Wednesday, November 28, 2007

Coal fired power stations and increasing carbon costs

The question how viable coal fired powerstation will remain under higher prices for carbon will remain very relevant, especially in the European Union. This has important implications for South Africa as well as the EU still constitutes 76% of the South African coal export market (see facts).

According to this article at Platts, CEO of German based RWE, Roels, said he believes it will be profitable for RWE to build coal plants even under a scenario of 100% carbon auctioning and a CO2 price of up to Eur30.00/MWh.

RWE will proceed with the construction of two, 1,530 MW coal-fired plants in Germany.

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