Green Equity - August 8, 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), a diversified recycling firm, has announced a funding agreement with SBC Commerce LLC for $325 million (approximately $315 million net of transaction fees), pending final due diligence and regulatory approvals. This transaction includes a combination of direct investments and asset sales, recognizing a nearly $500 million valuation for Comstock's businesses. Additionally, Comstock plans to sell its Nevada real estate and water rights for $50 million ($47 million net of expenses), providing crucial growth capital for the company's continued commercialization efforts.
Hyliion Holdings (HYLN) has secured a Small Business Innovation Research (SBIR) contract from the U.S. Navy to develop a scalable, megawatt-scale modular generator system using its KARNO™ technology. This partnership will allow Hyliion to design a power solution for the Navy's Unmanned Surface Vessel (USV) program.
Crown LNG Holdings (CGBS), a developer of LNG terminals, has appointed Andrew Judson as Chairman of the Board, effective August 2, 2024. Judson, who has been an independent director on Crown's Board since July 2024, has extensive experience in the finance and energy sectors, including roles at Fort Capital, Camcor Partners, and FirstEnergy Capital. He has also served as a director at Pieridae Energy Limited and lead director at Condor Energies Inc.
EMX Royalty (EMX) has announced the execution of an exploration and option agreement for its Sulitjelma Project in Norway with Alpha Future Funds. Under the agreement, EMX will receive an initial cash payment and Alpha will commit to work on the project during a one-year option period. If Alpha exercises the option, EMX will receive additional payments, a 2% Net Smelter Return (NSR) royalty, and milestone payments linked to the project's progress.
Base Carbon (BCBN) has announced receiving approximately $11.2 million from the sale of carbon credits generated from its improved cookstove projects in Vietnam and Rwanda. The company has now received total payments of around $30 million from its Vietnam project, achieving full payback and initial capital returns within two years of the initial investment. Base Carbon holds an inventory of around 700,000 Article 6.2 (Paris Agreement) approved carbon credits from the Rwanda project, which are expected to be eligible for programs like CORSIA, the international aviation framework for reducing carbon emissions. The company completed an initial sale of 20,000 carbon credits from the Rwanda project, representing less than 3% of the initial credits issued, and continues to evaluate market-based opportunities for selling these credits.
Plug Power and Renault have received European Union approval to acquire their joint venture, HyVia, which targets the European market for hydrogen-powered vehicles and fueling stations. HyVia, a French joint venture, aims to capture 30% of the hydrogen-powered light commercial truck market in Europe by 2030.
Enovix Corporation (ENVX) has officially opened its new high-volume manufacturing facility, Fab2, in Malaysia. The facility will focus on producing high-energy density batteries and aims to become a key player in the advanced battery technology supply chain. The company plans to invest $1.2 billion in Malaysia over the next 15 years.
Tsakos Energy Navigation (TEN) has secured a $245 million financing deal from Dutch banks ABN Amro and ING Bank for its tanker fleet. TEN has recently ordered four LR1 new vessel builds at New Times Shipbuilding and one at Yangzijiang Shipbuilding, each valued at $55 million, with delivery expected between 2027 and 2028. This is part of TEN's broader newbuilding program of 12 ships, which also includes three shuttle tankers, two Suezmax vessels, and two MR product tankers.
Renergen (RLT) has officially launched its liquid helium production facility in South Africa, achieving full operational status as of August 8, 2024. The facility began operations on July 19. The company is now set to begin deliveries of liquid helium to global customers, with the first batch expected later this month.
Comstock’s business value was estimated to be $500 million and its market cap is $22 million. I know it will take awhile to achieve profitability and a lot can go wrong along the way - including black swan events that may send the whole enterprise into bankruptcy, but I think this company is worth a small investment.