New England chooses expensive dirty power 19 Jan 2022 Like Japan, the area has shut down nuclear plants and is relying more on gas, wind and solar. But unwillingness to build pipelines and upgrade electric transmission creates a system that is costlier, dirtier, and potentially more unstable than need be.
Climate-change money will flow freely to Plan B 24 Dec 2021 COP26’s so-so outcome makes damaging temperature rises more likely. At some point, optimal portfolios may require guns and canned food. Until then investors will lean towards shares in Syngenta, Veolia and other companies that aid adaptation to global warming not just mitigation.
Rolls-Royce nuclear plans piggyback green success 9 Nov 2021 The UK engineer and partners are pumping 195 mln pounds into a unit to build small commercial reactors. As with wind and solar, the British government is helping by promising to buy the plants’ electricity. It should mean a lucrative side hobby for the group run by Warren East.
Capital Calls: AMC craziness, Pro lacrosse 2 Jun 2021 Concise views on global finance: The movie-theater chain raised $230 million from a hedge fund, which promptly sold the shares at a profit; New England Patriots owner Robert Kraft and Alibaba's Joe Tsai are betting on the latest U.S. effort to professionalize the preppy sport.
Adani flies in Masayoshi’s place close to the sun 19 May 2021 Gautam Adani’s green energy firm is buying SoftBank’s Indian renewables ventures for a fair $3.5 bln. It’s part of aggressive plans to create the world’s largest clean power group. At least the new owner has a track record in scaling industrial businesses on the sub-continent.
Three Gorges renewables IPO tests policy headwinds 17 May 2021 The green-energy giant’s $3.5 bln Shanghai listing ought to benefit from President Xi Jinping's climate push. But regulators are cutting wind and solar subsidies, and late government payments are piling up. Controlling costs is key to Three Gorges keeping its premium to rivals.
Green shoots’ salad days have come and gone 6 May 2021 Toppy valuations for wind and solar sparked Italy’s Eni, Spain’s Acciona and others to hire investment bankers for spinoffs and IPOs of renewables assets. Rising oil prices and fears of a green bubble mean firms now need size and a track record to play. That’s a good thing.
Total is least-bad pick for confused oil investors 29 Apr 2021 First-quarter results show the French group and rivals BP and Royal Dutch Shell rebounding from last year’s woes. Yet BP’s turn to wind and solar may be too sharp and Shell’s too relaxed. For now, Total’s balanced green ambition and fat dividend look more appealing.
Negative UK power prices bolster hydrogen hype 22 Apr 2021 British electricity prices are falling into the red more often due to wind farms cranking up output on blustery days. As with crude oil’s shock slump last year, it’s a sign of power markets working, not breaking. It also helps justify lofty valuations for hydrogen-related firms.
Antipodean wind deal harnesses three power sources 15 Mar 2021 Two companies divvying up New Zealand’s Tilt Renewables for $2.1 bln are paying a 99% premium and 96 times earnings. The scarcity of green assets is one driver. A fragmented market is another. The buyers need their governments to fulfil clean energy pledges to justify the price.
Indian renewables SPAC sets temperate tone 24 Feb 2021 Goldman-backed ReNew Power is listing in New York via a blank-cheque firm. It’s a decent bet on India’s pivot to clean energy, with a structure and valuation that factor in the industry’s flaky customers. Future Asian SPAC deals in waiting may not be so well grounded.
Total’s Indian green energy splurge has two hedges 18 Jan 2021 The French giant is upping its exposure to renewable power by buying 20% of Adani Green Energy. The $2.5 bln price tag is well below the target’s market value. Teaming up with tycoon Gautam Adani may also help avoid problems suffered by other Western energy groups in India.
The Biden portfolio is mainly the Trump portfolio 29 Oct 2020 It might matter for mini sectors, like solar power and cannabis, who wins next week’s U.S. presidential election. But as Trump’s impact on coal shows, it’s not that predictable. Instead the Fed, stimulus, taxes and the post-Covid economy are cause for an asset-allocation rethink.
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.
Stricken Hanergy drops investors into black hole 1 Mar 2019 The solar company wants shareholders to swap frozen shares for stock in a vehicle which may or may not relist in China. Hanergy might well be ejected from the Hong Kong exchange before trading resumes, denying them an alternative. This raw deal would set a terrible precedent.
China’s solar stress could burn more dealmakers 13 Aug 2018 Slashing official support for solar energy helped scupper Shanghai Electric’s plan to snap up a $2 bln stake in giant GCL-Poly’s core unit. A downturn should drive consolidation in the heavily indebted sector. But the doomed deal shows how hard it is for two sides to agree.
Elon Musk outburst puts Tesla board on the spot 16 Jul 2018 Punishing a CEO who tweets, without evidence, that someone is a pedophile ought to be a no-brainer. But Musk’s fortunes and the electric-car maker’s are symbiotic, and his allies pack the board. Investors should worry for their own sakes if directors fail to act this time.
China’s renewable giants can live without handouts 29 Jun 2018 Authorities are pulling state subsidies for solar and wind companies. The shake-out recalls earlier crises, which claimed stars like Suntech. Now, however, cheaper technology and better supporting infrastructure give clean energy champions a chance to thrive on their own.
California helps Paris send solar message 11 May 2018 The most populous U.S. state is making panels mandatory on most homes built after 2020. It will cut emissions only a little. But the clean-energy focus will push other states along. Fossil-fuel producers will have fewer excuses to ignore the renewable writing on the wall, too.
Trump’s solar tariffs add new wrong to old 22 Jan 2018 The levies should ease pressure on surviving panel makers, who account for about 15 pct of the U.S. solar industry’s 260,000 jobs. But pricier imports will set back installers that dominate the sector. It’s an illustration of how difficult righting past trade unfairness can be.