Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
Government/Regulatory
The Asian Development Bank (ADB) and Tajikistan's Committee for Environmental Protection have launched an $8 billion Climate Finance Plan to achieve the country's climate targets by 2030. This comprehensive plan addresses Tajikistan's severe climate risks, including melting glaciers, flooding, and food insecurity, by focusing on renewable energy, green transport, and sustainable agriculture.
Brazil is launching a new investment vehicle to boost sustainable projects. It will leverage a $2 billion climate fund to attract $10-20 billion in financing, focusing on emerging sectors like biofuels, water and sanitation, railways, and land recovery. The government aims to attract $20 billion for private ESG projects by leveraging its climate fund, requiring banks to on-lend at least six times the amount they receive.
Battery Metals
Cyclic Materials has received an equity investment from Microsoft's Climate Innovation Fund to advance its CC360 technology, which recovers rare earth elements from end-of-life hard drives. Traditional disposal processes focus on data destruction and metal recovery but neglect rare earths. CC360 allows IT asset disposal companies to separate and recover these valuable materials, adding an extra value stream.
Canada and British Columbia (BC) have announced a joint investment of $142 million into critical minerals infrastructure in northwest British Columbia. The funding aims to upgrade Highways 37, 37A, and 51 over approximately 800 km. These enhancements include widening shoulders, creating pullouts, establishing chain-up areas, and improving WiFi access to support mining activities in BC’s Golden Triangle region.
Ganfeng Lithium Group Co. announced plans to establish a derivatives trading desk. The desk will trade instruments linked to equities, indexes, commodities, and rates, with a maximum single-day position not exceeding $1.1 billion. Ganfeng, a major player in the lithium industry with global operations, including in Argentina, Australia, Mali, and Mexico, is also planning to issue up to $200 million in overseas bonds for a project in Argentina.
Elliott Investment Management is seeking to appeal a November court ruling that dismissed their claims against the London Metal Exchange (LME) over the cancellation of $12 billion in nickel trades. The LME suspended nickel trading on March 8, 2022, amidst a sharp price rise and later canceled trades made that day. The current Court of Appeal hearing, taking place this week, will determine whether Elliott's appeal will proceed, potentially impacting the commodities market significantly.
Biofuels/Chemicals
Oceania Biofuels has unexpectedly halted its $338 million biofuel plant project in Gladstone, Australia. According to Renew Economy, the project has been withdrawn from the Environment Protection and Biodiversity Conservation process, and the company's website is no longer accessible. The facility, initially scheduled to commence operations next year, aimed to produce 350 million liters annually of renewable diesel and sustainable aviation fuel from waste fats and oils.
Electric Vehicles
French oil major TotalEnergies and UK power firm SSE have launched a joint venture named Source to dominate 20% of the electric vehicle fast-charging market in Britain and Ireland. Over the next five years, Source plans to deploy up to 3,000 fast-charge points powered by renewable energy. TotalEnergies and SSE's partnership leverages TotalEnergies' expertise in charging infrastructure management and SSE's proficiency in integrated electricity grid operations.
Hydrogen
Saudi Aramco is set to acquire a 50% stake in Blue Hydrogen Industrial Gases (BHIG), a subsidiary of Air Products Qudra (APQ). The transaction includes options for Aramco to offtake hydrogen and nitrogen, although financial details were not disclosed. This investment aims to develop a hydrogen network in the Eastern Province of Saudi Arabia, serving both domestic and regional markets.
Liquified Natural Gas (LNG)
Chesapeake Utilities Corporation has received approval from the Florida Public Service Commission for three infrastructure projects aimed at expanding natural gas capabilities in Florida. These projects, managed by its subsidiary Peninsula Pipeline Company (PPC), will integrate renewable natural gas from local landfills into Florida City Gas's (FCG) distribution system across Brevard, Indian River, and Miami-Dade counties. These projects represent a combined investment of $46 million. Completion is expected by the first half of 2025.
Nuclear Energy
Serbia has taken a significant step towards revitalizing its nuclear industry by signing a memorandum of understanding (MoU) involving key ministries, academic institutions, energy companies, and scientific bodies. The MoU aims to develop a comprehensive program for nuclear energy in Serbia, aligning with the country's Integrated National Energy and Climate Plan which includes scenarios for nuclear energy use. Despite a ban on new nuclear plant construction since 1989, the MoU emphasizes that scientific research, development works, and staff training in nuclear technology have remained permissible.
Renewable Energy
Leeward Renewable Energy has secured a significant construction warehouse facility amounting to $1.25 billion to bolster its clean energy portfolio in the United States. This funding will support the development of six projects encompassing solar, wind, and battery storage technologies, with a total capacity exceeding 890 MW. These projects are slated for completion and operational deployment between 2024 and 2025.
The Development Bank of Southern Africa (DBSA) has committed to funding 36 projects under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), totaling more than $940 million.
Britain's Octopus Energy is poised to embark on new onshore wind projects following the lifting of an effective ban by the incoming Labour government. Octopus Energy aims to leverage energy market reforms, advocating for location-based pricing to incentivize local support for renewable energy developments.
Investment Funds
Eurazeo has raised €706 million for its inaugural transition infrastructure program, surpassing its initial €500 million target by over 40% in just 20 months. The Eurazeo Transition Infrastructure Fund (ETIF) received €663 million, focusing on essential services transitioning to a low-carbon economy, including energy, digital, clean transport, and environmental sectors.
Bluefield Partners, a London-based renewable energy-focused investment firm, is seeking to raise up to €500 million for its next investment vehicle. The company plans to close its funding round in the first half of 2025.