Green Markets - December 6, 2024

Dec 07, 2024

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

Goldman Sachs has quit the Net-Zero Banking Alliance (NZBA), a coalition of banks committed to aligning their lending and investments with global climate goals. The bank did not specify its reasons for leaving but plans to still hit its sustainability goals and comply with evolving regulatory requirements. The decision follows growing pressure from some Republican politicians, who argue that membership in such alliances could violate anti-trust rules.
Qatar is investing £1 billion ($1.27 billion) in green technology start-ups in the UK and Qatar, focusing on energy efficiency, carbon management, and renewable power. Additionally, the UK and Qatar will sign a memorandum of understanding on financial services to deepen their economic ties.

The Australian government is investing $475 million in Iluka Resources' Eneabba rare earths refinery in Western Australia. This initiative aims to reduce reliance on China by establishing a sovereign supply chain for critical minerals. The funding is part of the $4 billion Critical Minerals Facility and will help produce rare earth oxides used in batteries, magnets, and defense systems.

Phillips 66 and United Airlines have signed a SAF supply agreement. Phillips 66 will initially supply 3 million gallons of SAF to United at Chicago O'Hare International Airport (ORD), with the possibility of increasing this to 8 million gallons by mid-2025. Additionally, Phillips 66 will deliver 600,000 gallons to United at Los Angeles International Airport (LAX) by the end of 2024.

LG Energy Solution (LGES) is set to acquire GM's $1 billion stake in their Ultium Cells JV plant in Lansing, Michigan. This plant is expected to serve a new client, potentially Toyota. This comes as GM adjusts its EV production plans amid market slowdowns and regulatory uncertainty.

Woodside Energy plans to spend $1.3 billion in the coming months on the Louisiana LNG project after acquiring Tellurian for $1.2 billion in October. The project in Lake Charles, Louisiana, includes five LNG trains across four phases, with the first two phases targeting a combined 16.5 million tonnes per annum (tpa) capacity. Woodside aims to reach a final investment decision on the first phase, with 11 million tpa capacity, by Q1 2025.
BP is looking to sell a stake in its U.S. natural gas pipeline network, potentially raising up to $3 billion. The company is considering selling up to a 49% stake as part of CEO Murray Auchincloss's efforts to reduce BP's debt. In addition to this pipeline sale, BP is also looking to divest stakes in its solar, onshore wind, and offshore wind operations.

Related Stock List(s): LNG Stocks

The UK has delayed the closure of four aging nuclear power stations, extending their operation by up to two years, amid concerns that the drive for net zero could lead to electricity shortages. The plants, operated by EDF, generate around 15% of the UK's power. The closures of Heysham 1 and Hartlepool will now be postponed until 2027, and Heysham 2 and Torness until 2030.

Coca-Cola has scaled back its sustainability goals, reducing its target for using recycled materials in packaging from 50% by 2030… to 35%-40% by 2035. The company also altered its recycling goal, moving from a plan to recycle all plastic bottles by 2030 to ensuring the collection of 70%-75% of bottles and cans annually, without a specific timeline.

Related Stock List(s): Recycling Stocks

Meta Platforms has partnered with Invenergy to support four U.S. solar projects with a combined capacity of 760 MW. The projects will connect to the power grid between 2024 and 2027 and will be located in Ohio, Texas, New Mexico, and Arkansas.

Related Stock List(s): Water Stocks

Toesca Asset Management and Astarte Capital Partners have formed a strategic partnership to launch a $350 million investment platform focused on regenerative agriculture in Latin America. The platform, named Toesca Permanent Crops II (TPC II), will primarily invest in permanent crops using sustainable and regenerative practices.

Green Investing