Investment Rating - The report does not explicitly provide an investment rating for the steel and automotive industry. Core Insights - The steel industry is the largest carbon emitter in China's manufacturing sector, accounting for approximately 15% of national carbon emissions, making its low-carbon transition crucial for achieving carbon peak and neutrality goals [1] - The automotive industry, as a significant downstream sector of steel, sees steel accounting for 50% of vehicle weight and 33% of carbon emissions during the material production phase, highlighting the importance of low-carbon steel procurement for automakers [2] - A pilot project initiated by Rocky Mountain Institute (RMI) and China Automotive Carbon Digital Technology Center aims to establish a carbon footprint accounting methodology for steel used in vehicles, involving eight companies, including major steel producers and automakers [1][2] Summary by Sections Case Introduction - The pilot project started in July 2023 and will last for nine months, focusing on carbon footprint accounting for steel used in the automotive sector [1] - The project includes four steel companies (Baowu, Ansteel, Hebei Steel, and Baotou Steel) and four automotive companies (Volvo, NIO, Dongfeng Nissan), representing 11.98% of global steel supply [1] Industry Challenges - The low-carbon transition of the steel industry and its impact on downstream products will be a key focus in global supply chains [2] - Challenges include the need for collaboration between raw material and automotive industries, establishing carbon footprint accounting methods, and improving the carbon data management capabilities of suppliers [2] Solutions - RMI has developed a carbon accounting methodology for steel products, introducing key indicators such as "comparative boundary carbon emissions" and "recycling steel ratio" to reflect the decarbonization efforts of steel companies [3][4] - A unified data transmission platform (CICES) has been established to ensure data quality and compatibility with international standards [4] Pilot Highlights - The pilot project is the first in China to facilitate data transmission between automotive and steel companies through a digital platform, aiming to enhance the comparability of carbon footprint data [5][6] - Key indicators recommended in the methodology help automotive companies assess the carbon performance of steel suppliers, supporting low-carbon procurement decisions [6] Future Work - The project will focus on enhancing the application of carbon accounting results in supply chain strategies and fostering a market for low-emission steel [10] - There is a need to standardize the disclosure format for carbon footprint data to reduce costs and improve data quality [9]

Transforming Delhi's Power Grid A Comprehensive Guide to Enhancing Flexibility Report / July 2024 BSES Rajdhani Power Limited (BRPL) is a joint venture between Reliance Infrastructure Limited (RInfra) and the Government of NCT of Delhi, with a shareholding of 51%:49%. BRPL covers an area of 691 sq km and serves over 30 lakh customers in 22 divisions across South and West Delhi. Since privatisation of Delhi electricity distribution in 2002, BRPL has reduced Aggregate Technical & Commercial (AT&C) losses by m ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report discusses the need for reform in utility business models, emphasizing the shift from traditional cost-of-service regulation (COSR) to performance-based regulation (PBR) to align utility incentives with customer and societal interests [4][24][34] - PBR is presented as a collection of tools designed to improve utility performance and accountability, ultimately leading to a more affordable, reliable, and equitable energy grid [4][34] Summary by Sections Traditional Utility Regulation and the Need for Reform - The traditional COSR model has created perverse incentives that hinder the transition to affordable clean energy, such as gold plating and throughput incentives [24][25][34] - The report highlights the evolution of policy goals from expanding utility systems and encouraging energy usage to operating efficiently and fostering innovation [20][34] Performance-Based Regulation Tools - PBR tools include revenue decoupling, multi-year rate plans, capex-opex equalization, performance metrics, and performance incentive mechanisms [38][61][66] - Revenue decoupling aims to remove the throughput incentive and improve revenue stability for utilities [40][41] - Multi-year rate plans encourage cost containment and reduce the frequency of rate cases, although they can be complex [53][54] - Capex-opex equalization strategies are designed to mitigate capex bias and promote cost-effective operational solutions [61][62] Case Studies - The report includes real-world examples of how PBR has been implemented and its effects on utility performance and customer outcomes [6][34] Further Reading - The report suggests additional resources for readers interested in exploring PBR and its implications for the utility industry [6][34]

