Climate Investment Newsletter 8/11 - 8/25
Individual Deals and Market Watch
Ford’s green bond sees $5 billion in demand as Biden signs climate bill [Market Watch]
- Order books for Ford’s F, -1.78% speculative-grade debt deal reached more than $5 billion, according to a portfolio manager and Informa Global Markets, which helped the auto giant achieve cheaper funding than initially expected.
Green transition bonds surge in Japan, with $2bn issued this year [Nikkei Asia]
Innergex refinances Chilean renewables for US$803 million [Latin Lawyer]
- Four offices of DLA Piper LLP have helped Canadian renewables group Innergex issue US$710 million worth of green bonds and obtain a US$93 million loan to refinance its operations in Chile.
TerraPower announces $750 million secured in fundraise [Business Wire]
- The fundraise was co-led by SK Inc. and SK Innovation (collectively, “SK”) and TerraPower’s founder Bill Gates. SK invested $250 million. SK Group is among South Korea's largest energy providers and the second-largest conglomerate. Additional funding will come from other investors.
- Reid, co-head of BlackRock’s climate infrastructure strategy for Asia and the Pacific, led the acquisition of Akaysha Energy, a Melbourne-based developer with nine battery energy storage projects.
LGT Capital closes $550m debut impact fund [Environmental Finance]
- The fund invests in companies targeting climate action, inclusive growth and healthcare.
- The company, in whom Canadian aquaculture giant Cooke is slowly upping its stake, is one of Australia's largest seafood producers.
Australia's New Energy Solar to wind up after USD-245m sale of US portfolio [Renewables Now]
- New Energy Solar Ltd (ASX:NEW) has agreed to offload its US solar portfolio to an associate of financial services group Goldman Sachs (NYSE:GS) in a USD-244.5-million (EUR 244m) deal that will result in the winding up of the Aussie firm.
GRIDSERVE accelerates with £200m boost from infracapital [Climate Action]
- The initial £200m investment from Infracapital, the infrastructure equity investment arm of M&G Plc, is in support of the company’s drive to decarbonise transport through electric vehicle infrastructure and its mission to deliver sustainable energy on the scale needed to move the needle on climate change.
Fervo raises USD 138m for geothermal power plants construction [Renewables Now]
- US geothermal projects developer Fervo Energy announced it has raised USD 138 million (EUR 138m) in a funding round led by investment firm DCVC that will support the build-out of geothermal power plants.
Ørsted raises 2022 EBITDA guidance by EUR 134m [Renewables Now]
- In the first half of 2022, Danish clean energy group Ørsted A/S (CPH:ORSTED) generated an operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), of DKK 13 billion (USD 1.79bn/EUR 1.75bn), which is on par with the year-ago figure.
Taaleri JV in Croatia obtains EUR 126m in loans for wind projects [Renewables Now]
- A Finnish-Croatian joint venture has secured a debt financing package of EUR 126 million (USD 128.5m) to build two zero-subsidy wind farms in Croatia’s Zadar region with a combined capacity of 111 MW.
Afresh rakes in $115 million to help grocers reduce food waste [Impact Alpha]
- The San Francisco-based company developed an AI-based system to help grocery store owners manage fresh food inventory and sales to reduce waste. Afresh says more than 3,000 grocery stores in the U.S., including Albertsons, Cub Foods and Save Mart, use the product to cut waste by at least one-quarter.
Greenlight Biosciences secures $109m through private placement [Global Ag Investing]
- Boston-based GreenLight Biosciences develops sustainable solutions for some of the world’s most challenging issues through RNA-driven products for agriculture and life sciences applications.
Korea’s SK invests $100 million in EV-focused startup Atom Power [Reuters]
- Korea’s SK Inc (034730.KS) has invested $100 million in North Carolina startup Atom Power, which aims to upgrade the electric vehicle (EV) charging experience in the United States with new hardware and software, the companies said.
