Green Markets - November 18, 2024

Nov 19, 2024

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

A recent study published in Science warns that global plastic waste could double by 2050. It suggests that policies such as mandating recycled plastic, capping production, investing in waste management, and imposing fees on plastic packaging could reduce plastic waste by over 90% and cut emissions by a third.
The UK government has published draft legislation to regulate ESG ratings providers, aiming to introduce a finalized law in early 2025. Under the proposal, ESG ratings providers would be supervised by the Financial Conduct Authority (FCA) to improve transparency and trust, addressing concerns over conflicts of interest and the methodologies used in ratings.

A battery manufacturing project in Shelbyville, Kentucky, was announced on November 15, 2024, with an investment of nearly $712 million. The facility will produce industrial-sized batteries for energy storage. The plant is set to begin production in late 2025.

Abraxas Power and EDF Group have announced the Exploits Valley Renewable Energy Corporation (EVREC) project in Newfoundland, Canada, a 3GW initiative that will produce 200,000 tonnes of green hydrogen and 1 million tonnes of green ammonia annually. The project will be powered by a 3.5GW onshore wind farm. Environmental assessment registration has been submitted, with a final investment decision (FID) and construction expected in 2026, and production targeted for 2030.
Voltalia has confirmed a $3 billion investment in a green hydrogen project in Ceará, Brazil. This investment aligns with Voltalia's strategic focus on renewable energy, marking a significant step in Brazil’s green hydrogen sector.

Related Stock List(s): Hydrogen Stocks

SK Gas, in collaboration with Korea National Oil Corp. (KNOC), has completed the Korea Energy Terminal (KET) at Ulsan North Port, following a $855.25 million investment. The facility, South Korea's first oil and LNG integrated energy terminal, includes storage capacities for 1.7 million barrels of petroleum products and 4.05 million barrels of LNG, with operations commencing earlier this year.
Seapeak has acquired the 174,000-cbm LNG carrier Marvel Swan, built in 2021, from Navigare Capital Partners for $213 million. The deal includes the remaining time-charter contract for the vessel, which runs until 2030 with options for two additional years. Seapeak financed the purchase with existing liquidity and plans to secure long-term financing by early 2025. The Marvel Swan is used by Mitsui & Co. to transport LNG from the Cameron LNG facility in Louisiana. In addition to this acquisition, Seapeak has sold four multigas carriers in 2024 and refinanced two vessels, highlighting ongoing fleet management activities despite a decline in third-quarter net income.

Related Stock List(s): LNG Stocks

Texas Governor Greg Abbott is pushing for the expansion of nuclear energy in the state to address growing electricity demands on the state's grid. A report released by the Public Utility Commission outlines plans for advanced nuclear reactors and recommends establishing the Texas Advanced Nuclear Energy Authority to streamline development. The state's energy needs are expected to nearly double in the next six years due to large energy consumers like cryptocurrency miners and AI data centers.
The U.K. and the U.S. signed a new civil nuclear collaboration agreement. This deal aims to pool billions in research funds to accelerate the development of new nuclear technologies.

BP, Equinor, Shell, and TotalEnergies have announced a $500 million joint investment to support the United Nations Sustainable Development Goal 7 (SDG7), aiming to provide universal access to affordable, reliable, and sustainable energy. The focus is on underserved regions, particularly Sub-Saharan Africa and Southeast Asia, addressing gaps in electricity and clean cooking access.

European Union officials discussed setting a global climate fund target of $200 billion to $300 billion annually to help developing countries address climate change. While this figure remains internal to EU discussions and hasn't been publicly proposed, it reflects the EU's push for increased funding by 2035, with poorer countries advocating for a 2030 deadline. This new target aims to replace the current $100 billion per year commitment, but there is still pressure to include contributions from emerging economies like China.

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