Green Markets - January 31, 2025
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
General Environmental/Regulatory
The Clean Energy Systems Partner Alliance (CESPA) has been launched to boost UK manufacturing in clean energy by providing a single-source solution for green technology developers. The alliance includes six key companies: PP Control & Automation, Danfoss, Emerson, Glacier Energy, Phoenix Contact, and Voltserve—bringing expertise in automation, renewable energy software, grid connections, and infrastructure. CESPA aims to accelerate domestic production in sectors like hydrogen, battery storage, and geothermal energy.
Voluntary Carbon Markets (VCMs)
The Global Carbon Council (GCC), based in Doha, Qatar, has moved forward with its application for Program-level assessment under the Integrity Council for the Voluntary Carbon Market (ICVCM). The ICVCM has reviewed the application and confirmed it is complete, with the process now advancing to the assessment phase, where the program will be evaluated against the Core Carbon Principles (CCPs). GCC, approved by the International Civil Aviation Organization (ICAO), is also part of ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Related Stock List(s): Carbon Credit Stocks
Hydrogen
The Taiwan Hydrogen and Fuel Cell Partnership (THFCP) signed memorandums of understanding (MOUs) with four countries— Ukraine, France, Poland, and Denmark. These agreements aim to advance the hydrogen and fuel cell industry, foster research and development, and enhance international collaboration. Taiwan, known for its advanced hydrogen fuel cell resources, will work with these countries to apply for international projects and exchange expertise. Despite its reliance on imported energy, Taiwan is exploring overseas hydrogen production facilities in countries like Chile and Australia to secure resources.
Related Stock List(s): Hydrogen Stocks
Liquified Natural Gas (LNG)
Japan is considering supporting a $44 billion LNG pipeline project in Alaska as part of efforts to strengthen ties with the U.S. and avoid potential trade friction. While Japan already has ample LNG supply, the project could help diversify its imports away from riskier sources like Russia and the Middle East. Prime Minister Shigeru Ishiba is expected to discuss the matter with President Trump but is unlikely to make firm commitments without favorable pricing and flexibility.
Related Stock List(s): LNG Stocks
Nuclear Energy
Kairos Power has installed the reactor vessel for its second non-nuclear Engineering Test Unit (ETU 2.0), advancing its Fluoride Salt-Cooled High-Temperature Reactor (KP-FHR) technology. Kairos secured up to $303 million from the U.S. Department of Energy for its Hermes SMR project in Tennessee. The company also signed a deal with Google for 500MW of nuclear power by the mid-2030s.
Related Stock List(s): Nuclear Energy & Uranium Stocks
Renewable Energy
Norway's $1.8 trillion sovereign wealth fund, the world's largest, remains committed to renewable energy investments despite significant market setbacks in 2024, which saw underperformance in renewable energy assets. The fund continues to view long-term investments in renewables as strategic, especially as prices for renewable assets have dropped. The fund is active in both public and private markets, with a focus on offshore wind and other renewable infrastructure technologies, including grid and storage.
Denmark is revamping its renewable energy strategy by subsidizing offshore wind and green hydrogen projects, including a hydrogen pipeline to Germany. The government canceled ongoing offshore wind tenders but plans to relaunch auctions later this year, ensuring 2-3 GW of new capacity with better financial terms.
Meta and Zelestra have signed four new Environmental Attribute Purchase Agreements (EAPAs) to develop 720 MW of solar projects in Texas, supporting Meta's goal of powering its data centers with 100% renewable energy. This partnership increases Zelestra's U.S. renewable energy portfolio to over 1 GW. Zelestra aims to double its contracted renewables portfolio in the U.S. within two years.
Blueleaf Energy, owned by Macquarie Asset Management, is investing $400 million with Jakson Green to develop a 1 GW solar portfolio in Rajasthan, India. The projects, which will be commissioned between 2025-2026, are backed by 25-year power purchase agreements (PPAs) and are expected to generate 1,800 GWh annually, powering 1.5 million households.
Investment Funds
Stonehenge Capital has closed its 21st renewable energy tax equity fund. This nine-figure fund is the company’s first multi-project, multi-investor Investment Tax Credit (ITC) tax equity fund, aimed at providing capital to renewable energy projects across the U.S. The fund's investors include major national insurance companies experienced in the tax equity space. Stonehenge is focusing on solar projects and expects to launch a 2026 vintage ITC fund in Q2 2025.
Goldman Sachs Asset Management (GSAM) is aiming to raise up to $3 billion for its new West Street Climate Credit fund, which will provide loans to companies involved in the low-carbon transition, including clean energy and sustainable transportation firms. The fund will primarily focus on senior lending in North America and Europe. GSAM is contributing $150 million to the fund, which will be part of its $145 billion private credit unit.