Renewable Energy

Scotland shows England how to run a wind auction

17 Jan 2022

Edinburgh has sold permits for a huge 25 GW of offshore power at cheaper prices than London a year ago. Successful bidders will be more likely to deliver without strife, letting politicians hit green targets. It also gives Scotland bargaining chips in any future secession talks.

Power windfall tax is bad idea whose time has come

17 Jan 2022

European leaders are under pressure to help households with soaring power bills. Taxing energy companies is potentially ineffective and replete with unwise incentives. The idea could nevertheless catch on, and oil giants like BP and Shell may need to take the strain.

ThyssenKrupp’s hydrogen hype is oddly conservative

13 Jan 2022

The German group is seeking 600 mln euros from an IPO of Nucera, which uses green power to make the gas from water. It expects the energy transition to inflate sales from almost nothing to 650 mln euros by 2025. Compared to hope-filled listed rivals, the valuation looks sober.

Boris Johnson has Europe’s biggest energy headache

7 Jan 2022

Customers across Europe are braced for higher utility bills, prompting governments to divide the pain between users, suppliers and the state. But Britain faces the biggest hike and has done the least to cushion the blow. That makes the prime minister’s position more perilous.

EU’s anti-greenwashing crusade takes a risky turn

5 Jan 2022

The bloc’s new draft of its green taxonomy includes gas and nuclear power. The risk is a tool intended to make sustainable financing less prone to greenwashing does the opposite. A lot hinges on whether investors properly differentiate between clean and “transition” activities.

Mammoth re-engineering project begins: Germany

28 Dec 2021

Its manufacturing-led, carbon intensive economy is ill-suited to the 21st century. Chancellor Olaf Scholz and firms like Volkswagen will spend more on green and digital investment. The trick will be to plough on despite short-term supply chain problems and rising labour costs.

The Exchange: Environmentalist on Exxon’s board

28 Dec 2021

Kaisa Hietala was one of the directors elected by shareholders in May through activist Engine No. 1’s successful campaign to green up the $250 bln oil giant. The former Neste executive from Finland sat down with Rob Cox to explain her vision for creating sustainable businesses.

Climate-change money will flow freely to Plan B

24 Dec 2021

COP26’s so-so outcome makes damaging temperature rises more likely. At some point, optimal portfolios may require guns and canned food. Until then investors will lean towards shares in Syngenta, Veolia and other companies that aid adaptation to global warming not just mitigation.

Rio and BHP wrestle with green M&A conundrum

22 Dec 2021

The two rivals are fighting over access to battery metals, including stakes in volatile startups. BHP just withdrew from a pricey battle for a wannabe nickel maker, but Rio is pressing on with an $825 mln bid for a nascent lithium firm. Investors are wise to be wary.

Toshiba clears path for big 2022 Japanese buyouts

22 Dec 2021

The $18 bln conglomerate plans to split, but a takeover bid betrayed private equity’s voracious appetite in the country. A few dozen chunky companies suit the LBO financial model, per a Breakingviews analysis. Closer inspection suggests a tempting target among them is Ricoh.

Capital Calls: Nikola’s SEC collision damage

21 Dec 2021

Concise views on global finance: The electric-truck maker is paying the U.S. securities watchdog $125 million. It’s a big dent but, given the stakes for SPACs and their targets, may only mildly discourage cheerleaders from taking the step from hype into fraud.

Alibaba climate tide can lift valuation boat

20 Dec 2021

The e-commerce titan, whose market worth has halved this year, has unveiled bold 2030 carbon neutrality goals. Notably, it wants to widen the scope of consumer and merchant emissions it includes. Details will be key but longer term, the efforts could bolster shareholder returns.

Aussie climate ambition will restart at ballot box

20 Dec 2021

The $1.4 trln economy has all it needs to be an energy-transition leader, except a proactive government. The 2022 election will change that, making independent, global warming-savvy candidates the kingmakers. Stronger policy also will be lucrative for domestic and export markets.

TSMC can fix Taiwan’s stalled green transition

17 Dec 2021

Referendums on a nuclear power plant and a fossil-gas terminal spotlight the island’s 20% renewables target. Bureaucracy and red tape, though, have held up wind and solar projects. The local chipmaking champion’s voracious appetite for cleaner power offers a much-needed spark.

EDF picks doubly bad time for a nuclear wobble

16 Dec 2021

The 33 bln euro French energy giant shuttered four reactors, sending its shares down 14%. With European power prices soaring, it’s an unfortunate moment to be buying replacement power. And with nuclear’s role in the energy transition up for grabs, outages may turn more heads.

Xi’s new year’s resolutions are hard balancing act

13 Dec 2021

China's president wants to tap the brakes on tech and other crackdowns in 2022. He's also softening his energy-transition stance while pushing for more infrastructure. Yet he plans no U-turns on property or how regions raise funds. Officials will be walking a tightrope to comply.

Fortescue unearths transition leadership challenge

10 Dec 2021

The Aussie miner’s CEO will step down, a year after Chairman Andrew Forrest unveiled his bold green-hydrogen plans. Straddling iron ore and new energy is no easy feat. Others trying to remake themselves for a new era also will wrestle with finding the right person for the job.

The Exchange: Making nukes greener and friendlier

29 Nov 2021

The fight to reduce CO2 emissions is forcing a rethink about the role of nuclear power, says Rafael Grossi, head of the International Atomic Energy Agency. But convincing holdouts like Greta Thunberg will take more than turning Homer Simpson into a paragon of nuclear safety.

Nissan’s green drive hits yellow light

30 Nov 2021

Shareholders booed the Japanese automaker’s plan to invest $18 bln in clean cars over the next five years and make half its fleet electric by 2030. The erstwhile electric-car leader wants to regain ground, but it’s a financial stretch with profit weak and the stock overvalued.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.