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Today’s newsletter:
🔝Today’s Top Story: HSBC Asset Management has launched its Global Transition Infrastructure Debt strategy to finance infrastructure projects supporting the shift to net zero.
📊 Today’s Data Point: Data Insights on the 2024 UK Net Zero Business Census.
🌳 Climate Insider Intelligence: Strategic Partnership to Accelerate Ultra-Low Carbon eFuels: Infinium and Brookfield Collaboration.
HSBC AM Launches $240M Global Transition Infrastructure Debt Fund to Power Net Zero Shift
Image Credit: HSBC
Launch of the Global Transition Infrastructure Debt Strategy
HSBC Asset Management (HSBC AM) has introduced its Global Transition Infrastructure Debt strategy, aimed at providing financing for infrastructure assets that contribute to the transition to net zero. The strategy focuses on sectors such as clean energy, energy efficiency, and clean industry. With over $240 million in client commitments at launch, HSBC AM is positioned to make a significant impact on global infrastructure investment.
Investment Focus and Target Sectors
The fund will provide loans to infrastructure projects and corporate borrowers in Europe, North America, and the APAC region, with a specific focus on mid-market borrowers in investment-grade countries. Targeted sectors include renewable energy, critical minerals and metals for renewable energy production, electricity storage and transmission, and carbon capture and storage facilities. The strategy aligns with the goal of reducing greenhouse gas emissions and supporting the global transition to net zero by 2050.
ESG Engagement and Long-Term Impact
HSBC AM’s investment team will actively engage with debt investees on sustainability and credit matters, including annual discussions to assess their progress on ESG targets and net zero pathways. This engagement approach aims to ensure that borrowers maintain strong sustainability commitments while the fund seeks to deliver attractive returns. HSBC sees this strategy as a critical step toward financing infrastructure crucial for the global transition to a more sustainable economy. Read More
Quote of the Day
Scott McClurg, Head of Private Credit at HSBC AM said:
“We believe in the vital role that substantial and sustained investment in infrastructure will play in the transition to net zero. Our Global Transition Infrastructure Debt strategy provides clients with the opportunity to contribute to, and benefit from, the shift towards a more sustainable global economy while aiming to deliver compelling returns.”
Significance: The quote by Scott McClurg sheds lights on the following points:
Emphasizes Infrastructure’s Role in Net Zero: Highlights the critical importance of long-term infrastructure investments in achieving global decarbonization goals.
Client Opportunity: Positions the strategy as a means for investors to actively contribute to the sustainability transition while also seeking financial returns.
Dual Focus on Impact and Returns: Underlines HSBC AM’s commitment to both driving environmental progress and delivering attractive returns for investors, balancing sustainability with profitability.
Strategic Vision: Reinforces HSBC’s belief in infrastructure as a cornerstone for a sustainable global economy, aligning with broader net zero efforts by 2050.
Market Movers
- AENU’s new fund, backed by major LPs like the European Investment Fund and prominent founders, focuses on seed to Series A investments in energy technology and the carbon economy, with a geographic emphasis on German-speaking countries, the UK, Denmark, and Sweden, and aims to back a total of around 35 companies. Read More
- A new deal to purchase carbon removal credits from direct air capture provider Holocene at $100 per ton, the lowest price on record, marks a significant step toward making DAC technology more commercially viable and affordable, which is crucial for achieving large-scale CO2 removal and combating climate change by 2050. Read More
- Spain has signed a $1 billion deal with Envision Group to build a factory for manufacturing electrolysers, crucial for green hydrogen production, with construction set to begin by June 2026, financed through private partnerships and located in Spain. Read More
- Lithium battery recycling startup Renewable Metals has raised an additional $8.1 million in its Seed round, bringing its total to $16.1 million to support expansion in the UK and Australia, with backing from prominent climate-focused investors and its innovative alkali-based recycling technology aimed at improving recovery of critical minerals from end-of-life lithium-ion batteries. Read More
Tech Spotlight
All-Carbon Fiber-Based Structural Batteries
Source: Wiley Online Library
Structural batteries represent an innovative leap in energy storage technology, integrating energy storage with structural support. The focus of this study is an all-carbon fiber-based structural battery, featuring carbon fibers as both electrodes and structural components. This battery configuration enhances mechanical strength while providing electrical energy storage. Key advancements include the use of carbon fibers as negative electrodes, lithium iron phosphate (LFP)-coated carbon fibers as positive electrodes, and a thin cellulose separator embedded in a structural battery electrolyte. This configuration results in notable improvements in energy density and cyclic stability.
Commercial Viability
- Performance Metrics: The structural battery achieves an energy density of 30 Wh kg⁻¹ and demonstrates high cyclic stability with up to 1000 cycles at nearly 100% Coulombic efficiency. The elastic modulus of the battery exceeds 76 GPa, setting a new benchmark for mechanical performance in structural batteries.
- Material Efficiency: The use of carbon fibers not only contributes to energy storage but also supports structural integrity, allowing for significant weight savings in electric vehicles. This dual-functionality positions the structural battery as a promising candidate for practical applications in transportation and aerospace.
Technical Viability
- Innovative Structure: The battery employs pristine carbon fibers for negative electrodes and LFP-coated carbon fibers for positive electrodes, with a cellulose separator enhancing energy density. The combination of these materials optimizes both electrochemical performance and mechanical strength.
- Electrochemical Performance: The battery exhibits a specific capacity of 25 ± 2 mAh g⁻¹ at a 0.025C rate, with high Coulombic efficiency and capacity retention close to 100%. The structural stability and low charge transfer resistance further support the viability of this technology.
Environmental Viability
- Sustainable Storage Solution: By integrating energy storage into structural components, this battery reduces the need for additional battery systems, contributing to overall weight reduction and energy efficiency in electric vehicles. This approach aligns with broader goals of enhancing the sustainability of transportation technologies.
