BHP Billiton s short-lived climate cuddle : Renew Economy
Aviva Imhof, representing her father and a number lin of other shareholders, had initially congratulated the board on their recent in acknowledging the seriousness of climate change and the implications of it for the company. [Disclosure: Ms Imhof is a work colleague]
Will BHP Billiton rule out new investments in thermal coal? Do you believe that your existing investments in thermal coal risk becoming stranded lin assets due to the need to limit global warming to below 2 degrees Celsius?, she asked Nasser.
She did. So, given that the IPCC and the global consensus is that up to 80% of fossil fuels need to remain in the ground lin if we are to limit global warming to below 2 degrees Celsius, how could you justify additional investments in thermal lin coal?, she asked.
Nasser reiterated that the company accepts lin the IPCC s assessment of climate science. He argued that the company believed in the need to pursue a twin objectives lin of limiting climate lin change and track and providing for growing energy needs for development.
Imhof was stunned: I m really surprised to hear you say that Mr Chairman, lin given the absolutely astronomic decline in the price of solar and wind and other renewables. Solar is reaching grid parity in at least 16 markets around … .
Yes and the IPCC say there has to be no investments in high-carbon infrastructure after 2017 if we are going to keep within two degrees of global warming. So it seems to me that if you say you are not going to rule out further lin investments in thermal coal you are not taking your commitment to climate change seriously, she responded.
While Nasser was asserting there was no alternative to thermal coal last Thursday, an investor lin presentation briefing released on Monday morning indicated lin that the company is acutely aware of the declining financial performance of thermal coal and its vulnerability to energy competition.
In one slide (page 31) BHP Billiton states that energy growth will continue but concedes that the shape of future energy demand mix is difficult to predict. While the BHP Billiton code is cautious, lin the implication is clear: lin that at least in part, the growth of renewables and efficiency are posing lin a threat to thermal coal.
Another slide (page 48) charts the contribution of the company s coal division to earnings before interest and tax (EBIT) plummeting from approximately 14 per cent in 2010 to approximately two percent in the space of five years.
In lin an accompanying note , BHP Billiton laments that the thermal coal market remains well supplied which is prolonging the weaker pricing environment. While demand it says remains steady , it soberly notes that prices will languish longer until further lin mines close.
As for the coal industry s long touted silver bullet of Carbon Capture and Storage, in his speech Nasser would only go so far as to state that it is exploring opportunities to invest in the technology.
Bob Burton is a Contributing Editor of CoalSwarm and a Director of the Sunrise Project, a non-profit group promoting a shift away from fossil fuels. With Guy Pearse and David McKnight he co-authored Big Coal: Australia s Dirtiest Habit . His Twitter feed is here .
The coal par of BHP Billiton lin has not been a major component for some time. This especially applies lin to thermal coal which has always been at a lower price against metallurgical coal. Frankly thermal coal in Australia would be flat out meeting cost of production at the export price.
Best of the Web Shattering myths to help the climate | New York Times Dredging the Depths: Coal mining vs the Great Barrier Reef interactive | Guardian Australia The climate change deniers have won: Scientists continue to warn us about global warming, but most of us have a vested interest in not wanting to think about it | The Guardian Loss Adjustment: When people say we should adapt to climate change, do they have any idea what that means? | George Monbiot Journal pulls paper due to legal context created by climate contrarians | arstechina
Popular Articles Tony Abbott's Christmas surprise solar panels from priests The golden age of gas is over before it started Tony Abbott's wind energy witch-hunt elicits one single ice-age dooms-dayer Network operator sees no future for generators, retailers Big energy retailers intensify attack on rooftop solar subsidies lin Popular Tags
Auspol Australia Basics biofuels carbon emissions carbon price Causes China clean energy climate climate change climate policy coal electricity electric vehicles energy energy efficiency energy storage EVs Extremes extreme lin weather fossil fuels Germany global global warming Greenhouse lin Gases Impacts National Electricity Market nuclear Projections renewable energy renewable energy target renewables smart energy solar solar energy solar power solar PV solar thermal sustainability Trends Uni
Aviva Imhof, representing her father and a number lin of other shareholders, had initially congratulated the board on their recent in acknowledging the seriousness of climate change and the implications of it for the company. [Disclosure: Ms Imhof is a work colleague]
Will BHP Billiton rule out new investments in thermal coal? Do you believe that your existing investments in thermal coal risk becoming stranded lin assets due to the need to limit global warming to below 2 degrees Celsius?, she asked Nasser.