- On.Energy announced that it has closed $100 million in project financing from Sustainable Development Capital, LLC (SDCL) Energy Efficiency Income Trust plc (“SEEIT”), the first UK-listed company to invest exclusively in behind-the-meter energy projects and a constituent of the FTSE 250 index. This conditional financing commitment will be used to accelerate the deployment of battery energy storage systems (BESS) for industry-leading corporate, industrial, and utility customers across the United States and Canada.
Green Generation Fund raises €100 million for food- and green-tech ventures [Impact Alpha]
- “Our food tech and green tech investment categories are two of the most future industries of the coming decades,” said Green Generation’s Janna Ensthaler. “Generation Z and Millennials will insist on the plant-based food revolution and the incorporation of CO2-reducing and more sustainable measures.”
Macro Commitments
US set to create US$27bn green bank [IFR]
- The US Inflation Reduction Act signed into law by US President Joe Biden includes US$27bn for a National Climate Bank that is expected to leverage billions more in clean technology investments over the next decade from banks and private equity investors.
ACWA Power signs deals for USD 12bn of clean energy, H2 in Uzbekistan [Renewables Now]
- Saudi Arabia’s ACWA Power Co announced the signing of three major energy agreements with the government of Uzbekistan, envisaging total investment of USD 12 billion (EUR 11.8bn), including in what is expected to be the world’s largest single-site wind farm
New Zealand releases strategy spending NZ$1.3 bln ($830 mln) in climate finance [Carbon Pulse]
Eurocell in talks to site USD-800m battery Gigafactory in the Netherlands [Renewables Now]
- Anglo-Korean next-generation battery company Eurocell EMEA has chosen the Netherlands as the site for its first European Gigafactory for battery cells and is in advanced talks with authorities in the country.
Future Energy Ventures launches €250m climate tech fund [Growth Business.co.uk]
- The fund, named Future Energy Ventures Fund I SCA SICAV-RAIF, will focus primarily on Series A and B investments in digital and scalable start-ups which aim to transition traditional energy towards net zero.
- US Senators Dianne Feinstein and Alex Padilla (both D-Calif.) announced that 17 local governments and transit agencies will receive more than $236 million in grants from the Department of Transportation (DOT) to aid the transition to zero-emission buses.
USDA invests $121 million to combat climate change across rural America [Vermont Biz]
- Vermont Business Magazine US Department of Agriculture (USDA) Deputy Secretary Dr. Jewel Bronaugh announced USDA is investing $121 million in critical infrastructure to combat climate change(link is external) across rural America. The funding will include grants for 15 energy-efficiency and renewable-energy projects throughout New Hampshire and Vermont.
BoI, AfD sign €100m credit facility to tackle climate change [Environ News Nigeria]
- The Bank of Industry (BoI) on Tuesday, August 23, 2022, signed an agreement worth €100 million with the French Development Agency (AfD) for the expansion of green finance in Nigeria to tackle climate change.
Pathways, Frameworks, Case Studies, Research, Climate Science
Nature-based solutions could yield US$4.3 trillion in economic value by 2030 [The Business Times]
- According to a report by state investment firm Temasek in collaboration with the World Economic Forum and strategic economics consultancy AlphaBeta, nature-based opportunities across 3 systems — food, land, and ocean; infrastructure and the built environment; as well as energy and extractives — could deliver US$4.3 trillion of annual economic value and generate 232 million jobs by 2030 in Asia-Pacific.
India needs to quadruple climate finance: Study [Economic Times India]
Federal study: New climate law to slice carbon pollution 40% [Independent]
- The first official federal calculations of the new spending package that President Biden signed this week show it will slice America's carbon pollution by more than 1 billion tons by the end of the decade
The worldwide green wall industry is expected to reach $3.2 billion by 2030 [Business Wire]
- The global green wall market held a market value of USD 1,761.10 million in 2021 and is estimated to reach USD 3,260.16 million by the year 2030. The market is anticipated to register a CAGR of 7.28% during the forecast period.
Africa getting just 12% of financing needed to adapt to climate change -report [Reuters]
- Africa is getting just 12% of the finance it needs to manage the impact of climate change, raising pressure on rich nations to do more in the run up to global climate talks in November.
- The global carbon capture and storage market size is expected to reach USD 5.35 Billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.8% from 2022 to 2030.
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