Exclusive: Mitsui & Co to sell all stakes in coal-fired power plants by 2030 – CEO

In this news, we discuss the Exclusive: Mitsui & Co to sell all stakes in coal-fired power plants by 2030 – CEO.

TOKYO (Reuters) – Japanese trading house Mitsui & Co Ltd 8031.T plans to sell off its remaining stakes in coal-fired power plants by the end of the decade as it switches to gas from coal to help to meet its 2050 net zero emissions target, its chief executive told Reuters.

“We still have stakes in coal-fired power plants in Indonesia, China, Malaysia and Morocco, but our goal is to make them zero by 2030,” Mitsui CEO Tatsuo Yasunaga said on Friday in a statement. interview.

The comment – Mitsui’s first on selling coal-fired power generation – comes as companies around the world move away from coal to reduce harmful carbon dioxide emissions and slow climate change.

Mitsui, which generates about two-thirds of profits from energy and metals, is also moving away from oil.

“With the COVID-19 crisis, we have postponed investment in a few upstream oil deals, but our liquefied natural gas (LNG) projects are on track,” he said.

Through equity investments, Mitsui’s energy assets include 78,000 barrels per day (b / d) of crude oil and 181,000 b / d of gas measured in oil equivalent.

Its gross ratio will decline by 2030 due to the expected launch in about four years of LNG projects in Mozambique and Arctic Russia, Yasunaga said.

“Renewable energy cannot replace all other energy sources at once. Gas goes well with volatile renewables because gas-fired power generation is easy to turn on and off, ”he said, adding that Mitsui is also keen to use cleaner energies such as than offshore wind farms and hydrogen projects.

Apart from energy and resources, Mitsui is betting on health, in particular via the Malaysian hospital operator IHH Healthcare Bhd IHHH.KL of which it holds 32.9%.

“The pandemic has helped spread virtual diagnostics and other services in Singapore and Malaysia, helping our plans to use the data to deliver new services, including nutrition and disease prevention,” he said. declared.

Mitsui is one of five trading houses in which Warren Buffett’s Berkshire Hathaway Inc BRKa.N bought a 5% stake in August with the possibility of increasing its stake to 9.9%.

Mitsui has been in postal contact with the U.S. investor and has not received any specific requests, Yasunaga said.

“We are committed to implementing our growth plans as promised and seeking new opportunities that bring mutual benefit,” he said, citing as an example his alliance with US dialysis provider DaVita Inc DVA.N whose main shareholder is Berkshire.

DaVita’s growth in Asia will bring mutual benefits, and Mitsui looks forward to continuing similar collaborations, he said.

“We have to show a result that could prompt Berkshire to increase its stake to 9.9%,” Yasunaga said.

Reporting by Yuka Obayashi and Noriyuki Hirata; Editing by Christopher Cushing

Original © Thomson Reuters

Originally posted 2020-10-12 07:46:11.

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