Renewable Energy

Eni’s UK wind farm tilt is cheap for a reason

4 Dec 2020

The Italian oil major is paying utility SSE and Norway’s Equinor just over 3 mln pounds per megawatt for a 20% stake in the first two phases of the Dogger Bank project. It’s cheaper than past offshore developments. That’s mainly because new farms don’t carry such big subsidies.

Corona Capital: Movie releases, Ads, Running

4 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: HBO Max uses its muscle on movie releases; advertising wins some and loses some; Brooks’ beast year.

UK green revolution takes baby-step beyond slogans

18 Nov 2020

Britain is to ban new petrol car sales by 2030 and invest in hydrogen to hit its 2050 decarbonisation goal. The sums cited are modest and the targets lack detail. The plan’s success hinges on Prime Minister Boris Johnson convincing private investors to pick up the slack.

Renewable energy gets its very own Masayoshi Son

13 Nov 2020

Aussie mining mogul Andrew Forrest unveiled plans for his Fortescue to go big in green projects. Targets include competing with global oil giants in production capacity. The bold strategy will spark a frenzy – both helpful and harmful – just as the SoftBank boss did in tech.

Elliott takes power punch to greener pastures

12 Nov 2020

Paul Singer’s fund wants utility Evergy to engage with NextEra, the largest U.S. renewable energy firm. Regulators have frowned upon NextEra’s ambitions. But its valuation helps justify deals without tasking ratepayers. Elliott’s presence might help Evergy get over deal-phobia.

Corporate America prepares for life in purple

7 Nov 2020

From finance to tech to weed to transport, companies have had plenty of time to consider what a Joe Biden presidency means. Without a clear Senate shift one way or the other, legislative gridlock appears likely. Here is what the 2020 election will mean industry by industry.

Green energy valuations could use stiffer tailwind

5 Nov 2020

Siemens Gamesa and Danish rival Vestas now have over 60 bln euros of orders for wind turbines between them. But valuations look toppy even if they hit margin targets. A possible Joe Biden U.S. presidency is also less likely to supercharge renewables with a Republican Senate.

Biden win would clear multiple green roadblocks

29 Oct 2020

The Democratic nominee will rejoin the Paris agreement on emissions cuts if he wins the U.S. election. That’s good, but largely symbolic. More important are a pledge to hike clean energy spending and the scope for his administration to advance green financing and carbon pricing.

BP’s investment case falls between two stools

27 Oct 2020

The $54 bln oil major’s shares have sunk further than peers in recent months. Boss Bernard Looney won’t mind if his renewable energy shift leads oil bulls to prefer Exxon Mobil. He might get more bothered if investors find rival Total’s green transition more compelling.

Review: Green sceptic sheds more heat than light

23 Oct 2020

Bjorn Lomborg wants the world to understand the risks of doing too much on climate change as well as too little. The green firmament should not be immune to constructive criticism. But the Danish academic’s arguments are not convincing enough to warrant societal complacency.

Iberdrola’s green deal is pricy bet on Biden win

21 Oct 2020

The $82 bln Spanish utility is buying U.S.-based PNM Resources for $8.3 bln including debt. Without synergies, the price looks punchy. But given wind and solar assets could get even dearer if Joe Biden becomes president and oil majors charge in, moving now has some logic.

Stored carbon could morph into investment gold

20 Oct 2020

Capturing and storing CO2 is expensive, judging by a new project in Norway. But the need to curb emissions is persuading states to take the plunge. The rising cost of emitting carbon dioxide means the technology may soon give investors a new regulated asset to embrace.

Guest view: Energy’s outlook is still rose-tinted

19 Oct 2020

The International Energy Agency’s 2020 forecast acknowledges the cheapness of solar power. But despite some progress it is yet to include a path to keep global warming to 1.5 degrees Celsius by 2050. As climate academic Sven Teske argues, the failure is part of a pattern.

Big Oil’s green rush needn’t inflate a big bubble

6 Oct 2020

Total has joined BP in promising more investment in renewable energy. The risk is that deep-pocketed interlopers push up prices of wind farms and solar parks, eroding returns. Luckily for transitioning oil majors, the scale of new capacity needed to replace fossil fuels is vast.

Corona Capital: NYC

30 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: New York City’s economic reboot comes up against a new outbreak.

China’s green goal could lead to a virtuous circle

29 Sep 2020

Beijing’s pledge to decarbonise before 2060 requires major electrification using renewable energy. The catch is that key parts of that strategy, like hydrogen power, remain too pricey. Yet if political focus helps make them cheaper, the benefits will not just be felt in China.

Xi puts clean energy to good use beyond climate

23 Sep 2020

China’s president says his country will be carbon-neutral by 2060. The pledge is credible because it’s in Beijing’s interests; Xi may also be trying to warm frigid European negotiators, and defang sceptics. It’s also plausible because China is exporting pollution to poor countries.

Review: Oil historian of record drops his compass

18 Sep 2020

Three decades after his celebrated history of the hydrocarbon industry, “The Prize”, Daniel Yergin has published “The New Map”. His account of recent energy geopolitics is typically authoritative. A discussion of the ongoing energy transition, however, lacks clear signposts.

BP’s wind tilt is more steady breeze than gale

18 Sep 2020

The UK oil major’s “green week” yielded a target of 20 GW of renewable energy by 2025. Even with a mooted $5 bln a year in investment, BP would struggle to get there via higher cost offshore wind. That’s probably why CEO Bernard Looney’s blueprint allows for a steadier pace.

Green bonds could slide into irrelevance

17 Sep 2020

Securities used to finance environmentally friendly investments are thriving, with everyone from JPMorgan to Germany charging in. Yet the $800 bln market does not necessarily mean greener issuers. As investors get better at differentiating, green bonds could become redundant.