🟢 EverWind’s $6 Billion Green Hydrogen Project Gets the Go-Ahead

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:

• EverWind gets approval for it’s $6 billion, first North American green hydrogen facility

• CRC’s Carbon TerraVault announces CA DAC Hub Consortium

• Mitsubishi, Lotte and RWE team up to study clean ammonia in Corpus

• Northern Biogas acquires three dairy RNG projects

• Quote of the week – who said it better?

HYDROGEN

EverWind gets approval for $6 billion, North America’s first green hydrogen facility

• EverWind Fuels has become the first green hydrogen producer in North America to secure necessary permits for a commercial-scale facility

• Permits granted by Provincial authorities in Canada for former oil storage facility at Point Tupper to be converted into green hydrogen and ammonia production hub

• Green hydrogen is produced through electrolysis powered by renewable energy, making it carbon emissions-free

• EverWind’s project first phase (200,000 tonnes p.a.) to be online by 2025, ramping up to 1 million tonnes p.a. the following year

• Company has agreements with German energy firms E.ON and Uniper to acquire the production

• Green hydrogen will be combined with nitrogen and converted into ammonia before being shipped to Germany

• First phase powered using wind and solar assets to be built nearby, with 2 GW wind energy (from 137k acres) to power second, larger phase

• Project cost expected to be around $6 billion, with debt funding arranged by three banks and equity capital from Trent Vichie (EverWind founder and co-founder of Stonepeak)’s family office

• Three First Nation bands in Nova Scotia and Vichie’s family office are invested in the project

• Project will benefit from Canadian government’s tax credits for investments in renewable energy, including hydrogen

CARBON CAPTURE

CRC’s Carbon TerraVault leads new consortium to bring Direct Air Capture + Storage to Golden State

• Carbon TerraVault Holdings (a subsidiary of California Resources Corporation) has formed a team of players from industry, tech, academia, government, and labor to create the California DAC Hub, the state’s first full-scale Direct Air Capture and Storage network

• California DAC Hub will accelerate the state’s climate leadership and offer benefits to local communities, such as improved air quality, new jobs, and education programs

• The consortium will apply for DOE funding under the Regional Direct Air Capture Hubs Initiative to develop a network of DAC+S hubs across the state

• Non-profit EPRI will submit the application on behalf of the consortium by March 13, 2023

• The expansion of DAC+S in California leverages investments in the San Joaquin Valley community, including programs to address income inequality and promote sustainable recovery from COVID-19

• DAC+S is part of the initiatives required to meeting California’s ambitious climate action plan, which includes carbon removal targets of 20 million MT CO2 equivalent by 2030 and 100 million MT by 2045.

LOW-CARBON FUELS

Mitsubishi, Lotte, and RWE team up to study clean ammonia in Corpus

• Mitsubishi, Lotte Chemical and RWE Ag form alliance to study clean ammonia production in Texas

• Alliance to investigate the prospect of producing clean ammonia in Port of Corpus Christi

• Aim to develop green and blue ammonia supply chains in Asia, Europe, and the United States

• First production target set for 2030 with the aim of producing up to 10 million tonnes of clean ammonia per year across multiple production units

RENEWABLE NATURAL GAS

Northern Biogas acquires three dairy RNG projects

• Northern Biogas, a waste-to-RNG company, has acquired three dairy RNG projects, expanding its RNG production capacity

• H.I.G. Capital invested in Northern Biogas in September 2022 and this acquisition marks acceleration in Northern Biogas’ rapidly expanding RNG project development pipeline

• These acquired dairy RNG facilities are near Northern Biogas’ existing operations, creating operational and commercial synergies and expected to start commercial service in Q1 2024

• Northern Biogas CEO Chris Akers appreciates H.I.G.’s partnership and the shared desire to scale their market position through the acquisition

• George Watts, Managing Director with H.I.G. Infrastructure, says the investment in Northern Biogas reaffirms H.I.G.’s commitment to clean, renewable energy and support for the transition to a low-carbon economy.

QUOTE OF THE WEEK

Who said it better?

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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.