Permanent No-Hopers: Never-Reliable Wind & Solar No Match For On-Tap Coal-Fired Power

Virtue signalling anti-coal/pro-wind and solar groups are picking a fight they can only lose. NWO/NGOs have launched rabid attacks on any company with the temerity to back coalmining and/or coal-fired power.

The activists’ line goes that any company that isn’t telling its shareholders that coal and coal-fired power plants are already dead, is lying to them (and the market) and must be brought to book by the corporate regulator, ASIC.

In one targeted attack, a crowd using the entirely misleading moniker, ‘Market Forces’ -their methods and mantra are anything but – went after Australian coal miner, New Hope in an effort to spook its management, scare off shareholders and wreck its market value.  Doesn’t sound much like Adam Smith’s “invisible hand”, to STT.

Unlike plenty of other timid corporates, New Hope wasn’t going to be rattled by a bit of undergraduate ranting from wind and solar cultists.  Instead, New Hope returned fire – pointing out in its report to shareholders that wind and solar haven’t a hope of displacing, let alone replacing, coal and gas anytime between now and kingdom come.

Eric Worrall reports on New Hope’s timely attack on a couple of permanent no-hopers.

Aussie Coal Miner Accused of Violating Climate Change Disclosure Rules
Watts Up With That?
Eric Worrall
21 July 2021

Market Forces, an Affiliate of Friends of the Earth, wants regulators to smack New Hope Mining for claiming coal is here to stay. But New Hope have quietly challenged the viability of the entire renewables industry, in an official company document. If this goes to court, buy plenty of popcorn.

New Hope mining company referred to Asic, accused of misleading investors over future of coal

Investor action group Market Forces says coal company is ‘building a financial house of cards’ by telling shareholders coal will remain ‘significant’ in energy mix

Ben Smee @BenSmee
Wed 21 Jul 2021 14.20 AEST

Shareholder activist group Market Forces has asked the corporate watchdog to investigate whether coal company New Hope misled investors by claiming that coal would “remain a significant part of the energy mix”.

In letters sent to New Hope Corporation and the Australian Securities and Investments Commission, lawyers for Market Forces have alleged that statements by the company’s chief executive, Reinhold Schmidt, may amount to “misleading and deceptive conduct” under the Corporations Act.

In September last year Schmidt told the Australian Financial Review that “thermal coal is part of the long term energy mix, it will always be there”.

At the company’s annual general meeting the following month, Schmidt’s was asked whether he stood by that statement. He responded by referring to the International Energy Agency’s forecast “current policies” and “stated policies” scenarios.

“If you look at [those scenarios] coal will remain … a significant part of the energy mix. Australia has got a very strong benefit when compared to other coal producers; our coal is of better quality and my statements remain unchanged.”

In its letters, Market Forces says these statements omitted that the IEA had qualified its forecasts by pointing to “significant uncertainties, including more rapid action to phase out coal”.

Read more: https://www.theguardian.com/australia-news/2021/jul/21/new-hope-mining-company-referred-to-asic-accused-of-misleading-investors-over-future-of-coal

From the Market Forces website;

ASIC investigation requested into New Hope statements
21 July 2021

Gambling on failure of the Paris Agreement
The energy demand scenarios New Hope relies upon to justify its future business prospects are consistent with global warming of around 3ºC. This would lead to catastrophic ecological, social and economic consequences, and gambles on the complete failure of the Paris Agreement, which aims to limit global warming as close as possible to 1.5ºC.

As of July this year, 191 countries have ratified the Paris Agreement, while countries representing over 50% of the global economy have committed to net zero emissions by 2050 [3]. According to the IEA’s most recent report (Net Zero by 2050: A Roadmap for the Global Energy Sector), no new coal mines or expansions can proceed and coal demand must plummet in order to achieve net zero emissions by 2050 [4].

Actively expanding the coal industry
At a time when coal companies should be winding up their operations, New Hope is actively expanding the coal industry via its proposed $900 million New Acland Stage 3 coal mine – a 12 year expansion to the existing mine that would produce over 170 million tonnes of carbon emissions [5] and see three vast open-cut coal pits dug on the prime agricultural land of the Darling Downs.

Additionally, media reports suggest New Hope may be bidding to purchase BHP’s Mt Arthur coal mine, one of the biggest thermal coal mines in Australia [6]. New Hope recently raised $200 million of bonds, “for general corporate purposes, which may include further growth expansion and opportunistic M&A [(merger & acquisition)] activity” [7].

Read more: https://www.marketforces.org.au/asic-investigation-requested-into-new-hope-statements/

Should New Hope have said more about the sovereign risks to its business model?

Given even France is failing to meet its Paris Agreement commitments, according to a French court ruling, surely it could be argued in any future court case that the Paris Agreement is a political fantasy.

