AI’s desire for electricity can regenerate wasted energy
Coal can come back. That was my understanding, or rather, my instinct, after interviewing Kenny Young, CEO and seven-year veteran of Babcock & Wilcox, a 160-year-old boiler manufacturer turned engineering and construction company. Young wanted to talk about the growing demand for energy fueled by data center growth. As well as I. B & W has a backlog of $2.7 billion, $2.4 billion of which is the deal with Base Electron, backed by Applied Digital, a company purpose-built to design high-performance digital computing infrastructure. I want to write about this “Mad Money” encounter for a few reasons. First, it shows you that the data center issue is much bigger than we think. Our thinking is blocked by some negative bias that says everything must end, like the dot-com crash of the early aughts. That bias has made it impossible for people to make easy money, like the money you would make by buying Babcock & Wilcox stock, which is up 244% this year alone. This $21 stock traded for less than $1 one year ago. Second, I’m not breaking the law here: apparently, I’m late to the party. But that somehow doesn’t mean many of these companies – witnesses Micron, Intel, Sandisk – that I have to admit my time. Some of you may be looking at it late, late, late, as I wrote about last week. Some say, ‘So what, a data center.'” Third, I want to point out that the demands for electricity are so great that the coal energy source that was once abandoned will come back in a big way if the utilities do not prevent President Donald Trump and the Department of Energy from forcing coal companies or coal users to continue using it. The pollution of the US fuel compared to 5 – % In 2007 and now it is down to 15-17% of the energy source of the grid Even though it is down 40% from 2010, it is still 173-190 gigawatts (GW) of power We may need 90-100 GW of new power if the data center buildout continues at this pace, so it is coal or coal shutdown . which brings me back to Babcock & Wilcox last Friday, B & W put the offer of 10.8 shares at $ 18.50, mainly to remove the balance sheet before the end of the trading of 2 $ 21.85 So you can call the deal an extraordinary success, even as it was hosted by B. Riley, the brokerage house investigated by the Securities and Exchange Commission until February 2024. Short sellers demanded that the $2.4 billion contract with Applied-backed Base Electron be used to pump up B&W stock apparently has the technology needed to build the plants, but because I don’t want anyone to think that B&W has too many energy contracts that may not have raised money without the Base Electron contract, and we have no real certainty that Applied Digital will face its plans Like many companies in this field, Applied Digital is losing is $1 billion now worth $12 billion. After a while, 32% of the outstanding shares of Applied Digital are sold short. The billion also has another 15-year contract with an unspecified hyperscaler that is enough to make Applied Digital “real” and therefore has the power to build B&W stock. of natural gas power to tell me that it is sold and cannot add more plants than now, that is the main rap compared to GE Vernova is known to both B & W aficionados and short sellers, you have to know about the controversy surrounding the company, despite its completely legit obligations but in debt to CoreWeave Perhaps, he was given the second and B. Riley overhang, What money we have received for another reason: B & W’s exposure to coal of Base Electron-Applied of 1.2 gigawatts is right in the wheelhouse of the natural-gas-powering data center, B&W plays an important role in building and maintaining coal plants around the world – including the electric utilities themselves – has tried hard to get rid of coal until 2025, when President Trump came into office a big believer in coal Last year, he signed an order to “Renew America’s Good Coal Industry.” in the administrative orders and the prosecution of the agency against coal because of the environmental pollution it causes, however, that these plants are important in filling many resources throughout the country and are important in providing support power to 26% of our grid powered by renewable energy plants due to the oil embargo in the 1970s, Jimmy Carter, attacked by the problems of that generation by the producers of the Gulf, praised it as the Saudi Arabia of coal and compressed materials to build coal plants, that’s why 50% of the grid was coal in operation for 40 years, including good buildings he did, and the removal of coal as a source of energy crushed the company but now the president and Secretary of Energy Chris Wright are working hard to keep coal alive as part of the energy grid to prevent the closing of coal plants He used his emergency powers to stop the closing of coal plants in Michigan, Indiana, Colorado, and a coal data center and against slewable plans and loans needed to remove coal basically the anti-Biden on the issue. The CEO of Peabody Energy, the largest coal company in the US. The National Coal Council, which was abolished under President Joe Biden, promotes the interests of coal as a matter of national security. But if Wright succeeds, he buys it all. In addition, Core Natural has an export terminal in Baltimore that can export coal. with rising natural gas prices. Earnings were low and trading 11 times the Alliance is up 8% year over year. It was anti-traditional tobacco, as appropriate that made the company smokeless products. Remember, B & W traded in the dollar because it was unthinkable that the president would work like a national security issue, so coal is working now. extra money So does Eaton, GE Vernova, Vertiv, and Caterpillar weekly income instead of selling it (See here for a full list of stocks in Jim Cramer’s Charitable Trust.) 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