real-time news and commentary for investors
Friday, Sep 20
Coal stocks fall as EPA releases plans to curb emissions
- No one should be surprised by the EPA's proposals for tough requirements on new coal plants - they had been anticipated for at least a year - but coal stocks are down across the board: ANR -4.6%, ACI -4.2%, WLT -4%, BTU -3.2%, CLD -2.6%, JRCC -1.4%, CNX -1.1%, RNO -0.6%.
- New coal plants are required to limit their emissions to 1,100 lbs. of CO2 per mw hour, ~700 fewer lbs. than most modern-day coal units; the only way to meet the standard is to use new carbon capture and storage technology that isn't currently used at any commercial-scale plant.
- The legal fight ahead will hinge largely on the EPA's ability to show that the technology is a viable option; the Clean Air Act requires the agency to show its standards are "achievable" and that required technology has been "adequately demonstrated."
- ETF: KOL.