- Alignment with Climate Goals: The development of multifunctional structural batteries supports the transition to more efficient and environmentally friendly transportation systems, crucial for reducing emissions and achieving climate targets.
Scaling Potential
- Commercialization Pathways: The successful demonstration of this all-carbon fiber-based structural battery opens avenues for its application in various sectors, including electric vehicles and aerospace. The integration of structural and energy storage functions could revolutionize these industries by reducing weight and improving performance.
- Investment and Growth: The promising performance metrics and innovative approach of this technology are likely to attract significant investment, driving further research and development in the field of structural batteries.
- Long-Term Implications: This advancement represents a significant step forward in overcoming the limitations of traditional energy storage systems. By achieving high energy density and mechanical strength in a single component, this structural battery could pave the way for more efficient and sustainable energy solutions, supporting global efforts to reduce carbon emissions and enhance energy efficiency. Read More
Policy Pulse
This section includes global updates on climate change policy, governance and regulation.
India’s state-owned ONGC unveils decarbonization roadmap with US$24bn investments to meet net zero operational emissions.
In July 2024, Oil and Natural Gas Corp. (ONGC) unveiled its Decarbonization Roadmap aiming for Net-Zero Operational Emissions by 2038, committing approximately $24 billion to transition through measures like renewable energy adoption and carbon capture, which signals a significant shift for the oil and gas sector in response to global net-zero targets and investor expectations.
Why it Matters: ONGC’s commitment to achieving Net-Zero Operational Emissions by 2038 with a $24 billion investment shows a major shift towards sustainability in the oil and gas sector, setting a precedent for industry-wide transformation in response to climate goals and investor demands. Read More
South Korean carrier HMM plans $17.6 billion investment for sustainable growth.
South Korean carrier HMM plans to invest KRW 23.5 trillion ($17.6 billion) by 2030 to enhance its business portfolio, with a significant focus on sustainability by allocating KRW 14.4 trillion ($10.8 billion) to green initiatives, including acquiring 70 green vessels and striving for Net Zero carbon emissions by 2045, while also expanding its shipping and logistics infrastructure to support future growth and improve customer service.
Why it Matters: This policy development matters because it represents a significant commitment to sustainable shipping practices and infrastructure expansion, positioning HMM as a leader in the transition to green logistics while driving future growth and enhancing global competitiveness. Read More
Today’s Climate Data Point
Data Insights on the 2024 UK Net Zero Business Census
Source: September 11, 2024, UK Business Climate Hub
The 2024 UK Net Zero Business Census, released today by the UK Business Climate Hub in partnership with Planet Mark and major business associations, highlights key insights into the UK’s progress and challenges towards achieving net zero. Here’s a concise breakdown of the main data points:
Survey Results:
- Total Organizations Surveyed: 2,005, covering a wide range of sectors and sizes.
- Strategic Priority: 73% of respondents consider net zero a strategic priority within the next 12 months.
- Net Zero Targets: 65% have set targets to reach net zero by 2050, while 48% aim to achieve it before 2035.
Challenges Identified:
- High Costs: Significant financial barriers impacting the ability to transition.
- Policy Uncertainty: Ambiguities in policies affecting planning and implementation.
- Skills Gaps: Lack of expertise hindering effective decarbonisation efforts.
Recommendations:
- Policy and Support: Greater partnership between government and business to develop sector-specific pathways and enhance financial mechanisms.
- Resource Development: Expansion of trusted information resources and guidance.
Key Quotes:
- Ed Lockhart, Convener of Broadway Initiative: Emphasized the need for collective action and improved support for small and medium-sized enterprises to address disparities and drive progress.
- Andrew Griffiths, Director of Policy & Corporate Development at Planet Mark: Highlighted the clear commitment of UK businesses to net zero and the need for stable policy support to implement effective strategies.
Key Insights:
- Commitment to Net Zero: A significant number of UK businesses are prioritizing net zero, reflecting a broader national commitment.
- Need for Support: Effective transition strategies require targeted support and clear policy frameworks.
Understanding these insights provides a snapshot of the UK’s business landscape in the journey towards net zero, emphasizing both progress and the critical need for strategic support. Read More
In Other News
This section covers notable news highlights in climate tech.
- Clean Electric has secured $6 million in funding, led by Info Edge Ventures, Pi Ventures, and Kalaari Capital, to enhance R&D, expand sales and operations, and develop advanced fast-charging and renewable energy storage solutions. Read More
- Vind AI has raised €3 million in seed funding led by Norrsken VC to advance its AI-driven platform for optimizing wind park design, aiming to enhance planning accuracy and cost-efficiency to support the European Commission’s 50% wind energy target by 2050. Read More
Climate Insider Intelligence: Strategic Partnership to Accelerate Ultra-Low Carbon eFuels: Infinium and Brookfield Collaboration
Image Credit: Infinium
In a monumental step towards a greener future, Infinium and Brookfield Asset Management (BAM) have joined forces in a groundbreaking partnership worth over $1 billion! Announced on September 10, 2024, this major investment aims to supercharge Infinium’s production of ultra-low carbon eFuels, including cutting-edge sustainable aviation fuel (SAF).
Discover how this transformative deal, backed by Brookfield’s Global Transition Fund, will propel Project Roadrunner in West Texas and revolutionize the aviation industry. Learn about the crucial role of eFuels in slashing greenhouse gas emissions and how this strategic funding will pave the way for a cleaner, more sustainable future in aviation and beyond. 🌱✈️💡
Dive into the full story to see how this partnership could reshape the climate tech landscape and inspire a wave of innovation in the sustainable fuels market! Read More
