Wall Street Cools on Coal — Along with the American Public : CleanTechnica

Wall Street Cools on Coal — Along with the American Public

Written by Carol Gulyas

Published on April 23rd, 2008

I had read in Grist on April 15 that Warren Buffett’s Berkshire Hathaway had cancelled six proposed coal plants, but now it seems that opposition to building new coal plants is spreading, among Wall Street investors and the American public. Back in August 2007, 1600 Utahans signed a petition asking Buffett to cut Rocky Mountain Power’s dependence on coal, with the added message that Utahans want their utilities to investigate cleaner energy sources.

The most recent issue of Solar Today includes an article by Lester Brown of the Earth Policy Institute about the public outcry all across American which, in addition to the cost of the plants, has led to the cancellation of hundreds of coal plant construction projects. And a survey conducted by the Opinion Research Corporation, published yesterday, shows that “79% of respondents would prefer to try and meet demand through greater energy-efficiency and conservation before building more coal-fired plants. Only 19% say they disagree.” With that kind of public opposition, it’s not surprising that Wall Street is cooling on coal plants, too.

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According to Brown:

“In July, Citigroup downgraded coal company stocks across the board and recommended that its clients switch to other energy stocks.
In January, Merrill Lynch downgraded coal stocks.
In early February, investment banks Morgan Stanley, Citi and J.P. Morgan Chase announce that any future lending for coal-fired power would be contingent on the demonstration that the plants can be economically viable under future federal restrictions on carbon emissions.
On Feb. 13, Bank of America followed suit. “

Follow the money. It appears that Wall Street is ready to look toward the future; now the only question is: will our government stop putting up road blocks?

Tags: Berkshire Hathaway, clean energy, coal, coal plants, Earth Policy Institute, Lester Brown, Solar Today, Wall Street, Warren Buffett

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3 Responses to “Wall Street Cools on Coal — Along with the American Public”

Samantha Says:
April 24th, 2008 at 2:19 pm
With investors looking away from coal, it seems as though the time is ripe for renewables. Investors want cleaner alternatives that generate more public support (and less carbon).

For those interested in investment prospects and the future of renewable energy, the Renewable Energy Finance Forum (REFF), being held this June in New York City, provides an opportunity for all stakeholders to share their views and hear commentary from industry leaders. Join investment bankers, venture capitalists, government officials, renewable energy associations, and others at this event. For more information, please visit http://www.reffwallstreet.com.
Peak Coal as Early as 2025 : CleanTechnica Says:
April 25th, 2008 at 3:16 pm
[...] Posts: Solar Thermal Electricity: Can it Replace Coal, Gas, & Oil? Wall Street Cools on Coal – Along With the American Public Solar Panels and the Quest for $1/Watt Air Force Will Be Coal-Powered by 2011 Add a comment or [...]
XB Cold Fingers Says:
July 8th, 2008 at 8:39 am
History is repeating itself. This is what happened to Nuclear Power.

Nuclear Power was killed, not by the disasters at Three Mile Island and Chernobyl, nor by the opposition of an increasingly aware public, nor the flaws and gaps of the technology (no waste disposal), nor the socio-political ramifications of the technology (nuclear power requires a significant national security apparatus that may be incompatible with civil liberties) but by the realization by the investment bankers that their multi-billion investment can instantly turn into a pile of radioactive garbage upon which there is no ROI.

In short, the bankers on Wall Street stopped investing in nuclear power because they saw it as a bad way to make money.

They are right. Recently Florida Power & Light, FPL, asked the regulators for permission to build 2 additional plants at the aptly named ‘Turkey Point’ facility. They forecast $18 billion for a 3 GW facility that will be completed in 10 or 12 years. Assuming no cost overruns – tough to do on a 10 or 12 year project – it will cost $6 per watt. That’s the cost of solar with zero subsidies. And Solar is easy to build. Requires no national security infrastructure, produces very few BTUs of waste heat, zero toxic wastes, zero radioactive waste, works well the day after a disaster, etc., etc.

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