Tidewater Midstream and Infrastructure Ltd T.TWM.DB.A

RE:RE:RE:Renewables

[wynner]

nkbourbaki wrote:

longrun86 wrote: Very dangerous to have "credits" as a major economic driver at high leverage.

I think Tidewater is turnaround story that can still turn out OK as long as the Management team and the Board can make the right choices and can avoid fantastical ideas from clouding their minds!

LR

I'm concerned about political risk for the renewables business.  I don't know to what degree their existence hinges on the largesse of government, but I'm sure it's significant.  It seems we're due for a significant shift away from ESG focus over the next few years. 

Already in the US it looks like renewable diesel is in trouble, with credits sinking in value.  It's unclear to me why BC credits have maintained such strong value.  Does anyone here have any insight?

Nov 2023 presentation.

BC Low Carbon Fuel Standard (“BC LCFS”) – regulation was developed under the BC Liberal government and has been continued by the BC NDP

•  On October 25, 2021, The Government of British Columbia released its

  CleanBC Roadmap to 2030, which is part of B.C.'s plan to help it achieve its legislated targets for reducing its greenhouse gas emissions, including a targeted 40% reduction below 2007 levels by 2030.

•  The Roadmap to 2030 includes several initiatives that relate to renewable fuels and the province's Low Carbon Fuel Standard (LCFS) program, including:

  •  A contemplated expansion of LCFS to include marine and aviation fuels beginning in 2023 (currently, these fuels are excluded from the program);

  •  An increase in the carbon intensity reduction targets for gasoline and diesel to 30% by 2030; and

  •  An increase in the provincial renewable fuels production target to 1.3 billion litres per year (equivalent to approximately 22,400 b/d) by 2030 (double the current target of 650 million litres per year by 2030)