Dirty Energy Rides Natural Gas Surge Even as Carbon Limits Bite
- Demand for cheaper, dirtier coal increasing alongside gas
- Carbon contracts at highest in 11 years suggests gains capped
The Tuzla thermal power plant stands in Tulza, Bosnia.
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
European coal contracts are advancing after rival fuel natural gas rebounded from its lowest level in almost a decade.
Should gas continue its sharp recovery, coal suppliers will anticipate extra demand for their cheaper, dirtier fuel, according to analysts. A major hurdle to that increased consumption will be the continued advance of European Union carbon permits, contracts that finished last week at their highest level in 11 years.