Climate Investment Newsletter 2/19 - 2/25

Individual Deals and Market Watch

EDPR closes Sunseap buy, to invest up to USD 7.4bn across APAC [Renewables Now]

• EDP Renewables (ELI:EDPR) said it has finalised the acquisition of a 91% stake in Singapore-based solar developer and operator Sunseap Group Pte Ltd in a previously announced deal worth SGD 1.1 billion (USD 813.2m/EUR 722.8m).

Cummins to acquire Meritor in $3.7B deal [Green Car Congress]

• Cummins has entered into a definitive agreement to acquire Meritor, a global leader of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. Under the terms of the agreement, Cummins will pay $36.50 in cash per Meritor share, for a total transaction value of approximately $3.7 billion, including assumed debt and net of acquired cash.

Amgen issues inaugural $750M green bond [Seeking Alpha]

• The green bond is part of a $4B underwritten public offering of senior notes that were issued on Feb. 22 and use of proceeds from the green bond is aligned with AMGN's Green Financing Framework.

Ontario Teachers’ Tamarack acquires ownership of 870k AC. of U.S. timberland; $625m in financing provided by MIM [Global Ag Investing]

• This large-scale timber portfolio is third-party certified as meeting Sustainable Forestry Initiative standards, one of the top sustainable forest management standards in the world, and will continue to be managed by RMS going forward.

Clean energy marketplace Palmetto raises USD 375m [Renewables Now]

• Clean energy marketplace and technology services platform Palmetto has raised some USD 375 million (EUR 335m) to speed up the adoption of residential solar across the US.

Vantage Solar UK gets £275m Macquarie debt financing [IPE Real Assets]

• Macquarie Asset Management has made a £275m (€320.1m) debt investment in a UK solar portfolio owned by Tenaga Nasional’s subsidiary Vantage RE.

Volta Trucks raises $260 million to fund electric vehicle launch [Reuters]

• Volta Trucks said that it had raised 230 million euros ($260 million) in Series C funding round, which will finance it through the launch of series production of its Volta Zero electric truck in late 2022.

SolarizEgypt, Amarenco seal USD 255m solar partnership [Renewables Now]

• Photovoltaic energy producer Amarenco Group has agreed to buy a 74% stake in the portfolio of Cairo-based solar company SolarizEgypt and jointly develop 300 MW of assets in the next four years.

CelLink raises $250m in Series D funding [Finsmes]

• The round was led by new investor Whale Rock Capital and further includes new investors D1 Capital Partners, funds and accounts advised by T. Rowe Price Associates, Inc., Fidelity Management & Research Company LLC, Park West, Standard Investments, and Atreides, as well as participation from existing investors 3M Ventures, BMW iVentures, Fontinalis Partners, Franklin Templeton, Lear Corporation, Robert Bosch Venture Capital, and Tinicum Venture Partners.

Government of Canada announces up to $182.7 million to partner organizations to help farmers lower emissions and improve resiliency to climate change [Cision]

• Canadian farmers are key players in building a healthy environment and a more sustainable agriculture sector in Canada. Today, to support farmers in their efforts to tackle climate change, the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, along with Francis Drouin, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and Member of Parliament for Glengarry–Prescott–Russell, announced federal funding of up to $182.7 million for 12 recipient organizations to deliver the On-Farm Climate Action Fund across Canada.

Innergex bags USD 165m to fund Chilean wind purchase [Renewables Now]

• Innergex Renewable Energy Inc (TSE:INE) has raised CAD 209.8 million (USD 164.6m/EUR 145.3m) in gross proceeds from a bought deal equity offering and a private placement aimed at financing a wind acquisition in Chile.

Solas Capital fund raises EUR 140m to back energy efficiency, RE projects [Renewables Now]

• Swiss investment advisory firm Solas Capital AG has reached the first close for a fund with commitments of EUR 140 million (USD 158.8m) which will provide financing for energy efficiency and small renewable energy projects in Europe.

Revel to expand EV fast-charging network with [$126mln] backing from BlackRock [Tech Crunch]

• Revel, the Brooklyn-based startup that first made a name for itself with its iconic shared blue electric mopeds in New York City, has raised a $126 million Series B in a funding round led by BlackRock Renewable Power.