Roadmap for Distributed Green Ammonia in Minnesota Report / June 2024 Authors and Acknowledgments Authors Quailan Homann TJ Kirk Anton Krimer Sheran Munasinghe Elina Rodriguez Joaquin Rosas Authors listed alphabetically. All authors are from RMI unless otherwise noted. Contacts TJ Kirk, tkirk@rmi.org Anton Krimer, anton.krimer@rmi.org Copyrights and Citation TJ Kirk, Anton Krimer, Sheran Munasinghe, Elina Rodriguez, Joaquin Rosas, and Quailan Homann, Roadmap for Distributed Green Ammonia in Minnesota, RMI, ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The Rocky Mountain Region (RMR) is positioned to capitalize on the growing demand for sustainable aviation fuel (SAF) due to its significant feedstock availability, existing infrastructure, and legislative support, despite currently lacking active SAF production [9][10] - The SAF Grand Challenge aims for the U.S. to produce 3 billion gallons of SAF annually by 2030, with the RMR targeting 126 million gallons by 2030 and 1.631 billion gallons by 2050, highlighting the need for strategic actions to meet these goals [21][49] - The report identifies various SAF production pathways, including HEFA, ATJ, and FT, with specific feedstocks such as used cooking oil, corn ethanol, municipal solid waste, and forest residues being evaluated for their potential in the RMR [24][25][49] Summary by Sections SAF Supply in the Rocky Mountain Region - The RMR currently has no active SAF producers, but significant bio-based feedstock potential exists, including used cooking oil, corn ethanol, municipal solid waste, and forest residues [24] - The SAF production potential in the RMR is estimated at 197 million gallons in 2030, exceeding the regional SAF Grand Challenge benchmark, but falls short of the 2050 target [49] Jet Fuel Demand in the Rocky Mountain Region - Airports in the RMR rely on conventional fossil-based jet fuels, with a growing demand for jet fuel driven by economic activity and population growth [11][12] - The RMR faces a gap between jet fuel demand and in-region refinery capacity, presenting an opportunity for local SAF production [13] Policy and Infrastructure - The report discusses the importance of federal policies, particularly the Inflation Reduction Act, which provides financial support for SAF production and encourages the use of feedstocks and hydrogen [60][61] - The SAF tax credits under the Inflation Reduction Act incentivize fuels that achieve a life-cycle GHG reduction of at least 50% compared to traditional jet fuel [61][64] Production Pathways - The report evaluates various SAF production pathways, including HEFA, ATJ, and FT, with HEFA being the most commercially mature pathway [32][34] - The PtL pathway, while currently the least mature, has the potential to meet future SAF demand without the constraints of biogenic feedstocks [53][54] Conclusion - The report emphasizes the need for collaboration among stakeholders to develop the SAF industry in the RMR, leveraging existing resources and infrastructure to meet ambitious SAF production targets [10][50]

Coal-to-Clean Success Stories Scalable innovations from promising coal-to-clean transitions around the globe by Shravan Bhat, Lila Holzman, Dhroovaa Khannan, David Lone, Iliad Lubis, Tyeler Matsuo Executive Summary The global power sector's transition from "coal-to clean" will be critical to meeting urgent climate targets but must be managed carefully to ensure the transition supports economic development. For a just coal-to-clean transition, existing coal assets must retire earlier than originally planned. ...

Accelerating Industrial Decarbonization in China: Key Climate Actions for Iron and Steel Companies ...

Investment Rating - The report does not explicitly provide an investment rating for the industry but emphasizes the potential for green methanol and ammonia as promising options for achieving decarbonization goals in shipping [18][44]. Core Insights - The International Maritime Organization (IMO) has set a target for shipping to achieve net-zero emissions by around 2050, with an interim goal of 5-10% uptake of zero or near-zero greenhouse gas emission technologies by 2030 [18][44]. - Green methanol and ammonia are identified as key fuels in the transition to zero-emission shipping, with the report exploring their supply dynamics and the necessary actions for ports to establish bunkering infrastructure by 2030 [18][43]. - The report highlights the importance of affordability, attractiveness, and accessibility for zero-emission fuels to reach a technology tipping point, which is crucial for their widespread adoption [42][44]. Summary by Sections Executive Summary - The report outlines the shift in the shipping industry towards new fuels, particularly green methanol and ammonia, as part of the decarbonization strategy [18]. - It discusses the uncertainties surrounding the availability of these fuels and the need for clarity to encourage investment in zero-emission ships [18][19]. Green Methanol and Ammonia Supply Dynamics - The economics of green methanol and ammonia production and transport suggest extensive trade linking low-cost production regions with key ports [19][53]. - Local production of e-ammonia or methanol is expected to be the most economical option for many ports in the medium to long term [20]. - The report inventories global projects aiming to produce green methanol and ammonia by 2030 and considers supply scenarios for various bunker ports [21]. Port Archetypes and Strategies - The report identifies four port archetypes: Importing Incumbents, Producing Incumbents, Future Exporters, and Bespoke Players, each with distinct opportunities and risks in the transition to green fuel bunkering [31][32]. - Strategies for ports to become first movers in green methanol and ammonia bunkering are discussed, including establishing partnerships and engaging first mover customers [38][40]. Action and Recommendations - The report provides recommendations for ports to seize their green bunkering opportunities, emphasizing the need for collaboration within the bunkering ecosystem [38][40]. - It suggests that ports should consider setting targets for zero-emission fuel sales and explore capital grants for bunkering infrastructure [40].

