Green Markets - August 28, 2024

Aug 29, 2024

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

The New York State Common Retirement Fund has committed $2 billion to the FTSE Russell's Russell 1000 TPI Climate Transition Index. The index evaluates companies based on their fossil fuel reserves, carbon emissions, green revenues, management quality, and carbon performance. This commitment is part of a broader $20 billion initiative under the Fund’s Sustainable Investment & Climate Solutions program, which focuses on sustainable and climate-related investments.
John Podesta, the U.S. senior climate adviser, will meet with Chinese climate counterpart Liu Zhenmin in early September ahead of COP29 to advance U.S.-China climate cooperation. Their discussions will focus on emission reduction pledges for 2035 and funding for developing nations ahead of the COP29 summit.

Sibanye-Stillwater has secured a €500 million green loan for its Keliber lithium project in Finland. The financing includes a €250 million Export Credit Agency (ECA) guaranteed tranche, a €150 million tranche from the European Investment Bank (EIB), and a €100 million syndicated commercial bank tranche. This green loan will support the construction and development of lithium mining and processing facilities.

Fertiglobe has secured a €397 million contract with Hintco to supply 397,000 tonnes of green ammonia from its Egyptian production facility. The agreement, awarded in July 2024, will begin with an initial delivery of 19,500 tonnes by 2027, with total deliveries ramping up to 397,000 tonnes by 2033.

BHP has opted to avoid using carbon credits to meet its 2030 Scope 1 emissions reduction target. The firm aims to reduce carbon emissions through structural abatement instead of offsetting. With that said, BHP is leaving the option to use carbon credits on the table depending on how their plans unfold.

Related Stock List(s): Carbon Credit Stocks

Chinese firm Hygreen Energy is investing €2 billion ($2.2 billion) into green hydrogen production projects in Andalusia, Spain, as part of a deal with Spanish company Coxabengoa. The investment will support two projects: one in Málaga focused on component manufacturing, and another in Huelva dedicated to green hydrogen production.

Related Stock List(s): Hydrogen Stocks

Freeport LNG temporarily shut down its export facility in Texas on Wednesday after a fire suppression system unexpectedly activated in the control room of the pre-treatment facility during routine maintenance. The company confirmed that there was no active fire at the site and stated that it is actively working to resume operations. The incident occurred without any reported damage or ongoing safety concerns.

Related Stock List(s): LNG Stocks

Switzerland plans to overturn its ban on building new nuclear power plants to enhance energy security amid geopolitical uncertainties. The government intends to submit a proposal to amend nuclear legislation by the end of 2024, with parliamentary debate expected next year.
ČEZ, the Czech Republic's nuclear power plant operator, has signed a security agreement with the government to advance the selection of suppliers for small modular reactors (SMRs), with plans for initial deployment near the Temelín nuclear plant.

ExxonMobil is advancing its chemical recycling efforts with plans to build 14 new plants globally by 2027, aiming for 1 billion pounds of annual capacity. The company recently opened a plant in Baytown, Texas, and is investing in Cyclyx International's advanced recycling facility in Houston, set to start production in mid-2025.
California is expanding its recycling efforts with nearly $70 million in grants to increase recycling infrastructure across 30 counties. The funding will support over 250 new recycling sites, including reverse vending machines and mobile recycling units, with significant grants going to supermarket chains like Save Mart and Smart and Final.

Related Stock List(s): Recycling Stocks

Air Products has signed a 10-year power purchase agreement with Tatung Forever Energy in Taiwan to source solar electricity for its Taiwanese subsidiary, Air Products San Fu. The agreement will take effect in Q4 2024.
Due to financial challenges, Meyer Burger has paused its $400 million solar cell plant project in Colorado. The decision follows a reduction in the amount of debt financing the company planned to raise through the Inflation Reduction Act's 45X tax credits. High interest rates and market uncertainties have also contributed to the project's halt. Meyer Burger will not proceed with converting the former Intel semiconductor plant and will instead focus on its existing production site in Thalheim, Germany. The company had also planned to expand its Goodyear, Arizona, site, but that project is now on hold as well.

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