Green Markets - November 8, 2024

Nov 08, 2024

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

The UAE has announced a commitment to cut its greenhouse gas emissions by 47% from 2019 levels by 2035, an increase from its previous 40% target for 2030, ahead of the COP29 summit. The new target focuses on sector-specific reductions, including a 79% decrease in emissions from buildings, a 37% reduction in waste, and a 27% cut in industry.

ADNOC Logistics & Services (L&S) has secured a $4.4 billion deal to build 23 supertankers designed to transport low-carbon fuels such as ethane, ammonia, and LNG. This includes a $1.9 billion agreement with Jiangnan Shipyard for nine Very Large Ethane Carriers (VLECs) and four Very Large Ammonia Carriers (VLACs), along with a $2.5 billion contract with Samsung Heavy Industries and Hanwha Ocean for LNG carriers.

Tesla's market value has surged past $1 trillion, driven by optimism surrounding the recent election victory of Donald Trump, whom CEO Elon Musk publicly supported. Investors expect favorable regulatory conditions under the new administration, particularly for Tesla’s autonomous driving technology. Analysts suggest that Musk may influence Trump to establish consistent federal regulations for autonomous vehicles, which could streamline Tesla's self-driving initiatives and potentially ease scrutiny from safety regulators.

Eos Energy Enterprises has announced a new partnership with City Utilities (CU) of Springfield, Missouri, to provide 216 MWh of long-duration energy storage across two project sites. This system will support CU’s goal of maintaining a planning reserve margin (PRM) of over 36% by 2026, helping the municipality address rising energy demands with safe and reliable energy storage.

Air Products has decided to exit a $4.5 billion green hydrogen project in North Texas, initially planned with AES Corporation to produce 200 tons of hydrogen per day by 2027. CEO Seifi Ghasemi cited growing investor pressure and the lack of a committed anchor customer as reasons for halting involvement.
Saudi Aramco's blue hydrogen plans are in jeopardy due to a lack of long-term offtake agreements, especially in key markets like Europe, Japan, and South Korea, where potential buyers are hesitant about the high costs. Aramco initially aimed to produce up to 11 million tonnes of blue ammonia annually by 2030 using gas from the Jafurah field, but the estimated production cost—equivalent to $250 per barrel of oil—has deterred customers. With no confirmed contracts, Aramco may divert Jafurah’s gas toward LNG production instead if domestic demand is met and ammonia agreements fail to materialize.

Related Stock List(s): Hydrogen Stocks

QatarEnergy has expanded its LNG fleet by launching four new vessels built at Samsung Heavy Industries and Hanwha Ocean Shipyards in South Korea. These ships are part of a larger 128-vessel order, marking one of the largest expansions in LNG shipping.

Related Stock List(s): LNG Stocks

BrightNight has secured $260 million in tax equity financing from J.P. Morgan and Capital One for its 300 MW Box Canyon solar project in Pinal County, Arizona. With an anticipated 900,000 MWh in annual output, the project will contribute significantly to Arizona's clean energy goals. This funding comes as tax equity financing gains prominence following the Inflation Reduction Act, which has provided new funding mechanisms for renewable projects.

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