Green Markets - June 28, 2024

Jun 29, 2024

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

The World Bank's Board of Executive Directors has approved $1.5 billion in financing for India's Second Low-Carbon Energy Programmatic Development Policy Operation. This initiative aims to accelerate India's transition to low-carbon energy by promoting a vibrant market for green hydrogen, scaling up renewable energy, and enhancing finance for low-carbon investments.

Norin Mining, a state-owned Chinese firm, has agreed to acquire Chemaf Resources, who are backed by Trafigura Group, to bolster its mining presence in the Democratic Republic of Congo (DRC). The deal, expected to finalize in late 2024, aims to rescue Chemaf's stalled copper-cobalt mine project due to financial challenges exacerbated by declining cobalt prices. Chemaf, which secured a $600 million loan from Trafigura in 2022 for expansions in the DRC, seeks new investment to complete its ambitious Mutoshi complex capable of producing 16,000 tons of cobalt and 50,000 tons of copper annually.

A report by Wood Mackenzie forecasts significant growth in the carbon capture, utilization, and storage (CCUS) market, projecting the global carbon capture capacity to reach 440 million tonnes of CO2 captured per year by 2034, requiring a total investment of $196 billion. Nearly half of this investment will be allocated to CO2 capture, with additional funds directed towards transportation and storage. North America and Europe are expected to attract about 70% of these investments. Government funding, particularly in the US, UK, Canada, Denmark, and Australia, is crucial for accelerating CCUS adoption.
The Danish Energy Agency has initiated the competitive bidding process for a new CCS Fund, allocating approximately $4 billion over 16 years to support carbon capture and storage (CCS) efforts crucial for meeting Denmark's climate targets. The fund, starting in 2029, will cover costs for capturing, transporting, and geologically storing CO2 from fossil, biogenic, or atmospheric sources.

Verra, a carbon markets registry, has introduced the methodology VM0049 for carbon capture and storage (CCS), a framework for generating carbon dioxide removals (CDRs) and emission reductions. CCS activities capture CO2 from the atmosphere or high-emitting industrial sources, followed by transportation and permanent underground storage.

Blackstone portfolio company Aypa Power has entered into an energy storage service agreement (ESSA) with Ava Community Energy, focusing on energy arbitrage, resource adequacy (RA), and ancillary services. This agreement covers services from one of Aypa Power's standalone Battery Energy Storage System (BESS) assets located in Irwindale, California.
Lithium Australia's subsidiary, Envirostream Australia, has secured an agreement with Volvo Group Australia's buses division to recycle end-of-life batteries from its electric and hybrid bus fleet. The initial three-year agreement makes Lithium Australia the exclusive provider of battery recycling services to Volvo.

SJVN Green Energy signed a memorandum of understanding (MoU) with AM Green Ammonia for supplying renewable energy to green ammonia plants in Andhra Pradesh. SGEL plans to set up 4,500 MW of renewable energy projects in India, including solar and wind projects, ensuring an annual supply of 11,500 million units.
Sungrow Hydrogen has successfully bid for the China Energy Engineering Corporation (CEEC) Songyuan Hydrogen project in Jilin, China, set to become the world's largest integrated green hydrogen, ammonia, and methanol production facility. With an investment exceeding $4 billion, the project aims to annually produce 110,000 tonnes of green hydrogen, 600,000 tonnes of green ammonia, and 60,000 tonnes of green methanol.

Colombia’s state energy company, Ecopetrol SA, is negotiating with LNG suppliers as domestic gas production declines. The country needs to increase its supply of LNG. Given its proximity, the company is particularly interested in LNG from the US. The country is also considering building a second LNG import terminal to prevent an anticipated gas shortage within two years.
Construction has begun on Germany's first onshore LNG import terminal, marking a significant milestone for energy independence efforts in Europe amidst efforts to reduce reliance on Russian natural gas. The project, led by Hanseatic Energy Hub (HEH), signals a strategic move towards diversifying energy sources and enhancing security in the region.
Mitsui O.S.K. Lines (MOL) announced its acquisition of an additional 50% stake in LNG Rose Shipping Corporation from Itochu Corp, making it a wholly-owned subsidiary of MOL. Established in 2014 as a joint venture, Rose Shipping owns LNG carriers and executes time charters. MOL plans to deploy 90 LNG/methanol-fuelled vessels by 2030, with 33 LNG-fuelled ocean-going vessels already committed.
Argent LNG is developing a $10 billion, 20 million tonne per annum (MTPA) phased liquefaction facility at Port Fourchon, Louisiana. Partnering with Worley, they will focus on site layout development, technology selection, and navigating regulatory processes, starting with the Federal Energy Regulatory Commission (FERC) approvals.

Statkraft, Europe's largest renewable power producer, is reducing its plans to build new wind and solar plants due to lower electricity prices and higher costs. CEO Birgitte Vartdal, who took over in April, aims to adjust the strategy to navigate the tougher market conditions. The S&P Global Clean Energy Index has dropped 25% since last year, reflecting a broader decline in demand for renewables.
The U.S. Department of the Interior (DOI) has announced a Final Sale Notice and auction for over 275,000 acres of offshore wind energy areas off the coasts of Delaware, Maryland, and Virginia. These areas could potentially generate 6.3 gigawatts (GW) of clean energy. The auction, scheduled for August 14, will involve seventeen qualified companies bidding for leases.

Swiss startup Libattion has raised €14 million in funding from international investors, led by Spain-based A&G Energy Transition Tech Fund, along with Teknia, HCapital New Ideas II from Portugal, and Swiss energy utility company EBL. This investment will support Libattion in establishing Europe's largest battery upcycling production factory near Zurich, Switzerland.
Rondo Energy, a cleantech startup, has secured €75 million to expand its European operations and support industrial decarbonization projects. The funding from Breakthrough Energy Catalyst, the European Commission, and the European Investment Bank aims to scale up Rondo's Heat Battery technology. This technology converts intermittent renewable energy into continuous, high-temperature heat, reducing reliance on fossil fuels in industrial processes.

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