Wow - the biggest thermal power generator in Japan - JERA commits to net zero emissions by 2050 and as an interim measure, will close all outdated polluting supercritical / subcritical coal-fired power plants by 2030. 🇯🇵✅ energy.economictimes.indiatimes.com/news/coal/japa…
This follows Mitsui & Co's announcement to exit coal fired power generation in Asia by 2030 earlier this week! 🇯🇵✅
And follows Marubeni Corp's landmark pivotal September 2018 announcement to exit coal fired power plant EPC and progressively divest from its existing #coal power.
Which I'm proud to saw @simonjnicholas & I suggested in July 2018. 🇯🇵✅ ieefa.org/ieefa-report-m…
And then in March 2019 Sojitz divested its thermal coal mining operations in Indonesia and then Australia in April 2020. 🇯🇵✅ sojitz.com/en/news/2019/0…
And building on this was the March 2020 announcement by Sumitomo Mitsui Banking Corporation (SMBC) to restrict coal power finance in consideration of building climate and ESG risks. 🇯🇵✅ smbc.co.jp/news_e/e600579…
And then in April 2020 we saw the announcement that Mitsubishi was exiting thermal coal (selling its 11% stake in New Hope Corp.) 🇯🇵✅ reuters.com/article/us-jap…
And the April 2020 commitment by Mr Coal, the Governor of Japanese Bank of International Cooperation (JBIC) to cease funding new coal power plants. 🇯🇵✅ straitstimes.com/asia/east-asia… by Walter Sim
And the August 2020 coal policy announcement by Sumitomo Corp. (Hint: @simonjnicholas has a major new Sumitomo Corp coal report pending, we expect a significant follow up announcement by the company to solidify their coal power exit policy). sumitomocorp.com/ja/jp/ir/finan…
So then a question: Do @AngusTaylorMP@keithjpitt or @ScottMorrisonMP, or @GladysB (she's probably a bit distracted by home front corruption issues) even know Japan is Australia's largest coal export destination?
A$9.6bn annual exports for 🇦🇺, headed to zip according to the @IEA.
Of course they do. So as Waleed Aly of @theprojecttv said, where is our transition plan?
I'd include @mattjcan in this question, except we know where he stands! Besides, Matty is too busy doing @glencore's bidding spruiking a new taxpayer subsidised stranded expensive Collinsville plant using their Shine Energy letterbox plaything. theguardian.com/business/2020/… by @BenSmee
And because this is really a positive story of Japan's pivot from outdated technology to the new, JERA has already announced its pivot into offshore wind in Japan in January 2020, knowing this is the next big thing for 🇯🇵✅ staradvertiser.com/2020/01/16/new…
So a decade ago @Gautam_Adani invested $1bn in a HALE thermal #coal deposit 400km from anywhere in the Galilee.
At the same time Mr Adani invested $40m in a 40MW #solar project.
So fast forward to 2020: which investment is doing better?
So @AdaniAustralia's Carmichael coal remains a stranded HALE coal deposit with zero revenues, nets debts of A$2.1bn and negative A$786m shareholders "equity" (plus a royalty holiday for the rest of this decade, thanks to @AnnastaciaMP & @glencore's @mattjcan).
In contrast, #Adani Green Energy - with a US$15bn market capitalisation - is by value now the largest energy firm in India, by a mile (having overtaken the 65GW @ntpclimited giant last month)! 🇮🇳✅
Mr Adani owns 75% worth US$11bn!
And zero subsidies, emissions or pollution.
And @NextEraEnergy expects ~10% annual solar deflation to continue as well, remaining the second lowest source of new electricity in the US.
And batteries are seeing deflation of ~16% pa, meaning 4 hour storage will cost ~US$4-9/MWh by 2022, challenging peaking applications for fossil gas (solar already destroys that antiquated idea of gas base-load).
Other than @ScottMorrisonMP, who thinks a gaslit recovery works?!
Today @IEEFA_AsiaPac Yong-Liang Por's new report on the global surge in investment interest in pilot green hydrogen projects. Like battery storage, this is a game changer for low cost #RenewableEnergy. Europe, Australia, Korea, Japan & the US are leading. ieefa.org/wp-content/upl…
The carnage of the Oil & Gas Majors.
Negative oil prices. LNG <US$2/mmBtu.
Pivot or Die.
The boards have doubled down on expensive M&A when prices were double today, &/or catching the falling knife buying back their stock at double current prices. Caught asleep at the wheel.
The humbling of @ExxonMobil.
In a decade & the S&P500 rose 200% Exxon returned -10.8% to investors. The market evaluation of former CEO Rex Tillerson is clear, he failed. 2020 saw Exxon destroy 38% of shareholder wealth, Darren Woods is doing no better. bloomberg.com/features/2020-…
The price of oil has collapsed well below the breakeven price of oil, as defined by the oil majors as oil price needed to cover capital spending and dividends.
Anyone else noticing despite the pandemic, global financial institutions seem to be accelerating their exit from fossil fuels, starting with formal coal exit polices that are tightening at an accelerating pace! Or maybe these two issues are connected i.e. accepting the science?!
Here is one of the latest ones, @HSBC removed its three country exemptions (Bangladesh, Indonesia and Vietnam) for coal power, and expanded their project finance exemption for new tar sands and arctic drilling. 🇬🇧✅ hsbc.com/-/files/hsbc/i…
It took a while, but now @Citi has strengthened their previously very weak #coal policy. Now it is not too bad + Citi has committed to tightening transparently every year till they reach zero coal finance by 2030.🇺🇸✅ citigroup.com/citi/sustainab…
Indian electricity demand has dropped 21% in absolute terms since the start of March 2020. As the high marginal cost source of power, coal-fired power generation is down 28%. @RajKSinghIndia, a key lesson for us is that #coal has worn 99% of curtailment in 🇮🇳.
And India ended FY2020 with record high coal stockpiles.
Analysis by @CWorringham. With domestic coal production increasing, and coal generation declining, the inevitable is lower imports of thermal coal over 2020.