Cleaner gas favoured by utilities in European countries

London

LAWMAKERS from Germany to the UK want to legislate coal out of existence. As profit margins slump, power producers too are giving the fuel the cold shoulder in favour of cleaner natural gas.

The switch to the less polluting fuel is so far most prominent in the UK market. After prices dropped 26 per cent this year, gas was last month more profitable than coal in power generation for the first time since 2011, according to data compiled by Bloomberg. Gas has also started to displace older coal-fired plants in Germany at times of peak power demand, according to Pira Energy Group, a consultant to the industry.