Wildtype nets $100 million to make cultivated sushi-grade salmon omnipresent [Green Queen]

• San Francisco-based cellular agriculture startup Wildtype has announced a successful Series B funding round totaling $100 Million to launch its cultivated salmon at scale across the U.S., from foodservice operators to retail outlets.

Macro Commitments

Singapore Budget: $26 billion green bonds to attract investors with eyes on Asia [Asian Investor]

• The green bonds to be issued by the Singapore government by 2030 can meet pent-up demand of impact investors and boost regional green financing.

Massachusetts receives $10 billion investment in offshore wind [Smart Energy Decisions]

• The projects are being developed by Iberdrola for a total of 2,800 MW of offshore wind and also an interconnection line with a capacity of 1,200 MW to transport hydroelectric power from Canada.

ACWA Power agrees USD 1.3bn loan for green utilities project [Renewables Now]

• Saudi Arabia’s International Company for Water and Power Projects (TADAWUL:2082), or ACWA Power, has closed a senior debt facility of USD 1.3 billion (EUR 1.14bn) to finance a multi-utilities project on the Red Sea coast that will be powered solely by renewable energy.

Lower Austria to invest EUR 330m in wind expansion in 2022 [Renewables Now]

• The wind power expansion in the state of Lower Austria will gain momentum this year with the planned installation of 57 new turbines and investment of about EUR 330 million (USD 374.68m), Austria's wind energy association IG Windkraft said.

AfDB to back green energy projects in six countries with USD 164m [Renewables Now]

• The African Development Bank Group (AfDB) will provide up to USD 164 million (EUR 144.64m) to support investments in decentralised renewable energy in six countries across the continent.

DOE announces $150 million to reduce climate impacts of energy technologies and manufacturing [Energy.gov]

• The U.S. Department of Energy (DOE) announced $150 million in open funding for research projects focused on increasing efficiency and curbing carbon emissions from energy technologies and manufacturing. This funding will support research underpinning DOE's Energy Earthshots Initiatives, which set goals for significant improvements in clean energy technology within a decade, including hydrogen, long duration storage, and carbon capture and sequestration.

Pathways, Frameworks, Case Studies, Research, Climate Science

Singapore announces larger-than-expected carbon tax to fund long-term decarbonization [S&P Global]

• Singapore will raise its carbon tax to S$25/mt ($18.60) of CO2 equivalent in 2024 and 2025, from S$5/mtCO2e ($3.7), to finance its decarbonization efforts, create a regional carbon marketplace and bring forward its net zero emissions deadline, the government said Feb. 18.

Ghana to launch a dedicated green bond exchange [EcoFin Agency]

• The government of Ghana announced the opening of a dedicated green bond exchange. “The Green Exchange, to be based in Ghana’s capital Accra, aims to enable companies to issue billions in green bonds and for investors to trade the debt in a secondary market,” said Orla Enright (pictured, right), the exchange’s CEO, according to information relayed by Bloomberg.

African fintech, The Green Exchange targets $5 billion green bond issuance in Nigeria, others [Nairametrics]

• African fintech, The Green Exchange is targeting $5 billion in green bond sales within five years in Nigeria, Ghana, Kenya and others to fund green bonds projects across the continent.

IFC releases guidelines for blue finance [Holland & Knight]

• The Guidelines set forth the framework for structuring, evaluating and monitoring blue bond issuances and blue loans, including eligible blue uses of proceeds, alignment with applicable Sustainable Development Goals, and additional factors related to governance, verification and impact monitoring.

Energy sector methane emissions 70% higher than official figures -IEA [Reuters]

• Emissions of the potent greenhouse gas methane coming from the global energy sector are 70% higher than officially reported, the International Energy Agency (IEA) said, with the coal sector identified as the biggest single source.

China's solar power capacity set for record increase in 2022 - industry body [Reuters]

• China is expected to add 75 to 90 gigawatts (GW) of solar power in 2022, its solar manufacturing association said, far higher than a record increase in capacity last year.