Wind Power

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.

Wind turbine makers are victims of own success

3 Nov 2021

Soaring demand for renewable energy has inflated Vestas and Siemens Gamesa into multibillion-dollar firms. Yet the pair are struggling to turn a profit because of steep rises in raw materials costs. Passing those on will end wind power’s long-term trend of falling prices.

The smarter way to avoid energy crises: use less

24 Sep 2021

Soaring power prices have prompted calls to build more wind turbines, hike gas storage, or revive nuclear energy. But a big push to make buildings, industry and transport more efficient could help halve global demand by 2050. It’s something governments can act on straight away.

BP’s hard baptism goes with transition territory

20 Sep 2021

The UK oil major has sold choice assets to control debt since embarking on its green pivot a year ago, and CEO Bernard Looney just replaced the boss of his key renewables arm. If he needs a boost, Danish wind star Orsted looked equally bumpy at a similar stage of its evolution.

Capital Calls: UK engineer bidding war, Inflation

11 Aug 2021

Concise views on global finance: U.S. aerospace group TransDigm tries to elbow out rival Parker-Hannifin with a $9.7 bln bid for Meggitt; predicting U.S. consumer prices is proving tricky.

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.

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.

Capital Calls: Chubb and Hartford, Swimming pools

22 Apr 2021

Concise views on global finance: The company led by Evan Greenberg twice raised its bid for its Connecticut rival, but so far to no avail; a blowout quarter for private-pool maker Pool Corp points to buoyant wealth and spending trends, but only for some.

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.

U.S. offshore wind set to hit gale force growth

31 Mar 2021

The first big project, worth $2.8 bln, is on track for a final green light. Europe already has 30 times as much capacity. Slow approvals have left U.S. wind power in the doldrums but with costs now lower than some fossil fuels and falling fast, opposition will be blown away.

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.

UK wind auctions are frothy for a reason

8 Feb 2021

The toppy price paid by BP for wind turbine-friendly seabed reflects its desperation to pivot to green energy. But the UK’s subsidy-laden regime is also more attractive than those of other states. That makes wind maven Orsted’s reluctance to match the UK major even more striking.

Green energy valuations could use stiffer tailwind

5 Nov 2020

Siemens Gamesa and Danish rival Vestas now have over 60 bln euros of orders for wind turbines between them. But valuations look toppy even if they hit margin targets. A possible Joe Biden U.S. presidency is also less likely to supercharge renewables with a Republican Senate.

Iberdrola’s green deal is pricy bet on Biden win

21 Oct 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.

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.

BP’s wind tilt is more steady breeze than gale

18 Sep 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.

Vestas wind blows holes in BP’s green ambition

12 Aug 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.