Bloomer.
Thank you, Mr. Bansal. During the 2024 financial year, we continue to grow the business and invest in our strategy to expand our electricity and carbon abatement offering. The commissioning of our first battery, combined with our proprietary control system, enables LGI to develop projects that offer 24-hour fast response dispatchable electricity feeding directly into the grid. Looking ahead, we have a number of committed projects to expand upon our premium electricity offering. In January 2024, we began operation of Bunya Renewable Hybrid by combining a new battery unit with the existing landfill gas to power generator. By all measures, this has proven to be a successful project. The addition of the battery allows LGI to respond to the demands of the grid by absorbing low-cost or negatively priced electricity from the grid and the generation unit throughout the day.
This, in turn, provides extra electricity in the evening when needed most. We are not only shifting electricity from the middle of the day to the evening, but also providing rapid response to individual five-minute grid requirements, no matter the time of day. The result is that the battery is capable of full charge and discharging, known as a cycle, multiple times a day. Since commencing operation, the battery has either imported or exported on average around 10 hours a day. This is a high utilization of this asset. Bunya has achieved a 70% uplift in revenue with the battery when compared to the generator alone since commissioning in January 2024. LGI's proprietary Dynamic Asset Control System, or DACS, has been developed in-house by our team.
It takes inputs from our biogas collection system, generators, battery, and market data from AEMO to create a dispatch signal for each element of the site's equipment. DACS is capable of responding to grid needs in less than a second. This fast response is provided as a service to AEMO, known as Frequency Control Ancillary Service, or FCAS. LGI has paid for FCAS, providing an additional revenue stream for the business. Continuous incremental improvements of the DACS system have allowed LGI to fine-tune the system and the equipment to maximize performance of the site. The successful commissioning of the battery is confirmation of LGI's strategy to focus on premium electricity offering. It has given LGI the confidence to roll out batteries across a number of our existing sites, starting with the Mugga Lane facility in Canberra. Mugga Lane facility connection has been successfully upgraded to 20 MW.
Two new Jenbacher generation units have been commissioned, increasing the site's generating capacity by 50% from 4.2 to 6.3 MW. During FY 2024, LGI entered into a long-term agreement with Bingo Industries, providing exclusive gas rights to the Eastern Creek site, just west of Sydney. LGI has been installing additional gas capture infrastructure and is developing an initial 4.2 MW power station. As part of the agreement, LGI will sell renewable electricity to Bingo. LGI is on track to have the power station completed this financial year. It is pleasing to be recognized for our innovation and quality projects at Toowoomba and Bunya at the recent Institute of Public Works Engineering Australasia Awards Evening. LGI received three awards, including Overall Project of the Year with our Toowoomba power station project.
LGI has recently contracted a series of new landfill sites along the East Coast, including Gatton in Queensland, Tumut, New South Wales, Taree in New South Wales, and Tuncurry in New South Wales. Initial works have commenced, assessing Gatton, which is expected to be a carbon site. Installation of pipework was completed in July at Tumut, which has started producing Australian Carbon Credit Units. This growth sees our geographic footprint increase from [32s] to 32 sites at FY 2024 year- end and confirmation of guidance. Looking at an outlook for FY 2025, LGI updates its guidance. Underlying EBITDA is expected to grow by 12%-15% over FY 2024, subject to macro dynamics and project commissioning issues that are outside control of the company. In closing, I would like to highlight that LGI's performance in FY 2024 would not have been possible without the hard work and dedication of our team.
I count myself lucky to be surrounded by this talented group. Thank you to our board for their guidance throughout the year. And finally, thank you to all our customers and shareholders that continue to support LGI. I'll now hand back to Mr. Bansal for the formal business of the meeting.
Thank you, Adam. A copy of these addresses and the AGM presentation have been launched with the ASX and will be published on the company's website. Hybrid meeting. This meeting is being held as a hybrid meeting, as you know, with shareholders able to attend either in person or online via the Computershare meeting platform. Shareholders online can listen to our live webcast and watch our presentation. They can also ask questions and submit votes online. We will now move to questions and answers and the voting process of the meeting. Given this is a hybrid meeting with shareholders able to attend either online or in person, there are a few matters I need to run through.
Only shareholders, representatives, and attorneys of the shareholders and proxy holders who are attending in person today and holding a blue card [audio distortion] and blue admission card, and those attending online are entitled to ask questions or vote during this meeting. For attendees attending in person to ask a question, you will need to raise your hand when I invite questions at the appropriate time. Online attendees can submit questions at any time by selecting the Q&A icon on your device. Select the topic your question relates to from the drop-down box, then type your question and press the send button. Online attendees can also ask verbal questions by following the instructions written below the broadcast window. Although online shareholders can submit questions at any time, I will address those questions only at the relevant time during this meeting.
If you receive multiple similar questions on the topic, we will try to group them together, and I will ask Mr. Martin to read out the questions at the appropriate time. Voting today will be conducted by a poll on all items of business. I will open the voting shortly. For attendees present in person, on the reverse of your blue admission card is your voting paper and instructions. You will need to follow the instructions, mark a box beside the motion on the voting paper to indicate how you wish to cast your vote, and then lodge it in the ballot box before voting closes. Proxy holders here in person have attached to their blue admission cards a summary of their proxy votes, which detail their voting instructions. By completing the voting paper, you will be deemed to have voted in accordance with those instructions.
