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Coal-fired power stations could keep the lights on next winter https://www.thetimes.co.uk/article/coal-fired-power-stations-could-keep-the-lights-on-next-winter-6wh8pth69
Coal-fired power stations are in line to receive tens of millions of pounds of subsidies from consumers to stay open next winter after the government asked them to delay plans to close this year because of the energy crisis.
Ministers have requested that EDF, Drax and Uniper consider extending the life of coal plants that were due to shut in September because of fears of a Europe-wide gas shortage if Russian supplies are curtailed.
Talks have now begun with National Grid’s Electricity System Operator over how much the plants would need to be paid to remain available for back-up generation. It is understood that they are likely to require tens of millions of pounds to cover the costs of staying open, with these costs being levied on consumers’ energy bills.
Coal, the most polluting form of power generation, was Britain’s biggest source of electricity in 2013 but provided only 2 per cent of the mix last year. Gas provides the biggest share of electricity supplies, with only three power stations still burning coal in Britain.
EDF’s West Burton A plant in Nottinghamshire and the coal-fired units at Drax in Yorkshire are both due to shut in September. Uniper is also ready to close part of its Ratcliffe-on-Soar coal plant in Nottinghamshire in September with the rest to run until 2024, when the government plans to end coal generation as part of its climate strategy.
The Times revealed last month that the government was exploring whether the coal plants that are due to close this year could stay open. The units could generate electricity for about 4 million homes when running full tilt.
Kwasi Kwarteng, the business secretary, wrote to the chief executives of EDF, Drax and Uniper this month to ask if they could stay open, given the “perceived risk of disruption to Russian gas supplies to Europe”.
“Maintaining our remaining coal-fired stations would provide us with additional back-up security whilst we pursue more enduring solutions,” he wrote.
EDF, Drax and Uniper all confirmed they had received the request. A spokesman for EDF said that it had begun reducing staffing numbers and running down coal stocks at West Burton A. To keep the plant open next winter “a decision would be necessary in the coming weeks”, he warned.
Drax said it was looking “carefully” at the government’s request. The company yesterday emerged as a winner of the energy crisis as it said that profits would be at the top end of expectations because of higher prices for the electricity it generates from biomass, hydro-electric and pumped storage plants. Its coal units were also paid by National Grid ESO to fire up in January.
Continued (cut short due to comment character limit)...
I thought about you today as soon as I saw the sharp fall this morning. Please don’t worry - we’ve been through this before with TGA and it recovered.
It’s traditional that when I buy a share, the price falls so I know how you feel.
Have a good weekend.
HL currently has a sell price of 1408 and a buy price of 1250, with this explanation underneath:
“The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.“
“https://www.hl.co.uk/shares/shares-search-results/t/thungela-resources-ltd-npv”
Regarding the question of a share buyback or dividend, for anyone who missed it, reference was made to this in HowardW’s comment here (please recommend his comment, not mine, as all I’m doing is quoting from the link in his comment):
https://www.lse.co.uk/ShareChat.asp?ShareTicker=TGA&share=Thungela-Res&thread=CC26BF53-B1DD-4DF7-AC4D-6CC73B8D74CA
“...July Ndlovu, CEO of Thungela said the much feared flight of international investors from the company’s share register following its June listing never happened.
“We have picked up significantly far more shareholders from offshore than anyone assumed we would,” Ndlovu told the Financial Mail in an interview. In fact, about 50% of the stock is held by non South Africans.
*Such is the international flavour of Thungela’s register that decisions are now being made in mind of it. Ndlovu said a share buy-back was being considered by the company – the share price appreciation notwithstanding – owing to withholding tax in South Africa which UK shareholders in particular don’t prefer...”*
... go to YouTube and search for “Reducing your carbon footprint with Lucy Beaumont. Joe Lycett’s Got Your Back”. It’s funny.
There’s some interesting comments on the video too such as one, posted a year ago, saying “Best way to offset your carbon footprint is (counter-intuitively) Molotov a coal exec”. No, the best way was to buy TGA instead when you wrote that (OK, just after) and use your profits to buy as much offsetting as you like. Or just enjoy the profits.
This rush to go carbon neutral is alarmist, premature, and rushed to the extent of being unachievable. Watch as the target for going carbon neutral gets kicked down the road and the SP increases accordingly. Mind you, that’s years down the road - governments won’t admit that until the eleventh minute of the eleventh hour.
Lots of miners had the same dip this morning e.g. Rio Tinto, Anglo & Glencore. However, while they dipped by 1-2% but TGA plummeted over 7% in just 30 minutes. Fortunately it recovered most of that - demand apparently remains strong (for good reason).
.... and it’s very positive. It’s a week old but I haven’t noticed it before. Until now there’s been no news stories listed despite many existing.
