Billionaire rethinking new UK green investment after Sunak backs ‘failed tech’ carbon capture | Canada News Media
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Billionaire rethinking new UK green investment after Sunak backs ‘failed tech’ carbon capture

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LONDON — An Australian billionaire says he may step back from investing in U.K. green technologies after the government announced new backing for carbon capture and storage (CCS) technology.

Andrew Forrest, an international investor and climate philanthropist, said U.K. government plans to put billions of pounds into CCS meant “putting Britain’s hopes [on] failed technology.”

Prime Minister Rishi Sunak confirmed on Monday that the government would be investing in CCS projects in Northeast Scotland and the Humber.

The government has committed to providing up to £20 billion for the “early deployment” of carbon capture technology over the next two decades.

Forrest, one of Australia’s wealthiest business people, told POLITICO that he had “deep respect” for Sunak, but described CCS as a climate strategy promoted by the oil and gas industry.

It was an industry “just waiting for the next idiot to come along,” Forrest said.

Forrest, founder of Australian iron ore mining giant Fortescue and chair of its subsidiary Fortescue Future Industries, is already investing in battery production in the U.K. Fortescue recently announced an expansion of operations at a facility in Oxfordshire run by WAE Technologies, which the Australian firm bought last year.

“I’m investing hundreds of millions of pounds in Britain to build up your technology and to build up your expertise,” he said. “That’s at the cutting edge of battery technology, battery intelligence, everything the world needs which will make Britain relevant.”

But he cast doubt on the U.K. as an option for “really big investments, where I go to mass produce these globally-leading technologies.”

Forrest said: “Will I make them in Britain? No. I cannot invest in a country which is basically denying global warming and putting its faith in a failed ‘wait for the next idiot to come along’ solution called CCS.”

CCS technology involves capturing carbon emissions from fossil fuel production or industry, transporting them, and storing them underground or under the seabed.

While some scientists believe it will play a role in counterbalancing emissions from industries that are hard to decarbonize, many climate campaigners are skeptical about the technology’s viability in the near-term. Friends of the Earth on Monday called the government’s carbon capture announcement a “green gloss” on their oil and gas plans.

 

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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