Green Markets - August 21, 2024

Aug 22, 2024

Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.

BlackRock's support for environmental and social (E&S) shareholder resolutions has dropped to a record low of 4.1% this year, down from 6.7% last year and 47% in 2020-2021. This decline is attributed to many proposals being deemed overreaching, lacking economic merit, or redundant. The firm did not support any proposals to reverse sustainability risk management plans.
The World Bank has set a new record with its $6.5 billion Sustainable Development Bond issuance, featuring a dual-tranche offering that drew an unprecedented $22.7 billion in orders. The bonds, priced competitively over US Treasuries, will support sustainable development initiatives across World Bank member countries.
Amprion, the German electricity grid operator, has successfully issued a €1.1 billion green bond, part of its €9 billion debt issuance program. Proceeds will fund projects aligned with UN sustainability goals, mainly focusing on renewable energy integration and infrastructure modernization.

SQM, the world's second-largest lithium producer, is expanding its production in Chile's Atacama Desert despite a global glut that has driven lithium prices to their lowest in three years. The company increased its output by over 20%, aiming to produce 210,000 metric tons of lithium this year. In contrast, competitors like Albemarle are scaling back operations, though SQM is considering reducing its processing in China due to falling prices.

India has signed a significant agreement to export green ammonia to Japan. The deal involves Sembcorp Industries producing green ammonia in India, Kyushu Electric Power integrating it into Japan's energy mix, Sojitz Corporation facilitating business transactions, and NYK Line handling maritime transportation. This agreement supports India's strategy to produce over a million tonnes of green hydrogen annually.

NextDecade Corporation has withdrawn its carbon capture and storage (CCS) plans for the Rio Grande LNG facility in Texas, canceling its application with the Federal Energy Regulatory Commission (FERC). The company cited that the CCS project is not sufficiently developed for FERC review at this time.

Related Stock List(s): Carbon Capture Stocks

A recent study from Kyoto University, EPFL, and the University of Hamburg, published in Nature Magazine, reveals that major buyers in the Voluntary Carbon Market (VCM) are primarily purchasing low-quality and low-cost carbon offsets. This trend is observed among the top 20 buyers—including major oil corporations, airlines, and auto manufacturers. The study, analyzing offset retirements from 2020 to 2023, finds that these buyers are largely choosing offsets from older, less impactful projects rather than supporting new, innovative decarbonization initiatives.

Related Stock List(s): Carbon Credit Stocks

EVLO Energy Storage, a subsidiary of Hydro-Québec, has commissioned its first utility-scale battery energy storage system (BESS) in the United States, a 3 MW/12 MWh project in Troy, Vermont. EVLOGIX Energy Management System will maintain the project under a 20-year service agreement with Vermont utilities.

BNP Paribas and Canadian Imperial Bank of Commerce (CIBC) are leading the financing for HH2E AG's major green hydrogen project in Germany. HH2E aims to finalize investment for its 100 MW green hydrogen plant in Lubmin. The project, essential for Europe's climate goals, has requested over €200 million in loans and is part of Germany's broader effort to develop a significant hydrogen network. HH2E plans to scale the project to one gigawatt by the end of the decade and is also in talks with Equinor for additional investment.
Air Products is acquiring Saneg’s hydrogen production assets at Uzbekistan’s Fergana Oil Refinery for $140 million. Air Products will also manage several large-scale units at the facility. The acquisition is expected to close in Q4 2024.

Related Stock List(s): Hydrogen Stocks

GAS Entec is developing an LNG terminal for onshore regasification at the Port of Aqaba in Jordan. The terminal aims to reduce Jordan's dependence on imported natural gas and is scheduled for completion by Q2 2026.
MSC Mediterranean Shipping Company is expanding its fleet with up to 18 new dual-fuel containerships powered by LNG. This includes six vessels ordered from Shanghai Waigaoqiao Shipbuilding, scheduled for delivery between 2027 and 2028, and up to twelve ships from Penglai Jinglu, with eight firm orders and four optional. These new ships will feature LNG propulsion and be ready for ammonia and methanol as well.
Kuwait is in advanced talks with Qatar Energy for a potential 15-year LNG supply agreement. The agreement is expected to be finalized by the end of the year and commence in 2025, aligning with Kuwait's infrastructure upgrades.

Related Stock List(s): LNG Stocks

South Africa's Minister of Energy & Electricity has withdrawn the Ministerial Determination for procuring 2,500 MWe of nuclear energy in response to a legal challenge from environmental groups. The groups argued that the determination lacked proper public consultation and was based on an outdated Integrated Resource Plan. South Africa acknowledged procedural shortcomings and committed to updating the Integrated Resource Plan and conducting thorough consultations. Despite the delay, he affirmed the government's continued commitment to integrating new nuclear capacity responsibly.

ArcelorMittal and Atlas Renewables Energy are partnering to develop a solar plant in Paracatu, Brazil, with an installed capacity of 264 MWac. The project, part of the larger Luiz Carlos solar complex, aims to power ArcelorMittal's steel operations in Southern and Southeastern Brazil and contribute to its goal of becoming carbon-neutral by 2050. The solar plant, which will begin operations in late 2025, will be fully acquired by ArcelorMittal once completed. Atlas is investing approximately $424 million in the project, which will also supply renewable energy to cement producer Votorantim Cimentos.

Green Investing