Several companies have continued aggressive expansions into renewable energy at home and abroad with funding from like minded banks and quotas from governments scrambling to protect domestic energy interests. Our analysis highlights some names from the US and abroad familiar to our readers.
This week on our ESG Safeguard platform several companies furthered their clean technology pursuits in the transition to a low-carbon economy. All the names that appeared in our analysis are familiar to Amenity, indicating an ongoing commitment to carbon transition. In Europe, and Germany particularly, there is strong sentiment for offshore wind as the country increased its offshore wind goals from 10 GW to 30 GW by 2030.
Last week, Iberdrola (IBE:ES) signed a 1 Billion Euro green bond from Banco Santander (SAN:ES) for new wind projects. These new wind projects include the newly approved Baltic Eagle Wind Farm construction in Germany and Mt. James Wind in Queensland, Australia. Baltic Eagle will produce 476 MW of energy and is commissioned for 2024. In Queensland Australia, Mt. James is a one gigawatt stake for Iberdrola.
Duke Energy (DUK) is closing partnership deals this week with Cypress Creek Renewables for a $104M solar farm located in Davidson, North Carolina. Duke Energy would purchase all energy from the project. Duke is also investing in two projects that will convert methane from landfills into renewable natural gas.
Additionally, Duke announced last week the groundbreaking on a 120 MW solar project in Twin Falls County, Idaho, the largest project in the state to date. Duke traditionally operates in the Southeast, and it is surprising to see them extend their reach to the west coast in this endeavor.
Plug Power (PLUG) has partnered with Olin (OLN) for a joint-venture facility that will open in Louisiana to produce green hydrogen. Plug has recently become the premier player in hydrogen, and has 7 major projects underway to be completed in the next few years. The company first broke ground in Genesee County, NY this fall.
There is a sustained interest among industrials in moving to a low carbon economy. As wind and solar become cheaper and more scalable, it is easier to adopt. With war in Ukraine brought on by wanton Russian aggression putting gas and oil supplies beyond the reach of markets, companies and nations are forced to drastically rethink their energy strategy.
The world is coming to accept that governments and markets must eschew the vestiges of yesterday's industrial heartbeat; fossil fuels, and embrace the engine of progress in renewables. These latest activities illustrate that the promise of a future that is attainable, profitable, and clean is already here. This week’s companies have shown us that this is a movement, not a moment.
Can investors utilize ESG news sentiment to maximize alpha in the short and medium term between the intervals that are covered by ESG advisory firms, ratings agencies, and other peers? We investigated the relationship between short-term (weekly, monthly) and medium-term (quarterly) ESG news sentiment and stock returns. As the title suggests, our results indicate there is alpha, and we walked through the analysis. Watch it here.
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This communication does not represent investment advice. Transcript text provided by FACTSET and S&P Global Market Intelligence.
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