Constant demonizing of coal and worship of 'renewables' has led to widespread suffering amongst nations who have wholeheartedly embraced the narrative. Government policy has forced into effect an energy system wholly unsuitable for consumer demand and the climate they are in. For example, Germany is one of the least sunshine endowed nations in the world yet have installed an enormous amount of solar. Many more similar issues with wind in parts of the world, where to maintain and service the wind turbines requires, ironically, for the wind to die down. But, to get the most efficacy they install them in places where wind blows almost continuously.
The sheer cost and burden of subsidies provided to the renewable sector will see coal becoming more and more attractive to government. Despite the price, coal is abundant, investment in mines and logistical infrastructure will bring the price down in time but for now it is still the simplest and most reliable form of power. The government essentially tries to make the people happy to secure votes. We will see a struggling and energy deprived populace gradually turn from the renewable gods of our age for the comfort and reliability of coal. Essentially, it is easy to tout the climate saving agenda when it costs you nothing, but now the cost of this transition will be felt by all the regular working folk.
The above video clearly portrays the heart of the green movement. It is based on profit and capitalism at its heart. Misrepresentation, vague claims and pure zealous indoctrination of the youth is their path to spin a profit alongside the excessive subsidies that are granted to renewables at the cost of the taxpayer. Not only does the taxpayer already suffer at the loss of national funds to renewables that could have been used in other ways to benefit the society, but now they also have higher energy bills. Will the planet saving renewable firms be held accountable if what they claim is false?
The truth will eventually feed through to the people too busy to dig for the facts. When the cost and burden of an energy deprived society becomes apparent people will look for a solution and the only solution is coal as a base energy source. Not to say that other forms of energy cannot be supplementary but expecting the entire global grid to switch over to "free" and "limitless" energy is a pipe dream that will carry an enormous cost to everyone, especially the poor. In my first year of electrical engineering studies, we were taught that free or limitless power is contradictory to the very law of physics, energy is simply converted into different forms. Mining and fabrication energy used is proportional to the amount of wind/solar the system captures and converts to electricity. The prime difference with coal is that the renewables require more energy conversion points leading to higher load loss and making the system less efficient overall. Much of the power generated is not used, causing more environmental degradation in the process.
To a nation that produces nothing and consumes everything an internal "green" source of power is achievable because they will outsource all their energy use. This is the case with most of the west. The Australian government is currently aligned with coal exporters since they are the most lucrative export sector. With global coal investment waning and lead times for new mines and logistical systems years out from completion, we will IMO continue to reap excellent profits for some time to come.
The real boom should come when the above public sentiment changes and people see the cost of the global greenwashing government funded escapade. The plight of the people will cause a shift from leaders to appease their voters. This would likely filter through to investment houses which then would revalue coal companies at a few PE multiples higher than what they are today. This would take the SP to very high levels, even possibly a bubble. Currently forward PE multiple is at 2, the market clearly has this one wrong. Coal cannot be erased off the map with current global consumption trends. People do not seem to be inclined to cut consumption, but they do attack supply, which has contributed to excessively high prices and will lead to hardship as a result. Resulting in forced consumption cuts at great cost and discontent.
Will the people sit quietly in their suffering or support a system that will alleviate their hardship?
WHC Price at posting:
$8.83 Sentiment: Buy Disclosure: Held
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