Brookfield Aussie coal bid hits toxic smokescreens 23 Feb 2022 The asset manager and its Atlassian CEO partner’s $3.6 bln offer for AGL deserves some pushback for its scant premium and competition issues. But government scaremongering that a deal could raise energy prices throws ugly light on official resistance to the energy transition.
Brookfield drafts inspired climate-deal blueprint 21 Feb 2022 The Canadian investor and Atlassian co-CEO Mike Cannon-Brookes want to buy AGL for A$5 bln and spend up to A$20 bln more to make the coal-heavy company a renewable-energy powerhouse. It’s a potent idea that others could emulate. The price to get started will be higher, however.
EDF minorities’ cash better off in their pockets 18 Feb 2022 The 25 bln euro French energy group is raising 2.5 bln euros via a rights issue to plug holes left by plant outages and state interventions. EDF is integral to France’s nuclear power ambitions. But its issues give ample reason for non-state investors not to plough in more money.
Aussie coal exits put dithering government on spot 17 Feb 2022 Origin wants to shut the country’s largest plant powered by the fossil fuel seven years early, following rivals’ lead. It drew ire from the ruling coalition, whose green-transition plan is lacklustre. Renewables have won the economic fight; the political battle is a slower burn.
BHP’s deal willpower put to ultimate test 15 Feb 2022 A record $7.6 bln interim dividend speaks to the miner’s rude health. Boss Mike Henry sees opportunities from inflation and less risk in China. His confidence and a simplified share structure make capital discipline even harder in the quest to bulk up on energy-transition metals.
High power prices are no reason to ditch net zero 14 Feb 2022 Some politicians blame soaring energy costs on the global drive to cut carbon emissions. Yet climate change policies don’t explain the price spike, while investment in oil and gas is high enough. The criticism risks undermining tougher challenges like reducing demand for power.
Naturgy split may be less than sum of its parts 11 Feb 2022 The 25 bln euro Spanish power group is putting renewable energy and gas under one roof and fencing off its regulated network business. It could create value if investors see gas as less worthy of a discount than they have in the past. But that’s a pretty big if.
Top Aussie polluter sets up new investing quandary 10 Feb 2022 Poor earnings and market reluctance to finance fossil fuels left AGL Energy scrambling to fund the coal-heavy unit it is demerging. The company’s latest idea is a separate fund for renewables, but it also seems to be repeating a pitch for state aid. It’s a hard mix to swallow.
BP inserts wind in sails of its energy transition 8 Feb 2022 The $110 bln UK group joined oil peers in reporting bumper results. But it also pledged to maintain fossil fuel profitability despite cutting output, and gave new 2030 targets for its low-carbon growth business. That could start to revive its becalmed valuation.
Offshore wind power gets a tartan quantum leap 7 Feb 2022 The green energy’s drawback is its major use of scarce coastal shelf. Scotland’s recent auction of 15 gigawatts of floating turbines, enough to power 60% of UK homes, changes the game. The economies of scale created should make a nascent technology cost-competitive quicker.
Siemens Gamesa’s new Mr. Fixit can take his time 3 Feb 2022 The wind turbine maker has ousted its second CEO in two years. As another German, Jochen Eickholt may get a frosty reception from Spanish bits of the firm. Parent Siemens Energy won’t mind. The longer Gamesa’s woes drag on, the easier it will be to buy out minority investors.
Siemens Energy wind fix would be worth the money 28 Jan 2022 The German group may buy out minority investors at struggling wind-turbine subsidiary Gamesa. The 5 bln euro bill sounds steep, especially as the problems may be temporary. Yet Siemens Energy can afford it, and it would get to keep the upside for itself when wind power scales up.
The Exchange: Hydrogen wave 27 Jan 2022 Can green hydrogen decarbonise big chunks of our economies? Air Products CEO Seifi Ghasemi, who’s backing the carbon-free gas in a major Saudi Arabia project, thinks so. He tells Lisa Jucca how his $61 bln group plans to be the world’s top green hydrogen producer in five years.
New backer would fuel Aussie hydrogen hype machine 25 Jan 2022 Fortescue’s ambitious plans to use the gas for renewable energy help it trade at a premium to mining peers. Scant detail raises concerns, however. Chair Andrew Forrest could ease them by selling a stake in the FFI green unit, as GM and Ford did with their self-driving outfits.
Eni’s quirky rejig may turn rivals green with envy 24 Jan 2022 Italy’s $54 bln oil major may list stakes in its green energy and biofuels arms, as well as a Norwegian subsidiary. That’s different from rivals which are financing green investments by selling fossil fuels. Yet if Eni’s spinoffs get cheaper financing, others may follow suit.
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.