BlackRock's latest climate fund

Aramco announces multiple energy transition initiatives

• Aramco is actively developing emissions reduction solutions, including lower-carbon hydrogen, Direct Air Capture (DAC) of carbon dioxide, novel CO2 sequestration, and geothermal energy.

• These projects align with Aramco's goal to a

  chieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050, in line with Saudi Arabia's 2060 net-zero ambition.

• The projects were announced during MENA Climate Week 2023.

• Aramco is finalizing an engineering agreement with Topsoe to construct a lower-carbon hydrogen demonstration plant in Saudi Arabia, expected to produce six tons of hydrogen per day using renewable electricity and steam reforming of hydrocarbons.

• Collaboration with Siemens Energy aims to develop a DAC test unit in Dhahran, Saudi Arabia, capable of capturing up to 12 tons of CO2 per year, with plans for a larger pilot plant capturing 1,250 tons per year.

• Successful pilot of novel CO2 sequestration through in situ mineralization in Jazan, Saudi Arabia, permanently converting CO2 into carbonate rocks.

• Exploration of geothermal energy involves identifying potential sites on the west coast of Saudi Arabia, assessing geothermal resources using subsurface technologies.

SK Capital acquires Milestone Environmental Services

• SK Capital Partners acquires Milestone Environmental Services from Amberjack Capital Partners.

• Gabriel Rio, CEO of Milestone, remains in his role and retains significant ownership.

• Milestone is a leading environmental services and carbon management company headquartered in Houston, Texas.

• Milestone operates an integrated waste management network focused on carbon sequestration and has sequestered over 2 million tons of CO2e since 2014.

• The company is expanding its presence in the Carbon Capture and Sequestration (CCS) market.

• Milestone's CCS subsidiary, Milestone Carbon, is developing and operating injection sites for industrial CO2 emitters to achieve decarbonization goals.

• SK Capital aims to support Milestone's growth and sustainability initiatives in response to tightening environmental regulations.

LyondellBasell and bp partner on solar project in Spain

• LyondellBasell signed a 10-year Power Purchase Agreement (PPA) with Lightsource bp for 149 MW of renewable electricity from a solar project in Spain.

• Lightsource bp will provide approximately 284,000 MWh of solar power annually to LyondellBasell, equivalent to the electricity needs of about 78,000 European homes, starting in 2026.

• This PPA will help LyondellBasell achieve 78% of its total renewable electricity goal and reduce greenhouse gas emissions.

• LyondellBasell aims to source at least 50% of its electricity from renewables by 2030, based on 2020 levels.

• Lightsource bp's solar project in Spain prioritizes environmental care and biodiversity through ecosystem integration and protection measures.

• The agreement marks Lightsource bp's first cross-border corporate PPA in Spain, with plans to develop over 1 GW of solar projects.

• Lightsource bp is progressing more than 10 GW of utility-scale solar projects in Europe, offering emissions reduction opportunities for corporations and utilities.

Brookfield buys $1 billion worth of UK renewables

• Canadian firm Brookfield is acquiring the renewable energy division of UK-based Banks Group.

• The deal is reportedly valued at approximately $1 billion.

• Banks Renewables, the unit being acquired, currently operates 11 onshore wind farms in Scotland and northern England, with additional solar and wind projects in development.

• The UK and European wind industry has faced challenges such as supply chain disruptions, rising project costs, and inflation.

• In 2015, a ban on new onshore wind farms in Britain restricted planning permissions, but recent government measures aim to streamline planning rules.

• In September, Brookfield and French lender Societe Generale announced a private debt fund with an initial seed funding of 2.5 billion euros for various sectors, including power and transportation.

BlackRock launches Climate Transition-Oriented Private Debt Fund

• BlackRock is launching a Climate Transition-Oriented Private Debt Fund, tapping into the fast-growing ESG investment strategy in the US.

• The fund will be part of BlackRock's investment platform valued at over $100 billion and managed by a team of private debt investors and sustainability experts.

