Green Markets - July 26, 2024

Jul 27, 2024

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

The U.S. House passed a Republican-led appropriations bill that proposes a 20% budget cut to the EPA. The bill, proposing $38.5 billion in funding for fiscal 2025, aims to reverse several Biden administration environmental regulations. Despite House approval, the bill is expected to face opposition in the Democrat-controlled Senate and a potential veto from the White House, which criticized its impact on clean energy progress and environmental protections.
The European Commission has approved a €750 million Dutch scheme to support the decarbonization of industrial production processes, aimed at helping the Netherlands transition to a net-zero economy. The scheme, part of the State Aid Temporary Crisis and Transition Framework, will offer direct grants to companies that cut their greenhouse gas emissions by at least 40% and meet other conditions by 2030.

Rio Tinto and Aymium have formed a joint venture, Évolys Québec, to produce a renewable metallurgical biocarbon from biomass residues. The Government of Québec has endorsed the project, highlighting its potential to benefit both the environment and the local community. Early results from Aymium’s technology at Rio Tinto's Sorel-Tracy complex have been promising.
Chile's Codelco, the world's largest copper producer, reported an 8.4% drop in copper output for the first half of 2024, totaling 579,785 metric tons. The decline is attributed to operational issues, including a truck stoppage after a fatal accident, low production from the El Teniente mine due to a rock burst, ramp-up delays, and adverse weather conditions.

Exxon Mobil has signed a carbon capture and storage (CCS) agreement with CF Industries to capture up to 500,000 metric tons of CO2 annually from CF's nitrogen production complex in Mississippi. The project is expected to start in 2028. This marks Exxon's fourth CCS project and its second with CF Industries.
Petronas has signed a land rental agreement with Kuantan Port Consortium for the development of a Carbon Capture and Storage (CCS) hub in Pahang, Malaysia. Expected to begin operations by 2029, the hub will reduce carbon emissions for hard-to-abate industries and support the region's decarbonization efforts.

Related Stock List(s): Carbon Capture Stocks

Intercontinental Exchange (ICE) announced it has suspended its December 2024 Corsia phase one (CP1) futures contract, just ten months after registering the first transaction. ICE cited a lack of deliverable supply as the reason behind the contract’s suspension.

Related Stock List(s): Carbon Credit Stocks

Daimler Truck has opened a new Battery Technology Center (BTC) at its plant in Mannheim, Germany, to advance battery cell and pack production. The 10,000-square-meter facility will produce battery cells and packs on a pilot basis to support future lithium-ion battery production.
Umicore SA has postponed its $2 billion Ontario plant for electric vehicle battery materials due to slower-than-expected EV demand. This follows similar delays by Ford, GM, and Northvolt in Canada. The Ontario plant was intended to produce materials for up to 800,000 EVs annually.

Egypt has issued a tender to acquire five spot LNG cargoes for delivery between August and September, due to increased demand during the summer months. Three cargoes are sought for Ain Sukhna in mid-August and September, while two are needed for Aqaba in early and late September. The tender is organized by the Egyptian General Petroleum Corp (EGPC) and closes on July 29. This move follows Egypt's previous large tender for 20 LNG cargoes.
The second liquefaction unit for Russia's Arctic LNG 2 project has begun its tow to the Utrenniy Terminal in the Arctic, marking a significant step for Novatek's 19.8 million tonnes per annum project. Despite previous challenges, Novatek plans to start Arctic LNG 2 operations in 2024.
Archaea Energy, a BP-owned company, has launched its renewable natural gas (RNG) facility in Medora, Indiana. The plant captures landfill gas from a nearby Rumpke Waste and Recycling site and converts it into RNG.

Related Stock List(s): LNG Stocks

South Korea plans to invest $866 million over the next decade to advance nuclear fusion energy, focusing on reactor development and infrastructure. The investment, announced by the Ministry of Science & ICT, aims to build a public-private partnership to innovate fusion engineering and develop core reactor components. The goal is to build a pilot fusion reactor with 100 MW capacity in the 2030s.
Taiwan is set to shut down its second-to-last nuclear plant on July 27th, 2024, advancing its goal to become nuclear-free by 2025. This move is expected to increase Taiwan’s dependence on energy imports, including natural gas and coal, as it aims to boost renewable energy to 25% by 2030.
Japan's Nuclear Regulation Authority (NRA) has blocked the restart of the Tsuruga No. 2 reactor, citing concerns about an active fault running beneath the reactor. This is the first time the NRA has rejected a restart under post-Fukushima safety regulations. The reactor, operated by Japan Atomic Power Company, has been offline since May 2011, and the review process has faced multiple delays and issues. The operator plans further research but is not considering decommissioning the reactor at this time.

The UK has launched a clean energy initiative aimed at securing up to £60 billion in private investment in clean power development. The initiative focuses on offshore wind, solar, and other innovative energy technologies. Key goals include developing 30 GW of new offshore wind capacity by 2030 and exploring technologies like carbon capture and hydrogen.
Masdar, a clean energy developer, has acquired a 49.99% stake in Enel's Spanish subsidiary EGPE Solar for $887 million, covering 2.5 GW of renewable energy in Spain. The deal includes a 15-year power purchase agreement.
Cyan Renewables has acquired Australian marine services provider MMA Offshore for A$1.1 billion, making it the largest offshore wind services platform in the Asia-Pacific region. The acquisition includes MMA's fleet of 20 offshore vessels and operations, which will enhance Cyan’s regional presence and support the global transition to renewable energy.
Heliene and Premier Energies have launched a joint venture to establish a solar cell manufacturing facility in Minnesota, aiming to produce 1 GW of NType cells annually. Heliene will handle construction, operations, and regulatory aspects, while Premier Energies will provide cell technology and manufacturing expertise.

The IKEA Foundation and The Rockefeller Foundation have launched a $1 billion fund to boost renewable energy access in developing countries, with a focus on distributed sources like mini-grids and off-grid systems. Additional commitments include UNDP's Energy Promise to improve clean energy access and the Clean Cooking Call to Action led by Kenya, Malawi, and the Netherlands to address cooking fuel needs.

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