Green Markets - July 9, 2024

Jul 10, 2024

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

In a recent decision, a panel from the D.C. Circuit rejected a request by 24 Republican attorneys general to halt a new Environmental Protection Agency (EPA) rule aimed at reducing methane emissions from the O&G industry during their appeal. The rule, part of the Clean Air Act, mandates stricter monitoring of methane emissions, limits routine flaring, and introduces requirements for enhanced leak detection technology.
Britain's new government, led by Prime Minister Keir Starmer and Finance Minister Rachel Reeves, has initiated steps to boost public and private investment with the establishment of a National Wealth Fund. This fund aims to attract significant private capital into new industries crucial for economic acceleration and achieving net zero goals. The government plans to immediately allocate £7.3 billion through the UK Infrastructure Bank. Legislation is also planned to institutionalize the National Wealth Fund as a permanent fixture in Britain's economic framework.

1PointFive has agreed to sell Microsoft 500,000 metric tons of carbon dioxide removal (CDR) credits over six years, supporting Microsoft's goal to become carbon-negative by 2030. The credits will come from 1PointFive's STRATOS facility in Texas, which is under construction and will capture up to 500,000 metric tons of CO2 annually.
Cemex has announced a significant investment in KC8 Capture Technologies, a startup specializing in carbon capture for the construction industry. Cemex plans to conduct a Front-End Engineering Design (FEED) study to potentially capture more than 100 tons per day of CO2 at one of its cement plants.

Volkswagen warned it might close the Audi factory in Brussels due to a sharp decline in demand for high-end electric vehicles, which has significantly affected the company's financial outlook. The plant, facing "long-standing structural challenges," might cease operations if no alternative use is found.

The Biden administration is set to provide a $1.2 billion conditional loan to Entek Lithium Separators LLC, to support the expansion of the US supply chain for lithium-ion batteries used in electric vehicles (EVs). Entek, a specialized battery component maker, plans to use the loan to build a new manufacturing facility in Terre Haute, Indiana.
Hithium has successfully installed Eastern Europe's largest battery energy storage system (BESS), with a capacity of 55MWh, in Razlog, Bulgaria. The project, managed by EPC company Solarpro, incorporates 16 energy storage containers, each holding 3.44MWh, based on Hithium's technology.

The Spanish government has approved nearly €800 million in subsidies for major green hydrogen projects, aiming to leverage the country's renewable energy resources to become a leader in Europe. The funds will support seven projects with a total electrolysis capacity of 652 MW, anticipated to spur over €6 billion in investments throughout their lifespans. Significant portions of the subsidies will go to projects managed by Repsol and Iberdrola, with Spain targeting 11 GW of electrolysis capacity by 2030 as part of its climate strategy.
ITOCHU Corporation has invested in ZeroAvia, which develops hydrogen-electric engines, and has appointed ITOCHU as its sales representative in Asia. They signed an MOU for collaboration for maintenance, airport, and hydrogen infrastructure in the region.

South Korea’s Posco International, a unit of the steel giant Posco, has added a sixth liquefied natural gas (LNG) tank at its first Gwangyang LNG import terminal. Additionally, Posco International has started building two new LNG tanks for the second Gwangyang LNG terminal, which will increase the company's total LNG storage capacity to 1,330,000 cubic meters by 2026.
Freeport LNG has shut down its LNG plant in Texas due to Hurricane Beryl, which made landfall on July 7th. Freeport LNG had recently resumed operations at all three liquefaction trains and accelerated a debottlenecking project, aiming to increase production capacity from 15 mtpa to over 16.5 mtpa.
Glencore has recently signed a long-term liquefied natural gas (LNG) purchase and supply agreement with Shenzhen Energy. Glencore's involvement in Shenzhen Energy includes a prior investment in its gas unit, reinforcing their partnership in the energy sector.
MET Group, an energy trader, has secured a 10-year deal to purchase liquefied natural gas (LNG) volumes from Shell. MET's expansion efforts also include establishing a presence in Singapore and securing long-term regasification capacities across Europe.

United States President Joe Biden just signed the bipartisan ADVANCE Act. The legislation is expected to speed up the timeline for licensing new nuclear reactors, reduce company fees, and simplify the environmental review process.

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