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.
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LITHIUM
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Chile’s President Gabriel Boric has announced plans to nationalize the country’s lithium industry, which is the world’s second-largest producer of the metal essential for electric vehicle batteries, to boost the economy and protect the environment
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In time, control of Chile’s vast lithium operations would be transferred from industry giants SQM and Albemarle to a separate state-owned company
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The move poses a fresh challenge to electric vehicle manufacturers seeking to secure battery materials, as more countries look to protect their natural resources
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Mexico nationalized its lithium deposits last year and Indonesia banned exports of nickel ore, another key battery material, in 2020
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Future lithium contracts in Chile would only be issued as public-private partnerships with state control
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Chile aims to protect biodiversity and share mining benefits with indigenous and surrounding communities
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The announcement helped spark a lithium price rally in Asia and is likely to spur a shift in future investment in lithium to other countries including Australia, the world’s biggest producer.
CARBON-FREE ENERGY
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NET Power and Rice Acquisition Corp. II announce an additional $275 million in PIPE commitments for their proposed business combination.
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Occidental increases its commitment by $250 million, bringing its total investment to $350 million.
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The Rice family commits an additional $25 million, bringing their total investment to $125 million.
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The expected gross proceeds of the business combination are now $845 million for NET Power.
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Assuming no RONI shareholders exercise their redemption rights, the combined company is expected to have a market capitalization in excess of $2.0 billion.
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NET Power is making excellent progress towards commercialization of its utility-scale power plant, including FEED commencement on the Occidental-hosted Serial Number 1 project.
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Occidental is expected to be a key offtaker of the clean power generated by SN1 and manage the transportation, storage, and utilization of the captured CO2 from SN1.
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Following this additional commitment, Occidental’s ownership stake in the combined company will increase to approximately 39%, assuming no redemptions.
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NET Power expects $200 million of net proceeds from the business combination and the PIPE to fully fund corporate operations through commercialization of SN1, which is expected to be operational in 2026.
CARBON CAPTURE
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The US government may require natural gas-fired power plants to install technology to capture carbon emissions
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The Environmental Protection Agency (EPA) is expected to unveil new standards for new and existing power plants, replacing former President Trump’s American Clean Energy rule and former President Obama’s Clean Power Plan
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The standards should be based on a plant’s potential to reduce emissions through carbon capture and storage (CCS) technology, and will be based on “best system of emission reduction”
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The rules could make it harder for new gas plants to compete with solar and wind power, potentially leveling the playing field between new gas plants and new renewable energy
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The proposal will reflect two major developments, a Supreme Court decision last July, and the Inflation Reduction Act, which created tax credits making carbon capture and hydrogen more affordable
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The EPA could set varying standards for plants, applying stringent measures for ones that run constantly and easier ones for “peaker” plants which run during high power demand
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Fossil fuels accounted for more than 60% of US electricity generation in 2022, with renewables accounting for 21.5%
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Utility Southern Company said new gas turbines should be favored “to safeguard electric needs of the US”
LOW-CARBON FUELS
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Japan has received its first low-carbon ammonia cargo from Saudi Arabia, which it plans to use for co-firing with fossil fuels to reduce carbon emissions
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The ammonia was produced by SABIC Agri-Nutrients using feedstock from Aramco and delivered by Mitsui O.S.K. Lines to Fuji Oil Company’s Sodegaura refinery
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Japan aims to increase its fuel ammonia demand to 3 million tonnes annually by 2030 from nearly zero at present
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Its top power generator JERA has been co-firing ammonia with coal in a trial project at its power station in central Japan since 2021.
LOW-CARBON FUELS
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Keppel Infrastructure and Exxon have signed a memorandum of understanding (MOU) to develop low-carbon hydrogen and ammonia solutions for use in Singapore
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The MOU aims to use low-carbon hydrogen for a 600 MW Keppel Sakra Cogen plant in Jurong Island, with the plant expected to operate with at least 30% hydrogen and have the capability of shifting to run entirely on hydrogen
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The plant is currently under construction and expected to be completed in the first half of 2026
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The deal follows Singapore’s National Hydrogen Strategy, which targets hydrogen to meet up to half of its power needs by 2050.
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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.