Green Markets - August 5, 2024

Aug 06, 2024

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

Brazilian President Luiz Inácio Lula da Silva has approved a new bill establishing a legal framework for low-carbon hydrogen, effective January 1st, 2025. The legislation aims to boost investment in green hydrogen production. However, Lula vetoed provisions granting tax credits, citing concerns over financial and legal implications.
Republicans' attempt to repeal the SEC's climate disclosure rule via the Congressional Review Act (CRA) has failed, as the window for repeal closed on August 1st, 2024. The SEC’s climate rule, finalized in March, is currently facing legal challenges in the U.S. Eighth Circuit Court of Appeals. Although the CRA repeal attempt has failed, the rule is still targeted by House Republicans through the appropriations process, with a proposed bill aiming to block funding for its enforcement and implementation.
Alaska Governor Mike Dunleavy has signed three new energy bills into law:
- HB 50 establishes a regulatory framework for carbon capture, utilization, and storage (CCUS), aiming to attract investment and develop Alaska’s geologic resources while expanding the Regulatory Commission of Alaska’s jurisdiction.
- HB 307 eliminates wheeling rates along the Railbelt and creates a new Railbelt Transmission Organization to improve grid access and incentivize energy development.
- HB 273 creates the Alaska Energy Independence Fund to assist in financing sustainable energy projects and leveraging federal funds for energy efficiency improvements.

Woodside, an Australian oil and gas company, is set to acquire a blue ammonia manufacturing plant in Texas for $2.35 billion. The blue ammonia plant, under construction by OCI Global and expected to commence operations in 2025, will initially produce ammonia from natural gas but aims to transition to lower-carbon production using carbon sequestration by 2026. A potential second production phase would require an additional $1.2 to $1.4 billion investment decision by 2026.
Eni, the Italian O&G giant, has partnered with Poste Italiane to supply biofuels for their ground and air fleets as part of Poste Italiane's efforts to achieve carbon neutrality by 2030.

The Indian government is seeking to launch the country’s carbon markets by the end of 2024. It’s estimated that India will approve up to 20 different carbon methodologies to meet this goal.

A Chinese court has ordered bankruptcy and reorganization for two subsidiaries of China Evergrande's electric vehicle unit, Evergrande New Energy Vehicle, and Evergrande Smart Automotive. The reorganization could impact production and ongoing negotiations for a stake sale in the EV unit. A creditor meeting for the reorganization is scheduled for October 22, 2024.

Tunisia has signed six memoranda of understanding (MoU) with European companies to produce green hydrogen. These agreements involve companies such as Tunur in partnership with Aker Horizons and Verbund, Savannah Energy, Hydrogen of France, DEME Hyport, Abo Energy, and an alliance of Amarenco and H2 Global. Tunisia aims to produce 8.3 million tons of green hydrogen and its derivatives by 2050, with 2.3 million tons allocated for domestic use and 6 million tons intended for export.

Related Stock List(s): Hydrogen Stocks

Cheniere Energy has signed a 20-year LNG sale and purchase agreement (SPA) with Galp Energia. Under this agreement, Galp Trading will purchase 0.5 million tonnes per annum (mtpa) of LNG from Cheniere Marketing. The agreement's deliveries are expected to begin in the early 2030s, contingent upon a final investment decision regarding the second train of the Sabine Pass Liquefaction Expansion Project, which aims to add up to 20 mtpa of LNG capacity.
QatarEnergy is nearing a $6.6 billion deal with South Korean shipbuilders HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean to construct 20 LNG carriers.

Related Stock List(s): LNG Stocks

The Biden-Harris Administration is investing up to $400 million through the USDA to help at least 18 irrigation districts across the western United States conserve water and maintain commodity production amid ongoing drought conditions. This initiative is expected to save up to 50,000 acre-feet of water across 250,000 acres of irrigated land by implementing innovative water-saving technologies and farming practices.

Related Stock List(s): Water Stocks

Breakthrough Energy Ventures, backed by Bill Gates and other notable investors, is set to launch its third fund, having already raised $839 million out of its $1 billion target. The new fund aims to support early-stage companies developing technologies to significantly reduce greenhouse gas emissions. Breakthrough Energy Ventures plans to expand its focus internationally to drive global innovation in climate technology.

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