Green Markets - July 24, 2024

Jul 25, 2024

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

The Competition Bureau Canada is seeking public feedback on new greenwashing provisions added to the Competition Act as of June 20, 2024. These provisions require businesses to substantiate environmental claims with testing or proof. The Bureau's consultation, open until September 27, 2024, will help shape enforcement guidance for these new rules. A new edition of the Deceptive Marketing Practices Digest has also been released to guide businesses on complying with existing and new environmental claim regulations.

Lidl GB is investing £1.5 billion in British beef production over the next five years to support sustainable practices and achieve 100% British beef sourcing. This investment will fund the Sustainable Beef Group, which rewards farmers for reducing carbon intensity and using regenerative techniques like improved grazing and biodiversity. Lidl aims to cut scope 3 emissions intensity by 28% per tonne by 2030, aligning with its broader climate targets.

HIF Global and Airbus have entered into a partnership to advance sustainable aviation fuels (SAFs) through the methanol-to-jet fuel (MTJ) pathway. The Memorandum of Understanding will guide collaboration on technical, project development, and commercial aspects. HIF Global is designing e-SAF production facilities using recycled CO2 and green hydrogen.
Airbus has invested in LanzaJet's $100 million funding round to support its ethanol-to-SAF technology, which converts waste-based and sustainable ethanol into sustainable aviation fuel. LanzaJet is set to launch its first commercial-scale SAF production plant in Georgia, with a capacity of 10 million gallons annually.
At the Farnborough Airshow, airline executives emphasized the need for global action to support the green jet fuel industry, highlighting a UK initiative to introduce a price guarantee for sustainable aviation fuel (SAF). Despite pledges to use biofuels, SAF currently makes up just 0.2% of the market and costs up to five times more than traditional jet fuel.
AustriaEnergy has submitted its $11 billion green ammonia project, HNH Energy, for environmental review in Chile. The project will produce green ammonia by combining green hydrogen with nitrogen and includes a desalination plant, pipelines, and a port. Scheduled to begin construction in July 2026, HNH Energy will have a production capacity of 6,600 tons per day.

Indonesia has finalized new regulations on carbon capture and storage (CCS), awaiting President Joko Widodo's approval before implementation. The country, a major coal producer, is also focusing on expanding renewable energy and low-carbon technologies.

The UN Task Force is rejecting the use of carbon credits and offsets from outside government-regulated markets to claim emissions reductions, as outlined in a draft document. This stance is part of a broader push for genuine decarbonization with specific targets and the avoidance of “dubious” offsets. UN Secretary-General António Guterres advocates for a rapid transition to renewable energy and a reduction in fossil fuel use. Companies like Amazon are responding by developing new standards for carbon offset verification to meet their net-zero goals.

LG Energy Solution (LGES) is negotiating with several Chinese suppliers to produce low-cost electric vehicle (EV) batteries for Europe, aiming to match the prices of cheaper Chinese competitors. The company is considering partnerships for developing lithium iron phosphate (LFP) cathodes and is evaluating potential production sites in Morocco, Finland, and Indonesia.

HDF Energy plans to deploy its multi-MW renewable hydrogen power plants in the Philippines as part of a new partnership with the Department of Energy (DoE) and the Mindanao Development Authority (MinDA). Under a $1.5 billion plan, HDF Energy is set to establish 15 projects, including 10 in Mindanao.

Texas LNG Brownsville LLC and EQT Corp. have finalized a 20-year tolling agreement for natural gas liquefaction services amounting to two million metric tons per annum (mtpa) of liquefied natural gas (LNG). The Texas LNG facility, to be constructed at the Port of Brownsville, Texas, will have a capacity of four mtpa and is expected to start construction in 2024 with commercial operations beginning in 2028.
Carnival Cruise Line has placed an order with Italian shipbuilder Fincantieri for three large LNG-powered cruise ships, with deliveries scheduled for the summers of 2029, 2031, and 2033. Once these new vessels are delivered, Carnival's fleet will include 16 LNG-powered ships, accounting for almost 30% of its global capacity.

China has unveiled the world's first meltdown-proof nuclear power plant, developed by researchers at Tsinghua University. The plant uses a "pebble-bed reactor" design, which utilizes helium gas instead of water for cooling and small graphite spheres containing uranium fuel particles, making it highly resistant to overheating and meltdown. This innovative reactor can withstand temperatures up to 950°C, and if it becomes too hot, it automatically reduces the nuclear reaction, preventing a meltdown.

TotalEnergies has acquired a 50% stake in RWE's 795 MW offshore wind farm in the Netherlands. Total plans to use renewable electricity to produce 40,000 tonnes of green hydrogen annually. The green hydrogen will replace grey hydrogen in TotalEnergies' European refineries, helping to decarbonize its operations. The wind farm is expected to support grid stability and is scheduled to begin construction in 2026, with full commissioning in 2028.
Infinity Power and the Government of Sierra Leone have signed a MoU to develop 1 GW of renewable energy capacity in Sierra Leone by 2033. The project includes both hydroelectric and solar PV systems. Infinity Power will work with Sierra Leone's Ministry of Energy on feasibility studies, permits, and power purchase agreements.

AgFunder VC has successfully closed its fourth early-stage fund, Fund IV, at $102 million. The fund is over a third deployed and focuses on deep tech startups with innovative solutions in AI, nanotechnology, and sustainable agriculture. Notable investments include Atinary, Nium, and various food and beverage brands. This fund raises AgFunder’s total assets under management to $300 million, following its acquisition of the $100 million Blue Horizon Growth Fund.
NGP, a private equity firm, has launched the NGP Sustainable Real Assets (NGP SRA) fund with a $500 million commitment to advance its clean energy transition strategy. The fund will focus on real assets and invest between $50 and $150 million in projects that support energy transition and carbon removal. Initial investments include Segue Renewables II, Cloverleaf Infrastructure, and CO280 Solutions, which are involved in renewable energy, clean electricity infrastructure, and CO2 removal, respectively.
Natural Ventures has announced the first close of its inaugural fund, raising $100 million. The fund focuses on high-technology solutions to address global food and water security. It will be headquartered in Abu Dhabi and benefit from strategic partnerships with AgBioScout and Isle Utilities. The fund has secured anchor investments from Helm AG, Chemovateq, and a UAE-based investor.

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