So when it is all said and done, anyone expecting electricity prices to come down due to the wonders of “free wind” is in for a nasty surprise. This ultimately is going to lead to higher electricity prices and that is higher inflation, higher interest rates, and everything thereafter.

by Chris MacIntosh

It seems that each week that goes by we come up with variations of the same themes, one of which is supply destruction and restriction of fossil fuels. For want of doubt check out the latest garbage from Deutsche Bank. It seems that the energy crisis of last year taught them nothing. Without coal, where would Germany be?

Deutsche Bank’s actions are nothing short of malthusian (depopulation):

Deutsche Bank AG is expanding restrictions on its financing of coal, one of the main sources of energy in its home market of Germany, as part of a wider crackdown on high-emitting sectors.

Companies that have “no credible plans” to reduce thermal coal’s contribution to their revenue below half by 2025 will see their financing cut off, the Frankfurt-based bank said in its initial transition plan, published on Thursday. For companies operating outside the OECD, the revenue threshold is 30% by 2030.

Here comes the “contradiction:”

For coal, Deutsche’s target covers both thermal and metallurgical coal and builds on an existing thermal coal policy. The bank is aiming for a 49% cut in absolute terms in the broadest measure of financed emissions — known as Scope 3 — by 2030. By 2050, its goal is a 97% reduction. In cement the bank is targeting a 29% reduction in Scope 1 and 2 physical emissions intensity by 2030, and a 98% reduction by 2050.

We say contradiction because without met coal you don’t have any steel, and without coal you don’t have any cement (thermal coal is mainly used in the cement manufacturing process). And without thermal coal you don’t have any electricity… and without electricity you don’t have any aluminium (amongst other base metals) or polysilicon.

Cutting a long story short: without coal you cannot produce renewable energy producing equipment.

But wait, this story becomes even more logic defying. From a bloomberg article:

Here is an excerpt from the EU Commission press release:

Achieving the recently agreed EU target of at least 42.5% renewable energy by 2030, with an ambition to reach 45% renewables, will require a massive increase in wind installed capacity with an expected growth from 204 GW in 2022 to more than 500 GW in 2030.

Can this be achieved?

Well, miracles have been known to happen from time to time:

See the rest here

Be seeing you