Green Markets - January 27, 2025

Jan 28, 2025

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

At least eight Republican lawmakers have urged their colleagues to preserve tax credits from the Inflation Reduction Act (IRA), highlighting the positive impact these credits have had on jobs and investments in their districts. The call came during a House Ways and Means Committee hearing, underscoring the challenge Republicans face as they attempt to repeal parts of the IRA in a tax package through reconciliation.

The U.S. Department of Energy (DOE) has approved a $996 million loan guarantee to Ioneer Rhyolite Ridge LLC to develop the Rhyolite Ridge Lithium-Boron Project in Nevada. Ioneer has partnerships with Sibanye-Stillwater, Ford and Toyota-Panasonic's joint venture.

Stockholm Exergi has been awarded SEK 20 billion (approximately USD $1.8 billion) by the Swedish Energy Agency for its bio-carbon capture and storage (bio-CCS) project. The funding, to be disbursed over up to 15 years, will support the construction of Europe’s largest bio-energy with carbon capture and storage (BECCS) facility at the Värtan bio-cogeneration plant in Stockholm. The facility aims to capture 800,000 tonnes of CO2 annually by using bioenergy and a carbon capture process that stores CO2 beneath the North Sea. The project has secured offtake agreements from major companies, including Microsoft and JPMorgan Chase.

Related Stock List(s): Carbon Capture Stocks

Thailand's cabinet has approved the implementation of a carbon tax at a rate of 200 baht ($5.88) per ton of carbon emissions. This new tax will be integrated into the existing oil tax structure and will not lead to an increase in the retail price of oil and oil products. The tax will apply to various oil-based products, including gasoline, diesel, jet fuel, and biodiesel, which contribute to 70% of the country’s carbon emissions.

Ninepoint Partners LP is terminating the Ninepoint Carbon Credit ETF (CBON.NE), effective March 28th, 2025, with the ETF closed to new purchases. Existing investors can redeem or switch units before the termination date and will receive cash payments based on the net asset value of their holdings.

Related Stock List(s): Carbon Credit Stocks

ADNOC Gas has signed a $450 million, three-year LNG supply agreement with JERA Global Markets to provide LNG from ADNOC's Das Island liquefaction facility, which has a production capacity of 6 mtpa.

Related Stock List(s): LNG Stocks

A coalition led by TVA, including GE Hitachi Nuclear Energy and others, is seeking $800 million in federal funding to accelerate the deployment of small modular reactors (SMRs) in the U.S., starting with a project at Clinch River, Tennessee, slated for commercial operation by 2033. Separately, American Electric Power subsidiaries are pursuing federal grants for early-stage SMR development in Indiana and Virginia.

The Western Green Energy Hub (WGEH), set to be the world's largest renewable energy project, seeks approval for its construction in Western Australia. The project will cover 22,700 km², larger than El Salvador, and include up to 3,000 wind turbines (7-20 MW each) and 60 million solar PV panels across 35 solar farms. With a planned capacity of 70 GW, it aims to generate over 200TWh of renewable energy annually, comparable to Australia's total power generation in 2023. The project will also feature hydrogen electrolysers, green ammonia production, and data centers. The construction phase is expected to span three decades.
Australia has made a landmark $2 billion (USD 1.2 billion) investment in the Clean Energy Finance Corporation (CEFC), aimed at accelerating the country's transition to renewable energy. This funding will support projects in renewable energy generation, energy storage, and electric vehicle infrastructure. The CEFC has committed over $14.2 billion to over 300 clean energy projects, positioning Australia as a global leader in renewable energy and low-carbon infrastructure.

President Trump has issued an executive order asserting federal control over water management in California, citing the need to boost firefighting efforts amid ongoing wildfires. The order overrides local authorities and waives protections under the Endangered Species Act for dams and reservoirs supplying water to California’s Central Valley.

Related Stock List(s): Water Stocks

Manulife Investment Management has closed its Manulife Forest Climate Fund LP with $480 million in commitments. The fund focuses on sustainably-managed forestland with an emphasis on carbon sequestration to mitigate climate change. It aims to sequester over 6 million tons of CO2 over its term, generating high-quality carbon credits for investors. The fund has already acquired over 150,000 acres, with acquisitions in Oregon, Michigan, and in southern U.S. Forests.

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