Renewable Energy

Fortescue boss sets himself up for climate bonanza

7 Dec 2022

Twiggy Forrest has bought wind-farm firm CWP for some $2.7 bln via his personal fund. Being the largest owner of Aussie renewables is a great hedge for his miner’s punt on green hydrogen. And if the gas takes off, he’ll earn even more selling the clean energy needed to make it.

Debt woes will restrain Enel’s global ambitions

22 Nov 2022

CEO Francesco Starace vowed to cut the 52 bln euro utility’s net debt by 21 bln euros, amid spiralling gas costs. Focusing on fewer regions looks sensible and may shield investments and dividends. But it will hinder Enel’s efforts to stay one of the top energy transition winners.

Energy crises speed up the green transition

22 Nov 2022

In 2022, war and power shortages have led to more fossil fuel use. But they also act as a catalyst for the rollout of renewable energy. In this edition of The Exchange podcast, ex-Snam boss Marco Alverà tells George Hay how Europe’s leaders can capitalise on this dynamic.

Indonesia’s green step not yet a leap for mankind

18 Nov 2022

Jakarta will get $20 bln of overseas public and private cash to help it decarbonise. The deal struck at the COP27 summit paves the way to channel capital to poor countries at the required scale. But big foreign transfers are fraught. Lenders have plenty of reason to hesitate.

COP28 may make up for COP27’s shortcomings

17 Nov 2022

The global climate meeting has mostly failed to lure the same corporate big hitters as Glasgow did last year. In this Viewsroom podcast, Breakingviews columnists discuss how even if the gathering in Egypt’s Sharm El-Sheikh yields little progress, 2023 in the UAE could be better.

Don’t dump on U.S. coal plan. Make it better!

11 Nov 2022

Sceptics fear an American plan to use voluntary carbon markets to accelerate the energy transition in poor countries, unveiled at COP27, could amount to greenwashing. But done properly, it could help developing markets close down coal plants, a major source of pollution.

Climate fight’s main event battles sophomore slump

1 Nov 2022

COP26 put climate change centre stage in 2021, but this year war and energy crises have distracted attention. In this episode of The Exchange, the United Nations’ key COP27 players Mahmoud Mohieldin and Nigel Topping tell George Hay why the event could still make a splash.

Europe’s pain will be ultimately worth it

31 Oct 2022

The European Union faces a tough period as the energy crisis bites and debt troubles return. But the bloc could have the world’s cheapest and cleanest energy by the mid-2030s and it will probably emerge stronger geopolitically, says Hugo Dixon.

Aussies put net-zero nationalisation on the map

21 Oct 2022

The leader of Victoria says the state will take a controlling stake in new green power projects if he’s re-elected. That might crowd out capital. But done right, public ownership can spread financial risks and align policy with investors – just what the private sector wants.

Capital Calls: Coal’s fear-then-greed trade

19 Oct 2022

Concise views on global finance: Shares of Aussie coal miners fell on production disruptions from floods, only to quickly rise as investors bet on tighter supplies and higher prices.

Europe’s energy crisis nears winter of discontent

18 Oct 2022

Germany, Italy and others have scrambled to replace Russian gas and pipeline attacks have become a concern. The Oxford Institute for Energy Studies’ Jack Sharples tells The Exchange podcast Europe must learn to live with less power. Next year may be even more challenging.

Subsidies lure BP to join U.S. green gold rush

17 Oct 2022

The UK energy giant is paying a 54% premium for Archaea, which extracts gas from landfill. Government support helps explain why BP thinks it can more than quadruple its target’s EBITDA by 2030, earning a double-digit return on its $4 bln investment. Others are bound to follow.

Sovereign debt greens yet net-zero pledges darken

13 Oct 2022

Saudi Arabia’s wealth fund is the latest public body to issue securities to fund renewable assets. Strong buyer demand and the chance to flaunt action on climate change explain the boom. Yet national decarbonisation targets remain weak, and green bonds do little to improve them.

Westinghouse deal will overpower immediate fallout

12 Oct 2022

Brookfield Renewable and uranium miner Cameco are teaming up to buy the company for $7.9 bln. Servicing and decommissioning nuclear plants generates steady cash flow, but the market reaction was toxic. There’s plenty of upside in Eastern Europe and the energy transition, however.

Green hydrogen revolution risks dying of thirst

5 Oct 2022

Backers make three miscalculations about the gas’ key input, water: that they won’t need much, that it’s cheap, and that desalination is a breeze. Some $700 bln is needed for projects from Australia to Saudi to Europe, but water scarcity means many will be left high and dry.

RWE’s U.S. swoop is investors’ gain, Europe’s loss

3 Oct 2022

Germany’s largest utility is paying $7 bln to make a push in U.S. solar power just as juicy subsidies are set to fuel a clean energy boom. That and a fair price tag should please investors. The move risks depriving Europe of green investments as it fights an energy crisis.

Ukraine has more pluses than minuses for climate

26 Sep 2022

The Russian invasion has prompted other countries to boost gas production and burn more coal. Climate diplomacy is on ice. But this crisis will also prompt a dash for cheaper and more secure renewable energy. That helps the fight to slow global warming, says Hugo Dixon.

Net zero woes go beyond lack of global cooperation

20 Sep 2022

The International Energy Agency frets that poor collaboration between states will keep emissions high. But the struggles of green groups like ITM Power suggest countries aren’t doing enough to help domestic markets either. Energy policy needs to do more than fight today’s crisis.

Petrodollar rush may disappoint Western financiers

20 Sep 2022

In prior energy booms, like in the 1970s, the proceeds wound up in U.S. banks and bonds. OPEC’s $907 bln haul in 2022 is smaller, and winners like Saudi Arabia need cash to pivot away from oil. Bankers may not see a developed world equities and debt bonanza on the same scale.

Capital Calls: Ralph Lauren

19 Sep 2022

Concise views on global finance: The $6 bln retailer known for its iconic Polo shirts is cheaply valued compared to European counterparts.