Core Insights - Anaergia Inc. has signed a contract with PepsiCo Mexico Foods' subsidiary, Sabritas, to provide an integrated renewable energy solution at a food production facility in Mexico [1] - The project aims to convert approximately 50,000 tons per year of organic residuals into carbon-negative biomethane, which will offset fossil natural gas and reduce greenhouse gas emissions by up to 4,000 tons per year [1] - The project is expected to be operational before the end of 2026 [1] Company Overview - Anaergia is a pioneering technology company in the renewable natural gas (RNG) sector, holding over 300 patents focused on converting organic waste into sustainable solutions such as RNG, fertilizer, and water [4] - The company is committed to addressing significant sources of greenhouse gases through cost-effective processes and has a proven track record of delivering hundreds of innovative projects over the past decade [4] - Anaergia offers an integrated portfolio of end-to-end solutions, combining solid waste processing, wastewater treatment, organics recovery, high-efficiency anaerobic digestion, and biomethane production [4] PepsiCo Mexico Foods Overview - PepsiCo Mexico Foods is a leading food and beverage manufacturer with a product portfolio that includes some of the most beloved brands worldwide [3] - The company employs over 40,000 people in Mexico and serves 900,000 points of sale, making the Mexican market its second most important globally [3] - The partnership with Anaergia is part of PepsiCo's commitment to long-term sustainability and environmental responsibility [2]

Investment Rating - The report indicates a strong investment opportunity in Brazil's environmental sectors, particularly in climate and biodiversity solutions, positioning Brazil as a leader in these areas [4][15][64]. Core Insights - Brazil is seen as a decisive vector for climate solutions, with significant potential for catalytic investments to bridge the climate finance gap in Latin America [27][30]. - The Brazilian Amazon rainforest is critical for climate stability, providing essential ecosystem services and opportunities for innovative financial conservation strategies [17][69]. - The integration of climate, communities, and biodiversity is essential for strengthening the resilience of the Amazon rainforest, with investments in nature viewed as a long-term strategic asset [64][66]. Summary by Sections Introduction - Citi Research hosted an event in São Paulo to discuss challenges and opportunities related to climate and biodiversity with various stakeholders [13][14]. What Really Reduces Deforestation? - Effective deforestation control requires a market-based approach, emphasizing the need for well-defined property rights in the Amazon region [21][23]. - A carbon price of US$25 per ton could incentivize communities to preserve forests and regenerate degraded lands [25]. LatAm: A Decisive Vector for Climate Solutions - The report highlights the investment opportunities in Latin America to mobilize capital at scale for climate solutions [27][28]. - Domestic investors in Brazil are focused on creating innovative products that yield positive socio-environmental outcomes while achieving financial returns [29]. Biogas, Biomethane and Organo-mineral Fertilizer - Tupy's bio plant project exemplifies a successful partnership in renewable fuel production, transforming pig waste into biogas and organo-mineral fertilizer [33][36]. Tackling Beef Traceability - Minerva Foods has achieved 100% geospatial monitoring of direct-supplier farms in Brazil, addressing traceability challenges in the beef supply chain [39][40]. Agriculture 3.0 and BE8 Energy Panels - Brazil's agricultural sector has evolved significantly, with a focus on sustainability and efficiency, conserving approximately 324 million hectares from agricultural conversion [44][46]. Investing in Nature: Climate Impact through Carbon Ratings - The Brazilian Greenhouse Gas Emissions Trading System (SBCE) presents a major opportunity for Brazil to enhance its climate targets and stimulate domestic demand for carbon credits [60][62]. Beyond Carbon with High Integrity Forest Conservation - High integrity forest conservation initiatives can deliver benefits beyond carbon offsetting, integrating climate, communities, and biodiversity [64][66]. Looking to COP30 Belém - The upcoming COP30 in Belém is anticipated to focus on the Amazon rainforest's role in climate stability and the need for market instruments to achieve environmental and economic outcomes [69][71].

