The St Baker business took an $8 million stake in State Gas and received two board seats in the deal which catapulted its shares to 48 cents when the ASX opened, but settled back down to a small but still significant increase of 22 per cent to 43 cents a share.

Even so, the placement was done at 28 cents a share so the St Bakers are well ahead. The two seats will be taken by Philip St Baker and former ERM Power chief executive John Stretch.

It marks a shift for St Baker after he and his partner Brian Flannery exited the Vales Point power station in NSW for more than $200 million after a $1 million investment. At the time he pledged to tip at least some of the funds into Tritium, in which he is already a major shareholder.

“The St Bakers have advised that they are actively divesting from coal generation and investing in gas, renewables and electric vehicles and associated supply chains and supporting technologies,” State Gas said.

However, St Baker has a history in gas through his ownership of ERM Power, which he sold to Shell for $620 million.

Also, there were already ties between State Gas and St Baker. The company’s executive director, Greg Baynton, sits on the board of Novonix with the St Bakers.

State Gas already has the highly experienced gas executive Richard Cottee as chair.

It is currently developing the Rolleston West gas project, as well as build a pipeline and truck gas from the Reid’s Dome gas field to a pipeline. It also has plans to develop a carbon capture and storage project in central Queensland.

A total 25 million shares would be issued under the State Gas capital raising. Directors would take up 660,000.