Green Markets - September 2, 2024

Sep 03, 2024

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

Wells Fargo has committed $500 billion to sustainable financing by 2030 as part of its strategy to support a low-carbon economy. The bank aims to achieve net zero greenhouse gas emissions, including financed emissions, by 2050.

BASF has decided not to proceed with a planned investment in a nickel-cobalt refining complex in Weda Bay, Indonesia. Initially, BASF and Eramet had partnered in 2020 to explore the project, but changing global nickel market dynamics and evolving supply options led BASF to reconsider. BASF will cease all related evaluation and negotiation activities but remains committed to securing sustainable and responsible sources of critical raw materials for its battery materials business.

Chinese biofuels company Zhejiang Jiaao Enprotech has partnered with BP, marking the first investment by a global oil major in China's sustainable aviation fuel (SAF) sector. BP will invest $49.56 million for a 15% stake in Jiaao's SAF unit, building a 500,000-ton-per-year plant in Lianyungang. Jiaao is a leading Chinese biodiesel producer, converting waste cooking oil into lower-carbon aviation fuel, primarily for export, given the lack of domestic mandates or subsidies for SAF.
Starting in 2027, South Korea will require all international flights departing from the country to include at least 1% sustainable aviation fuel (SAF) in their jet fuels.

The Phillips 66 oil refinery in the Humber, UK, has received approval to plan a carbon capture plant to capture emissions. The captured CO2 is expected to be transported via the Viking CCS pipeline for permanent storage under the North Sea, pending final agreements. This development is part of the Humber Zero project, a joint initiative with VPI Immingham LLP, targeting up to 3.8 million tonnes of CO2 removal annually in its first phase starting in 2028.
CarbonCapture Inc. has paused the development of its Project Bison, a direct air capture (DAC) project in Wyoming, citing high competition for renewable energy from expanding data centers. Originally announced in 2023, the project aimed to remove 5 million metric tons of CO₂ annually by 2030 but will now be relocated to another state, with discussions underway regarding the transfer of DOE funding.

Related Stock List(s): Carbon Capture Stocks

The BRICS nations have signed an MOU to develop joint carbon market projects and targets, aiming to create a unified approach to carbon pricing and emissions reductions. The agreement highlights a collective opposition to unilateral green protectionist measures from developed countries, which BRICS members argue undermine the economies of developing nations. While the MOU supports broader climate action goals, it also serves to counteract measures like the EU's Carbon Border Adjustment Mechanism. Each BRICS member is advancing its own carbon market initiatives, with Brazil and India working towards their own market launches, and China's market is already one of the largest globally.

The Guardian is being criticized for publishing two articles citing research that has yet to be peer-reviewed when attacking the VCMs. The publication accuses corporations of buying “junk” carbon credits. That’s certainly happening, but the mainstream media loves to exaggerate the severity of the situation.

Related Stock List(s): Carbon Credit Stocks

Ingrid Capacity, a leading BESS developer in Sweden, has partnered with SEB Nordic Energy to develop 13 battery energy storage system (BESS) projects in southern Sweden, totaling 196 MW of capacity. The projects, ranging from 8 to 20MW each, are set to be operational within the next 12 months.

The EU is tightening rules on hydrogen subsidies to prioritize European companies and reduce reliance on cheaper Chinese imports, particularly in the electrolyzer market. New criteria in the Hydrogen Bank funding scheme will favor local supply chains. This follows the EU's broader efforts to counteract unfair competition from China in green technologies, such as imposing tariffs on subsidized Chinese electric vehicles.
German utility Uniper has launched a new green hydrogen storage facility in Krummhorn, Germany, with a capacity of nearly 500,000 normal cubic meters. Uniper plans to expand storage capacity at the site to 250 GWh initially, with a goal of reaching 600 GWh by 2030.

Related Stock List(s): Hydrogen Stocks

Turkey and Shell have signed a 10-year LNG supply agreement, under which Shell will sell approximately 4 billion cubic meters of gas annually to Turkey's state-owned energy company Botas starting in 2027.

Related Stock List(s): LNG Stocks

Egypt has approved Masdar’s $900 million investment to build solar power plants in Upper Egypt, with a capacity of approximately 1,000 MW. Final contracts are expected to be signed by October, with the New and Renewable Energy Authority (NREA) allocating land for the project in exchange for 2% of the energy produced.
Adani Green Energy and TotalEnergies are deepening their collaboration through a new joint venture. TotalEnergies will invest $444 million in the venture, focusing on developing solar assets.
South Australia’s government is set to enshrine a 100% net renewable energy target into law by 2027, ahead of the previously set 2030 deadline. The state, already a leader in wind and solar energy, plans to achieve this target solely through renewable sources, with minimal reliance on gas for backup.

SEB has launched the SEB Global Sustainable Companies Fund, an index-linked fund investing solely in companies that meet high sustainability standards under EU SFDR Article 9. It aims to align with the EU Taxonomy and UN Sustainable Development Goals, using the MSCI World Net Return Index as its benchmark. The fund will invest in about 500 of the index’s 1,500 companies, with a carbon intensity approximately 50% lower than the benchmark.

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