Green Markets - June 29, 2024

Jul 29, 2024

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

The union at BHP's Escondida copper mine in Chile has urged its 2,400 members to reject the company's final contract offer and prepare for a potential strike. Union President Patricio Tapia indicated that a strike could commence immediately if workers vote against the deal, though Chilean law allows for a five-day mediation period. The union is seeking a share of profits equivalent to 1% of shareholder dividends, which would amount to about $36,000 per worker, citing record copper prices. BHP's offer includes a $21,044 bonus per worker and aims to increase benefits, but the union is also pushing for improvements in job security, health benefits, and working conditions.

ANDRITZ has been selected to conduct the front-end engineering design (FEED) for a significant carbon capture unit at Westenergy's waste-to-energy plant in Mustasaari, Finland. The project aims to capture all carbon dioxide from the plant's flue gases. This joint venture plans to decide on the project's implementation in early 2025.

Related Stock List(s): Carbon Capture Stocks

Xpansiv has launched the first trading of carbon credits standardized under the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles on its CBL spot exchange. These CCP-labeled credits are independently assessed to meet high-integrity standards, ensuring additionality, accurate emission reductions, and positive social and environmental impacts. The new registry-specific GEO® standardized contracts from Xpansiv allow buyers to take delivery of CCP-approved credits from the American Carbon Registry, Climate Action Reserve, and Verra registries.
The Australian Securities Exchange (ASX) is expanding contract options for the carbon and gas futures markets. Starting this week, the ASX will launch three new carbon futures contracts for large generation certificates, Australian carbon credit units (ACCUs), and New Zealand units. Next month, these offerings will be expanded to include gas futures contracts.

Related Stock List(s): Carbon Credit Stocks

Linde has announced a $3 billion investment to further its decarbonization efforts, aiming for carbon neutrality by 2050. The company plans to achieve a 35% reduction in greenhouse gas intensity by 2028 and has outlined a $50 billion pipeline of clean energy projects, including hydrogen production and carbon capture.
Turkey is finalizing long-term LNG contracts covering the 2027-2037 period, aiming to secure 5-6 billion cubic meters of LNG annually. These contracts will address 12-13% of Turkey's energy needs, which currently exceed 50 billion cubic meters of gas per year.
Greece's Maran Gas has expanded its LNG fleet with two newbuild carriers, Maran Gas Nice and Maran Gas Antibes, both of which will be chartered to TotalEnergies. Maran Gas currently manages 45 ships and has 13 more on order.

Related Stock List(s): LNG Stocks

Pension fund PME has expressed interest in investing in nuclear energy, driven by the slow pace of renewable energy development. Chairman Eric Uijen highlighted that 63% of participating companies support this shift, citing nuclear power's role in reducing CO2 emissions as a significant factor. Despite opposition from banks and insurers, PME plans to engage with the government on investing in nuclear projects, contingent on conditions such as state involvement and a fixed electricity price.
China General Nuclear (CGN) has begun constructing two new nuclear units: Unit 5 at the Ningde plant in Fujian Province and Unit 1 at the Shidaowan plant in Shandong Province. China's nuclear capacity is projected to reach 200 GW by 2035, with over 32 GW currently under construction and 172 GW in development.
The Australian government has blocked Energy Resources of Australia's (ERA) attempt to renew a uranium mining lease at the Jabiluka site in Kakadu National Park, influenced by the Mirarr indigenous community's opposition and federal advice. The decision also led Boss Energy to withdraw its takeover bid for ERA. ERA, facing expensive cleanup at its Ranger mine, is considering its next steps.
Burns & McDonnell has partnered with BWX Technologies (BWXT) to advance the design and development of BWXT's nuclear microreactors. The project, part of Wyoming's efforts to explore nuclear energy, involves developing plant systems and preconstruction planning for these reactors.

The Asian Development Bank (ADB) has signed a $235 million loan agreement with Thailand developer B.Grimm Power to support the ASEAN Distributed Power Project. This financing will help B.Grimm Power develop solar and wind projects in Thailand and extend its renewable energy efforts to Cambodia, Indonesia, and the Philippines.

ArcLight Capital Partners has launched SkyVest Renewables, a new unit with an initial $500 million investment to acquire and upgrade wind and solar projects. SkyVest's debut deal involves purchasing a 160 MW wind farm in the Permian Basin of West Texas. The company plans to spend a significant portion of the initial capital by the end of 2025.

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