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European Coal Prices Rise as Profitability Jumps This Winter

(Bloomberg) - - Demand for coal in Europe is increasing ahead of the winter as rising gas prices make the dirtier fuel more profitable to burn to generate power.

Coal plants in Germany remain significantly more profitable than gas plants, even as the benchmark intraday price for the dirtier fuel rises to its highest level in a month and carbon trades near a record above 70 euros. The spark-and-dark chart for the first quarter of next year, estimating profitability for the different fuel types, shows coal margins above 80 euros and gas with negative margins. 

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