Investment Rating - The report indicates a significant investment opportunity in utility-enabled distributed energy resources (DERs) in Nigeria, estimating nearly $14 billion across the country over the next decade [16][23][49]. Core Insights - Utility-enabled DERs can address persistent challenges of power availability and reliability in Nigeria, with a market opportunity exceeding 20 GW over the next 10 years [16][21]. - Distribution companies (DisCos) can increase their revenue by an average of over ₦70 billion (~$50 million) annually through new DER assets [16]. - The report emphasizes the need for collaboration among DisCos, developers, and stakeholders to accelerate project deployment and meet strategic goals [24][29]. Summary by Sections Executive Summary - The roadmap outlines the potential for utility-enabled DERs to enhance DisCo profitability, improve infrastructure, and reduce customer costs while addressing supply gaps [17][18]. - It highlights the regulatory support for commercial viability, allowing project developers to charge cost-reflective tariffs [16][18]. Introduction - Nigeria's power sector faces significant challenges, including high ATC&C losses and low metering rates, which hinder DisCos' ability to serve customers effectively [27][35]. - The report identifies the need for DERs as a solution to improve operational efficiency and financial performance for DisCos [28][31]. The Role of Utility-Enabled DERs - Utility-enabled DERs can help DisCos increase access to electricity, reduce system losses, and improve revenue collection [43]. - The report outlines the benefits of DERs for various stakeholders, including increased energy sales for DisCos and reduced energy costs for customers [45][51]. Market Potential - The report estimates a DER market opportunity of 1 GW annually for five DisCos, translating to about 2 GW per year across Nigeria over the next decade [28][30]. - It projects that deploying DER capacity can close the supply gap and presents an investment opportunity of over $8 billion for the five DisCos analyzed [23][24]. Implementation Strategies - The roadmap provides a checklist of priority actions for DisCos to enable DER deployment, emphasizing the importance of forming cross-functional teams and developing DER strategies [26][25]. - It also discusses the need for regulatory compliance and the establishment of a system for customer engagement [26][48].

Investment Ratings - The report maintains a "Buy" rating on Nvidia (NVDA), AMD, and ARM, while issuing a "Sell" rating on Intel (INTC) [1][2][18]. Core Insights - The report highlights rising volume expectations across the supply chain, particularly ahead of Nvidia's Blackwell GPU shipments scheduled for late Q3 2024 [1]. - Nvidia and AMD are accelerating innovation in GPUs, leading to a competitive landscape characterized as "Nvidia vs. the Rest of the World" [1]. - The introduction of AI PCs is generating excitement within the industry, with Arm gaining early traction in AI PCs [1]. - Intel and AMD are promoting their new server CPU platforms, emphasizing performance and power efficiency advantages over existing processors [1]. Nvidia (NVDA) - Nvidia's 12-month price target is set at $135, reflecting an upside of 11.7% from the current price of $120.89 [4]. - The company is expected to maintain its competitive lead in accelerated computing, supported by a robust R&D scale and innovation cadence [4][8]. - Nvidia's revenue estimates for CY2025/26 are projected at $173.5 billion and $203.4 billion, respectively, with non-GAAP EPS estimates of $4.16 and $5.10, which are 18% and 23% above consensus [10][11]. AMD - AMD's 12-month price target is set at $175, indicating a 4.2% upside from the current price of $167.87 [20]. - The company is expected to benefit from an accelerated product cadence in the Data Center GPU segment, with new products like MI325 and MI350 launching in the near future [21][22]. - AMD's server CPU market share is projected to increase from 22% in Q1 2024 to 28.4% by 2026 [23]. ARM - ARM's 12-month price target is set at $143, with a current price of $136.57, indicating a 4.7% upside [38]. - The company is leveraging its architectural advantages in power efficiency to expand its customer base in the cloud, including partnerships with major players like AWS and Google [39]. - Recent product announcements, such as the Arm Cortex-X925 CPU and Immortalis-G925 GPU, showcase significant performance improvements, particularly in AI applications [39].