Proxy holders who are entitled to cast any open votes will need to mark a box beside the motion to indicate how you wish to cast your open votes. For attendees online, a polling icon will appear on your device when voting opens. Clicking on the icon will bring up a list of the motions and present you with the voting options. You simply select one of the options for the relevant motion to cast your vote. There is no need to hit a submit or enter button, as the vote is automatically recorded. You may change your vote at any time up until I declare the voting closed. All attendees, whether online or in person, may submit votes at any time from when voting opens until I declare the voting is closed.
Finally, I appoint Jessie Yerma of Computershare Investor Services to be the returning officer and to conduct the poll for this meeting. We will now progress to the formal business of the meeting. I have been informed that the notice of meeting was appropriately sent to all registered shareholders, and I now table the notice of meeting. Unless there are any objections, I will take the notice of this meeting as read. Item one, which is financial statements and reports. The first item of the business of this meeting is consideration of the audited financial statements and related reports for the year ended 30th of June 2024. Although shareholders are not required to formally vote on the company's financial related reports, I welcome any discussion or questions on the reports.
There is no formal resolution required for this item, and the resolution appears on the screen, and I will take it as being read. As I mentioned previously, the company auditors are BDO and Mr. Richard Swaby, the partner responsible for the audit of the financial statements and related reports for the year ended 30th of June 2024. He's present in the meeting and is willing to be able to answer any questions on the conduct of the auditor or the content of the auditor's report. I now invite any questions or comments on the financial report for the directors and the auditor's report for the year ended 30th of June 2024. I ask shareholders who are present in person today if they have any questions on the financial reports, on management of the company, or any questions for the auditors.
If there are no further questions from the shareholder attending in person, I ask shareholders attending online if there are any questions on this item of the business. Thank you. As there are no further questions, I will now move on to the next item. Item two is our remuneration report. Item two is to consider and, if thought fit, the adoption of the remuneration report as a non-binding resolution. The resolution appears on the screen, and I will take it as being read. A summary of the valid proxies received for the resolution is shown on the screen. The board recommends your vote in favor of the resolution, and I, in my capacity as chair, intend to vote all open proxies in favor of the resolution. I will now open the meeting up to the questions in relation to item two.
I'll ask shareholders who are present in this room or in person today if they have any questions related to the REM report. If there are no further questions from shareholders attending in person, I'll ask shareholders attending online if there are any questions on these items of business.
Thank you. As there are no further questions, can I please request you to lodge your vote on the resolution? I will now hand over the meeting to Mr. Peters for the next resolution as it relates to the election of director and chair. Mr. Andrew Peters.
Thank you, Mr. Bansal, and we'll move on to item three. Item three seeks to consider the re-election of Mr. Bansal as director of the company. Mr. Bansal is the CEO of Boral Limited and serves as chairman of the company. Before joining Boral, Mr. Bansal was the CEO and managing director of Infrabuild, Australia's leading vertically integrated steel manufacturing, distribution, and recycling business. Mr. Bansal is a seasoned industrial leader with over 30 years' experience in CEO and senior leadership roles across the U.S. and Australia. Previously, Mr. Bansal was group CEO and managing director of Cleanaway Waste Management, an AUD 5 billion ASX 100 company where he led a five-times growth in its market capitalization, making it a market leader in its space in Australia.
He holds a Bachelor of Electrical Engineering with Honors, an MBA, and has completed the INSEAD Advanced Management Program and is a fellow of the AICD and Institute of Engineers Australia. The board believes that Mr. Bansal's depth of experience and knowledge will continue to help LGI to create shareholder value. The resolution appears on the screen, and I will take it as read. The board recommends you vote in favor of the resolution, and in my capacity as chair, I intend to vote all open proxies in favor of the resolution. A summary of valid proxies received for the resolution is shown on the screen. I will now open the meeting up to questions in relation to item three. I ask shareholders who are present in person today if they have any questions on this item.
If there are no further questions from shareholders attending in person, I ask that shareholders attending online if there are any questions on this item of business.
There are no questions on this item.
As there are no further questions, can I please request you lodge your vote on this resolution? I'll now hand back the meeting to Mr. Bansal for the next resolution.
Thank you, Mr. Peters, and I will move on to item number four. Item four is re-election of director, Mr. Andrew Peters. Item four seeks to consider the election of Mr. Andrew Peters as a director of the company. Mr. Peters is an energy industry expert and an independent legal and commercial advisor to major energy and resource companies and government. He has held executive and senior corporate counsel positions in energy, infrastructure, and professional services firms. Mr. Peters has more than 25 years' experience involving transactions, corporate advisory, energy policy, and projects.
