Green Markets - December 5, 2024

Dec 06, 2024

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

Aramco, Linde, and SLB have partnered to develop a major carbon capture and storage (CCS) hub in Saudi Arabia. The first phase of the project, located in Jubail, aims to capture and store up to 9 million metric tonnes of CO2 annually from Aramco’s gas plants and other industrial sources. Aramco will hold a 60% stake, with Linde and SLB each owning 10%. The hub is expected to be operational by 2027.
Heirloom Carbon Technologies raised $150 million in its latest funding round to scale its direct air capture (DAC) technology. The funding will help expand projects and work towards the target cost of $100 per tonne for DAC.

Related Stock List(s): Carbon Capture Stocks

Stellantis and Zeta Energy have partnered to develop lithium-sulfur batteries for electric vehicles, targeting commercialization by 2030. These batteries, which eliminate expensive materials like nickel and cobalt, are expected to cost less than half of current lithium-ion batteries while offering similar energy potential. The technology could enable lighter battery packs, longer ranges, faster charging by up to 50%.

Private equity firm EQT has launched a new energy transition strategy, beginning with the acquisition of ju:niz Energy, a German battery storage company. The strategy, under EQT Infrastructure, will focus on investments in energy transition infrastructure, including electrification, EV charging, heat pumps, advanced recycling, and battery storage. EQT plans to invest between €300 million and €500 million per deal.
The European Union is investing over $1 billion to strengthen its EV battery industry. The funding is tied to strict sourcing rules that prioritize domestic production and reduce reliance on Chinese components like cathodes and anodes. In addition to the EV battery grants, the EU is also investing in hydrogen and net-zero technologies. The move reflects Europe's strategy to secure its industrial base while advancing its climate goals. However, sourcing restrictions could raise production costs and delay green technology rollouts in the short term.

Abu Dhabi National Oil Company (ADNOC) has signed a 15-year LNG supply deal with Malaysia's Petronas, starting in 2028. Under the agreement, ADNOC will supply 1 million tons of LNG per year. The company is expanding its LNG capacity, with the Ruwais project set to more than double ADNOC Gas’s current LNG production capacity to 15 million tons annually.

Related Stock List(s): LNG Stocks

BNP Paribas Asset Management (BNPP AM) has launched the BNP Paribas Low Carbon Transition Infra Equity Fund I, aiming to raise €750 million for investments in low-carbon infrastructure projects. It will make minority investments in energy transition projects, such as renewable energy, transport decarbonization, and carbon capture, with a focus on Europe.

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