Green Markets - June 24, 2024

Jun 24, 2024

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

In 2023, the Arab Coordination Group (ACG), consisting of ten local and regional development institutions, allocated around $17B to finance nearly 500 projects in over 90 countries. The funding targeted vital infrastructure projects across key sectors, addressing global challenges such as climate change, food security, and enhancing international trade. The primary sectors benefiting from ACG's funding included energy (27%), the financial sector (24%), and agriculture (14%).

Industry participants told S&P Global Commodity Insights that the U.S. is lagging in securing cobalt supplies compliant with the Inflation Reduction Act (IRA) and developing domestic processing capabilities. Only 8% of refined cobalt supply will be IRA-compliant by 2025, and most of the cobalt supply chain remains concentrated in Indonesia, the Democratic Republic of Congo, and China.
The LME tin price reached a six-month high of $17,630 per tonne, driven by low stocks in both the London and Shanghai markets. Tin inventories have halved since February, reflecting supply chain disruptions from lockdown measures in key producer countries like China, which has increased its imports of refined tin.
French miner Eramet, in collaboration with Germany's BASF, has decided to cancel a planned $2.6B investment in a nickel-cobalt refining complex in Weda Bay, Indonesia. Eramet stated its intention to continue assessing potential investments in Indonesia's nickel electric vehicle battery value chain, promising to update the market as developments unfold.

Chinese shipowner Tianjin Southwest Maritime has placed an order with CSSC-affiliated Huangpu Wenchong Shipbuilding for two larger ammonia dual-fuel gas carriers. These ships are set for delivery in 2026 and 2027.
ExxonMobil and Air Liquide have entered into an agreement to facilitate the production of low-carbon hydrogen and low-carbon ammonia at ExxonMobil’s Baytown, Texas facility. Air Liquide will support this initiative by transporting low-carbon hydrogen through its existing pipeline network and constructing four Large Modular Air separation units (LMAs). These units will supply 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen daily to the facility.
New Energy Blue and ARCO/Murray have formed a partnership to construct a biomass refinery in Mason City, Iowa, converting corn stalks into second-generation fuel ethanol and clean lignin. The $650M project is slated to begin construction later this year and start operations by 2026.

Linde and Heidelberg Materials recently held a groundbreaking ceremony for their carbon capture and liquefaction facility in Lengfurt, Germany. The facility will pioneer amine scrubbing technology to capture and utilize CO2 from cement production, aiming to repurpose it for potential reuse in the food industry. The joint venture, named "Capture-to-Use" (CAP2U), is set to commence operations at the carbon capture facility by 2025, supported by €15M in funding from the German Federal Ministry for Economic Affairs and Climate Action.

Beijing is urging the European Union to halt plans for imposing preliminary tariffs on Chinese electric vehicle (EV) imports that are set to start by July 4th. The EU's proposed tariffs range up to 38.1%.

Amara Raja Energy and Mobility has signed a licensing agreement with Gotion-InoBat-Batteries to produce lithium-ion batteries in India. Under this agreement, Gotion's lithium iron phosphate technology will be licensed to Amara Raja, facilitated through GIB EnergyX Slovakia, a joint venture involving Gotion and InoBat.

Chevron has resumed full production at its Wheatstone LNG terminal near Onslow, Australia. Operations were suspended on June 10th due to repairs needed on the platform's fuel gas system, which impacted both LNG and domestic gas output.
Mitsui & Co, a Japanese trading house, has acquired an unconventional gas asset in Texas through its subsidiary Mitsui E&P USA. This asset, purchased from U.S. companies Sabana and Vanna, provides access to the US Gulf Coast LNG export terminals and ammonia plants. Mitsui plans to drill wells to evaluate performance and aims for full-scale development by 2026.
Beijing Gas has completed the second phase of its Tianjin Nangang LNG import terminal. This expansion includes the addition of four 220,000-cbm LNG storage tanks. The terminal, now spanning three phases with a total of ten LNG storage tanks, aims to deliver approximately 380M cubic meters during the 2023-2024 heating season.

India's Union Cabinet has approved a funding scheme worth $892.3M to support the development of offshore wind energy projects.
The Bureau of Ocean Energy Management (BOEM) has given final approval for the construction and operation of the Sunrise Wind project, following the Department of the Interior's Record of Decision in March 2024. The project, situated south of Martha’s Vineyard, Massachusetts, will have a total capacity of 924 MW.

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