Core Insights - Engie expects its 2025 net recurring income to reach the upper end of its €4.4–€5.0 billion target range, driven by strong cash generation and operational progress in the first nine months of the year [1] - The company reported a revenue of €52.8 billion, reflecting a 1.8% organic increase, while EBITDA excluding nuclear operations was €9.8 billion, down 3.9% on an organic basis [2] - Engie continues to expand its renewables and energy storage portfolio, with 55 GW of installed capacity and 6 GW under construction as of September 30 [3] Financial Performance - Cash flow from operations rose to €11.4 billion, with EBIT excluding nuclear activities at €6.3 billion, a 7.3% organic decline due to lower power prices and weaker hydrology [1] - Economic net debt stood at €46.4 billion at the end of September, a decrease of €1.4 billion compared to the end of 2024, maintaining a net debt-to-EBITDA ratio of 3.2x [2] - The group's performance program delivered €477 million in recurring benefits year-to-date, supporting cash flow despite a normalized trading environment [2] Renewable Energy Initiatives - Engie signed 3.1 GW of new power purchase agreements during the period, including contracts with major technology companies such as Meta and Apple [3] - In the Middle East, Engie signed a PPA for the 1.5 GW Khazna standalone solar project in Abu Dhabi, which will be one of the world's largest single-site solar facilities upon completion [3] Infrastructure Developments - In Europe, Engie advanced its battery and flexible generation assets, increasing its Italian battery fleet to 250 MW and adding an 85 MW/170 MWh battery storage system in Romania [4] - The company completed the first firing of the Flémalle gas plant in Belgium and received authorization for commissioning the brownfield section of the Graúna transmission project in Brazil [4] - In France, biomethane capacity connected to Engie's networks rose to 14.2 TWh, reflecting progress in the company's low-carbon gas strategy [4] Nuclear Operations - Engie's Belgian nuclear operations achieved key milestones with the restart of Doel 4 and Tihange 3 reactors, following an extension agreement with the Belgian State [5] - The restarts triggered the final payment under the nuclear waste liability transfer, and the extended units will now be held in a 50/50 joint venture with the government [5]

Core Viewpoint - Air Liquide, a leading industrial gases company, is considering the sale of its biomethane assets to concentrate on its primary gas supply business [1] Company Focus - The decision to explore the sale of biomethane assets indicates a strategic shift towards enhancing the core operations of gas supply [1] - This move aligns with the company's long-term strategy to streamline its portfolio and focus on areas with higher growth potential [1] Industry Context - The biomethane market is evolving, and companies in the industrial gases sector are reassessing their positions to adapt to changing market dynamics [1] - The potential divestiture reflects broader trends in the industry where firms are prioritizing core competencies and operational efficiency [1]

Core Insights - Infortar's sales volumes increased significantly in Q2 2025, reaching €505 million, a 150% increase compared to the previous year [1] - The company successfully acquired Estonia Farmid, enhancing its position in the agricultural sector and contributing to the bioeconomy [2] - Infortar invested €38 million in various projects, including renewable energy initiatives and infrastructure developments [3] Sales and Financial Performance - In the first half of 2025, Infortar's consolidated revenue rose by €275.73 million to €951.869 million, largely due to the consolidation of Tallink Grupp's results [11] - The EBITDA for the energy segment improved to €19.929 million in Q2 2025, compared to a loss of €0.845 million in Q2 2024 [13] - The consolidated net loss for the first half of 2025 was €-14.4 million, a significant decline from a net profit of €73.017 million in the same period of 2024 [14] Segment Performance - The maritime transport segment saw an increase in passenger numbers to 1,488,128, a 2.5% rise from Q2 2024, while cargo units transported decreased by 22.8% [4] - The energy segment's gas and electricity sales reached 4.9 TWh, a 25% increase year-over-year, with a market share of 27.7% in the Finnish-Baltic market [6] - In real estate and infrastructure, Infortar completed the Pärnu bridge and continued work on the Rail Baltica mainline, valued at €67.2 million [7] Investments and Projects - Infortar's investments in the first half of 2025 totaled approximately €38 million, focusing on renewable energy and infrastructure projects [15] - The company is constructing one of Estonia's largest biomethane plants and a new solar power plant in Latvia [3] Financial Position - As of June 30, 2025, Infortar's total liabilities amounted to €941.747 million, with net debt at €795.379 million [16] - The net debt to EBITDA ratio was reported at 3.4, indicating the company's leverage position [16] Dividends - Infortar plans to pay a dividend of €3 per share for the 2024 financial year, with the first payment made on July 15, 2025 [17]

