15 Nov 2019
Coal, the original fossil fuel, gets no love. It is among the forces blamed for climate change and is being phased out of power generation around the globe—replaced by renewable electricity generators such as windmills and solar panels. It is a declining industry that has few political defenders. So why does brokerage firm Bernstein want to defend coal? Because it is cheap. Analyst Paul Gait defended the “indefensible” in a Wednesday research report, arguing coal stocks could rise before the industry ultimately falls. “At a time when lithium-ion batteries and their applications are generating such attention, it is worth flagging that coal is, in all meaningful respects, a battery,” Gait wrote. It is an interesting way to frame the debate. Ignoring the environmental impact, few would argue with the idea that coal is an efficient way to store power. It is, after all, concentrated solar energy encased in the remains of prehistoric vegetation.
Source : https://www.barrons.com/articles