Green Equity - August 15, 2024
News about stocks involved in environmental markets.
Green Equity is a daily series dedicated to tracking emerging investment opportunities in environmental markets. Notable events include green investments, fundraising, M&A, and new public listings.
News From Public Companies
Comstock (LODE) and its subsidiary, Comstock Fuels Corporation, have validated renewable fuel conversion yields of up to 125 gallons per dry ton of woody biomass, a significant achievement for the company's biomass refining technology. These renewable fuels, including ethanol, gasoline, renewable diesel, and sustainable aviation fuel (SAF), are produced at market-leading yields and low carbon intensities. The company is now progressing towards financing and constructing a 50,000-ton-per-year commercial demonstration facility, with ambitions to increase yields to 150 gallons per ton through modular integration of carbon capture technologies.
Energy Recovery (ERII) has signed $27.5 million worth of contracts to supply its technology for seawater reverse osmosis (SWRO) desalination projects in Morocco. These projects aim to provide over one million cubic meters of potable water daily, addressing Morocco's water shortage crisis caused by prolonged drought.
Deveron Corp (FARM), an agriculture services and data company, has reached a Settlement Agreement with stakeholders, including Greg Patterson, and announced a private placement to raise up to C$3 million. The funds will be used for general working capital and partial repayment of promissory notes.
Wallbox (WBX), an EV charging solutions provider, has partnered with ChargeLab, an EV charging software provider, to expand its commercial offerings in North America. This strategic collaboration will provide distributors with bundled hardware and software solutions, featuring Wallbox's Supernova 180 DC fast charger and Pulsar Pro Level 2 charger, pre-configured with ChargeLab's smart software. Wallbox and ChargeLab aim to accelerate the EV transition by offering comprehensive charging solutions integrating advanced power management, pricing, and access control features.
ITM Power (ITM) has signed a contract for the Refhyne II project to supply 100MW of electrolyzer stacks to Shell's Rheinland Energy and Chemicals Park in Germany. The project will use renewable electricity to produce 44,000 kilograms of renewable hydrogen daily. Linde Engineering has been selected as the EPC integrator, and the electrolyzer is expected to begin operating in 2027.
Price Targets & Reports
Investment bank Alliance Global Partners downgraded Vicinity Motor (VEV) from “Buy” to “Neutral” due to increased uncertainty surrounding the company's funding. No price target was provided. The analyst expressed hope that lenders would collaborate with Vicinity to find an interim solution to secure alternative funding and preserve shareholder value. However, demand letters from the lenders have caused significant operational disruptions and could indicate a stricter stance from the lenders.
It seems to me that Comstock has been significantly de-risked with the 325 million investment by SBC Commerce. The details discussed in the quarterly conference make a compelling case for the market not recognizing the worth of the company at this time. Similar to what you have said about Base Carbon.