Green Markets - August 29, 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 Asian Development Bank (ADB) is finalizing a $500 million financing package for the Philippines under the Climate Change Action Program (CCAP) Subprogram 2 as part of its $10 billion climate finance commitment from 2024 to 2029. This funding aims to enhance the country's climate resilience by investing in public transport, clean energy, disaster risk management, and social protection.
Donald Trump's presidential campaign plans to reverse many of President Biden's clean energy regulations, including those on emissions from power plants and vehicles. He aims to expedite the approval process for new power plants and withdraw the U.S. from the Paris climate agreement. Trump also proposes reviving the coal industry and modernizing nuclear regulation to speed up approvals.
The European Investment Bank (EIB) has approved €10.8 billion in new financing to support various sectors. This includes €5 billion for clean energy projects like solar, wind, and a clean energy island off the Belgian coast, €2.6 billion for corporate innovation and business growth, and €3.1 billion for new housing, healthcare facilities, and educational infrastructure.
Agritech/Agriculture
The Canadian government is investing $87.5 million in sustainable agriculture projects across 30 academic institutions over four years. This funding will support research on best management practices, soil health, carbon sequestration, and emissions reduction. The initiative aims to enhance food security, climate resilience, and competitiveness in the agricultural sector.
Related Stock List(s): Agritech & Agriculture Stocks
Energy Efficiency
Independent power producer Eolian has entered into agreements with CPS Energy to deploy two battery energy storage system (BESS) projects with a combined capacity of 350 MW in the ERCOT market in Texas. The agreement expands on a previous 50MW storage deal between CPS Energy and Eolian in 2023.
NextEra Energy Resources (NEER) will construct a 600 MW standalone battery energy storage system (BESS) in San Bernardino County, California, with half of its capacity contracted to Anaheim Public Utilities (APU). The Roadhouse Energy Storage project, representing a significant investment of $535 million, is part of NextEra's ongoing efforts to expand its clean energy portfolio.
Related Stock List(s): Energy Efficiency Stocks
Hydrogen
South Australia's Hydrogen Jobs Plan (HJP) has received development approval for a major hydrogen hub. The project includes a 200 MW hydrogen-fueled power plant, 250 MW of electrolyzers, a 200 MW power generation unit, and a storage pipeline for up to 100 tonnes of green hydrogen. Construction is expected to start in late 2024, with the facility set to be operational by 2026.
Related Stock List(s): Hydrogen Stocks
Liquified Natural Gas (LNG)
QatarEnergy’s Golden Pass LNG project, which aims to transform a Texas LNG import terminal into an export facility, has requested a three-year extension from U.S. authorities, pushing the completion deadline to November 2029. The delay is attributed to significant setbacks, including the bankruptcy of its main contractor, Zachry, and ongoing construction challenges. Despite these issues, the project is approximately 80% complete, with the first liquefaction train nearly finished and progress on the other trains ongoing.
Related Stock List(s): LNG Stocks
Nuclear Energy
Kazakhstan will hold a national referendum to decide whether to construct its first nuclear power plant. The move follows increasing public demand for involvement in the country's energy decisions and aims to address the current energy deficit and support economic growth. The proposed plant faces scrutiny from environmentalists who are concerned about potential ecological impacts. Kazakhstan is considering technology options from France, China, Russia, and South Korea. The project is estimated to cost around $5 billion and involve international investment for construction and long-term waste management.
China has approved U.S. firm Westinghouse to supply four AP1000 nuclear reactors. These approvals, granted by China’s State Council, adds to the 16 reactors based on AP1000 technology already operational or approved in China.
Dominion Energy Virginia has received U.S. NRC approval to extend the operating licenses of North Anna Power Station's reactors for 20 more years, allowing them to operate until 2058 and 2060, respectively. This extension, combined with a similar extension for Dominion’s Surry Power Station, ensures that nuclear power will continue to supply about 40% of Virginia's electricity and 90% of its carbon-free power. Dominion is investing in significant upgrades to the North Anna facility, including replacing main generators and modernizing control systems. The company is also exploring the potential for adding a small modular reactor (SMR) at the site and plans to seek further NRC approvals for license extensions at other plants.
Related Stock List(s): Nuclear Energy & Uranium Stocks