Storebrand starts fossil-free bond fund worth $1.3bn
On 12 December, Norway’s biggest private pension fund, Storebrand, has launched a $1.3bn fossil-fuel-free fund programme.
The Norwegian firm already run $2.1bn worth of equity funds which have no investments in fossil fuels, according to Reuters.
However, the now combined $4.3bn only accounts for 4.25% of Storebrand’s total $80bn worth of assets under its management.
“We’re building a track record in managing these low-carbon solutions… We aim to inspire others to follow suit,” Jan Erik Saugestad, CEO of Storebrand Asset Management informed Reuters.
The company is also reducing its overall exposure to oil and gas, as well as encouraging investors to do the same.
Storebrand Global Kreditt IG, the dubbed bond programme, is to be mostly invested into corporate bonds.
These bonds will be issued by financial institutions and industrial companies in developed nations.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.