Core Viewpoint - AB Akola Group has temporarily postponed the construction of a biomethane gas production plant in the Kaišiadorys district, which is part of its long-term development strategy to address rising energy costs, excess biological waste, and climate impact reduction [1][2]. Investment and Financial Aspects - The biomethane power plant project is expected to process up to 140,000 tons of organic waste annually, generate 85 GWh of renewable energy, and reduce CO2 emissions by up to 29,000 tons per year, with an estimated payback period of less than 7.5 years [1]. - The project was planned to receive €19.4 million in investments, with an application for European Union funding submitted for its implementation [5]. Current Operations and Future Plans - Despite the postponement, the company continues to implement sustainable organic waste management solutions, transferring poultry manure to farmers and planning to direct part of this waste to a newly built biogas plant in Lukšiai [4]. - AB Akola Group is currently focusing on constructing a biofuel plant in Lukšiai, which is the first project of this scale for the group, with plans for further investments to enhance sustainability and profitability after its completion [3]. Company Overview - AB Akola Group is the largest agricultural and food production group in the Baltic States, employing over 5,000 people and operating along the entire food production chain [6]. - For the first nine months of the 2024/2025 financial year, the consolidated revenue of the group exceeded EUR 1,165 million, reflecting a 3.59% increase compared to the same period in the previous year [6].

Core Viewpoint - The EPSO-G energy group is set to enhance its responsibilities in facilitating the green energy transition, improving international interconnections, and ensuring the resilience and flexibility of the electricity system [1]. National Security - The Ministry of Energy emphasizes the importance of resilience in critical infrastructure, with plans to bolster physical and cyber protection against military and hybrid threats [2]. - EPSO-G is involved in the Lithuanian-German artillery factory project, indicating its role in national security and defense industry investments [3]. International Connections and Networks - Key projects include the Harmony Link electricity interconnection with Poland and strengthening interconnections with Latvia, as well as plans for the Baltic Hub offshore interconnection with Germany [4]. - There are expectations to increase gas flows from the Klaipėda LNG terminal to Central Europe and Ukraine, alongside developing a hydrogen network in the Nordic and Baltic regions [5]. Energy Green Transformation and System Flexibility - By 2028, Lithuania aims for at least 8 GW of electricity generation capacity from renewable sources, with EPSO-G expected to lead in integrating renewable energy and managing energy flows [7]. - The Group will assess dynamic transmission tariffs and explore long-term energy storage possibilities [7]. Financial Expectations - EPSO-G's adjusted average return on equity must meet or exceed government benchmarks, and investment returns should align with those of mature Western European economies [9]. - The Group is required to maintain an investment-grade credit rating of no lower than Baa2 and manage net debt to adjusted EBITDA ratios effectively [10]. Operational and Sustainability Principles - EPSO-G must adhere to high standards of transparency, governance, and social responsibility, following best practices as per Lithuanian laws and OECD recommendations [12]. - The Group is committed to achieving net-zero greenhouse gas emissions by 2050 and supporting the United Nations Sustainable Development Goals [13]. Company Structure - The EPSO-G Group comprises the management company EPSO-G and six subsidiaries, with the Ministry of Energy acting as the sole shareholder [14].

Core Insights - OÜ EG Biofond signed an investment agreement to acquire a 96.6% shareholding in OÜ Estonia Farmid, with a 3.4% shareholding retained by its subsidiary Osaühing Estonia, pending approval from the Competition Authority [1] - Estonia Farmid OÜ manages three agricultural companies and operates 9,400 hectares of arable land, employing nearly 150 people [1] - The dairy farms under Estonia Farmid OÜ have a total of 2,640 dairy cows, with an average milk production of 13,300 kilograms per cow annually, and the company also produces 27,000 tons of grains and rapeseed per year [1] Company Overview - Infortar is a prominent group in Estonia, operating in seven countries with activities in maritime transport, energy, real estate, and agriculture, among others [6] - Infortar holds a 68.47% stake in Tallink Grupp and a 100% stake in Elenger Grupp, with a real estate portfolio of approximately 141,000 m² [6] - The group consists of 110 companies, employing 6,228 people, and has expanded its presence across agriculture, industry, and services [3][6] Industry Context - The agricultural sector, particularly dairy production, is highlighted as a competitive area for Estonia, with fertile farmland contributing to high-quality milk production [2] - The dairy industry is considered a key pillar of Estonia's economy, alongside timber and minerals [2]