Sustainable Switch: U.S. and EU step up a gear on electric vehicles

CECO Environmental

30/06/2022 14:00

Sharon Kimathi
Energy and ESG Editor, Reuters Digital
sharon.kimathi@thomsonreuters.com
    
    
    Hello!
    It’s been a strong week for clean energy companies in global
financial markets as four firms raise millions in funding from
the United States, Hong Kong, Spain and France. In fact, China’s
Tianqi Lithium, one of the world's top producers of lithium
chemicals for electric vehicle batteries, plans to sell about
164.12 million shares in its Hong Kong listing, in the city’s
largest share sale so far this year, according to sources. 
    The news comes as the White House and EU made pledges
towards phasing out combustion engine cars and investing more
money in electric vehicle (EV) production.
    
    Tianqi Lithium will sell its shares for between HK$69 and
HK$82 ($8.79-$10.45) each for a Hong Kong listing which could
raise up to $2 billion, said two sources with direct knowledge
of the matter. Tianqi plans to open the books from today to July
6, and debut in Hong Kong on July 13, according to a Reuters
source. The sources could not be named as the information was
not yet public and Tianqi did not immediately respond to a
request for comment.
    Lithium prices have soared in the past year, despite some
volatility caused during Shanghai's COVID lockdown, on sustained
global demand for electric vehicles. Failure to obtain adequate
supplies of lithium, nickel, manganese or cobalt could slow the
shift to EVs, make those vehicles more expensive and threaten
carmakers' profit margins. Major carmakers have been racing to
secure battery cell supplies, but finding enough battery raw
materials may be a bigger problem.
    Speaking of demand for electric vehicles, the White House
said on Tuesday that companies are planning to invest more than
$700 million to boost U.S. manufacturing capacity for EV
chargers, whilst EU countries backed a law requiring new cars
sold in the EU to emit zero CO2 from 2035. That would make it
impossible to sell internal-combustion engine cars. It will
require governments and industries to invest heavily in cleaner
manufacturing, renewable energy and electric vehicles.
    Elsewhere, a top U.S. solar energy project developer
announced a $750 million equity investment from the
climate-focused private equity fund TPG Rise Climate. The
announcement from TPG is part of the firm's push into climate
change and clean energy investing on behalf of clients that
include large pension funds and insurance companies seeking to
do more for the environment.
    Meanwhile, French renewable energy company NW Groupe raised
300 million euros ($315 million) for its NW Storm arm, as France
builds up its renewable power sector to reduce its reliance on
Russian energy following Russia's invasion of Ukraine. In Spain,
renewable power company Opdenergy announced plans to launch an
initial public offering to raise up to 200 million euros
($209.80 million) to finance its business plan up to 2025, in
what will be Spain's first flotation this year.
    
* Talking Points
- Japan's electricity grid creaked on Thursday under the strain
of Tokyo's hottest June since records began, with the unexpected
shutdown of a power plant raising fears that tens of millions of
people could be deprived of power on another scorching day.
- Turning building heating down by two degrees and limiting
driving speeds could immediately cut energy consumption and
avoid a supply crisis if Russia stopped delivering gas and oil,
Germany's environment agency said on Thursday.
- A federal judge in Washington, D.C. dismissed a lawsuit by
eight citizens of Mali who sought to hold Hershey, Nestle,
Cargill and others liable for child slavery on Ivory Coast cocoa
farms.
- Ferrari makes some of the fastest cars on the road, but the
luxury Italian automaker is taking the slow lane to an electric
future as it tries to overcome the technology's disadvantages
against today's powerful fossil fuel engines.  urn:newsml:reuters.com:*:nL1N2YE0LV
- Breakingviews: The European Union’s gas headache hasn’t gone
away. Despite strong progress in hiking liquefied natural gas
(LNG) purchases, the bloc is some way off its self-imposed
year-end target of cutting Russian gas imports by two-thirds.
They shouldn’t wait until the weather turns cold to implement
robust energy-saving measures.  urn:newsml:reuters.com:*:nL8N2YF450
    
