Green Markets - January 1, 2025
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
Battery Metals
BMW and Yamaha Motor have invested in rare earths startup Phoenix Tailings as part of its $43 million Series B funding round. The company is developing a low-emission process to produce rare earths, reducing dependence on China's supply. Funds will be used to build a $13 million facility in New Hampshire, capable of producing 200 metric tons annually by mid-2025, with plans for larger U.S. facilities if successful.
Related Stock List(s): Commodity Trust Stocks, Commodity Royalty Stocks
Biofuels/Chemicals
Avina Clean Hydrogen is investing $820 million to build a SAF facility in southwest Illinois. The project, utilizing KBR’s alcohol-to-jet technology, will produce up to 120 million gallons of SAF annually.
Related Stock List(s): Biofuels & Chemicals Stocks
Energy Efficiency
China's CATL, the world's largest EV battery maker with a 36.8% global market share, plans a Hong Kong listing to bolster its global presence and competitiveness. Pending regulatory and shareholder approval, the listing could raise at least $5 billion. Recent highlights include its €4.1 billion joint venture with Stellantis for a battery plant in Spain and the launch of an R&D center in Hong Kong.
Related Stock List(s): Energy Efficiency Stocks
Hydrogen
The U.S. Treasury Department will release guidance this week on hydrogen production tax credits under the 2022 Inflation Reduction Act. The rules are expected to include provisions for hydrogen produced using nuclear power. Credits will range from $0.60 to $3 per kilogram based on greenhouse gas emissions, with potential limits on megawatts from existing nuclear plants.
Related Stock List(s): Hydrogen Stocks
Liquified Natural Gas (LNG)
U.S. natural gas prices surged 49% in 2024, marking the biggest annual gain since 2016, driven by rising demand for LNG exports and colder weather forecasts. LNG flows to export plants reached a record 15.16 billion cubic feet per day in December, bolstered by new export facilities from Venture Global in Louisiana and Cheniere Energy in Texas.
Related Stock List(s): LNG Stocks