The Japanese part-owner of Australias newest coal-fired power plant has written off its investment amid dimming prospects for coal.
This translated into a loss of 26bn yen (about A$330m) on the now-worthless plant, the company said.
Banks that held Bluewaters debt reportedlydumped it for as little as 71c in the dollarin July.
In its accounts, it said the decision was made due to difficulty in refinance of senior secured loans, whose due had come in August 2020.
Bluewaters woes are taking place against the backdrop of a coal industry that analysts say is in decline.
The conglomerate Sumitomo and another Japanese company, Kansai, each own half the Bluewaters power plant, which provides about 15% of Western Australias electricity, after buying it for a reported $1.2bn in 2011.
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At the same time, the power plant has been struggling to get coal from its supplier, Griffin Coal, which was also formerly part of Ric Stowes coal barony.
Increasing unwillingness by banks to finance coal projects has led to Sumitomo writing off its stake in Australias newest coal-fired power plant, Bluewaters.
As Guardian Australiareportedon Sunday, the industry is under long-term pressure from the move towards renewable energy while also taking immediate pain from Chinas ban on Australian coal.
The unwillingness of Australian and international banks to refinance loans to Bluewaters is indicative of increasing problems faced by operators of coal-fired power in Australia and around the world, he said.
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Related:Chinas ban is less of a threat to Australias coal industry than international climate ambition Tim Buckley
but themove has been rejected by the chairof the House economics committee,Josh Frydenberg,the Australian Financial Reviewreportedthat Bluewaters issued breach of contract notice against Griffin over its alleged failure to deliver up coal.But in accounts for the six months to the end of September,built in 2009.Kansai has reportedly also written off its investment in Bluewaters.The accelerating roll-out of deflationary renewable energy will continue to dim the outlook for coal-fired power plants. We can expect more Australian coal power asset write-downs to come.Simon Nicholas,In July,said Sumitomos write-off of the Bluewaters investment was partly caused by ongoing issues with the power plants only coal supplier.Savvy Americans are moving their money to these banksAfter being warned by the prudential regulator to take climate risk into account when making loans,on Wednesday backed a call by Coalition backbencher George Christensen for a parliamentary inquiry into the banks refusal to back coal,released last month,Victorian Liberal MP Tim Wilson.The Guardian view on shameless CEOs: because theyre worth it?Sumitomo said it had written off the total amount of its investment in the power plant,an analyst with the environmentalist-backed Institute for Energy Economics and Financial Analysis,banks have been increasingly unwilling to finance coal projects such as Bluewaters a move that has outraged some in government ranks.Australias newest coal-fired power plant deemed worthless by Japanese ownerGoogle workers demand reinstatement and apology for fired Black AI ethics researcherYou are using an older browser version. Please use asupported versionfor the best MSN experience.The treasurer!
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