Toshiba said it will stop taking orders for new coal-fired power plants as it makes a wider push to embrace renewable energy, though will still complete work on about 10 further facilities.
The engineering-to-technology giant will continue to manufacture steam turbines and offer maintenance services for existing coal-power plants, and work on the construction of plants that have already been ordered, spokesman Takashi Ebina said on Wednesday.
It’s a shift that highlights differences between equipment suppliers as they move to leave behind the coal sector and focus on gas turbines and renewable energy. Samsung C&T has faced criticism over its intention to complete further coal projects before quitting the fuel, while General Electric said in September it will pursue an exit from its existing obligations.
The firms are under pressure amid investor demands for action on climate change and over the prospect that tighter government policy on greenhouse gas emissions will limit scope for new coal-fired plants, even in Asia, where nations currently remain reliant on the fuel as a form of cheap electricity generation.
“Given a global trend toward decarbonisation, we need to change our stance on the coal-power business,” Ebina said by phone. Toshiba has existing orders for the installation of coal-fired plant facilities in counties including Indonesia and India, according to details listed on its website.
Renewable energy
Toshiba plans to invest US$1.5-billion in renewable energy for its operations to the fiscal year ending March 2023, and also aims to halve carbon dioxide emissions by 2030, including so-called “scope 3” pollution, according to Ebina.
The company aims to increase annual sales from its renewable energy business to ¥650-billion by March 2031, compared to about ¥190-billion in the most recent full year. Sales from thermal coal power and hydrogen businesses amounted to ¥222.5-billion in the year ended 31 March, representing 6.6% of its total sales. — Reported by Aya Takada and Stephen Stapczynski, (c) 2020 Bloomberg LP