Green Markets - September 3, 2024

Sep 03, 2024

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

BP America's Cherry Point Refinery in Washington state has been awarded a $26.8 million grant to build infrastructure and purchase equipment for producing sustainable aviation fuel (SAF) using renewable biomass feedstocks. The refinery is expected to produce 10 million gallons of SAF annually.

Eni and Snam have launched Italy's first carbon capture, transport, and storage (CCS) project. The project captures CO2 from Eni's gas treatment plant, transports it via pipelines to an offshore platform, and stores it 3,000 meters underground. Powered by renewable energy, it has achieved a reduction of over 90% in CO2 emissions. By 2030, the project aims to store up to 4 million tons of CO2 annually and serve as a hub for decarbonizing energy-intensive industries.

Related Stock List(s): Carbon Capture Stocks

BYD, China’s leading electric vehicle maker, has paused its plans to announce a major new plant in Mexico until after the US presidential election due to uncertainties in American trade policy. The company will now wait for the election outcome between former President Donald Trump and Vice President Kamala Harris. This decision follows Tesla's similar move to delay its Mexican factory plans amid shifting US policies on trade.

The construction of Northvolt’s $7 billion EV battery plant in Quebec could be delayed by up to 18 months due to a strategic review by the company and a global slowdown in EV demand. Originally slated to begin production in 2026, the review's results are expected by early fall, with site preparation and design continuing in the meantime.
The U.S. Department of Energy (DOE) has announced $125 million in funding to support two new Energy Innovation Hubs focused on advancing energy storage technologies. Argonne National Laboratory will lead the Energy Storage Research Alliance (ESRA) to develop advanced batteries for heavy-duty transportation and grid storage, while Stanford University will head the Aqueous Battery Consortium (ABC) to enhance large-scale aqueous battery technology.

Spain has awarded a €150 million subsidy to Cobra, a subsidiary of French company Vinci, to support its green hydrogen initiative. The project has also received a €220 million grant from the European Commission.

Related Stock List(s): Hydrogen Stocks

The Biden administration has granted the first new LNG export license since halting permits in January, approving a five-year license for New Fortress Energy’s Fast LNG project offshore near Altamira, Mexico. This decision allows New Fortress Energy to export LNG globally. The original pause in licenses was implemented to assess the impact of LNG exports on climate change, national security, and the economy, but faced backlash from industry advocates who argued it threatened energy supplies for U.S. allies.
In August, U.S. LNG exports rebounded to 7.48 million metric tons, up from 6.69 MT in July, driven by increased output from Freeport LNG following an outage and the completion of maintenance at other facilities. The majority of U.S. LNG exports were directed to Asia (43%), while Europe received 39%, followed by Latin America with 14%.
Saudi Aramco is actively pursuing mergers and acquisitions in the downstream and LNG sectors to enhance its international footprint and secure new markets for its crude oil. The company has recently expanded into the Chinese and Pakistani markets through acquisitions, including a 40% stake in Gas & Oil Pakistan and refinery deals in China. Additionally, Aramco has engaged in discussions to acquire a 10% stake in Hengli Petrochemical and signed a non-binding agreement to purchase LNG from Sempra’s Port Arthur project, with potential plans to acquire 25% of Phase 2.

Related Stock List(s): LNG Stocks

Nigeria and China have signed a comprehensive nuclear energy partnership agreement during the 2024 Forum on China-Africa Cooperation (FOCAC) summit in Beijing, strengthening their ties in nuclear energy. China, already Nigeria's largest bilateral lender, has invested heavily in Nigerian infrastructure, including ports and rail lines, under the Belt and Road Initiative. President Tinubu also secured commitments from Chinese companies, including Huawei, to establish a joint solar PV test lab and build an electric tricycle assembly plant in Nigeria.

Lumio, a residential solar panel provider, has filed for Chapter 11 bankruptcy in Delaware, listing assets and liabilities between $100 million and $500 million. The company plans to sell itself to its primary lender, White Oak Global Advisors. This filing follows similar troubles faced by SunPower, highlighting broader issues in the US solar industry due to subsidy changes and high interest rates.

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