Climate Investment Newsletter 1/8 - 1/14

Individual Deals and Market Watch

JinkoSolar unit to raise USD 1.57bn in Shanghai IPO [Renewables Now]

• JinkoSolar Holding Co Ltd (NYSE:JKS) announced the pricing of the planned initial public offering (IPO) of its principal operating subsidiary based on which it will raise CNY 10 billion (USD 1.57bn/EUR 1.37bn) in gross proceeds.

Sonoco prices inaugural $1.2 bln green bond offering [Nasdaq]

• Packaging company Sonoco Products Co. (SON) announced the successful pricing of its first green bonds to support the Company's sustainability strategy. The green bonds total $1.2 billion aggregate principal amount and consist of $400 million aggregate principal amount of 1.80% Senior Unsecured Notes due 2025, $300 million aggregate principal amount of 2.25% Senior Unsecured Notes due 2027 and $500 million aggregate principal amount of 2.85% Senior Unsecured Notes Due 2032.

Darling Ingredients acquires Valley Proteins for approximately $1.1bn [Global Ag Investing]

• Last year, Darling Ingredients doubled down on insect protein by acquiring the 50 percent stake it already didn’t own in EnviroFlight – a producer of non-pathogenic black soldier fly larvae(BSF) at scale.

Abu Dhabi solar firm Sweihan aims to raise over $700 mln with green bond issue [Reuters]

• Abu Dhabi solar energy firm Sweihan PV Power Company aims to raise more than $700 million through the sale of amortising green bonds, an investor presentation reviewed by Reuters showed.

ReNew raises $400 million by issuing Green Bonds [Yahoo Finance]

• India's leading renewable energy company, announced that India Clean Energy Holdings, a Mauritian entity, and a wholly owned subsidiary of ReNew Energy Global Plc (the parent company of ReNew Power Private Limited), has raised US$400 million at 4.5% by issuing senior secured dollar notes.

JSW Infra raises $400 million via seven-year green bonds at 4.95% [Business Standard]

• This fund raise marked the Company’s debut bond issue as well as the first Sustainability-Linked Bond (SLB) from an Indian ports company, said JSW in its statement.

Assent Compliance announces $350 million USD investment to expand global footprint in supply chain sustainability management; achieves unicorn status [Assent Blog]

• Assent Compliance Inc. (Assent), a leader in supply chain sustainability management, announced that it has raised $350 million USD in funding led by Vista Equity Partners (Vista), the leading global investment firm focused exclusively on enterprise software, data and technology-enabled businesses. This is one of the largest raises in Canadian software company history and establishes Assent in unicorn status, valued at more than $1 billion.

Energy transition SPAC C5 Acquisition prices USD-250m New York IPO [Renewables Now]

• C5 Acquisition Corp, a new special purpose acquisition company (SPAC) targeting the energy transition sector, among others, is seeking to raise USD 250 million (EUR 220.3m) in an initial public offering (IPO).

Goldman Sachs to invest USD 250m in energy storage co Hydrostor [Renewables Now]

• The private equity and sustainable investing businesses within Goldman Sachs Asset Management have made a USD-250-million (EUR 221m) preferred equity financing commitment to Canadian long-duration energy storage specialist Hydrostor Inc.

Cow-free dairy startup Remilk secures fresh backing of $120 million [Green Queen]

• As investors pour money into animal-free dairy, Israeli food tech startup Remilk has announced completion of its latest fundraising effort, a Series B round that saw $120 million raised. Hanaco Ventures led the round with Rage Capital, CPT Capital, and Just all joining. Previous investors including Tnuva and Hochland participated again.

Benson Hill finalizes go-to-market strategy for plant-based protein with $102m acquisition [Global Ag Investing]

• As demand for plant-based protein ingredients continues to grow, sustainable food tech innovator Benson Hill announced it has acquired ZFS Creston, an innovative food white flake and soy flour manufacturer in Southwest Iowa for approximately $102 million.

Macro Commitments

Bill Gates-backed fund aims to invest $15bn in clean tech [FT]

• A Bill Gates-backed private-public fund is preparing to invest in clean-tech projects worth as much as $15bn in the US, EU and UK, aiming to subsidise technologies at scale to help countries reach net zero emissions.
• Breakthrough Energy Catalyst, which has raised $1.5bn in private capital from philanthropies and companies, will invest in four key areas: direct air capture, green hydrogen, aviation fuel and energy storage technologies.

