Renewable Energy

Biden win would clear multiple green roadblocks

29 October 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 October 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 October 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 October 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 October 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 October 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 October 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 September 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 September 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 September 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 September 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 September 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 September 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.

BP limbers up for green transition high-wire act

14 September 2020

The UK group is the first oil major to pivot to wind and solar in a big way. To fund the shift, CEO Bernard Looney has cut the dividend and assumes higher oil prices. Even then, investors face years of relatively spartan payouts, and uncertain returns from green investments.

Big Oil’s green turn is justified by the numbers

7 September 2020

BP’s call to hike spending on renewables risks a repeat of past goofs. But hard data implies oil majors have been the ones eroding shareholder value in recent years. By comparison, the falling expense of wind and solar power and their lower cost of capital make them a safer bet.

Vestas wind blows holes in BP’s green ambition

12 August 2020

The oil major is late to the party it called in 2000 with its “Beyond Petroleum” rebranding. Renewables were cheap to enter back then, when the Danish wind turbine maker was worth under $2 bln. Not so easy now, with soaring orders and revenue puffing up Vestas’s value to $29 bln.

Silver rally may have a bright, green future

23 July 2020

The white metal’s price is up more than gold's so far this year. Silver’s industrial uses mean it shines when lockdowns lift, but there’s a political dimension too. As an ingredient in solar panels, it could benefit from U.S. presidential hopeful Joe Biden’s clean-energy plan.

Tesla’s wacky valuation has a link to reality

22 July 2020

At $295 bln, Elon Musk’s firm accounts for a third of the market worth of the world’s big carmakers. Its surge has helped upstarts like Rivian, Nikola and Fisker raise cash, too. Tesla is way overpriced. But as a proxy for overall electric-vehicle success, it’s not far off.

Hydrogen investing is a lottery worth playing

22 July 2020

The element has huge potential as a carbon-free energy source. Prior false dawns, sky-high valuations and the difficulty of identifying which companies will endure are causes for investor caution. But the scale of the opportunity means there’s also a risk of missing out.

Tesla rivals’ solar deal brings few rays of light

7 July 2020

Blackstone-backed Vivint is selling to Sunrun for $1.5 bln. Price wars and the technology’s low take-up rate have sapped earnings and valuations. Merger cost-cuts will make the business more sustainable. But Tesla’s car heft and stellar valuation make it tough for competitors.