Renewable Energy

Guest view: How to cut the ESG disclosure overload

7 January 2020

The data Fortune 500 companies provide on environmental, social and governance risks can be overwhelming, hard to compare and lacking much financial use. Geoffrey Heal and Shiva Rajgopal of the Columbia Business School lay out a plan to clean up the informational morass.

Guest view: Cities are $24 trln green opportunity

17 December 2019

Metropolises account for 70% of global carbon emissions. That puts them at the forefront of the battle to keep global warming to a minimum, argues Christiana Figueres, the former UN climate chief behind the 2015 Paris accords. But cities cannot do it alone.

Nomura aims for more sustainable Wall Street role

11 December 2019

Japan’s biggest brokerage has tried for decades to build an enduring U.S. investment bank. Its latest attempt involves buying renewable-energy boutique Greentech Capital. It’s a small but focused deal in a growing market. That should increase the odds of Nomura making it work.

Shell’s Eneco fail flags Big Oil’s tricky pivot

25 November 2019

The oil group lost out to Mitsubishi’s 4.1 bln euro bid for the Dutch utility. Paying up for small European players is easy for Japanese bidders with a low cost of capital. Less so for old crude producers trying to shift to low-carbon energy, while saddled with wary shareholders.

Vestas buttresses Denmark’s wind-power primacy

7 November 2019

The Copenhagen-listed turbine maker’s order books have bulged to 33 bln euros. More importantly, margins are withstanding the buffeting of subsidy removals, unlike at rival Siemens Gamesa. Alongside operator Orsted, tiny Denmark is king of the $1 trillion wind business.

Oil bosses have a love-hate relationship with wind

30 October 2019

With fossil fuels increasingly frowned on, rapid growth in renewables should appeal to greenish majors like Total and Royal Dutch Shell. Oil’s much higher returns are a reason to demur. Yet plunging offshore wind costs and the risk of price falls give them little choice.

The Exchange: Lord John Browne

23 September 2019

The former BP boss-turned-renewable-energy-supporter-turned-gas baron stops by to discuss “Make, Think, Imagine,” his new book that’s part an explanation of and part an ode to the benefits of engineering. As UN Climate Week kicks off, he also discusses his take on global warming.

Climate strikes give governments cover to act

20 September 2019

Millions are downing textbooks and tools to demand more action against global warming. People power fueled a mass aversion to plastic. And many ideas and financing vehicles to enable the climate fight already exist. The worldwide protests allow politicians to take a tougher line.

U.S. might quite like a China deal for En+

9 September 2019

State firms linked to Beijing may buy Russian VTB’s stake in the energy group. Washington, which attached strict conditions to the de-sanctioning of Rusal’s parent, wouldn’t love a Russia-China sale. But it could at least help distance still-sanctioned Oleg Deripaska from En+.

Walmart adds solar burns to Tesla’s challenges

21 August 2019

The U.S. retailing giant is suing Elon Musk’s $40 bln electric-car maker for negligence after its solar panels allegedly sparked fires at stores, further denting Tesla’s quality-control image. Walmart’s move also puts Musk’s odd 2016 acquisition of SolarCity back in the spotlight.

Britain’s blackout whodunnit has multiple suspects

20 August 2019

An initial report sheds inconclusive light on a major recent power cut. Wind and gas-fired generators, network distributors, and National Grid may all have goofed. One thing is clear: the UK needs to go big on battery storage to accompany its commendable rush to renewables.

Siemens Gamesa buffeted by renewables tailwind

30 July 2019

The 10 billion euro Spanish wind-farm builder’s shares sank 17% as competitive pressures hit prices. Wobbles are likely as governments phase out subsidies. But with the costs of wind power now sinking below rival sources, the sector in general is in breezier shape.

Driverless Argonauts are all on valuation quests

12 July 2019

Ford and VW value their new autonomous-car joint venture at more than $7 bln. SoftBank and others peg GM’s similar division at $19 bln. Yet estimates on revenue and timing are all over the map. And Google’s Waymo is leading on several metrics. Their real worth could be anywhere.

The Exchange: Escaping carbon’s grip

25 June 2019

Saipem made its name building drills and pipelines for fossil-fuel giants like Saudi Aramco. CEO Stefano Cao visits Breakingviews to discuss how climate change is pushing the company into greener projects – and how tech challenges and a need to protect margins will drive M&A.

California’s green-power glut has a silver lining

24 June 2019

The Golden State wants half its electricity needs from renewables by 2025, yet last month reduced solar and wind production by the most on record. Expensive storage is the problem. That should soon change. Meantime, savvy companies can take advantage of sporadic free power.

Shell’s giant cash gusher is climate-change hedge

4 June 2019

The oil major plans to hand half its $250 bln market cap to investors from 2021-2025. As a result, the share of resources poured into capital investment will fall. It may look short-termist, but it’s really a sensible admission of uncertainty about the future of fossil fuels.

BP investors take the slow road to climate action

21 May 2019

Shareholders endorsed greater disclosure of the oil major’s compatibility with Paris climate goals, but rejected binding targets. It’s a start, but hardly matches the scale of the problem. Both BP and its owners appear unsurprisingly happy to wait for greater political urgency.

Shell’s low-carbon shift yet to charm investors

2 May 2019

The Anglo-Dutch group had a more profitable quarter than Exxon and is better placed for a greener future. But its valuation lags that of its U.S. peer, which finds more new reserves. Investors seem to care more about how much oil is pumped now than when crude demand will peak.

Elliott kicks China’s EDP bid when it’s down

14 February 2019

The activist investor objected to China Three Gorges’ offer for the Portuguese utility. The deal was struggling, and Elliott’s plan, to invest in renewables, isn’t controversial. But the Chinese group’s large shareholding could still be a problem for Paul Singer’s fund.

Hadas: Silly carbon tax talk hides hard choices

2 January 2019

The principle that higher prices reduce demand lies behind calls for levies on carbon dioxide emissions. But prices cannot do much in the large, complicated and economically crucial energy industry. Only big government, or major lifestyle adjustments, can really change things.