Green Markets - August 19, 2024
Green Markets - August 19, 2024
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
The SEC's climate risk disclosure rules are facing legal challenges from Republican Attorneys General and industry groups, but the SEC argues that these rules are crucial for protecting investors by providing consistent and comparable information on climate-related financial risks. The SEC’s recent court filing emphasizes that climate risks can significantly impact a company's financial performance, making transparent disclosures essential for informed investment decisions.
A U.S. federal court has blocked a Missouri regulation restricting financial professionals from integrating ESG considerations into investment advice. The rule, which required written client consent for incorporating nonfinancial objectives, was deemed unconstitutionally vague and problematic due to its potential to encompass other essential financial considerations. The court's decision reflects ongoing legal and political battles over ESG investing, with Missouri being a notable participant in anti-ESG initiatives.
Donald Trump has pledged to repeal Biden administration rules on power plant pollution and block Nippon Steel's acquisition of U.S. Steel, aiming to limit foreign influence on U.S. industries. He also promised to increase the number of nuclear reactors and possibly rescind the $7,500 EV tax credit.
Banpu Public Company, a Thai energy firm, is increasing investments in technology to reduce carbon emissions, focusing on carbon capture, battery farms, and manufacturing. The company plans to invest $350 million this year, with significant funds directed toward decarbonization and digitalization. The company is also expanding its renewable energy and e-mobility efforts, with recent investments in solar, battery technologies, and electric vehicles.
Biofuels/Chemicals
reNIKOLA Holdings is set to invest over $240 million in developing 40 compressed biomethane gas projects in Indonesia. The company's subsidiary, reNIKOLA Primer Energi, will partner with Perkebunan Nusantara IV to advance these projects. The company is also exploring large-scale solar and hydro projects as part of its bioenergy focus.
Future Biogas has acquired a 51% stake in a UK portfolio of six gas-to-grid anaerobic digestion (AD) facilities from JLEN Environmental Assets Group for £68.1 million. This move aligns with Future Biogas's strategy of expanding from plant operation to ownership and development, supported by a pipeline of new projects.
Orsted, a renewable energy leader, has halted its FlagshipONE eMethanol project in Sweden due to slow market development, high project costs, and difficulty securing long-term offtake contracts. Despite its initial investment decision in 2022, the project faced challenges with sustainable methanol's high costs and the immature regulatory environment. The decision resulted in significant cancellation fees and impairments, totaling around $44 million and $215 million, respectively. Orsted will focus on renewable hydrogen and de-prioritize liquid e-fuels, anticipating that the e-fuels market will take longer to mature.
Carbon Capture
RepAir Carbon and C-Questra have partnered to develop Europe’s first onshore Direct Air Capture and Storage (DACS) project in Grandpuits, France, aiming to capture and store 100,000 tons of CO2 annually by 2030.
Related Stock List(s): Carbon Capture Stocks
Voluntary Carbon Markets (VCMs)
Singapore's GenZero and Keppel Limited have signed an MOU to use carbon credits to retire the South Luzon Thermal Energy’s 246 MW coal-fired power plant by 2030. The carbon credits will help fund the early closure and replace the coal plant with a renewable energy facility, including solar and battery storage.
Related Stock List(s): Carbon Credit Stocks
Hydrogen
Indonesia plans to invest up to $25.2 billion in green hydrogen by 2060. State-owned PT Pertamina will lead the effort with $11 billion allocated for green energy projects.
Related Stock List(s): Hydrogen Stocks
Liquified Natural Gas (LNG)
If re-elected, Donald Trump plans to significantly increase U.S. LNG exports, potentially boosting trade with China despite his campaign's focus on opposing the country. Trump proposes deregulating the LNG sector, including removing restrictions on export approvals.
The Aqaba Development Corporation (ADC) has signed a $125 million agreement to develop Aqaba's Liquefied Natural Gas (LNG) Terminal. The deal involves constructing an onshore regasification unit and upgrading existing LNG port facilities. The project also benefits from partial financing and support from the Ministry of Planning and International Cooperation and the Kuwait Fund for Arab Economic Development.
Related Stock List(s): LNG Stocks
Nuclear Energy
China has approved 11 new nuclear reactors, marking a record expansion in its nuclear energy sector with a $31 billion investment. This push aims to bolster China’s goal of becoming the world’s leading nuclear power generator by 2030.
Germany's Grafenrheinfeld nuclear power plant was demolished on August 16, 2024. The plant, which began operations in 1982 and was closed in 2015 as part of Germany's nuclear phase-out policy, had provided over 11% of Bavaria's energy while operational.
Related Stock List(s): Nuclear Energy & Uranium Stocks
Renewable Energy
Meta has signed two power purchase agreements with RWE to procure 374 MW of clean energy from solar farms in Illinois and Louisiana. This supports Meta's sustainability goals, including achieving net-zero emissions across its supply chain by 2030.
Acen Australia has received approval from the New South Wales Independent Planning Commission for its 600 MW solar-plus-storage project. The project will feature a centralized battery energy storage system (BESS) with a capacity of up to 600 MW/1,200 MWh.