Silicon Valley Bank commits to $5 billion in sustainable finance and carbon neutral operations to support a healthier planet [Yahoo Finance]

• Silicon Valley Bank announced it has committed to provide at least $5 billion by 2027 in loans, investments and other financing to support sustainability efforts and the company has set a goal to achieve carbon neutral operations by 2025.

Invenergy announces approximately $3 billion investment from Blackstone Infrastructure Partners to accelerate renewable development activities [Business Wire]

• Blackstone’s commitment is one of the largest renewable investments in North American history. Investment will provide significant capital to drive an accelerated build-out of Invenergy’s clean energy platform.

California eyes USD 2bn of clean energy investments by 2024 [Renewables Now]

• The US state of California plans to allocate USD 2 billion (EUR 1.76bn) from its 2022-2024 budget to back clean energy investments, including projects promoting offshore wind and green hydrogen production.

USDA to invest up to $225 million in partner-driven conservation [Agriculture.com]

• RCPP is a partner-driven program that leverages collective resources to find solutions to address natural resource challenges on agricultural land. This year’s funding announcements include opportunities for projects that address climate change, benefit historically underserved producers, and support urban agriculture.

Australia's clean hydrogen industry gets USD 108m cash boost [Renewables Now]

• The government of Australia has approved an AUD-150-million (USD 107.7m/EUR 94.8m) programme to support the country’s hydrogen export industry and attract overseas investment in local supply chains.

Pathways, Frameworks, Case Studies, Research, Climate Science

Carbon offset prices could surge fifty-fold by 2050, report says [Carbon Pulse]

• Prices for carbon offsets, verified emissions reductions equivalent to one ton of carbon each, could, range from a low of $47/ton to a high of $120/ton in 2050, according to research company BloombergNEF (BNEF). The outcome, says BNEF, will mostly depend on what types of supply are eligible to meet the rapidly expanding universe of sustainability goals, as well as who the primary customers are in the market. [Smart Energy Decisions]

New report says all financial services firms will have green offering by 2024 [Climate Action]

• TLT research reveals the UK’s green finance industry is making significant headway, with many financial services firms beginning to sow seeds in the green finance market.
• The ‘Safety in numbers: leveling the playing field for green finance’ report has assessed the state of green finance and analyzed survey responses from senior decision makers across the UK financial services sector.

Heat, fire, storms caused $145 billion in damages across U.S. [Yahoo Finance/Bloomberg]

• Last year was the country’s fourth-warmest on record, and there were 21 named storms formed in the North Atlantic, the third most-active season. Six of the warmest years have occurred since 2012.

Certified green issuance reaches $200bn - expansion of climate bonds standard in 2022 – basic chemicals, cement, steel in pipeline [Climate Bonds Initiative]

• Cumulative issuance under the Climate Bonds Standard passed USD200bn in late 2021, establishing a new milestone for international best practice in green investment.
• Certified green bonds, loans, sukuk (and other debt instruments such as, green deposits, leases, commercial paper and repos) have now been issued by over 220 issuers from 40 nations, helping to establish green market investment standards and harmonised definitions in multiple jurisdictions in both developed and emerging economies.

Plant-based diets and rewilding would provide double climate dividend [Vegconomist]

• Plant-based diets could provide wealthy countries with what researchers are calling a “double climate dividend”. A dietary shift from animal-based to plant-based foods could reduce greenhouse gas emissions by a staggering 61%, as well as increase carbon sequestration dramatically, according to a new study in Nature Food.

Study forecasts China investment of $75 trillion in carbon neutrality [Asia Times]

• China is projected to invest the equivalent of US$75 trillion (487 trillion yuan) in carbon neutrality financing over the next 30 years, representing five times its 2020 national output, according to a December 2021 study by a consortium of government, academic and private-sector experts.
• The 200-page report, which encompasses the whole range of carbon-neutral technology from hydrogen-fuel vehicles to nuclear electric power, was issued by the Research Group of the Green Finance Committee of China Society for Finance and Banking under the direction of Ma Jun, president of the Beijing Institute of Finance and Sustainability, an academic unit under the Beijing Municipal Bureau of Financial Work.