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Rentals May Give Green Car Market A Tune-Up: Hertz: Watch
Rentals May Give Green Car Market A Tune-Up: Hertz: Watch
FOUNDATION
Monday
WATCH
BY SIOBHAN WAGNER,
BLOOMBERG NEW ENERGY FINANCE
SCIENCE BUZZ
The "social cost" of carbon dioxide
emissions may not be $37 per ton, as
estimated by a recent U.S. government
study. The economic damage caused by
a ton of carbon dioxide emissions often
referred to as the social cost of carbon
could actually be six times higher or
$220 per ton Stanford University
scientists say.
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Q&A
Q: What does sustainable growth
mean for Hertz?
A: Globally, Hertz is heavily focused on
ensuring we're decreasing our
environmental footprint as we grow the
business. We're accomplishing this by
focusing on increasing customer access
to alternative fuel vehicles (electric
vehicles, hybrids, clean diesel, etc.),
fuel-efficient [28 miles per gallon or more]
vehicles as well as implementing
sustainable operational best practices like
waterless carwashing, LEED [Leadership
in Energy and Environmental Design]
certification of [headquarters] and rental
locations and tire recycling.
Q: In terms of sustainability goals,
have you come up with any figures on
how much of a positive environmental
impact Hertz can make by investing in
more fuel-efficient or alternative
vehicles?
A: A good example of Hertz's positive
environmental impact is demonstrated
[through] corporate partnerships where
we work with key customers to implement
green travel goals and programs to
reduce [greenhouse gas] emissions from
business travel by increasing the use of
fuel-efficient and alternative fuel vehicles.
One customer example includes the
successful reduction of CO2 [per] mile by
more than 13 percent and increasing
miles driven in fuel-efficient and
alternative fuel vehicles by nearly 15
percent.
Q: Can you make any arguments now
for adding more electric vehicles to the
rental fleet?
A: Mainstream demand for EVs is still
somewhat low. However, as the range
and comfort with these vehicles grows, so
will Hertz's EV fleet. Certain EV markets,
like California, are growing quicker than
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GREEN BONDS
Top Green Bond Issuers of 2014
Rank
Organization
Credit ($ Million)
Count
5,501
15
14.5%
KfW
3,520
9.3%
GDF Suez
3,427
9.0%
2,950
16
7.8%
Toyota
1,750
4.6%
1,287
3.4%
Unibail-Rodamco
1,251
3.3%
Iberdrola
1,037
2.7%
Ille de France
830
2.2%
10
Neder Waterschapsbank
681
1.8%
11
Hera
680
1.8%
12
Abengoa
635
1.7%
13
NRW Bank
627
1.7%
14
Verbund
627
1.7%
15
555
1.5%
16
NRG Yield
500
1.3%
17
TD Bank
453
1.2%
18
Vornado Realty
450
1.2%
19
Province of Ontario
447
1.1%
Organization
Credit ($ Million)
Count
3,813
30
10.1%
SEB
3,726
24
9.8%
Credit Agricole
3,195
26
8.4%
Morgan Stanley
2,863
18
7.6%
JPMorgan
2,324
18
6.1%
Citigroup
2,220
15
5.9%
HSBC
2,102
14
5.6%
Deutsche Bank
1,939
11
5.1%
Goldman Sachs
1,215
3.2%
10
Natixis
812
2.1%
11
BNP Paribas
739
2.0%
12
Barclays
713
1.9%
13
Credit Suisse
643
1.7%
14
Unicredit
643
1.7%
15
Santander
611
1.6%
16
DZ Bank
571
1.5%
17
560
1.5%
18
475
1.3%
19
Nomura
464
1.2%
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AMER
GE Gets $491M Turbine Order for Brazil Wind Projects
General Electric Co. agreed to supply 346 megawatts of wind turbines worth as much
as 1.3 billion reais ($491 million) to the Brazilian renewable-energy developer Casa dos
Ventos.
The order was confirmed Jan.12 by a GE press official, who didnt want to be identified
because of company policies.
Casa dos Ventos will use 216 megawatts of equipment at the Sao Clemente park in
Pernambuco state and another 130 megawatts for the Tiangua project in Ceara state,
according to Lucas Araripe, the developers new-business director. Work on the Tiangua
project is expected to begin in the first half of the year, Araripe said in a Jan. 9 interview
in Sao Paulo. Casa dos Ventos is negotiating another deal with turbine suppliers for
about 350 megawatts of turbines worth as much as 1.5 billion reais, Araripe said. Casa
dos Ventos is the biggest wind developer in Latin America, according to Bloomberg New
Energy Finance. It has more than 1 gigawatt of wind farms under construction or in
operation, and has sold 3.5 gigawatts of projects to other companies.
Vanessa Dezem
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EMEA
Morocco Awards Solar Thermal Plant to ACWA, SENER
Morocco awarded two of the worlds largest solar thermal power projects to Saudi
developer ACWA Power International and Sener Ingenieria y Sistemas SA of Spain.