• It focuses on the transition to a low-carbon economy, aligning with the growing interest in climate transition ESG strategies.

• Climate transition ESG funds in the US have risen by 304% in the 18 months through June, according to Morningstar.

• Despite political challenges, more ESG funds are being launched than closed, with a global trend of 253 new ESG funds compared to 90 closures.

• BlackRock CEO Larry Fink has advocated for incorporating private markets into the climate discussion.

• The new fund responds to client demand for transition-oriented solutions and will invest in mid-sized firms with carbon reduction goals or climate solutions.

• It uses BlackRock's proprietary Climate Transition Rating Framework to select companies at various stages of transitioning to net-zero emissions.

• Europe leads in climate funds with an 84% market share, followed by China at 8% and the US at 6%, according to Morningstar data.

Mirova launches €2 billion energy transition infra fund

• Mirova, a sustainable finance affiliate of Natixis Investment Managers, launches its sixth energy transition infrastructure strategy.

• The strategy aims to raise up to €2 billion and focuses on decarbonization efforts, primarily in Europe.

• It supports resilient infrastructure financing essential for decarbonizing energy production and consumption.

• The strategy builds on Mirova's previous successful energy transition strategies and offers flexible investment approaches, including majority or minority stakes, equity financing, or subordinated debt.

• It will finance proven technologies like wind power, photovoltaics, hydropower, storage, and energy efficiency, as well as low-carbon electric mobility and hydrogen development.

• The investment team will identify project promoters and provide financial resources throughout project lifecycles.

• While Europe remains the core deployment target, investments may extend to other OECD member countries, particularly in Asia.

• Mirova's Energy Transition Infrastructure team has grown to 29 members and has substantial experience in renewable energy investments.

• Mirova aims to contribute to the fight against global warming and meet the Paris Agreement's emission reduction targets.

• Mirova is committed to financing a more sustainable economy and strengthening its position as a market leader in energy transition investments.

Cruise industry exploring emissions reduction

• The global cruise industry is taking steps to adopt greener technologies in preparation for upcoming climate regulations.

• Cruise operators are investing in alternative fuels, efficient hull designs, and shore power connections to reduce emissions.

• Carnival has equipped over half of its fleet to plug into local power grids when docked.

• Royal Caribbean and Norwegian Cruise Line Holdings are ordering ships capable of running on methanol.

• MSC Cruises uses a digital platform to optimize ship efficiency.

• The industry faces challenges due to the high costs of eco-friendly ships and limited availability of renewable fuels.

• Despite these challenges, the number of cruise passengers is expected to increase significantly.

• Environmentalists are pushing for quicker action from the industry due to its contribution to greenhouse gas emissions.

• New environmental rules will require shipping companies to pay for emissions, increase the use of lower-emission fuels, and provide onshore electricity connections at ports.

• Cruise companies are making green investments despite pandemic-related debt.

• LNG and green methanol are among the alternative fuels being considered, but concerns about methane emissions exist.

• Viking Cruise Line is exploring the use of renewable hydrogen as a future fuel source.

Targa releases 2022 sustainability report

• Targa Resources Corp. has released its Sustainability Report for 2022.

• Highlights from the report include a 42% reduction in absolute methane emissions, a 21% reduction in flaring intensity in the Permian Basin, and decreased Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions intensity.

• Targa exported approximately 4.8 billion gallons of liquefied petroleum gas (LPG) globally to displace higher GHG-emitting fuels.

• Safety improvements were demonstrated with a 26% decrease in Total Recordable Incident Rate and a 30% decrease in Preventable Motor Vehicle Accident Rate.

• Targa received recognition from GPA Midstream for exceptional safety records at five of its sites.

• Future efforts for 2023 include increased methane aerial surveys, particularly in the Permian basin, and more frequent camera monitoring at compressor stations and gas plants.

• The report follows Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standards Board (SASB) Oil & Gas - Midstream Standard, and TCFD guidelines.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.