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:
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Brookfield eyes $20 billion for next energy transition fund
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CapturePoint announces FID on Louisiana CCUS project
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Talos expands CCS portfolio
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Enbridge partners with Divert on $1 billion food waste RNG infrastructure project
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AEP sells renewable portfolio for $1.5 billion
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Aris adds Exxon to list of Permian operators piloting recycled water tech
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Riley partners with Conduit on flare gas to power in Permian
INVESTMENT
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Brookfield Asset Management is planning to raise ~$20 billion for its second fund that focuses on investing in energy transition
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The fundraising for this second fund is expected to begin by mid-year, and the firm may eventually gather as much as $25 billion depending on investor demand.
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Brookfield already raised $15 billion for the 1st Brookfield Global Transition Fund, led by former Bank of England Gov. Mark Carney and Connor Teskey, CEO of Brookfield Renewable.
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Brookfield’s existing transition fund invests in wind and solar energy, battery storage, carbon capture, and nuclear power.
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Last year, the firm teamed up with Uranium miner Cameco Corp. to buy nuclear-power giant Westinghouse Electric.
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Brookfield has plans to invest in Origin Energy, owner of Australia’s biggest coal plant, with investments of USD $13.5 billion by 2030 to boost renewable generation capacity and energy storage.
CARBON CAPTURE
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CapturePoint announces final investment decision for carbon capture and storage infrastructure in the Central Louisiana Regional Carbon Storage Hub (CENLA Hub)
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CapturePoint’s geologic storage sites in the CENLA Hub have the potential for a large US CCS storage hub, with capacity to secure tens of millions of tons annually
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First phase of the CENLA Hub project will involve capture of dedicated CO2 emissions from natural gas processing facilities owned by Energy Transfer in North and Central Louisiana, as well as from other industrial sources in the area, for transport by pipeline to deep underground sequestration in the CENLA Hub
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CapturePoint filed for an EPA Class VI permit in June 2022 to advance the first CO2 sequestration wells in the CENLA Hub and expects to file another this quarter
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CapturePoint has executed deals with private landowners for pore space leases totaling 14,000+ acres associated with the second CENLA Hub storage site
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Energy Transfer has worked jointly with CapturePoint to co-develop the project and is expected to make a FID regarding the scope of its participation later this year
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CapturePoint’s decision to proceed with investments in the CENLA Hub solidifies the company’s leadership role in US deep underground carbon storage
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Mercuria, a global commodity firm as a leading energy investor has made substantial investments in CapturePoint.
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Separately, Mercuria recently invested in and sold RNG company Beyond6 to Chevron
CARBON CAPTURE
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Expects 2023 CCS investments of $70 – $90 million, which may grow
Southeast Texas CCS
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Talos has elected to participate alongside Chevron in an onshore CO2 sequestration leasehold in southeast Texas.
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The combined onshore and offshore Bayou Bend CCS (JV with Carbonvert and Chevron) leaseholds provide a gross storage resource of more than 1 billion tons of CO2 for multiple industrial markets in the region.
Coastal Bend CCS
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Talos Low Carbon Solutions, Howard Energy Partners, the Port of Corpus Christi Authority, and the Texas A&M University System received a $9.0 million grant from the CarbonSAFE program in February 2023.
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The grant will reimburse technical and economic feasibility costs, including a stratigraphic evaluation well and FEED studies.
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Talos and Howard entered into a lease agreement with the POCCA for the initial 13,000 acres of the sequestration storage location.
RENEWABLE FUELS
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Divert Inc. has announced a $1 billion infrastructure development agreement with Enbridge Inc. to decarbonize the food value chain and combat climate change.
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Enbridge has invested $80 million in growth equity, and an additional $20 million has been led by current investor Ara Partners. This gives them them option on $1 billion of future infrastructure investment in RNG projects across the US.
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The investment will support the development of wasted food to renewable natural gas facilities across North America to convert wasted food into clean renewable energy, offsetting nearly 400,000 metric tons of CO2 annually.
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Divert plans to scale its facilities across the U.S. and Canada in the next eight years.
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The U.S. alone generates more than 100 million tons of wasted food annually, contributing up to 10% of global greenhouse gas emissions.
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Divert expanded its retail customer base by nearly 35% in 2022 and signed an offtake agreement with bp worth approximately $175 million.
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New Energy Technology team advancing contracted infrastructure in RNG, CCS, and Hydrogen in the US and Canada
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Moving forward with a plan to build a pipeline to supply ArcelorMittal Dofasco steel plant in Hamilton, Ontario with natural gas (vs coal), supporting the largest GHG emissions reduction project in the province, 60% from today
RENEWABLES
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AEP has agreed to sell its 1,365 MW unregulated, contracted renewables portfolio to IRG Acquisition Holdings (owned by Invenergy, CDPQ, Blackstone) for $1.5 billion.
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The sale is expected to close in Q2 2023, and AEP expects to net around $1.2 billion in cash after taxes, fees, and adjustments.
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AEP plans to use the proceeds to invest in its core regulated businesses and advance its clean energy transition.
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AEP plans to invest around $40 billion over the next five years in its regulated wires and generation business, adding 17,000 MW of new generation resources and improving transmission and distribution infrastructure.
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The sale portfolio includes 14 projects in 11 states, with 1,200 MW of wind and 165 MW of solar power contracted under long-term agreements with other utilities, corporations, and municipalities.
SUSTAINABILITY
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Aris Water Solutions announced that ExxonMobil has joined a strategic agreement with Chevron and ConocoPhillips to develop and pilot technologies to treat produced water for potential beneficial reuse opportunities.
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The companies aim to develop cost-effective and scalable solutions for treating produced water for non-consumptive agricultural, alternative power generation, and other industrial and commercial applications.
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The collaboration will improve water sustainability management in the Permian by developing and piloting opportunities to use produced water outside of the oil and gas.
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The companies plan to complete pilot testing and performance evaluation by the end of 2023 for risk of treated produced water and eventual beneficial reuse applications.
SUSTAINABILITY
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Riley Exploration Permian and Conduit Power have formed a joint venture to own and operate on-site power generation utilizing captured flared natural gas to power Riley Permian’s operations in Yoakum County, Texas.
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The project will be completed in phases and will ultimately include 20 MW of power, with Phase 1 providing 10 MW of on-site generation and expected to be operational by June 2023.
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The new power infrastructure is expected to improve Riley Permian’s operating resiliency with a consistent, baseload power source, better manage long-term energy costs, and reduce CO2 emissions.
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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.