Green Markets - August 23, 2024

Aug 24, 2024

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

The U.S. Department of Energy (DOE) has updated its Carbon Utilization Procurement Grants program, increasing the maximum funding available for individual awards from $500,000 to $5 million. This $100 million program, part of President Biden’s Investing in America initiative and supported by the Bipartisan Infrastructure Law, aims to help states, local governments, and public utilities purchase products made from converted carbon emissions.

The U.S. Department of Agriculture (USDA) has announced $82.3 million in grant funding to support the competitiveness of specialty crops, including fruits, vegetables, tree nuts, and nursery crops. The funding, awarded through the Specialty Crop Block Grant Program (SCBGP) and the Specialty Crop Multi-State Grant (SCMP) Program, will benefit 65 recipients across 54 states and territories.

China's CMOC Group, the top global cobalt producer, expects supply pressures to ease in the second half of 2024 as global supply growth moderates. Despite cobalt prices hitting near eight-year lows, CMOC forecasts a healthier and more sustainable price environment in the medium to long term. CMOC remains optimistic about future demand, supported by the energy transition, AI development, and a recovery in the Chinese economy.

BP has acquired a 15% stake in a subsidiary of Zhejiang Jiaao Enprotech Stock, a Chinese sustainable aviation fuel (SAF) producer, for $49 million. The Chinese company plans to complete the construction of a SAF plant by the first quarter of 2025, with a production capacity of 500,000 tons per year, using used cooking oil and animal waste fat as feedstock.
Plenium Partners, through its Ecualia Capital Fund, has invested over €100 million in Italy's biomethane sector by partnering with Aragorn Value Leadership to develop a new platform for constructing and operating four biomethane plants. The first facility has already started construction, and operations are expected to begin in late 2025.
GAIL (India) Limited and Petron Scientech have signed a Memorandum of Understanding to jointly explore the establishment of a 500,000 tons per annum bio-ethylene plant in India.

Fortera has secured $85 million in Series C funding to scale its low-carbon cement technology. This innovative technology captures CO2 emissions from traditional cement production and converts them into low-carbon cement, which can be produced using existing cement infrastructure. The funding will support the expansion of cement plants, which are expected to mineralize 165,000 tons of CO2 annually.

Related Stock List(s): Carbon Capture Stocks

Volkswagen's target of achieving 200 GWh of battery capacity by 2030 is flexible and will be adjusted based on electric vehicle (EV) market demand, according to Thomas Schmall, the company's battery chief. Schmall emphasized that developing additional plants or expansions will depend on future market conditions.

Vietnam is set to launch its second LNG terminal in October 2024, with a capacity to import 3 million metric tons of LNG annually. This development is part of Vietnam's plan to expand its LNG infrastructure and reduce reliance on coal, aiming for LNG to account for 15% of its power generation by 2030.
Amigo LNG has secured a 20-year supply agreement with Malaysia's E&H Energy to provide 3.6 million tonnes per annum (mtpa) of LNG starting in Q3 2027.

Related Stock List(s): LNG Stocks

Kazakhstan, the world's largest uranium producer, has reduced its uranium production target for 2025 due to project delays and a shortage of sulfuric acid, which is crucial for extracting uranium. Kazatomprom, the state-run company, adjusted its 2025 production forecast to 25,000-26,500 tons, down from the initial target of 30,500-31,500 tons. Despite this reduction, the 2025 target still represents about 12% growth compared to the 2024 guidance of 22,500-23,500 tons.

Australia has approved a massive $13.5 billion solar project by SunCable. The project, known as the Australia-Asia power link, aims to export renewable energy from a giant solar farm in northern Australia to Singapore via a 4,300 km undersea cable. It plans to deliver up to 6 GW of green electricity to industrial customers in Darwin and Singapore, with electricity supply expected to begin in the early 2030s.

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