“This coal spinoff has surged in value. BlackRock has profited” https://apple.news/A5X6ARrMySuKDL4JWJD2Kww
I like this paragraph:
“BlackRock BLK first made a coal divestment pledge in Jan. 2020. However, BlackRock has always allowed an exception for its passively constructed index funds, which is the majority of its funds under management”.
It’s like all the eco warriors wearing their oil-derived clothes, and travelling to demos by burning fossil fuels including to generate electricity. It’s like Prince Charles flying to the USA to collect his green award. Don’t start me on Greta.
What’s funny is that Greta and the eco warriors have done us a massive favour. Cheers!
@OliG
I’m going to buy a dual fuel coal & wood burner so I can bask in the glow while basking in the glow, if you know what I mean. Every time I look at it it’ll remind me of what I did (and how scared I was when I did it).
Regarding your kids, I think you should tell them you’re going to do the right thing and leave them behind - tell them to think of all the CO2 it’ll save. Rub it in by telling them that you know it’s what they’d want.
@OliG
That’s hilarious. Thanks for sharing it with us.
Because coal is a source of energy and energy is ridiculously expensive at present. Also, no one new is entering the market - why invest in something with such a limited lifespan?
On the latter point, personally I think that the targets for net zero are hopelessly optimistic and an unnecessary act of economic suicide. The media and politicians are also unreasonably alarmist in my opinion. Therefore I think there is a potential hidden upside - a longer than expected lifespan.
It’s done it again.
On Google (just Google “TGA share price”) it says “+0.60 (+0.066%)”. As I said before, beast of share, this one.
I’m pleased to see it didn’t end up in the red. Though it’s flat today, it’s performed well today compared with many stocks including AAL.
A fall on good results being released isn’t unusual, counterintuitive though that may be.
I’m still happy if it holds £8.00.
Upon reading your question again, I think I misunderstood it. Sorry.
It drops by the amount of the dividend and is then subject to the vagaries of the market, so it might rise above that during the day or fall.
The relative silence is perhaps a sign that there’s not many rampers here. It’s good.
I’m typing your link out to verify the article. I should have finished typing it by sometime tonight ; )
Let’s go for the hat trick: here’s another article. It’s worth reading in its own right - it’s a very interesting article in itself.
Heading: “The week where decades happened: how the west finally woke up to Putin”
“But the new German coalition, faced by the need to extricate itself from Russian energy, may have to challenge other orthodoxies. The Green economics minister, Robert Habeck, does not rule out extending the use of coal-fired power plants.”
You what? Germany’s Green economics minister does not rule out extending the use of coal-fired power plants. Good God!
https://www.theguardian.com/world/2022/mar/04/russia-ukraine-how-the-west-woke-up-to-vladimir-putin?CMP=Share_iOSApp_Other
Here’s another such article:
Heading: Soaring gas prices are a cost of this war – and Britain can’t avoid them
Sub-heading: Consumers in the UK are going to have to come to terms with a lengthy period of rising energy bills
Sunday, 06 March 2022
“...Not surprisingly, the major recipients of Russian gas across Europe have spent the last week scrambling to find alternative sources.
Italy, which uses gas to generate 40% of its electricity and imports more than 90% of its gas, mostly from Russia, has looked to Algeria and Azerbaijan for alternative supplies.
German politicians have talked about cancelling plans to shut down nuclear power plants and ramping up electricity production from coal-powered generators...”
https://www.theguardian.com/money/2022/mar/06/soaring-gas-prices-are-a-cost-of-this-war-and-britain-cant-avoid-them?CMP=Share_iOSApp_Other
There have been a number of articles in the media since the Russian invasion of Ukraine saying that we need to burn coal again (such as to generate electricity) pending our conversion to net zero. I quote from one below as an example.
Personally I suspect that the world will be burning fossil fuels for a lot longer than that - a lot longer than politicians currently intend.
https://www.thetimes.co.uk/article/think-the-unthinkable-to-turn-off-putins-gas-pb8jdnzcj
Heading: Think the unthinkable to turn off Putin’s gas
Sub-heading: Our net-zero mission would be hit but we have to consider burning coal and wood to heat homes as we try to save energy
Matthew Parris
Friday March 04 2022, The Times
“...Finally — gulp — coal. We must reprieve those UK coal-fired power stations still running (officially) on standby. As for resources, we should not hesitate to exploit what gas and oil reserves may remain in our own waters, and prospect for more. Depending on world prices of gas, fracking may even be worth a second look, though with our island’s geology the prospects may be doubtful. I myself will keep some stock-market investments in carbon-related prospecting because I think not only that its days are not yet over, but that they ought not to be either: even before the attack on Ukraine we had to contemplate a demand for carbon-based fuels that continues for some years yet.
“The West’s dependence on Russian energy is making a mockery of the whole idea of sanctions. We won’t play football, but are transferring billions to Putin for gas and oil. He calls Ukrainians drug-addicts, but it is we who are the junkies: mainlining on his country’s gas. Breaking an addiction is always hard, but the treatment cannot begin too soon”