France SA CEO...renewables NOT sustainable at this rateYou could be a market participant all your life...and never see something like this. It will be a disaster of epic proportions. It will be...the perfect storm.
Oil supply crunch coming and renewables can't get there.
"Bruno Bensasson, chief executive officer of the renewables arm of Electricite de France SA. Thats not healthy, thats not sustainable.
I am reading more and more of these articles everyday. As big oil shifts to renewables costs are increasing and margins are shrinking...renewables will eventually mimic the shale issue...lots of capex...soaring cost...no ROIC....set the egg timer.
"Oil companies renewables push squeezing profitability from green projects"
"(Bloomberg) --The worlds largest oil companies are bidding up prices for renewable energy projects, squeezing profits from wind and solar farms just as climate planning focuses more on green energy sources.
Companies from BP Plc to TotalEnergies SE are paying top dollar for clean energy assets as they transition away from fossil fuels, boosting competition and compressing margins for developers. Wind giants Orsted A/S and Vestas Wind Systems A/S reported lower returns in the first quarter, while turbine maker Siemens Gamesa Renewable Energy SA lost money as materials rallied.
Shrinking profits are a worrying sign for an industry that needs to invest at least $92 trillion by 2050 to cut emissions fast enough to prevent the worst effects of climate change. They also come at a time governments are tackling record gas and electricity prices, a headache for world leaders trying to iron out an ambitious climate deal when they meet in Scotland in November.
Sometimes you end up with very low remuneration of capital, below normal, said Bruno Bensasson, chief executive officer of the renewables arm of Electricite de France SA. Thats not healthy, thats not sustainable.
Reference: https://www.worldoil.com/news/2021/8/10/oil-companies-renewables-push-squeezing-profitability-from-green-projects