Green Markets - July 4, 2024

Jul 05, 2024

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

The Abu Dhabi National Oil Company (ADNOC) has secured a $3 billion green financing facility from the Japan Bank for International Cooperation (JBIC). This agreement, part of JBIC’s Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) lending program, is supported by Japanese commercial banks and aims to accelerate ADNOC’s decarbonization and energy transition initiatives.

Arafura Rare Earths has received conditional approval from the German Government’s Inter-Ministerial Committee (IMC) for up to $115 million in loan guarantees via German ECA Euler Hermes. These guarantees will support the Nolans rare earth metals project in Australia’s Northern Territory.
In the second quarter, futures and options average daily volumes on the London Metal Exchange (LME) reached a 10-year high, increasing by 27% year-on-year to 730,385 lots. The surge was attributed to robust activity in copper and nickel markets, with copper volumes hitting a record high in May. Nickel volumes saw a notable 77% increase during the quarter, finally rebounding since the LME’s nickel contract trading suspension in March 2022.

Minnesota has secured a $213.6 million loan from the U.S. Department of Energy (DOE) to fund Bioforge Marshall LLC, a biomanufacturing facility in Marshall, Minnesota, owned by Solugen. The project will receive $15 million from the Minnesota Forward Fund, a state program aimed at fostering business growth.

The European Commission has imposed provisional countervailing duties (taxes) on Chinese battery electric vehicle (BEV) imports following an investigation that identified unfair subsidies benefiting China's BEV sector. Duties range from 17.4% to 37.6% and are effective from July 5, 2024, for up to four months, with a final decision expected within this period.

The U.S. Department of Energy (DOE) has announced a $100 million investment in non-lithium long-term energy storage projects. This funding, through the Office of Clean Energy Demonstrations (OCED), will back 3-15 projects with grants of $5-$20 million each, requiring matching private investment.

Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) are rumored to be considering making bids to acquire Santos Limited, an Australian LNG producer. No final decisions have been made, and discussions are ongoing.

The governments of Mali and Russia have signed three memorandums of understanding to enhance cooperation in nuclear energy. A Russian delegation led by Sprassky Nikolay Nikotavich of Rosatom, a Russian energy company, visited Bamako, Mali to sign these agreements.

The European Commission has approved a €10.82 billion French scheme to support offshore wind energy. The scheme, approved under the State aid Temporary Crisis and Transition Framework (TCTF), will run for 20 years and support the construction and operation of two offshore wind farms in the South Atlantic and Normandy regions.
Europe's largest solar power plant, located in Witznitz, Germany, was officially inaugurated on a former lignite open pit mine. Developed by Move On, the plant boasts 650 MW of solar capacity, with Shell Energy Europe purchasing 600 MW under a power purchase agreement (PPA). Shell will sell a portion of this power to Microsoft, aiding the tech giant's goal of sourcing 100% renewable energy by 2025.

Danish pension fund Velliv, managing around €45 billion in assets, has backed Nuveen’s second global climate inclusion private equity strategy, raising approximately $200 million. This Article 9 fund targets climate change and global inequality, aiming to provide basic financial services to low-income consumers to help them build resilience to climate change.
Deutsche Bank has raised €500 million through its first social bond offering to support its sustainable asset pool. The offering focuses on financing affordable housing and essential services for the elderly and vulnerable. Proceeds will be directed towards loans and investments that support a transition to a sustainable global economy and societal progress.

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