Green Capital - June 25, 2024
Financial news in environmental markets.
Green Capital is a daily series dedicated to tracking capital flows and emerging opportunities in environmental markets. Notable events include green investment deals, start-up fundraising, and new public listings.
Deals/Fundraising
According to CFO Jugeshinder Singh, the Adani Group, an Indian infrastructure conglomerate, plans to increase its capital expenditures to $15.6B in fiscal year 2025, up from $11.3B the previous year. Adani Green Energy, the renewable energy division, will invest approximately $4B to expand its capacity by 6 GW.
Volkswagen Group will invest up to $5B in U.S. electric-vehicle maker Rivian as part of a new joint venture to share EV architecture and software, with an initial investment of $1B followed by an additional $4B later. The investment will aid Rivian in developing its less-expensive R2 SUVs and planned R3 crossovers, set to launch in 2026, and help the company become cash flow-positive.
KKR and IGNIS have formed IGNIS P2X, a joint venture aimed at developing green hydrogen and ammonia projects. KKR will invest up to €400M to fund future projects, with both companies holding a 50% stake in IGNIS P2X. IGNIS, known for managing over 300 renewable projects globally and 6.6 GW of power assets in Spain, will leverage its expertise in renewables to support the development of P2X projects.
Doral Renewables, a leading U.S. developer and operator of renewable energy and storage projects, announced a $400M minority equity investment by Dutch pension APG on behalf of the largest Dutch pension fund ABP. This partnership will expedite Doral Renewables' development and construction of its energy pipeline, with APG also providing up to an additional $185M in corporate credit support and funding.
Australian climate and agritech venture capital firm Tenacious Ventures just closed a $12M funding round for its second fund. The firm has had to lower its funding target due to difficult market conditions in the venture capital industry. According to the Venture Capital Journal, VC companies raised a total of $106B in 2023, down 32% from 2022.
Castrol, a global lubricants company under the BP Group, has announced a strategic investment of up to $50M in Gogoro (GGR), a leader in battery-swapping technology for two-wheelers. The first tranche of the investment amounts to $25M in ordinary shares, giving Castrol approximately 5.72% ownership of Gogoro. Additionally, Castrol plans a second $25M investment in the form of a convertible note contingent on specific business collaboration milestones.
Private equity firm Kimmeridge, through its subsidiary Kimmeridge Texas Gas, has acquired a 90% stake in Commonwealth LNG, a project aiming to develop a 9.5M tons per annum LNG export facility in Cameron, Louisiana.
Castrol, a global lubricants company under the BP Group, has announced a strategic investment of up to $50M in Gogoro (GGR), a leader in battery-swapping technology for two-wheelers. The first tranche of the investment amounts to $25M in ordinary shares, giving Castrol approximately 5.72% ownership of Gogoro. Additionally, Castrol plans a second $25M investment in the form of a convertible note contingent on specific business collaboration milestones.
Skeena Resources (SKE) has secured a $750M financing package for its 100%-owned Eskay Creek mine redevelopment in British Columbia's Golden Triangle, which operated as an underground mine from 1994 to 2008. This funding, provided by Orion Resource Partners, ensures that the Eskay Creek project is fully funded and on track for open pit production by the first half of 2027. The financing includes:
$100M equity investment
$200M gold stream
$350M senior secured loan
$100M cost over-run facility.
Start-Up Investments
VoltR, a French producer of sustainable lithium batteries, has raised €4M in seed funding to scale up its battery refurbishment processes. Founded in 2022, VoltR uses AI-driven technologies to refurbish batteries, achieving up to 80% of their original storage capacity.
Neustark, a carbon removal technology firm, has secured $69M in funding to scale its solutions. Led by Decarbonization Partners, a collaboration between investment giants BlackRock and Temasek, this funding aims to expand Neustark's market presence and accelerate its goal of removing 1M tons of carbon dioxide by 2030.