Green Markets - July 8, 2024

Jul 09, 2024

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

A $10 billion statewide bond measure known as Proposition 4 will appear on California's November ballot. This measure, formally titled the “Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024,” aims to fund various environmental resilience projects. It includes $3.8 billion allocated for drinking water infrastructure, drought management, flood prevention, and water resiliency efforts.

Rio Tinto is in negotiations with workers at its Oyu Tolgoi copper operations in Mongolia to prevent further industrial action following a significant wage reduction that led to a strike in May. Changes in Mongolia's Labor Law led to recalculated employee allowances, resulting in wage drops of up to 80%. Workers, demanding wages comparable to those at other Rio Tinto mines, threaten another strike if key demands are unmet.
Chilean Cobalt has entered a letter of intent (LOI) with a Glencore subsidiary for an offtake agreement for its La Cobaltera project in northern Chile. Under the agreement, Chilean Cobalt (C3) will supply Glencore with 100% of the cobalt and copper production from La Cobaltera for five years, with pricing based on future market rates.

Phelan Green Energy, a green energy firm, announced a $2.4 billion investment in Peru to develop a large-scale green ammonia production facility. Phelan aims to produce 440,000 tons of green ammonia annually initially, with plans to scale up to 1 million tons.

Google has announced a strategic shift away from relying solely on carbon offsets to achieve carbon neutrality. Instead, it will aim for net-zero emissions by 2030 through direct emission reductions and investments in carbon removal projects. This change follows criticism of the effectiveness of carbon offsets, with Google's emissions rising significantly due to its AI-intensive operations.

Shandong province in China has announced plans to establish a 100 billion yuan ($13.8 billion) lithium battery industry by 2025. This initiative aims to build a comprehensive industrial chain covering electrode materials, electrolytes, battery cells, and assembly processes.

California has passed SB 1420 through the Assembly Natural Resources Committee. The bill aims to significantly increase hydrogen production to meet climate goals, leveraging the federal Hydrogen Hub status to attract $10 billion in private investment.
Adani, an Indian conglomerate, plans to invest $9 billion in a green hydrogen plant in Gujarat's Kutch district. This facility aims to produce one million tonnes of hydrogen annually and will also include specialized vessels for exporting hydrogen to Europe and select Asian countries.

Japan's power utilities are likely to seek additional LNG cargoes immediately due to an early heatwave that increased electricity demand. Market sources indicated that Japanese buyers are anticipating the need for around five cargoes. The heatwave has tightened power capacity in Tokyo and Kansai, leading Occto to request increased power supply and conservation efforts from consumers. Consequently, power prices on the JEPX have surged, encouraging utilities to purchase spot LNG cargoes to sell electricity at higher prices.
Petronas has expanded its LNG carrier fleet with three new vessels. Petronas now operates six LNG carriers dedicated to its North American operations. The Malaysian energy giant holds a 25% stake in the LNG Canada project, led by Shell, which is nearing completion in British Columbia, Canada. with commissioning expected to start later in 2024.
The Pennsylvania Department of Environmental Protection (DEP) has issued an Air Quality Permit Plan Approval for the construction and operation of the Frontier LNG natural gas production facility. The project is part of the KeyState Natural Gas Synthesis initiative, which aims to develop the first carbon capture project in Pennsylvania producing hydrogen, ammonia, and urea locally.

Hydro-Quebec and indigenous communities in Canada have announced plans to potentially develop up to 3 gigawatts (GW) of wind power. This project, estimated to require an investment of around CA$9 billion ($6.6 billion USD), could become one of the largest wind power developments in North America.
Invenergy, an energy company, has applied to construct a new wind farm in northeastern South Dakota. The proposed project would involve up to 68 turbines and cost an estimated $621 million. This initiative aims to deliver up to 250 MW of electricity.

The European Investment Fund (EIF) has committed €350 million to Kembara Fund I FCR, a €1 billion fund managed by Alma Mundi Ventures SGEIC. The fund will focus on deep tech and climate startups with strong intellectual property, particularly in areas like AI, robotics, space tech, and next-generation energy systems.
Orion Infrastructure Capital ("OIC") has successfully closed its inaugural Infrastructure Growth Fund above target, securing over $370 million in commitments, exceeding the initial goal of $350 million. OIC has already deployed over 60% of the fund across six investments in diverse sectors such as subsea environmental services, tidal power generation, battery technology, nickel-zinc battery cabinets, and electric vehicle infrastructure companies.
The South Yorkshire Pensions Authority (SYPA), managing a £10.2bn UK Local Government Pension Scheme (LGPS) fund, has significantly expanded its investments in climate opportunities and natural capital. SYPA has committed an additional £350m to the Border to Coast Climate Opportunities fund, which focuses on hydrogen technology, battery storage, and other renewable energy projects.

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