Green Markets - January 9, 2025

Jan 10, 2025

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

BlackRock, the world's largest asset manager, announced it will leave the Net Zero Asset Managers Initiative (NZAMI). The move follows pressure from Republican politicians criticizing "woke capital." BlackRock, which manages $11.5 trillion, stated that two-thirds of its global clients are committed to cutting emissions.

Pony.ai is expanding its robotaxi services to Hong Kong, with plans to operate at Hong Kong International Airport. Currently, the company operates 250+ robotaxis in cities like Beijing, Guangzhou, and Shenzhen. The company is also collaborating with GAC AION to develop mass-produced robotaxis, with 1,000 vehicles expected to be built in 2025.
California's newly released State Rail Plan outlines a vision for a zero-emission, fully connected rail network by 2050. The plan aims to create up to 900,000 jobs and reduce carbon pollution by shifting 20% of all passenger miles to rail, moving nearly 200 million daily passenger miles off highways. Key projects include the electrified high-speed rail system connecting major regions and integrating local, regional, and intercity transit options. This ambitious plan is part of California's broader effort to build a clean transportation system and enhance economic opportunities, with a projected $310 billion investment by 2050.

American Electric Power Co. (AEP) has agreed to sell a 20% stake in its transmission business to KKR & Co. and PSP Investments for $2.8 billion. The deal covers AEP’s power transmission operations in Ohio, Indiana, and Michigan. The proceeds will support AEP’s $54 billion capital spending plan, and the sale is expected to close in the second half of 2025.
BHE US Transmission, part of Berkshire Hathaway Energy, has signed a non-binding MOU with Grid United for a 10% stake in the $3.2 billion North Plains Connector project. This project aims to link the Eastern and Western US electric grids with a 3GW HVDC line, the first of its kind. If finalized, BHE US Transmission would own 300 MW of the project.
The U.S. Department of Energy (DOE) has made a conditional commitment for a loan guarantee of up to $1.81 billion to Arizona Public Service (APS). The loan will help finance APS' investments in several projects, including:
- A 600 MWh battery energy storage system (BESS).
- New and upgraded transmission infrastructure.
- Renewable power generation.
- Grid-integrated energy storage systems.

ADNOC Gas has awarded $2.1 billion in contracts to enhance its LNG supply infrastructure for the Ruwais LNG Project. The contracts include the development of an LNG pre-conditioning plant, compression facilities, and transmission pipelines to supply feedstock to the Ruwais LNG facility. These infrastructure upgrades are part of ADNOC Gas' $15 billion capital expenditure plan through 2029, aiming to more than double its LNG production capacity to over 15 million tonnes per annum by 2028.

Related Stock List(s): LNG Stocks

The Czech Republic plans to eliminate coal by 2033 and increase its nuclear power share to 68% by 2040, up from 40% today. ČEZ has selected Korea Hydro & Nuclear Power to build two new reactor units at their Dukovany site, with deployment expected in the 2030s.
South Korea and the United States have signed a Memorandum of Understanding (MoU) to strengthen cooperation on nuclear technology exports. The agreement aims to enhance energy security, address climate change, and promote nuclear safety and non-proliferation. This collaboration could facilitate South Korea's nuclear exports, particularly for the Czech Republic's Dukovany nuclear plant project.

XOCEAN, a provider of ocean data services for the offshore energy and civil hydrography sectors, has secured a €115 million investment to accelerate its growth. The funding round was led by S2G Ventures, Climate Investment, Morgan Stanley's 1GT fund, and an affiliate of the Crown Family's CC Industries. The investment will support XOCEAN's expansion, product innovation, and its global platform servicing sectors like offshore wind development, asset integrity assurance, and carbon capture and storage (CCUS). The company has supported over 48.6 GW of offshore wind development and is a key partner for major energy companies like Ørsted, BP, and Shell.

Related Stock List(s): Water Stocks

InnoEnergy raised over €4.3 billion in 2024, closing 56 rounds of funding for its cleantech portfolio, which includes investments in sectors like wave energy, battery technology, and green steel. Despite market challenges, the company added 14 new cleantech startups to its portfolio. Additionally, InnoEnergy completed a €140M private placement.

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