Green Markets - September 10, 2024

Sep 10, 2024

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

Brookfield Asset Management has invested $1.1 billion in Infinium to scale its ultra-low carbon eFuels production. This investment includes $200 million for Infinium’s Project Roadrunner in West Texas and up to $850 million for future eFuels projects worldwide. The Project Roadrunner facility is set to begin producing eSAF by 2026 and will also produce eNaphtha and eDiesel for various applications.

China plans to expand its carbon emissions trading scheme to include the cement, steel, and aluminum sectors by the end of 2024. This inclusion would cover about 60% of the country's total greenhouse gas emissions. The expansion will occur in two stages, starting with familiarization from 2024 to 2026 and then transitioning to stricter quota reductions from 2027. The move is partly driven by the EU's impending carbon tariffs, which aim to address carbon leakage by imposing levies on high-carbon imports starting in 2026.

The European Union has adjusted its proposed tariffs on EVs from China, lowering the rate for Tesla to 7.8% from 9%, while keeping BYD's at 17% and reducing Geely's to 18.8% from 19.3%. The tariffs are in addition to the EU's standard 10% import duty on cars, with a peak rate of 35.3% applying to companies like SAIC that did not cooperate with the EU investigation.

Iberdrola's Australian division has begun construction on the Broadsound Solar and Battery project in Queensland. This project will feature 376 MW of solar PV capacity and a 180 MW/260 MWh battery energy storage system (BESS).

Sinopec's Huaying LNG Terminal in Guangdong Province, its first in the region, began operations on September 8th with the arrival of a 72,000-tonne LNG shipment from Australia. Phase I of the terminal has a receiving and handling capacity of 6 million tonnes annually, with plans to expand to 12 million tonnes upon completion of Phase II.
Egypt has issued a tender for 20 LNG cargoes to meet winter power demand due to a significant decline in domestic gas output. The tender, closing on September 12, includes 17 cargoes for delivery to the Red Sea port of Ain Sukhna and three to Aqaba port in Jordan. Domestic gas production has dropped to a six-year low and is projected to continue declining, while power consumption is expected to rise sharply in the coming decade.

Related Stock List(s): LNG Stocks

The U.S. Bureau of Land Management (BLM) has approved NV Energy’s Greenlink West transmission project and Arevia Power’s $2.3 billion Libra Solar project in Nevada. The Greenlink West transmission will span approximately 350 miles, while the Libra Solar project includes 700 MW of solar capacity and 700 MW/2.8 GWh of battery storage. The levelized cost of energy for this project is $93.69/MWh.
Enel, the Italian renewable energy giant, is preparing to exit its operations in Vietnam. The company had planned to develop up to 6 GW of renewable capacity in the country but is now considering withdrawing as part of a broader global reorganization under CEO Flavio Cattaneo. This move follows similar decisions by other Western firms, such as Equinor and Orsted, which have also scaled back their renewable investments in Vietnam.

WaterEquity has raised over $100 million for its Water & Climate Resilience Fund, which focuses on improving climate-resilient water and sanitation infrastructure in emerging markets. Major investors include Microsoft, Starbucks, Xylem, and others.
The U.S. Department of Energy has announced a $430 million investment in hydropower infrastructure, funding nearly 300 projects across 33 states. This initiative, part of the Bipartisan Infrastructure Law, aims to upgrade hydropower facilities by enhancing dam safety, improving grid resilience, and supporting environmental and recreational improvements.

Related Stock List(s): Water Stocks

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