His energy sector experience covers all areas, including electricity generation, regulated and private networks, renewable and transmission project development, energy supply deals, deals including firming, energy transition-related transactions, and decarbonization projects. He's also led corporate strategy on energy disputes and compliance matters. Mr. Peters is a managing director and co-founder of an integrated technical and commercial advisory business called Blackstart Private Ltd. He also separately remains a legal practitioner and admitted to practice in the Supreme Court of Queensland and New South Wales and the High Court of Australia. Mr. Peters has been a non-executive director of LGI since 2018. The directors believe that Mr. Peters' depth of experience and knowledge will continue to help LGI create shareholder value. The board recommends you vote in favor of the resolution, and I, in my capacity as a chair, intend to vote all open proxies in favor of this resolution.
The resolution now appears on the screen, and I will take it as being read. A summary of valid proxies received for the resolution is shown on the screen. I will now open the meeting up to questions in relation to item number four, especially for the shareholders who are present in person today. If there are no further questions from shareholders attending in person, I ask shareholders attending online if there are any questions on this item of business.
Thank you. As there are no further questions, can I please request you to lodge your vote on the resolution? I will move now on to item number five. Item five seeks to adopt an employee share scheme entitled Omnibus Incentive Plan under this resolution. The purpose of this plan is to reward eligible participants for their contribution to the increasing value of the company, to help retain and motivate eligible participants, and to align the interest of the eligible participants with the interest of the shareholders. The board recommends that you vote in favor of the resolution, and in my capacity as a chair, I intend to vote all open proxies in favor of the resolution. The resolution now appears on the screen, and I will take it as being read. The summary of valid proxies received for the resolution is shown on the screen as well.
I will now open the meeting up to questions in relation to item five. I ask shareholders who are present in person today if they have any questions on this item. If there are no further questions from shareholders attending in person, I ask shareholders attending online if there are questions on this item of business.
[audio distortion]
Sure.
[audio distortion]
Yeah, that's all right.
The first question is from [audio distortion] and it states, "Did any of the five main proxy advisors, [audio distortion] , ISS, ASA, recommend a vote against the LTI grant? And if so, what reasons did they give? And will you disclose proxy votes before the debate on interest?" So shareholders [audio distortion] .
Thank you for the question. I can confirm that no proxy has either recommended for or against any issue regarding LGI's report. In regard to the second question of showing the proxies, we do show the total numbers. We will take that on notice.
Next question in relation to the item of business is, "When disclosing the outcome of voting on all resolutions today, including this center grant resolution, could you please advise the [audio distortion] on how many shareholders voted for and against each item, similar to what happens in a scheme of arrangement?
We will take that on notice on that one.
One more question in relation to this item of business. Could the CEO summarize his past LTI grants as to whether they have vested or lapsed? Also, has he ever sold any ordinary shares in the company [audio distortion] on market without relying on the incentive scheme to build his equity position [audio distortion] ?
Can we take this on notice? It will be probably not fair for the CEO to stand in public and offer his remuneration details, and whatever the details are in public, they're in public today. We'll take that on notice.
[audio distortion]
Sure, sure.
The first one is, "Australia is currently in the midst of an unprecedented deluge of takeovers that has contributed to listed entities on the ASX [audio distortion], [76], or 7.5% since June 2022, including 21 straight [audio distortion] . There have already been 27 major takeovers above AUD 200 million completed so far this calendar year, with more in the works. ASX is losing [audio distortion] long-standing names such as CSR, [audio distortion] , which have all disappeared over the last three years. There is a clear mispricing between the public and private markets. Why are the public markets not valuing ASX-listed companies like ours more highly, and what are we doing to avoid being gobbled up like so many others? Does the chair agree this is a problem for the nation, particularly with so few new floats replenishing [audio distortion] ?
Look, I think at the end of the day, to Steven, there is a large amount of private funds now globally trying to find a home, and they will compete with the public funds to take over the companies or own the assets. I think that's just a natural phenomenon of where the funds are going. As an LGI board and management, our job and our focus is to make sure LGI is as strong as possible and delivering on its strategy, which we actively believe in and we have been. And we are here to kind of service all shareholders, whether they are private or public. But I would refrain from having an opinion on this in a public domain from a personal level, I think. But the fact is private funds are available.
One more question [audio distortion].
Okay. Great.
How is Vik Bansal juggling running Boral and chairing our company? Is it true he was approached to chair Lendlease as reported?
Look, it's going well. I'm running Boral and running LGI, and I think the people who I'm serving on both sides is for them to judge whether I'm doing a good job or not, and I would probably not comment on the Lendlease option.
Doing a good job .
[crosstalk]
Great. Thank you. Appreciate that. Ladies and gentlemen, this brings us to the end of the formal business. I will pause the meeting to give shareholders a final opportunity to cast your votes. For those attending online, please submit your votes through the online platform. In person, attendees need to complete and lodge your blue voting cards in the ballot box. If you can do that, please now. Thank you, ladies and gentlemen. The voting is now closed. The result for all agenda items will be tallied immediately following the meeting and will be released to the ASX later today. I declare the meeting now closed. I thank you all, shareholders, for all your participation and support for LGI and its management and the board, and thank you, Adam, for signing up. Been a good job.