Green Equity - September 24, 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
LanzaTech (LNZA) has partnered with Sekisui Chemical to develop waste-to-ethanol plants across Japan, converting municipal and industrial solid waste into ethanol using LanzaTech’s technology. The first facility will produce 10-12 kilotons of ethanol annually, with the potential to convert it into sustainable aviation fuel (SAF).
BluSky Carbon (BSKY) has secured a 10-year, $105 million sales agreement to supply up to 382,213 tonnes of biochar to a US-based purchaser for agricultural soil amendments. In the first year, BluSky will supply approximately 22,200 tons of biochar, scaling to 40,000 tons annually after that. The biochar is priced at $275 per ton.
Origin Materials (ORGN) announced a reorganization, including laying off around 28% of its workforce to reduce cash burn and accelerate its path to profitability. The company plans to operate its biomass-conversion plant, Origin 1, in Sarnia, Ontario, on a reduced, on-demand basis. Despite the restructuring, Origin has maintained its 2024 revenue guidance of $25M-$35M and a net cash burn of $55M-$65M. The company is also on track to begin commercial-scale production of PET caps later this year, with revenue growth expected in Q1 2025.
Eos Energy Enterprises (EOSE) is expanding its manufacturing facility in Pennsylvania, tripling its output to 800 MWh to meet the growing demand for its zinc-based batteries.
Price Targets & Reports
JPMorgan has reiterated its Overweight rating and $8.00 price target for NIO, following the launch of its first mass-market SUV under the ONVO brand. The firm is optimistic about NIO's sales growth, expecting the company's operating cash flow to turn positive in Q4 2024 and projecting that monthly sales of the L60 model could reach 10,000 to 15,000 units in 2025.
Citi reaffirmed its Buy rating on NIO with a $7.00 price target after the launch of the ONVO L60 model, which offers competitive pricing and battery-as-a-service (BaaS) options.
New Public Listings
Midori Carbon (MIDO) has been approved to be listed on the CSE. Midori has developed a platform and mobile application to simplify the trading of carbon credits, making it accessible for individuals to participate in this expanding market.