* In Conversation
    Grace, Alina, Daisy, Jenna, Liz, Eden and Kayley -  a group
of students from Newquay, UK - who formed Ocean Revolution, a
plastic pollution awareness jewelry business. Ocean Revolution
recently won the Company of the Year Award and Sustainability
Award at Young Enterprise, a UK education charity’s national
competition.
    “Climate change is a global issue and one that will severely
impact young people’s futures if left alone. Despite COP26 and
net zero pledges, there was a distinct lack of climate action at
the G7 summit on Monday.
    “Young people like ourselves are keen to get involved with
the climate change agenda, it’s just about access to
opportunities like the ones Young Enterprise offer. As it’s our
future at risk, we have a vested interest in protecting our
planet.
    “Plastic pollution is one issue we’re especially passionate
about, particularly around raising awareness and creating a
legacy, so this global issue is not forgotten about.
    “When we formed Ocean Revolution, our jewelry business which
uses micro-plastics collected from Cornish beaches, we
envisioned making plastic pollution collection creative and more
enjoyable.
    “Whilst participating in the Young Enterprise program has
equipped us with entrepreneurial skills, winning the competition
has displayed just how crucial pollution is, not only as a
challenge but an opportunity to reform our ways of living
worldwide.”
    
* ESG Lens

    Activist investors intent on shaking up Corporate America
may be getting cold feet as new data points to a slowdown of
campaigns as markets gyrate amid fears of faster rate hikes,
runaway inflation and geopolitical turmoil.
    Data from research firm Insightia shows that investors
launched only 22 activist campaigns in the U.S.-headquartered
companies between May 20 and June 20, down from 25 during the
same time in 2021 and 42 campaigns launched in 2018, the year
with the most campaigns during that period in the last seven
years.
    
* ESG Movers and Shakers
- U.S.-based air pollution control company CECO Environmental
has hired Lynn Watkins-Asiyanbi as its new senior vice
president, general counsel and corporate secretary. She has
nearly 20 years of legal experience, both in private practice
and with global industrial companies, such as John Bean
Technologies, W.W. Grainger and U.S. Foods.
- Finnish biofuel producer Neste has appointed Chris Cooper as
its new president, who will be responsible for supporting and
aligning regional business strategies and act as Neste's primary
representative for the U.S. community at Neste's regional
headquarters in North America in Houston, Texas. Prior to his
new role, Cooper spent over two years as the vice president for
North America renewable aviation at Neste and held various
senior positions at other U.S-based energy companies such as
Chevron and Phillips 66.
- Chris Boardman has been appointed as a permanent national
active travel commissioner alongside several other senior
officials in the British Department for Transport. Boardman, who
has served as interim commissioner since January 2022, will head
up the new executive agency alongside chief executive officer
Danny Williams and chief operating officer Louise Wilkinson.
    Williams has spent over 25 years leading media businesses,
including setting up a start-up and developing large and high
performing teams within global corporations. He was a member of
the Mayor of London's Roads Task Force and has been advocating
for change in how villages, towns and cities approach walking
and cycling.
    Wilkinson has a long career in strategic finance and
accounting within the civil service and local government. Most
recently she has worked for the cabinet office as a deputy
director of finance.
      
* Quote of the Day
    "Ninety six percent of adjustments which enable talented
disabled people to work are cost neutral, thus demonstrating
inclusive workplaces are viable for all businesses."
Dr. Sarabajaya Kumar, UCL School of Public Policy/ co-author of
"Ableism and the Labor Market" report for the Association of
Disabled Professionals
    
* Looking Ahead
- The EU energy chief Kadri Simson will be speaking at the MEF
Energy Forum 2022 later today.
- U.S. federal government offices, the stock and bond markets,
Federal Reserve and International Monetary Fund will be closed
on July 4 to celebrate Independence Day.
- Kenya is scheduled to launch its international financial
center in Nairobi on July 4, which aims to compete with
established financial centers like Mauritius to host global
financial firms like banks and insurance firms.
- The Organization of the Petroleum Exporting Countries (OPEC)
Secretary General Mohammad Sanusi Barkindo and Nigerian junior
oil minister Timipre Sylva are among the main speakers at this
year's Nigeria Oil and Gas Conference in Abuja on July 5.
     
* Franchise
    Disrupted
    Construction is due to begin on Wednesday on what could
become the world's biggest plant to capture carbon dioxide from
the air and deposit it underground, the company behind the
nascent green technology said.
    Swiss start-up Climeworks AG said its second large-scale
direct air capture (DAC) plant will be built in Iceland in 18-24
months, and have capacity to suck 36,000 tonnes of CO2 per year
from the air.
    
    
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Number of shareholder activism campaigns globally    https://tmsnrt.rs/3OrKeuJ
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