EU Seen Cutting Coal Use by Quadrupling Carbon Price
Europe could persuade utilities to shift from coal burning to cleaner natural gas by quadrupling the price for carbon dioxide emissions, says the CEO of Spain’s biggest power producer. Ignacio Galan, chairman and CEO of Iberdrola SA, said EU leaders should take action in boosting prices in the bloc’s Emissions Trading System in addition to setting a pollution reduction target. The comments were meant to guide EU leaders as they negotiate targets to control emissions of gases blamed for global warming. Iberdrola is a major developer of wind farms and natural-gas fed power plants, which emit less carbon compared to ones that use coal.
C&J Energy to Acquire Nabors Fracking Unit for $2.86 Billion
C&J Energy Services Inc. agreed to buy Bermuda-based Nabor Industries Ltd.’s hydraulic fracturing business for $2.86 billion in cash and in stock, becoming the latest U.S. firm to seek overseas business to lower taxes. Nabors will get $940 million in cash and 62.5 million in C&J shares. C&J’s effective tax rate averaged 37 percent over the past four years, while Nabor’s was only 19 percent in 2012- 2012. The new company will be incorporated in Bermuda and will be known as C&J Energy Services Ltd. The deal comes after two years of dropping prices for fracturing services in the U.S. due to a glut of pressure-pumping equipments.
German Legislators Vote to Trim Renewable Energy Subsidies
Lawmakers in Germany supported an extensive revision of the nation’s EEG clean-energy law to reduce subsidies and slow gains in power prices that ranks second-highest in the European Union. The legislation lowers existing targets for offshore wind and solar as well as set limits on how much onshore wind and biomass capacity qualifies for full subsidies. The opposition Green Party and Die Linke voted against the bill, saying it would delay projects and give excessive rebates to industrial companies. The legislation is to be debated on July 11 as the government seeks to have the bill become a law on the first of August.
Germany’s New Coal Plants Push Power Surplus to 4-Year High
Germany is staring at the biggest electricity surplus since 2011 as new coal-fed power plants with 5,606 megawatts of capacity come online and generation of solar and wind energy rises. Utilities are poised to start operation of the new plants from December that can supply over 8 million households, or about 20 percent of the country’s total, increasing spare capacity to 17 market of peak demand. These are bad investments, says Claudia Kemfert, energy unit head at the DIW economic institute, as coal-generation margins are expected to turn negative in 2016.
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Tags: carbon emissions, carbon price, coal, cutting coal use, EU, EU Emissions Trading System, European Union, global warming, Iberdrola SA, Ignacio Galan, natural gas, pollution reduction goal, wind farm