Green Markets - August 6, 2024

Aug 07, 2024

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

The U.S. Department of Energy (DOE) is investing $2.2 billion in grid infrastructure through 8 projects across 18 states. The projects aim to enhance resilience against extreme weather, reduce costs, and expand grid capacity by 13 GW. Funding is being provided through the Bipartisan Infrastructure Law’s Grid Resilience and Innovation Partnerships Program. This initiative focuses on grid hardening, smart grid technology, and increasing capacity to handle load growth and climate impacts.

Trafigura has finalized its acquisition of Greenergy's European and Canadian supply businesses from Brookfield Asset Management. Greenergy, a major European biodiesel producer and road fuel supplier, will now benefit from Trafigura's financial strength and global customer base.

Vopak, a global infrastructure operator, has signed a preliminary agreement with Australia's Northern Territory government to develop a CO2 import terminal and infrastructure hub in the Middle Arm area. The plan aims to capture and store at least 90% of emissions from the Middle Arm Precinct, contributing to the region's goal of achieving net zero emissions by 2050.

Related Stock List(s): Carbon Capture Stocks

Goldman Sachs predicts a sharp rise in European Union carbon allowance (EUA) prices as the EU carbon market decouples from gas prices, driven by Europe's increasing LNG supply and net-zero emissions goals. This surge is expected to make carbon capture and storage (CCUS) projects more profitable, with global CCUS capacity projected to reach 440 million tonnes per annum over the next decade.

The Integrity Council for the Voluntary Carbon Market (ICVCM) has determined that carbon credits generated by renewable energy projects, which represent around 236 million unused credits, are ineligible for its Core Carbon Principles (CCP) label. In essence, this move shuts out approximately 30% of the market from receiving a CCP certification. This decision is part of ICVCM’s effort to ensure that only high-integrity projects receive recognition for their emission reductions and sustainability efforts. At the moment, only 27 million credits, or 3.6% of the market, are approved for the CCP label.

Related Stock List(s): Carbon Credit Stocks

Lucid Motors has secured a $1.5 billion investment from Saudi Arabia to enhance production of its new Gravity electric SUV and expand its factory in the kingdom. This investment, from Ayar Third Investment Company, part of the Public Investment Fund (PIF), includes $750 million in convertible preferred stock and $750 million in an unsecured loan. With this funding, Lucid aims to ramp up production at its Saudi plant to 150,000 vehicles annually and at its Arizona facility to 365,000 vehicles.

The US Bureau of Land Management (BLM) is advancing nine hybrid solar and storage facilities across Nevada and Arizona, with a combined capacity of 6.2 GW of battery energy storage systems (BESS). These projects are part of the BLM's broader initiative to utilize over 245 million acres of federal land for renewable energy development.
Shell has secured a seven-year tolling agreement with BW ESS and Penso Power to trade power from the Bramley 330 MWh battery energy storage system (BESS), which will become the UK's longest-duration BESS upon completion.

ADNOC has signed a long-term agreement with Japan's Osaka Gas to supply up to 0.8 million metric tons of LNG annually, sourced mainly from ADNOC’s upcoming Ruwais LNG project in Abu Dhabi, which is expected to start operations by 2028.

Related Stock List(s): LNG Stocks

SunPower, a solar power firm, has filed for Chapter 11 bankruptcy protection and agreed to sell certain assets to Complete Solaria for $45 million. The company's shares dropped significantly following the announcement, with assets and liabilities estimated between $1 billion and $10 billion. This move follows a series of operational and financial challenges, including leadership changes and regulatory scrutiny. The asset sale process, expected to conclude by late 2024, may result in SunPower ceasing operations, despite the bankruptcy being a restructuring rather than a liquidation.

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