Unfashionable, unloved and unpopular, but still one of the best performing commodities of the last 12 months. Thermal coal, used to generate electricity in power stations, roared back to life last year after the Chinese government imposed production curbs in an attempt to lift the profitability of heavily-indebted domestic miners. Its spectacular recovery caught almost everyone by surprise – even Glencore, the savvy commodity trader and producer. It missed out on hundreds of millions of dollars in potential profits after locking in prices before the surge. During 2016, the benchmark price for Asia – thermal coal shipped from the Australian port of Newcastle – more than doubled and briefly traded above $100 a tonne for the first time since in five years. The price has fallen back to $82, a level many analysts and investors reckon the much-maligned fossil fuel will struggle to hold.
FT 27th Jan 2017 read more »
Surge in renewables generation, alongside rebooted nuclear and crash in coal use spell cleanest energy system on record for UK, new BEIS data reveals. The UK’s energy system may still be dominated by fossil fuels, but it has never been less reliant on carbon intensive energy at any point in its modern history, according to new data released today by the Department of Business, Energy and Industrial Strategy (BEIS). In the third quarter of 2016 UK dependency on fossil fuels fell two per cent year-on-year to 78.7 per cent, down from almost 88 per cent at the beginning of 2013.
Business Green 26th Jan 2017 read more »