⚜️ Louisiana Direct Air Capture Hub Bid

Good Morning. This is the Sunya Scoop. The newsletter that takes energy transition news and turns it into an easy-to-read email for you.

Here’s what we have for you today:

• DOE announces $750 million for clean hydrogen R&D

• Battelle, Climeworks, Heirloom and Gulf Coast Sequestration team up for DOE DAC hub bid

• Rumor mill – Exxon considers selling stake in Italian LNG terminal

• Cedar LNG Receives B.C. Environmental Approval and Signs MOU with ARC Resources

• Shell Aviation and JetBlue to bring SAF to LAX

• Corteva Agriscience, Bunge and Chevron team up to produce winter canola to for renewable fuels

• Video of the week – CNN interview with Mike Wirth

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HYDROGEN

Another week, another DOE funding announcement.

DOE announces $750 million for clean hydrogen R&D

• The Department of Energy announces $750 million in funding to reduce the cost of clean hydrogen.

• This is the first phase of the $1.5 billion dedicated to advancing electrolysis tech and improving manufacturing and recycling capabilities.

• Clean hydrogen is crucial to achieving the Administration’s goal of a 100% clean electrical grid by 2035 and net-zero carbon emissions by 2050.

• The funding will launch the implementation of two provisions of the Bipartisan Infrastructure Law, which authorizes $1 billion for research, development, demonstration, and deployment activities to reduce the cost of clean hydrogen and $500 million for research, development, and demonstration of improved processes and technologies for manufacturing and recycling clean hydrogen systems and materials.

• The DOE’s Hydrogen and Fuel Cell Technologies Office will manage the projects funded through this opportunity, which will address underlying technical barriers to cost reduction.

• The application process will include two phases: a Concept Paper phase and a Full Application phase. Concept papers are due on April 19, 2023, and full applications are due on July 19, 2023.

CARBON CAPTURE

Battelle, Climeworks, Heirloom and Gulf Coast Sequestration team up on bid for DOE funding for a DAC Hub

• Battelle and a team of technology developers submit proposal to the US Department of Energy for funding for a Direct Air Capture Hub

• The Project Cypress DAC Hub aims to advance the commercialization of Direct Air Capture and Storage, removing carbon dioxide from the earth’s atmosphere

• The Hub will be located in southwest Louisiana and will involve collaboration with industry-leading partners including Climeworks, Heirloom, and Gulf Coast Sequestration

• The project will make investments in the local community and region by creating new jobs and involving community stakeholders in the project’s development and deployment

• Siting the project in a region with a long history of fossil fuel production aims to bring fossil energy employees into the energy transition and create jobs in southwest Louisiana.

• DOE announced last year $3.5 billion for Regional Direct Air Capture Hubs – $700 million annually

LNG

Rumor mill – Exxon considers selling stake in Italian LNG terminal

• Exxon is considering selling its majority stake in Italy’s Rovigo liquefied natural gas (LNG) terminal as part of a strategy to divest from noncore assets.

• The terminal is owned by ExxonMobil Italiana Gas (70.7%), Qatar Terminal Company Limited (22%), and Snam Spa (7.3%).

• Snam Spa has the first right of refusal in case of divestment by a partner.

• Exxon has not made a decision about a potential sale and is verifying market interest.

• The terminal is managed by Italy’s Terminale GNL Adriatico and is located in the northern Adriatic Sea, about 15 km off Porto Viro in the Veneto region.

• The facility has recently expanded its regasification capacity to 9 billion cubic meters of natural gas per year.

• The sale would not impact Exxon’s imports of LNG or its interest in the Italian and European markets as a natural gas supplier.

LNG

Cedar LNG Receives B.C. Environmental Approval and Signs MOU with ARC Resources

• “Haisla Nation and Pembina Pipeline achieve historic milestones for Canada’s first Indigenous majority-owned LNG facility”

• Cedar LNG project receives Environmental Assessment Certificate from B.C. Environmental Assessment Office

• Cedar LNG signs a Memorandum of Understanding with ARC Resources for a long-term liquefaction services agreement

• Cedar LNG is a proposed floating liquified natural gas facility located on Haisla Nation-owned land in Kitimat, B.C.

• Cedar LNG has the capacity to export three million tonnes / year of LNG

• Cedar LNG will be powered by renewable electricity from BC Hydro to minimize its environmental footprint

• Cedar LNG received its first permit from the BC Energy Regulator for the approximately 8.5 km pipeline that will connect the Project into the Coastal GasLink pipeline

• Cedar LNG has entered into an MOU for a 20-year liquefaction services agreement with ARC Resources for 1.5 million tonnes of LNG per year

• Cedar LNG is in commercial discussions with other potential customers for long-term volume commitments

• Final investment decision for Cedar LNG is anticipated in Q3 2023

RENEWABLE FUELS

Shell Aviation and JetBlue to bring SAF to LAX

• JetBlue and Shell Aviation have announced a collaboration to bring additional supply of sustainable aviation fuel (SAF) to Los Angeles International Airport (LAX).

• JetBlue is expected to take delivery of 10,000,000 gallons of blended SAF at LAX over the next two years and an option to purchase up to 5,000,000 gallons more in the third year, either at LAX or other airports in JetBlue’s network.

• SAF can lower lifecycle greenhouse gas emissions by roughly 80% in its neat form when compared to traditional petroleum-based fuels.

• Shell has announced its ambition to have 10% of its aviation jet fuel sales as SAF by 2030.

• The additional SAF provided through Shell Aviation at LAX will increase the airline’s SAF supply at the airport, bringing SAF to approximately 15 percent of JetBlue’s total LAX jet fuel uptake.

• JetBlue and Shell will also be working to offer corporate customers additional ways to simultaneously reduce emissions associated with their flying while helping ensure transparency and accountability.

RENEWABLE FUELS

Corteva Agriscience, Bunge and Chevron team up to produce winter canola to for renewable fuels

• Corteva, Bunge, and Chevron are collaborating to produce winter canola hybrids that can produce plant-based oil with a lower carbon profile.

• The goal is to increase the availability of vegetable oil feedstocks for the renewable fuels market.

• Winter canola will be introduced into the southern US to create a new revenue opportunity for farmers with a sustainable crop rotation.

• Corteva’s winter canola hybrids can be used in a double crop system following soybeans or cotton.

• Bunge Chevron Ag Renewables plans to purchase the harvested winter canola crop and use the oil to produce renewable fuel.

• The addition of winter canola to a rotation provides a cover crop that can enhance soil health.

• The companies plan to conduct a pilot program in the 2022-23 growing season to fine-tune best management practices.

• The companies plan to continue to explore opportunities to sustainably improve farming options and produce lower carbon renewable fuels.

Video of the week

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.