Green Markets - September 13, 2024

Sep 14, 2024

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

The United States SEC has dissolved its Climate and ESG Enforcement Task Force, which was established in March 2021 to address ESG-related misconduct. The Task Force's disbandment follows challenges, including industry resistance and mixed court outcomes, and is part of a broader shift in the SEC's approach to ESG issues. Despite the Task Force's dissolution, the SEC continues to advance several climate and ESG-related rules, including those on climate-related disclosures and investment practices.
The US International Development Finance Corp. (DFC) is considering increasing its funding to support India’s clean energy sector. The DFC, having already committed nearly $4 billion in India, is exploring further investments in clean energy manufacturing, including solar, wind, cooling technologies, and the electric vehicle value chain.
Colombia is considering a proposal to nearly triple its carbon tax to nearly $17.50. The country’s finance ministry will present the draft of the financing bill next week.

Mitsubishi has reached a preliminary agreement to acquire a stake in and offtake low-carbon ammonia from ExxonMobil's hydrogen facility in Texas, which aims to produce up to 1 billion cubic feet of hydrogen per day with 98% of CO2 removed, alongside over 1 million tons of low-carbon ammonia annually. The final investment decision is expected in 2025, with operations starting in 2029.
Allied Green Ammonia Pty Ltd (AGA) is seeking to raise approximately $6.5 billion for a large-scale green hydrogen and ammonia facility in Australia. The project, which aims to be one of the largest globally, will produce 486 tons of green hydrogen per day and 960,000 tons of green ammonia annually. Affinity Capital Group has been appointed as the lead manager and strategic adviser for the financing, with discussions ongoing with global infrastructure funds and government agencies.

Occidental's subsidiary, 1PointFive, has received funding from the US Department of Energy’s Office of Clean Energy Demonstrations to develop the South Texas Direct Air Capture (DAC) Hub. An initial $50 million will support engineering, permitting, equipment procurement, and community engagement. The total award could reach up to $650 million, covering both the initial DAC plant and the potential expansion of a regional carbon network. The South Texas DAC Hub aims to capture up to 500,000 tonnes of CO2 per year initially, with future plans to expand to over 1 million tonnes annually and potentially remove up to 30 million tonnes of CO2 in total.

Related Stock List(s): Carbon Capture Stocks

Vitol-backed VPI plans to invest up to €450 million ($496 million) over the next three to five years in battery projects in Germany. This investment aims to support Germany's goal of expanding renewable power capacity to 80% of the country's electricity by 2030.

Australia has unveiled a $50 billion plan to lead the global green hydrogen market, focusing on developing its domestic hydrogen industry and becoming a major exporter of clean hydrogen. The Australian government's new National Hydrogen Strategy, supported by $5.4 billion in this year's budget, includes incentives like tax incentives and other benefits. The plan aims to attract $33.6 billion in private sector investment, with a goal of producing over 1 million tons of green hydrogen annually by 2030, and potentially 15 million tons by 2050.
Australia and Germany have signed a $660 million agreement to advance their green hydrogen collaboration through the H2Global scheme, which will secure European buyers for Australian producers. The deal, part of a broader Energy and Climate Partnership, aims to establish new hydrogen supply chains and support Australia’s role in the global hydrogen market. The funding is evenly split between the two governments and responds to global energy trade disruptions.

Related Stock List(s): Hydrogen Stocks

Bangladesh plans to increase LNG purchases as domestic demand rises, following a cyclone-related suspension of its Summit LNG Terminal that lasted over three months. The state-run Rupantarita Prakritik Gas Co. Ltd. (RPGCL) has issued tenders for two LNG cargoes to be delivered in early October, with more purchases anticipated later this year. The Summit LNG Terminal, which was damaged by a storm in May, is now ready to resume gas supply to the national grid.
Cosco Shipping Energy Transport has placed an order for two LNG carriers with Dalian Shipbuilding Industry (DSIC). This expands its fleet of LNG carriers to 85, with 45 already in operation and 40 under construction. The new vessels will be operated by Cosco's newly-established subsidiaries, Yuanxing LNG Transportation Company and Yuanzhi LNG Transportation Company. The order aligns with Cosco's strategy to meet the growing demand for LNG transport, as China's LNG import volume has risen by 12.3% year-on-year, reaching 87.13 million tons in the first eight months of 2024.

Related Stock List(s): LNG Stocks

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