'Dirty' coal getting reprieve on Wall Street

March 17, 2010
Back to TopCommentsE-mailPrint

Indiana and other Rust Belt states have taken a beating over their power plant emissions, but Wall Street is betting coal will win out over some alternative energies in the near term.

Bloomberg News reports that coal stocks are rising while shares of solar-panel companies are falling. The article says the Stowe Global Coal Index, which tracks 38 producers, logged a small gain last year while Bloomberg’s Global Leaders Solar index dropped.

A big majority of analysts who follow Peabody Energy Corp., a St. Louis coal company that operates mines in southwestern Indiana, have “buy” ratings on the stock.

Far fewer analysts who follow Tempe, Ariz.-based First Solar Inc., the largest manufacturer of thin-film solar panels, advise buying that stock. (Incidentally, First Solar CEO Rob Gillette holds a finance degree from Indiana University.)

Why are “dirty” coal stocks rising so fast? Perhaps because governments aren’t throwing enough support behind renewable energy, or because rising international competition is crushing solar-panel profits. Failed talks in Copenhagen to limit carbon emissions is another reason.

If coal gets a breather, Indiana might have a chance to build more “clean-coal” power plants like the $2.4 billion gasification project Duke Energy is considering at Edwardsport in southwestern Indiana. Gov. Mitch Daniels and members of his administration have said the state has little realistic choice but to find ways to use its cheap, abundant coal; otherwise, a competitive advantage of cheap electricity will be lost.

How do you feel about coal? Should Indiana bet its future on the mineral?

What about overall progress on wind, solar and other alternative energy? Is it coming fast enough?

 

ADVERTISEMENT
  • "Cheap"
    ResidentMarch 17, 2010 1:19 PM
    "Cheap"? What do we sacrifice for so-called "cheap" energy provided by coal? Our health and our environment, as well as those of other states that are downwind. Anything we may be "saving" in energy costs we are paying out the wazoo for in various other ways, including illnesses, heathcare costs, lost productivity, and in perpetuating a perception of being a 'backward' state. Hoosiers need to kick the habit of short-sighted tunnel vision more than anything!
    Reply to CommentFlag Comment
  • Utility Regulations
    Smart GrowthMarch 17, 2010 3:42 PM
    Utility companies obviously need to be mandated to spend x% of their budget towards creating Alternative Power Investments for the safety of our Country. This is why we call our State Agency, Energy and DEFENSE. The Utility co. are not doing it on their own. Unfortunately our Government is not working for us the people any more, but for the big business and the Utility Companies, otherwise the leaderships would be coming from our local Govâ??t. We need balanced growth patterns, not just out growth. This proven mismanagement is creating even more expense and we need to see Leadership from our State and Cities, creating long term sustainability with reinvestment Pilot Programs for Smart Growth. Via States and Utility Company's partnering together we can make a major impact for generation to come but only with their proactive leadership now. The model of just having one way to do it creates the out growth, and this just cost us too much! We need leaders that can do more than, â??What they have always done, via 8th grade mathâ??. By spending a little on the right things, The Multiplier Effects of Savings and other ways to Make Money is the only way to reduce Gov't. spending. This is Govâ??t being fiscally responsible. Unfortunately the Old School Republicans have not done the math or figured this out yet. It is making me an unhappy republican, but frankly we need smart people managing our Govâ??t reinvesting into more than one old way to do it.
    For our countryâ??s safety, for economic sustainability for all of us, we need Alternatives Sources of Power. Via Loans, Tax Credits, & Grants, Via the Leadership of our States Energy & Defense and the Utility Company's we need Solar Equipment and Utility Co. Net Metering Investments so we can rebuild our core communities, and Country.

    Reply to CommentFlag Comment
  • Check your Facts
    ResidentMarch 17, 2010 4:59 PM
    The fuel may be "cheap" but the Indiana Utility Regulatory Commission estimates that the plant is expected to have a total estimated average customer rate impact (increase) of about 18 percent.

    Not sure Indiana would not be better off diversifying with other fuel types, renewable or otherwise.
    Reply to CommentFlag Comment

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

ADVANCED SEARCH
Sponsored by
ADVERTISEMENT

  1. Thank you for pointing out the absurdity of having The Naked Cowboy at Zoobilation. For the life of me, I don’t know why anyone would want a picture with that guy, but there were plenty of folks lined up to get a shot with him. The event could have used more restrooms out on the bridge, more photo booths and vendors offering something besides meat. There were a few more veg-friendly options this year than last, but it has a long way to go.

  2. Went to Zoobilation Friday night and had a great time. The weather was super nice and the food was very good, for the most part. Lots of sliders this year at many different tents. The slider from Alexander's was inedible, all four in my group ended up tossing it after one bite. Some tents were out of food by 8:30 and one bar area was out of cups at 8:30, not sure how that can happen. Great event in Indy and I look forward to it each year.

  3. Many of the small community hospitals are now owned by the "cash-strapped" Indy biggies, with more coming. The doctor-practise buying has been done precisely to sidestep tiered payments for out-of-hospital procedures. These are no better done, or safer, because someone administers a pain shot or snaps an x-ray in a doctor's office. And the non-payment issue is resolved next year when we all have insurance, even though many still think paying private insurers an extra 10-20% is what makes our system "world-class".

  4. I'd love to see this rendering put into the context of the surrounding neighborhood/area to get a better feel for the surrounding scale. However, just by the looks of it, it appears to be an excellent project. I'm pretty sure that if Scott Olson had said nothing regarding Chicago or Wrigleyville, Mr. "Horrible" would have found nothing bad to say. I'd love to know how Indy is becoming "Chicagofied"...

  5. Truly great and funny play. Vocalists were Broadway caliber and stage settings ideal for small stage. Would go again!

ADVERTISEMENT