Green Markets - July 25, 2024
Green Markets - July 25, 2024
News in environmental markets.
Green Markets is a daily series dedicated to highlighting events of interest that could impact investments within environmental markets.
Government/Regulatory
The Net Zero Asset Managers (NZAM) initiative has released its latest Target Disclosures Report, showing significant growth with over 325 signatories now part of the initiative, managing more than $57.5 trillion in assets. As of January 31, 2024, 264 signatories have set individual net zero targets, predominantly focusing on decarbonization (62.5%), with 98% having interim targets for 2030 or sooner.
The Biden-Harris Administration has launched new initiatives to reduce emissions of potent climate "super pollutants" like methane, hydrofluorocarbons (HFCs), and nitrous oxide (N2O). These actions include domestic efforts such as the U.S. Methane Action Plan and partnerships with organizations like NOAA and NASA to improve greenhouse gas monitoring and detection technologies. The administration is also taking significant steps to reduce nitrous oxide emissions through industry collaborations and update EPA standards for landfill emissions. Globally, the U.S. is leading efforts like the Global Methane Pledge and supporting international projects through the Global Methane Hub to mitigate emissions, especially in low- and middle-income countries.
South African President Cyril Ramaphosa has signed the Climate Change Bill into law, requiring all levels of government to consider climate impacts when making decisions and setting budgets. The legislation allows for setting carbon budgets at national, industry, and large-company levels to help South Africa meet its emission-reduction targets under the 2015 Paris Agreement. The bill supports South Africa's transition from coal to greener energy sources, a shift estimated to cost 1.5 trillion rand ($81 billion) over the next five years.
Biofuels/Chemicals
Boeing and Clear Sky have partnered to support Firefly Green Fuels in the UK, which uses hydrothermal liquefaction (HTL) to convert sewage waste into sustainable aviation fuel (SAF), reducing CO2 emissions by over 90% compared to traditional jet fuel. Boeing will assist in expediting the qualification of this SAF production method through training and testing.
The European Commission has approved a €1.5 billion French scheme to support sustainable biomethane production as part of its transition to a net-zero economy. The scheme, under the Temporary Crisis and Transition Framework, will fund new installations producing over 25 GWh of biomethane annually, using a competitive bidding process to determine the strike price.
Hydrogen
Siemens Energy has secured a contract with German utility EWE to supply a 280 MW electrolysis system for green hydrogen production at a plant in Emden, Germany, expected to start in 2027. The facility will produce up to 26,000 tonnes of green hydrogen annually.
Belgium's first renewable hydrogen plant in Zeebrugge has secured final investment, and production is set to begin in 2026. A consortium including Virya Energy, Hyoffgreen, Messer, John Cockerill, and Besix is leading the project.
Shell has announced plans to build a 100 MW renewable hydrogen electrolyzer in Germany, scheduled to start operations in 2027. This new electrolyzer, named Refhyne II, will produce up to 44,000 kilograms of renewable hydrogen per day to aid in decarbonizing refinery operations. The project represents Shell's second renewable hydrogen unit in Europe, following the larger Holland Hydrogen I project in the Netherlands. Shell plans to invest $10-15 billion in low-carbon energy from 2023 to 2025, with 23% of its 2023 capital spending allocated to this sector.
Airbus has teamed up with aircraft lessor Avolon to explore the feasibility of hydrogen-powered aircraft as part of the ZEROe Project. The study will focus on financing and commercializing hydrogen-powered aircraft.
Liquified Natural Gas (LNG)
Viridi Energy has signed a 20-year agreement with Énergir to supply 650,000 gigajoules of renewable natural gas (RNG) annually. The RNG will be sourced from Viridi's existing waste-to-energy facilities. The agreement is set to start next year.