Green Markets - August 20, 2024

Aug 21, 2024

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

Egypt has launched its National Low-Carbon Hydrogen Strategy to transition to a low-carbon economy, emphasizing environmental sustainability in line with Egypt Vision 2030. The strategy leverages Egypt's geographical advantages and natural resources, particularly solar and wind energy, to support low-carbon hydrogen production and expand its use in various sectors, including industry and transportation.
Franklin Templeton’s ClearBridge Investments, Sun Life Financial’s SLC Fixed Income, and Crescent Capital have recently exited the Climate Action 100+ coalition. Their departures follow Goldman Sachs’ asset management arm's withdrawal and come amid a broader trend of high-profile financial institutions reevaluating their ESG commitments. The coalition, which now includes over 700 investors, had extended its mandate to 2030 last year.
Germany's proposed 2025 federal budget cuts climate action funding, reducing the Climate and Transformation Fund (CTF) allocation from €17.9 billion in 2024 to €15.9 billion. This reduction affects key areas such as heating transitions, hydrogen development, and natural climate measures.

The Dominican Republic announced the creation of a state mining company, Empresa Minera Dominicana S.A. (Emidom), to explore for rare earth mineral resources. The firm will have a nine-member board led by the minister of the presidency.

The Federal Aviation Administration (FAA) has announced nearly $300 million in grants from the Inflation Reduction Act to support aviation's transition to net-zero emissions by 2050. The funding is divided into:
- $244.5 million for 22 projects focused on sustainable aviation fuel (SAF) production, infrastructure, and supply chain improvements.
- $46.5 million for 14 projects aimed at developing low-emission aviation technologies.

The U.S. Department of Energy (DOE) has announced up to $127.5 million in funding to support the development of test centers for carbon capture, removal, and conversion technologies. The funding aims to advance research and evaluation of these technologies in industrial and utility settings, specifically focusing on cement manufacturing and power plants. The initiative addresses high costs and environmental risks associated with carbon capture systems, intending to make these technologies commercially viable.

Related Stock List(s): Carbon Capture Stocks

China's Ganfeng Lithium Group announced a $500 million joint venture with Turkey's leading lead-acid battery producer, YİĞİT AKÜ, to establish a lithium battery production facility in Turkey. The partnership will create a 5 GWh per annum lithium battery plant.

Petronet LNG, an Indian state-run company, has signed a memorandum of understanding (MoU) with the Sri Lankan government to develop LNG infrastructure. This agreement involves the development of storage facilities, a regasification unit, and the supply of LNG for multiple power plants in Sri Lanka. Once completed, a new 350 MW LNG-based power plant near Colombo would be the largest independent power producer in Sri Lanka and the first to operate using LNG.

Related Stock List(s): LNG Stocks

Maersk has joined a study led by Lloyd’s Register and nuclear start-up Core Power to assess the regulatory feasibility of nuclear-powered container shipping in Europe. The 12-month study, beginning in September, will explore the requirements for safety regulations and the potential of using fourth-generation reactors in maritime shipping.
China is set to launch the world’s first thorium molten salt nuclear power station in the Gobi Desert by 2025. This plant will use thorium, a safer and more abundant fuel than uranium, and employ a liquid salt or carbon dioxide cooling system, offering significant environmental and safety benefits.

The U.S. has shifted its stance to support global limits on plastic production through the United Nations plastic treaty. Environmental groups, such as Greenpeace, are urging further commitments, while the plastic industry opposes the move, advocating for recycling over production limits. The shift comes as the treaty nears its final negotiations in Busan, South Korea, in November 2024.

Related Stock List(s): Recycling Stocks

Sveaskog, Sweden’s state forest owner, has partnered with solar developer Alight to create 2 GW of solar projects by 2029. The collaboration will utilize Sveaskog’s land to construct solar parks, beginning with two initial projects covering 220 hectares in central and southern Sweden. Alight will handle the development, construction, and co-ownership, while Sveaskog will co-invest between 30% and 49% in the projects.
D. E. Shaw Renewable Investments (DESRI) has commenced construction on the Carne Solar and Storage project in New Mexico. The facility will feature a 130 MW solar power capacity combined with a 260 MWh battery energy storage system (BESS), which is expected to be commissioned next year. DESRI has secured a 20-year power purchase agreement with El Paso Electric to supply the energy generated from this project.

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