Today’s ESG Updates
- Trump’s AI Push Fuels Gas Plant Expansion: Air quality is being threatened as at least 82 gas-burning power plants are being built to power U.S. data centers.
- SA-H2 Fund Closes First Round for Southern Africa: The green hydrogen and energy transition fund secured around $184 million from investors.
- Sonnedix Secures €730 Million for Southern European Renewables: The financing will support solar and wind projects and battery storage across Spain, Portugal, France, and Italy.
- Deutsche Bank Backs Queensland Battery Storage: The bank committed nearly $60 million to Quinbrook’s Supernode Stage 3 project to help stabilize Australia’s grid.
Trump’s AI push increases gas-burning power plants
As Trump pushes AI data center development in the United States, air quality is increasingly threatened. While greenhouse gas emissions have been declining for two years in the U.S., they are rising once again. In an effort to avoid the multi-year lag in connecting to the electric grid, many data centers are constructing their own gas-fired power plants. Texas is the biggest offender of this increase in gas plants, with 39 of the 82 planned plants. According to the nonpartisan research organization Environmental Integrity Project, the majority of these 82 gas-burning plants were announced or granted permits in the last 18 months.
This move is the latest in Trump’s string of policies that are actively harming the environment. The gas-burning AI power plants could produce yearly emissions equivalent to half of the country’s passenger vehicles, according to estimates from the Environmental Integrity Project. Some environmental groups are pursuing legal action over Trump’s anti-environment practices.
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SA-H2 Fund closes, advancing the energy transition in Southern Africa
The European Commission and Climate Fund Managers announced the first close of SA-H2 Fund (SA-H2) on Thursday. The Commission defines SA-H2 as a “blended finance private equity fund focused on the green hydrogen value chain and energy transition in Southern Africa.” With commitments from Global Gateway, Invest International, South Africa’s Public Investment Corporation (PIC) on behalf of the Government Employees Pension Fund (GEPF), Sanlam Life and the Industrial Development Corporation of South Africa (IDC), 3 billion South African Rand (ZAR) (around $184 million) was secured for large-scale energy transition projects.
According to Climate Fund Managers, the first close of the SA-H2 Fund signifies investor confidence in decarbonizing hard-to-abate sectors with green hydrogen, green ammonia, and green methanol. Mphokolo Makara, CEO of SA-H2 Fund Managers, said, “Through SA-H2, we are developing a pipeline of commercially viable projects that will help decarbonise industry, drive long-term economic growth and support a Just Energy Transition.” The fund managers hope to reach a target of 12 billion ZAR by 2028.
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Sonnedix announces €730 million to finance renewable energy projects in Southern Europe
Global renewable energy company, Sonnedix, closed a €730 million financing for renewable infrastructure across Spain, Portugal, France, and Italy. The funding will aid in the refinancing, optimization, and construction of renewable energy projects across Southern European countries. Italy will receive the majority of the funding, with capacity exceeding 350 megawatts (MW) of the projected 540MW. The financing will also integrate two battery energy storage systems (BESS).
Sonnedix’s CEO, Axel Thiemann, said: “This financing reflects Sonnedix’s commitment to developing high-quality renewable projects in our strategic markets. It follows our recent BESS portfolio acquisition in Italy, and underscores the pace at which we are scaling our storage capabilities across Europe.”
The firm is a leader in battery storage systems in Europe. With this latest financing, the company will expand its portfolio and further advance its hybridization strategy.
Deutsche Bank commits A$85 million to Queensland battery storage
Deutsche Bank has committed 85 million Australian dollars (nearly $60 million) for the Quinbrook’s Supernode Stage 3 Battery Energy Storage System (BESS). Located in Queensland, Australia, the project will develop one of the country’s largest battery storage facilities and is expected to improve grid stability and drive Australia’s energy transition.
Rachel Chia, Head of Project Finance for the Asia-Pacific (APAC) region at Deutsche Bank, said, “We are delighted to continue our partnership with Quinbrook through the financing of Supernode 3, marking our second transaction together and further strengthening our collaboration across the Supernode platform. We are proud to be a key financing partner to Quinbrook as it delivers transformative energy infrastructure that supports Queensland’s energy transition and long-term economic growth.”
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Nils Huenerfuerst.