The partners beat five groups for the contract to develop the 200-megawatt NOOR II
and 150-megawatt NOOR III plants near Ouarzazate, the Moroccan Agency for Solar
Energy said on its website. The announcement comes after financing deals with donors
such as the World Bank closed on Dec. 19, it said.
The facilities in southern Morocco will be among the largest biggest solar thermal
power plants globally as only two larger ones operate. They are part of the countrys
plan to install 2,000 megawatts of solar capacity by 2020. The technology involves the
use of mirrors that concentrate sunlight to generate steam and run power turbines.
ACWA is already developing the 160-megawatt NOOR I project for about $1 billion
after winning the initial tender in November 2012. Three groups of companies were
shortlisted for the second phase and four for the third one in August 2013.
Marc Roca
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Jan. 19, 2015
Bloomberg Brief
APAC
Modis Solar Ambitions Advance With SunEdison Plant
SunEdison Inc. will invest $4 billion to build the biggest solar panel factory in India,
advancing Prime Minister Narendra Modis effort to rein in pollution by expanding
renewable energy.
The manufacturer based in Maryland Heights, Missouri, will form a venture with the
Indian power provider Adani Enterprises Ltd. to build the photovoltaic plant, with as
much as 7.5 gigawatts of annual production capacity. Construction is expected to begin
this year, the company said in a statement Jan. 12.
With some of the quickest-growing carbon dioxide emissions in the developing world,
India is under pressure to join in the international fight against global warming. Modi will
meet President Barack Obama in New Delhi next week where the two are expected to
discuss climate issues following last years pact between the U.S. and China to
coordinate pollution cuts.
The prime minister has been revising upward Indias aspirations for solar, said
Pashupathy Shankar Gopalan, SunEdisons managing director for South Asia and
Sub-Saharan Africa. The factory very nicely plays into the aspirations for the country to
grow solar significantly, as well as wanting to create stronger domestic manufacturing.
Justin Doom
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Last week European carbon prices rebounded 7.30 a metric ton, partly driven by a
leaked draft proposal from the rapporteur of the European Parliaments industry
committee. The rally suggests the market has largely priced in a bullish result from this
Thursday's ballot, opening up price risk to the downside. European emission allowances
may end the week as high as 7.50 or as low as 6.80, depending on the outcome of
the industry committee ballot on Thursday.
CO2 in Atmosphere
Source: NOAA/ESRL
Source: NSIDC
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FOCUS
Rich Variety of Deals, Modest Dollar Volumes for VC/PE in Clean Energy in 2014
BY ROHAN BOYLE,
BLOOMBERG NEW ENERGY FINANCE
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FOCUS...
Lithium-ion technology developers
attracted more than 50 percent of the
$1.2 billion invested in the stationary
energy storage sector by the venture
capital and private equity community
between 2004 and the first quarter of
2014, according to Bloomberg New
Energy Finance. The technology is
expected to continue to dominate the
sector in the short and medium term.
Other technologies include a saltwater
battery being developed by Aquion
Energy Inc. In November 2014, it
scooped $36.8 billion in a pre-initial public
offering round from investors including Bill
Gates. The company says its batteries
cost about the same as the lithium-ion
kind, contain no toxic metals and pose no
risk of overheating. A unit about the size
of a dishwasher can provide back-up
power for a home for as many as four
hours. Many investors appear to be
betting on the wider market rather than
just a specific technology, according to
BNEF. General Electric Co., for
instance, in addition to its acquisition of
U.K.-based sodium nickel halide battery
manufacturer Beta R7D and its
establishment of GE Energy Storage, also
invested in A123 Systems, a developer
and manufacturer of lithium-ion batteries,
and SustainX, a developer of compressed
air energy storage systems.
Although venture capital and private
equity investors continue to put money
into stationary energy storage companies
some $70 million was recorded in the
final quarter of 2014 the sector remains
immature, erratic and competitive, say
BNEF analysts. Most developers of these
technologies have yet to commission or
secure financing for significant capacity,
and the opportunity for successful exits
for investors appears to be some time
away. Venture capital and private equity
investors are also betting on companies
developing solutions to a very different
set of problems cultivation of feedstock
for biomass power plants. In December
last year, U.S.-based Genera Energy
Inc. received a $4 million investment from
WindSail Capital Group to help it
produce biomass made from crops,
including switchgrass, in new regions. It
supplies the biofuels, biopower and
bio-based products industries.
A similar company, NexSteppe Inc.,
received $22 million in funding last
Bloomberg Brief
10
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INSIGHT
Nigeria Looks to Add New Renewable, Fossil Capacity
Nigeria needs more power-generating capacity, as it faces a current shortfall of some 3
gigawatts. And without abundant new build fossil fuel and renewables this shortfall is
only likely to worsen, as Africas biggest economy expands by a compound annual rate
of 5 percent this year (according to the International Monetary Fund), its population
surges, and the country seeks to reach 100 percent electricity access by 2030.
Insight Editors
Ashwini Bindinganavale
abindinganav@bloomberg.net
Victoria Cuming
vcuming@bloomberg.net
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