She did. So, given that the IPCC and the global consensus is that up to 80% of fossil fuels need to remain in the ground lin if we are to limit global warming to below 2 degrees Celsius, how could you justify additional investments in thermal lin coal?, she asked.
Nasser reiterated that the company accepts lin the IPCC s assessment of climate science. He argued that the company believed in the need to pursue a twin objectives lin of limiting climate lin change and track and providing for growing energy needs for development.
Imhof was stunned: I m really surprised to hear you say that Mr Chairman, lin given the absolutely astronomic decline in the price of solar and wind and other renewables. Solar is reaching grid parity in at least 16 markets around … .
Yes and the IPCC say there has to be no investments in high-carbon infrastructure after 2017 if we are going to keep within two degrees of global warming. So it seems to me that if you say you are not going to rule out further lin investments in thermal coal you are not taking your commitment to climate change seriously, she responded.
While Nasser was asserting there was no alternative to thermal coal last Thursday, an investor lin presentation briefing released on Monday morning indicated lin that the company is acutely aware of the declining financial performance of thermal coal and its vulnerability to energy competition.
In one slide (page 31) BHP Billiton states that energy growth will continue but concedes that the shape of future energy demand mix is difficult to predict. While the BHP Billiton code is cautious, lin the implication is clear: lin that at least in part, the growth of renewables and efficiency are posing lin a threat to thermal coal.
Another slide (page 48) charts the contribution of the company s coal division to earnings before interest and tax (EBIT) plummeting from approximately 14 per cent in 2010 to approximately two percent in the space of five years.
In lin an accompanying note , BHP Billiton laments that the thermal coal market remains well supplied which is prolonging the weaker pricing environment. While demand it says remains steady , it soberly notes that prices will languish longer until further lin mines close.
As for the coal industry s long touted silver bullet of Carbon Capture and Storage, in his speech Nasser would only go so far as to state that it is exploring opportunities to invest in the technology.
Bob Burton is a Contributing Editor of CoalSwarm and a Director of the Sunrise Project, a non-profit group promoting a shift away from fossil fuels. With Guy Pearse and David McKnight he co-authored Big Coal: Australia s Dirtiest Habit . His Twitter feed is here .
The coal par of BHP Billiton lin has not been a major component for some time. This especially applies lin to thermal coal which has always been at a lower price against metallurgical coal. Frankly thermal coal in Australia would be flat out meeting cost of production at the export price.
Best of the Web Shattering myths to help the climate | New York Times Dredging the Depths: Coal mining vs the Great Barrier Reef interactive | Guardian Australia The climate change deniers have won: Scientists continue to warn us about global warming, but most of us have a vested interest in not wanting to think about it | The Guardian Loss Adjustment: When people say we should adapt to climate change, do they have any idea what that means? | George Monbiot Journal pulls paper due to legal context created by climate contrarians | arstechina
Popular Articles Tony Abbott's Christmas surprise solar panels from priests The golden age of gas is over before it started Tony Abbott's wind energy witch-hunt elicits one single ice-age dooms-dayer Network operator sees no future for generators, retailers Big energy retailers intensify attack on rooftop solar subsidies lin Popular Tags
Auspol Australia Basics biofuels carbon emissions carbon price Causes China clean energy climate climate change climate policy coal electricity electric vehicles energy energy efficiency energy storage EVs Extremes extreme lin weather fossil fuels Germany global global warming Greenhouse lin Gases Impacts National Electricity Market nuclear Projections renewable energy renewable energy target renewables smart energy solar solar energy solar power solar PV solar thermal sustainability Trends Uni
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