Green Markets - November 20, 2024

Nov 21, 2024

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

House Democrats, led by Rep. Yvette Clarke (D-N.Y.), are reviving the "American Renewable Energy Act of 2024" (H.R. 10139), a legislative push to mandate that U.S. electricity providers source 70% of their power from renewable energy by 2034. The bill sets progressive targets, starting with 20% renewable energy generation by 2025, and gradually increasing each year until the 70% target is met. A corresponding Senate version is expected to be introduced soon.

ExxonMobil and LG Chem have signed an MOU for the supply of up to 100,000 metric tons of lithium carbonate from ExxonMobil’s planned Direct Lithium Extraction U.S. project to LG Chem’s Tennessee cathode plant, set to be the largest in the U.S.

Santos, the O&G firm, is expanding its carbon storage efforts with a goal to store 14 million tonnes of CO2 annually by 2040, covering about 50% of its 2023 Scope 3 emissions. This includes the Moomba carbon capture project, which aims to capture 1.7 million tonnes of CO2 annually.

Related Stock List(s): Carbon Capture Stocks

HSBC has abandoned its plans to build a carbon credits desk, marking a retreat from the VCMs. The decision follows a downturn in the market, with concerns about greenwashing causing a significant reduction in market size in 2023. Despite this, HSBC continues to purchase credits to offset emissions it cannot reduce directly and works on building a pipeline of new credits through its joint venture, Climate Asset Management.

Related Stock List(s): Carbon Credit Stocks

The U.S. Department of Energy has awarded up to $2.2 billion to accelerate clean hydrogen development, with $1.2 billion allocated to the Gulf Coast hydrogen hub in Texas and $1 billion to the Midwest hub spanning Illinois, Indiana, Iowa, and Michigan. These projects aim to produce hydrogen using renewable energy, natural gas with carbon capture, and nuclear power. This funding will be sourced from the U.S. Bipartisan Infrastructure Law.

Related Stock List(s): Hydrogen Stocks

Norsk Kjernekraft has partnered with X-energy and South Korea's DL Energy and DL E&C to explore deploying X-energy's small modular reactors (SMRs) in Norway. Feasibility studies include potential sites like the Mongstad oil refinery and Øygarden, with plans for construction by the mid-2030s pending political approval.

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