Green Markets - October 30, 2024

Oct 31, 2024

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

OCP and Engie have signed a preliminary agreement to invest up to $18 billion in renewable energy, desalination, and green hydrogen projects across Morocco. The first renewable projects are planned for 2026, with desalination and green hydrogen targeted for 2028 and 2032. This initiative supports OCP’s goal of carbon neutrality by 2040, while TotalEnergies also explores green hydrogen and ammonia projects in Morocco as the country aims to become a renewable fuel export hub for the EU.

BHP has clarified that comments made by its chairman at the recent annual general meeting do not rule out a renewed offer for British copper miner Anglo American, despite previously walking away from a $49 billion bid earlier this year. Speculation is growing as the six-month freeze on BHP's ability to make another approach expires in late November. Anglo American has declined to comment on the situation.

Chesapeake Utilities Corporation has completed its renewable natural gas (RNG) facility at Full Circle Dairy in Lee, Florida. This $22 million project processes dairy manure to produce pipeline-quality RNG, with an expected output of 100,000 dekatherms per year.

Saudi Arabia plans to launch its own emissions trading system (ETS) by 2027. The country will model its system based on the EU and other established markets.

The ICAO, the UN aviation agency overseeing the CORSIA carbon offsetting scheme, has approved four carbon registries for use in the CORSIA system. The four registries are Verra, Gold Standard, Global Carbon Council, and Climate Action Reserve. Combined, these four registries issued approximately ~85% of the total supply in the VCMs at the end of 2023.

Related Stock List(s): Carbon Credit Stocks

The European Union has approved tariffs on Chinese-made EVs, which will increase to as much as 45.3% in response to what it deems unfair subsidies from China. This move follows an anti-subsidy investigation that revealed China's substantial production capacity in EVs, outpacing EU demand. While the EU hopes to negotiate alternative solutions with Beijing, China has expressed strong discontent with the tariffs and is conducting its own investigations into EU imports.

Chinese battery material company CNGR Advanced Material Company plans to invest $10 billion in a large-scale battery material production facility in Indonesia. The project, expected to unfold over 10-15 years, has secured national strategic project status from the Indonesian government, which provides benefits like land procurement. Covering up to 5,000 hectares, the facility will produce battery precursor products, with CNGR open to partnerships for additional processing plants on-site.
A fire broke out at the Critical Mineral Recovery lithium-ion battery recycling plant in Fredericktown, Missouri, prompting evacuations in parts of Madison County. The fire, which started around 2 p.m., has drawn over 15 fire departments from surrounding areas to contain the blaze.

UK Chancellor Rachel Reeves has announced £2 billion ($2.6 billion) in funding for 11 green hydrogen projects across the UK. This funding, part of the 2024 Budget, aims to support a combined 125 MW of capacity, with an initial £90 million earmarked for construction.

Related Stock List(s): Hydrogen Stocks

Brookfield Asset Management has acquired a 12.45% minority stake in four U.K. offshore wind farms from Ørsted for approximately $2.3 billion. The wind farms—Hornsea 1, Hornsea 2, Walney Extension, and Burbo Bank Extension—have a combined capacity of 3.5 GW. Ørsted retains a 37.55% stake and will continue to manage operations, with an option to repurchase the stake within two to seven years.

Morocco and Veolia have signed a Memorandum of Agreement to develop Africa’s largest seawater desalination project near Rabat, Morocco. This public-private partnership will deliver 822,000 cubic meters of drinking water daily (300 million cubic meters annually) to serve the Rabat-Salé-Kénitra and Fès-Meknès regions, supplying nearly 9.3 million residents affected by severe drought. Veolia, leveraging its advanced desalination technology, plans to design, finance, and operate the plant for 35 years.

Related Stock List(s): Water Stocks

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