Green Markets - September 16, 2024

Sep 16, 2024

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

The Biden administration has finalized significant tariff hikes on various Chinese goods, set to impact several key industries. Starting September 27, 2024, a 100% tariff will be imposed on electric vehicles, a 25% tariff on lithium-ion EV batteries, and a 50% tariff on photovoltaic solar cells. Additional hikes include a 50% tariff on Chinese semiconductors beginning in 2025, and increased tariffs on medical supplies, with face masks and gloves facing up to 100% tariffs by 2026.

The Biden administration is providing $1.6 billion in financing to support the development of a low-carbon ammonia production facility in Indiana. This facility, led by Wabash Valley Resources LLC, will produce 500,000 metric tons of anhydrous ammonia annually using carbon capture and sequestration technology. It has gained backing from hydrogen vehicle startup Nikola and the Oil and Gas Climate Initiative, which includes companies like Aramco and BP.
Torrent Power, an Indian utility, plans to invest $858 million into a green hydrogen and ammonia facility in Gujarat. Additionally, Torrent Power has outlined plans to invest $6.8 billion to develop 10 GW of renewable energy projects by 2030.

General Motors and Hyundai Motor have signed a memorandum of understanding to explore a global alliance focused on reducing costs and accelerating the development of new vehicles and clean-energy technologies. Their collaboration will potentially involve co-developing and producing various types of vehicles, including internal combustion engines, electric, and hydrogen models, as well as advanced powertrains and supply chains.

Saudi Aramco is increasing its stake in MidOcean Energy to 49% and funding MidOcean’s acquisition of a 15% stake in Peru LNG from Hunt Oil. This follows Aramco’s $500 million investment in MidOcean last year, marking its entry into the international LNG market. The deal gives Aramco an indirect 17.2% stake in Peru LNG, South America's only LNG export facility.
Saipem has secured a $4 billion offshore engineering, procurement, and construction (EPC) contract from QatarEnergy LNG for the North Field Production Sustainability Offshore Compression Program. The project involves the installation of six platforms, over 100 kilometers of subsea pipelines, and other subsea facilities to sustain gas production from Qatar's North Field.

Related Stock List(s): LNG Stocks

Saudi Arabia is advancing plans to build its first nuclear power plant. Saudi Arabia has completed administrative preparations for nuclear regulatory frameworks and requested the rescinding of the Small Quantities Protocol (SQP) from the IAEA, with finalization expected by December 2024.

India has secured $386 billion in commitments from major players like Reliance Industries and Adani Green Energy to support its goal of achieving 500 GW of renewable energy by 2030. Reliance Industries will contribute 100 GW, while Adani Green Energy will add 38.8 GW to the renewable energy capacity.

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