Climate Finance Roundup - SAF, methanol, geothermal, offshore wind, battery storage
Funding for synthetic fuels plants in Spain and Germany; UK & Japan support offshore wind; Canada funds disaster recovery, livestock research, public transit;
INERATEC secures funding for Europe’s first large-scale e-Fuel plant
(January 29)
Germany-based INERATEC has secured €70 million in funding to develop Europe’s first large-scale e-Fuel plant in Frankfurt. The financing package includes a €40 million loan from the European Investment Bank (EIB) and a €30 million grant from Breakthrough Energy Catalyst. This plant, expected to be operational by 2025, will produce carbon-neutral e-fuels essential for decarbonizing the aviation sector in line with EU regulations.
Repsol's €800M Ecoplant: Renewable Methanol from Waste
(January 29)
Spain-based Repsol will invest over €800 million in Tarragona Ecoplant, Europe's first plant to produce renewable methanol from urban waste. The plant, using gasification technology, will process 400,000 tons of waste annually, creating 340 jobs upon operation and 2,800 during construction. It is funded by the EU Innovation Fund and expected to reduce CO2 emissions by 3.4 million tons in its first decade.
Australia’s Sovereign ‘Green’ Labelled Debt
(January 30)
Australia has made significant strides in sustainable finance with the issuance of its inaugural Green Treasury Bond by the Australian Office of Financial Management in June 2024. This bond was issued at a size of $7 billion, marking a milestone in the country's Sustainable Finance Strategy. The bond is significantly part of efforts to mobilize additional climate-aligned capital and deepen sustainable finance markets. The issuance reflects a greenium of around 2 basis points, translating to an estimated saving of $11 million for taxpayers.
UK government supports greener aviation and airport expansion
(January 29)
The UK government has recognized the importance of air connectivity for economic growth, contributing £14 billion to GDP in 2023. They announced support for a third runway at Heathrow Airport to tackle capacity constraints, potentially creating over 100,000 jobs and lowering fares for passengers. Additionally, the government is investing £63 million into the Advanced Fuels Fund to support sustainable aviation fuel (SAF) producers and implementing a SAF mandate requiring 2% of aviation fuel to come from sustainable sources this year, with targets of 10% by 2030 and 22% by 2040.
India launches National Critical Mineral Mission to enhance green technology resources
(January 29)
India has approved the National Critical Mineral Mission (NCMM) with an expenditure of Rs.16,300 crore and an expected investment of Rs.18,000 crore by PSUs, aimed at enhancing self-reliance in critical mineral resources, which are vital to high-tech industries and clean energy. The mission plans to promote the exploration, mining, and recycling of critical minerals, with specific initiatives including fast-track regulatory approvals and the establishment of processing parks.
India’s Cabinet approves mechanism for ethanol procurement under EBP Programme
(January 29)
India's Cabinet Committee on Economic Affairs (CCEA) has approved a revision in ethanol procurement prices for Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme for the Ethanol Supply Year 2024-25. The price has been increased from Rs.56.58 to Rs.57.97 per litre. This initiative aims to promote the usage of alternative fuels, reduce crude oil dependence, and benefit the environment, while also supporting sugarcane farmers through additional payments.
Government accelerates offshore wind projects in UK
(January 29)
The UK Government has unlocked up to thirteen major offshore wind projects as of January 29, aiming to streamline the construction of offshore clean energy projects. These projects will generate up to 16GWs of electricity and create thousands of jobs, potentially spurring £20-30bn of investment. The Government will also designate new Marine Protected Areas to mitigate environmental impacts, ensuring the protection of marine habitats as part of the ongoing commitment to safeguard 30% of the seas for nature by 2030.
Japan revises offshore wind power utilization guidelines
(January 29)
Japan's Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism have revised the operational guidelines for the utilization public solicitation system for offshore wind power generation. This revision follows discussions to ensure investment in offshore wind power continues amid changing global economic conditions, including inflation and currency fluctuations. Public comments were solicited from November 29 to December 30, 2024, prior to the revision.
Ministry of Economy, Trade and Industry | Japan
Ecuador's Emissions Reduction Purchase Agreement to Halt Deforestation
(January 29)
Ecuador signed an Emissions Reduction Purchase Agreement (ERPA) under the LEAF Coalition to reduce 3 million tons of carbon emissions in exchange for $30M. This initiative involves four jurisdictions and emphasizes the participation of Afro-Ecuadorian communities, aiming for more equitable engagement in conservation efforts.
Globeleq Malindi Solar Project in Kenya
(January 29)
Kenya-based Globeleq Africa Limited received a guarantee from the Multilateral Investment Guarantee Agency (MIGA) for their US$19.6 million investment in the Malindi Solar Project. The project will involve the construction of a 40-megawatt solar power plant, expected to generate 98-gigawatt hours of power annually, contributing to a reduction in reliance on costly hydrocarbon-based thermal power plants in the region.
Multilateral Investment Guarantee Agency (MIGA) | World Bank Group
Globeleq Menengai Geothermal Power Project
(January 29)
Kenya's Globeleq Africa Limited secured a $29.9 million guarantee from the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, for their investments in the Menengai geothermal power project. This greenfield project includes the construction of a 35-megawatt geothermal power plant and aims to produce an estimated 280-gigawatt hours of annual power. The project is expected to enhance electricity generation capabilities while contributing to greenhouse gas emissions savings.
Multilateral Investment Guarantee Agency (MIGA) | World Bank Group
Enfinity Global Expands Battery Storage Portfolio in Texas
(January 29)
US-based Enfinity Global Inc. has announced the expansion of its battery energy storage systems (BESS) portfolio with two new projects in Texas, totaling 425 MW. Construction is planned to start in the second and fourth quarters of 2025, with an investment exceeding $7 billion and the potential to create over 5,000 jobs. These projects will support the ERCOT grid and aid in meeting rising electricity demands, particularly from AI-driven data centers.
Canada modernizes disaster recovery funding program
(January 29)
Canada has modernized the Disaster Financial Assistance Arrangements (DFAA) program, which will take effect on April 1, 2025. The modernization aims to respond to the increasing frequency and severity of extreme weather events caused by climate change, including floods and wildland fires. The new program introduces incentives for risk reduction, planning, and improved hazard awareness while increasing federal funding available to provinces and territories. This initiative is part of Canada's National Adaptation Strategy and emphasizes building back better and enhancing community resilience to climate-related disasters.
Canada invests in livestock and forage research under Sustainable CAP
(January 29)
Canada's Minister of Agriculture and Agri-Food Lawrence MacAulay and Saskatchewan's Minister of Agriculture Daryl Harrison announced a joint investment of $6.9 million to support livestock and forage-related scientific research in Saskatchewan in 2025. This funding, part of a $37 million budget for agriculture research, will support 30 projects focusing on topics such as infection control and animal health. The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is facilitating this investment, aligning it with industry priorities.
Federal funding for public transit in Niagara
(January 29)
The federal government of Canada has announced an investment of over $35 million in transit funding for the Regional Municipality of Niagara. This funding, which will be allocated over the next ten years, is aimed at upgrading and modernizing public transit infrastructure. The initiative is part of the Canada Public Transit Fund, which seeks to enhance housing supply and affordability while reducing greenhouse gas emissions and mitigating climate change impacts.
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