There are sovereign risks, which New Hope acknowledges; According to New Hope Coal Annual Shareholders Report 2020, … One major headwind for the Company is the continued reluctance of the Queensland Government to approve the New Acland Stage 3 project, despite overwhelming community support, and the economic damage being wrought on the State by COVID-19. New Hope first applied for Stage 3 approvals in 2007 and has been locked in the process by anti-coal activist groups since then …

But New Hope has also laid out a challenge to the entire renewables industry, in that same annual shareholder report.

… Once again, during a period of low pricing in the coal business, we see activists take the opportunity to predict the end of the industry, pushing for their preferred solution of renewables which, at this time, cannot economically or practically displace fossil fuels. According to the 2020 BP Statistical Review, in 2019 coal consumption declined, but still accounted for 27% of primary energy supply. Despite considerable growth, renewables accounted for just 5% of supply. In electricity generation, coal’s share decreased but still accounted for 36%, well above the next most popular fuel which was gas at 23%. Renewables grew from 9% of electricity generation in 2018 to 10% in 2019. Coal’s decline in 2019 was not just due to an increase in renewables, but also to the increasing competitiveness of gas in the fuel mix. Coal use declined strongly in the US and Western Europe but was largely offset by increases in Asia. The International Energy Agency’s World Energy Outlook 2019 Current Policies Scenario has steam coal use increasing significantly from current levels through to 2040, whilst the Stated Policies scenario has steam coal use staying relatively flat through to 2040, with over 80% of steam coal demand being in the Asia Pacific region …

Read more: New Hope Coal Annual Shareholders Report 2020

I strongly suspect Friends of the Earth will realise they have bitten off more than they can chew, and that they will quietly slide back into their hole when they come to their senses.

But maybe we will get lucky, and Friends of the Earth will continue their self destructive attack.

New Hope Mining has done what we have all been waiting for – they have quietly challenged the entire renewables industry, by explicitly pointing out the falsehood of claims that renewables are a viable replacement for fossil fuel in an official company document.

If Australia’s ASIC regulator attempts to prosecute New Hope, the issue will end up as a court case which could drag in other companies, as New Hope defends its claim that renewables are not a viable replacement for coal.

If New Hope wins, it could up-end the entire Australian renewables industry, by opening the door to a stream of counter suits, official complaints to ASIC about wild claims made in the official corporate documents of green energy companies.
Watts Up With That?

About stopthesethings

We are a group of citizens concerned about the rapid spread of industrial wind power generation installations across Australia.

Comments

  1. Peter Pronczak says:

    The intentionally misleading name of Market Forces are talking about coal for electricity production, but making steel isn’t going to disappear in the foreseeable future. So what do they think wind turbines and solar panel supports and all the installation machinery is made of; fairy floss?
    As to Adam Smith, the “invisible hand” is the one picking your pocket. Ask any kid from a large family; it’s first in best dressed.
    Main stream media don’t mention that the California forest fires, also possibly elsewhere, have been know for years to be aided by borers that have turned living softwood trees into tinder regardless of temperature.
    Like out of control AU fires because of uncleared ground litter.
    Selective information, for selective purposes, otherwise called propaganda to mislead a trusting public.

  2. ronaldsteinptsadvancecom says:

    Only healthy and wealthy countries like the USA, Germany, Australia, and the UK can subsidize electricity from breezes and sunshine, and intermittent electricity at best. The 80 percent of the 8 billion on earth living on less than 10 dollars a day cannot subsidize themselves out of a paper bag. Those poorer countries must rely on affordable and abundant coal for reliable electricity, while residents in the healthy and wealthier countries pay dearly for those subsidies with some of the highest cost for electricity in the world.

  3. If the problem is ice melting from warming why is the term climate change used CONstantly? It’s global warming right? No, it’s climate change they correct us, because this is what cults do, speak out of every side of their mouths to confuse and pitch just like world ‘health’ organizations and viru$ hunter$ do in their cult. So if a 3ºC rise is going to create catastrophe from ice melting at the south pole, what happens with 10ºC or 66.6ºC warming rise? At what point is ALL the ice melted where we can say “ahhh it’s over now we can rebuild” and unfortunately cooling no longer exists (or does it?) or is all the land covered in water and Noah and the animals are the only ones saved and those of us who ignored the science on how to build boats made from wasted wind propellers are stuck sitting on top of worthless shorted out wind turbines? Where is this data on the exact gallons of water that will spill into oceans from melting ice and what point of warming does it all melt? It does not exist just like the non-existence of pure isolation of viruses to prove they are actually there, and the fact that none of the virus hunters present that viruses are not living things to be feared, none of this data exists as the Devil in the Details forbade it from being presented to the sales team.

  4. Shudong Zhou says:

    IEA not a international organization.

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