Green Markets - September 12, 2024
Green Markets - September 12, 2024
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
The US Environmental Protection Agency (EPA) has enabled communities to hold warehouses accountable for air pollution through a new policy that allows lawsuits against warehouses violating air quality rules. The new rule requires large warehouses to implement measures like electrifying vehicle fleets or paying fees to reduce pollution.
PT Adaro Energy Indonesia plans to divest its coal mining unit, Adaro Andalan Indonesia, in a $2.45 billion sale as part of its shift away from fossil fuels. Adaro is diversifying into metals and green energy, including building an aluminum smelter, while still generating over 90% of its revenue from coal. Indonesia remains the world's top exporter of thermal coal, but Adaro aims to reduce its reliance on fossil fuels and boost non-coal revenue to over 50% by the end of the decade.
The European Commission has raised €10 billion through green bonds, which includes €5 billion in NextGenerationEU (NGEU) Green Bonds. The bonds were heavily oversubscribed, with final order books exceeding €54 billion and €77 billion, respectively. The funds will support EU policy programs and green projects under the national Recovery and Resilience plans, with a significant portion already allocated to various EU and Ukrainian initiatives.
HMM, South Korea's largest container shipper, plans to invest 23.5 trillion won ($17.5 billion) by 2030 to transform into a green shipping leader. The investment will be distributed across various sectors: 12.7 trillion won for containers, 5.6 trillion won for bulk cargo, 4.2 trillion won for logistics, and 1 trillion won for green management strategies.
Electric Vehicles
GM and EVgo are expanding their partnership to build larger, high-capacity EV charging stations with up to 20 stalls each. These new "flagship" stations will feature 350 kW chargers, canopies, and various amenities and will open in 2025. The expanded network aims to meet the growing demand for EV charging.
Stellantis is suspending production of the fully electric Fiat 500 for four weeks due to weak demand amid a global slowdown in EV sales. The suspension is a response to challenges in the European electric vehicle market, affecting all producers. Stellantis plans to invest €100 million in upgrading the Mirafiori plant and introduce a hybrid version of the Fiat 500 by 2025-2026.
Related Stock List(s): Electric Vehicle Stocks
Hydrogen
BP and Iberdrola have formed a joint venture and approved a final investment decision to build a 25-MW green hydrogen plant at BP’s Castellón refinery in Spain. The plant, set to be operational by the second half of 2026, will produce about 2,800 tonnes of green hydrogen annually. Powered by renewable electricity from Iberdrola’s photovoltaic and wind projects, the facility will be BP’s first industrial-scale green hydrogen project and part of its broader strategy to transition the refinery into an integrated energy hub.
ZeroAvia has raised $150 million in its Series C funding round, with the Scottish National Investment Bank contributing £20 million ($26 million), marking its first investment in hydrogen-based technology and sustainable aviation. The funding round was co-led by Airbus, Barclays Sustainable Impact Capital, and NEOM Investment Fund, with significant support from investors including American Airlines, International Airlines Group (IAG), and Amazon’s Climate Pledge Fund. The funding will aid ZeroAvia’s efforts to advance hydrogen-electric flight technology, following its first successful hydrogen-powered flight last year in the UK.
TotalEnergies has joined the “Japan Hydrogen Fund” as its first non-Japanese investor, contributing to a fund initially endowed with over $400 million. This fund, launched by the Japan Hydrogen Association and managed by Advantage Partners, focuses on developing the low-carbon hydrogen value chain in Japan. Major Japanese companies such as Toyota and Iwatani Corporation are also investors.
Related Stock List(s): Hydrogen Stocks
Nuclear Energy
The Swedish government is proposing investments of over $97 million in 2025 to boost fossil-free electricity production, with a strong focus on expanding nuclear power. The government aims to secure a reliable energy supply to meet Sweden’s net-zero emissions target by 2045.
South Korea has approved the construction of two new nuclear reactors, Shin Hanul 3 and 4, in Uljin city, marking a policy reversal from the previous administration's anti-nuclear stance. The reactors, each with a capacity of 1.4 GW, are scheduled to be completed by 2033.
Related Stock List(s): Nuclear Energy & Uranium Stocks
Renewable Energy
The European Investment Bank (EIB) and the Development Bank of Southern Africa are committing €200 million ($220 million) to support renewable energy projects in South Africa. Each bank will contribute €100 million to the initiative, which builds on their previous €400 million investment made in 2022.
Investment Funds
Allianz Global Investors (AllianzGI) has successfully raised €560 million for its Impact Private Credit Strategy (IPC). The IPC aims to provide loans to small and medium enterprises (SMEs) in Europe that tackle significant environmental and social issues, such as clean energy, resource efficiency, and accessible healthcare. Key investors include Allianz, APG Asset Management, and the European Investment Fund, among others.