Green Markets - September 30, 2024

Oct 01, 2024

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

The European Commission has approved a €1 billion state aid scheme in Portugal aligned with the Green Deal Industrial Plan. This funding will be provided in the form of direct grants to companies producing equipment essential for renewable energy, such as batteries, solar panels, wind turbines, electrolysers, and carbon capture technologies. The aid will be disbursed by December 31st, 2025.
A potential strike by the longshoremen’s union at East Coast and Gulf of Mexico ports is imminent, with negotiations between the union and the United States Maritime Alliance remaining unresolved. The strike could disrupt trade and supply chains, leading to shortages and price increases. Despite significant proposals from the Maritime Alliance, the union is frustrated with wage offers and job security concerns amid rising inflation and automation.

BHP projects global copper demand to increase by 1 million tonnes annually until 2035, driven by copper's role in emerging technologies and the energy transition. China’s copper demand will grow at a slower pace, while India is forecasted to see a five-fold increase. Challenges in copper mining, such as declining ore grades and rising costs, will require $250 billion in investments over the next decade to meet supply needs.
Element 25 has been selected for negotiations to secure a $166 million grant from the U.S. Department of Energy (DoE) under the Battery Materials Processing Grant Program. The funding will facilitate the construction of a high-purity manganese sulphate monohydrate (HPMSM) facility in Louisiana, with a total project cost estimated at US$289 million. This grant complements $115 million already committed by General Motors and Stellantis through offtake and financing agreements, which together will cover up to half of the construction costs.

Woodside Energy completed the acquisition of a 1.1 million metric tonne ammonia project under construction in Texas from OCI N.V. for $2.35 billion.

Thailand plans to introduce a carbon tax in 2025. The tax will initially target the oil sector, converting a portion of the existing oil tax into a carbon tax, which is not expected to significantly increase the overall tax burden for consumers. The carbon tax will align with the European Union's Carbon Border Adjustment Mechanism, benefiting Thai exports by avoiding double taxation. Additionally, vehicle taxes will shift from being based on engine displacement to carbon emissions, with incentives for electric vehicle production and usage.

Related Stock List(s): Carbon Capture Stocks

EnerSys has been selected to negotiate for $199 million in funding from the U.S. Department of Energy (DOE) to establish a lithium-ion cell production facility in Greenville, SC, as part of the Bipartisan Infrastructure Law. The company plans a $615 million investment in a 500,000-square-foot factory that will initially produce 5 GWh of lithium-ion cells for commercial, industrial, and defense applications. Construction is expected to commence in 2025, with operations beginning in 2028.

Texas Senators Ted Cruz and John Cornyn have introduced the Protect LNG Act of 2024, aiming to prevent courts from revoking LNG permits issued by the Federal Energy Regulatory Commission (FERC). This legislation would require courts to remand cases back to the relevant federal agency instead of vacating permits, with expedited decisions mandated for related cases. The move follows a recent D.C. Court of Appeals ruling that overturned permits for LNG export terminals and a pipeline in Brownsville, citing insufficient studies on local environmental impacts. Cruz warns that halting these projects could result in the loss of up to 7,000 jobs and jeopardize $24 billion in investments related to the LNG export infrastructure.

Related Stock List(s): LNG Stocks

The Palisades nuclear power plant in Michigan is slated to restart with $3.1 billion in funding from the U.S. Department of Energy and state grants. This initiative, if successful, would mark the first U.S. nuclear plant to return to service after retirement.

TotalEnergies has commenced commercial operations at its largest utility-scale solar farms located in southeast Texas, with a combined capacity of 1.2 GW. The project is scheduled for commissioning in 2025.

Morgan Stanley Investment Management has raised $750 million for its first climate-focused growth fund, the 1GT fund, aimed at avoiding one gigaton of carbon emissions by 2050. Morgan Stanley plans to invest in roughly 20 companies, focusing on sectors like energy, mobility, food, agriculture, and the circular economy.

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