Green Markets - August 27, 2024

Aug 28, 2024

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

UBS has revised its lithium price forecast downward due to weaker-than-expected electric vehicle (EV) demand, adjusting its outlook for lithium demand through 2030 by about 10%. This adjustment reflects a slowdown in global EV sales, particularly in major markets such as China, the European Union, and the United States.

Brazil has launched a $1 billion program to develop sustainable aviation and marine fuels (SAF), funded by BNDES and FINEP. The initiative aims to promote biorefinery creation nationwide, focusing on developing, producing, and commercializing industrial technologies for sustainable fuels.
DHL Express and Brother Industries (Philippines) have partnered to cut greenhouse gas emissions by using DHL’s GoGreen Plus service, which leverages sustainable aviation fuel (SAF). This collaboration allows Brother to reduce its annual GHG emissions from international shipments by 30%.
Topsoe, Skovgaard Energy, and Vestas have launched the world's first green ammonia plant in Ramme, Denmark, with a DKK 81 million ($12.1 million) investment from the Danish Energy Technology Development and Demonstration Program (EUDP). The plant uses renewable energy from 50 MW of solar panels and 12 MW from wind turbines to produce 5,000 tons of green ammonia annually.
Worley is set to begin Front-End Engineering Design (FEED) for a $7 billion green ammonia project in Tarfaya, Morocco, in Q3 2024. The project, led by a joint venture between OCP Group and Worley, will produce one million tonnes of green ammonia annually, potentially expanding to three million tonnes annually by 2032. It includes a 2.8 GW wind farm, a 1 GW solar PV plant, 2.7 GWh of battery storage, and desalination plants for water.

Energy Markets Operation Inc. (EPİAŞ) and VERRA are collaborating to launch the world's first stock exchange-based voluntary carbon credit trading platform. This partnership aims to facilitate the trading of Verified Carbon Units (VCUs) created by VERRA in the voluntary carbon market, which EPİAŞ will operate.
Verra has initiated the piloting phase of its Scope 3 Standard (S3S) Program, aiming to certify value chain interventions and issue units for corporate emissions accounting. The pilot will test three methodologies from Verra’s Verified Carbon Standard (VCS) Program: Improved Agricultural Land Management, CO2 Utilization in Concrete Production, and Fuel Switching from coal to natural gas. Results from pilot testing will help refine the program before its official launch in 2025.

Related Stock List(s): Carbon Credit Stocks

Toyota Motor Corp and BMW are reportedly set to enhance their collaboration in the development of fuel cell vehicles, according to Nikkei Asia. The two automotive giants are expected to sign a memorandum of understanding next week, with an official announcement planned for September 5th.
The U.S. Department of Transportation has awarded $521 million in grants to expand EV charging infrastructure and alternative fueling stations. This funding, from the Infrastructure Investment and Jobs Act, will support the deployment of over 9,200 EV charging ports, with $102 million dedicated to charging and hydrogen fueling stations in California.
Canada is set to impose a 100% tariff on all Chinese-made electric vehicles (EVs), including those from Tesla, starting October 1, 2024. The Canadian government is also introducing a 25% tariff on Chinese steel and aluminum. This decision follows a significant increase in Chinese EV imports to Canada and is expected to impact Tesla's profit margins if it shifts production to the U.S. for Canadian sales.

Natron Energy will invest nearly $1.4 billion to build its first U.S. sodium-ion battery factory in North Carolina. The facility, expected to produce 14 GW of batteries at full capacity, will increase Natron's production by over 40 times its current output.

Linde has announced a $2 billion investment to build and operate a new clean hydrogen production facility in Alberta’s Industrial Heartland, set to be Canada’s largest and one of the world’s biggest. The facility, expected to be completed by 2028, will supply clean hydrogen to Dow’s Path2Zero project and other industrial customers, aiming to capture over 2 million metric tons of CO2 annually using autothermal reforming and Linde’s carbon capture technology.

Related Stock List(s): Hydrogen Stocks

The Nigerian National Petroleum Company (NNPC) has begun shipping LNG to Japan and China. The first shipment was delivered in June. NNPC, involved in LNG trading since 2021, has traded over 20 cargoes to European and Asian markets and plans to deliver at least two more LNG cargoes to Asia by November.

Related Stock List(s): LNG Stocks

South Korea is set to invest over $23 billion (30 trillion won) over the next five years in 12 strategic technologies, including AI, semiconductors, advanced biotechnology, and quantum technology. The initiative, called the 'First National Strategic Technology Nurture Plan,' aims to develop next-generation secondary batteries and small modular nuclear reactors (SMRs) by 2033 and expedite quantum computing advancements.

Estonian renewable energy producer Sunly has secured €300 million in debt financing to accelerate the construction of 1.3 gigawatts of solar, wind, and storage capacity across the Baltics and Poland. This financing, provided by Rivage Investment, Copenhagen Infrastructure Partners (CIP), and Norway's Kommunal Landspensjonskasse, brings the total capital raised by Sunly to €765 million. Sunly aims to develop hybrid installations that combine wind, solar, and energy storage.

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