$12 billion for carbon removal

Woodside teams up with Japanese trio on CCS studies

• Woodside Energy has signed a non-binding Memorandum of Understanding (MOU) with three Japanese companies (Sumitomo Corporation, Toho Gas Co., Ltd., and Kawasaki Kisen Kaisha, Ltd.) for carbon capture and storage (CCS) studies.

• The MOU aims to explore the potential CCS value chain between Japan and Australia.

• Sumitomo, Toho Gas, and Kawasaki will study the capture, storage, and transportation of CO2 emissions in the Chubu region of Japan.

• Woodside will focus on studying the injection and storage of CO2 at Australian storage sites.

• Woodside Executive Vice President Shaun Gregory highlighted the demand for large-scale and near-term decarbonization solutions.

• CCS is seen as an opportunity to coordinate and collaborate between jurisdictions, governments, and industries.

• CCS has the potential to assist countries like Japan in their emissions reduction efforts by providing a pathway for decarbonization.

Petra Nova CCS is back online

• Petra Nova, a carbon capture and storage (CCS) retrofit project, has resumed operations.

• It aims to remove over 90% of CO2 from a 240-MW flue gas slipstream at the W.A. Parish generating station in Texas.

• The $1 billion project was developed by NRG Energy and JX Nippon using the KM CDR Process.

• Captured CO2 is transported to an oilfield for enhanced oil recovery.

• During a three-year demonstration period, it captured 92.4% of CO2 from the flue gas.

• Economic conditions led to a shutdown in May 2020, and NRG Energy sold its share to JX Nippon in September 2022.

• JX Nippon plans to restart operations in June 2023.

• The facility can capture approximately 1.4 million metric tons of greenhouse gases annually.

• Petra Nova is one of only two commercial CCUS facilities in the power sector.

• The CCS momentum has increased globally, with over 30 power generation CCS projects in various stages of development, spurred by incentives in the U.S., Europe, and Asia.

Conoco to diversify its LNG portfolio

• ConocoPhillips is diversifying its global liquefied natural gas (LNG) portfolio with a new agreement.

• The company has signed a commercial agreement to secure additional regasification capacity in Europe at the Gate LNG terminal in the Netherlands.

• This complements ConocoPhillips’ existing LNG resource positions in Qatar and Australia, its involvement in Sempra’s Port Arthur LNG Phase 1 project, its regasification agreement at the German LNG Terminal, and its offtake agreements at Mexico Pacific’s Saguaro LNG export facility.

• The expansion at the Gate LNG terminal aligns with ConocoPhillips’ goal of providing reliable, lower-carbon energy to Europe through competitive LNG supply.

• The 15-year throughput agreement covers approximately 1.5 million tonnes per annum (MTPA), or 2 billion cubic meters (BCM) equivalent, starting in September 2031.

• This agreement secures access to the European market for ConocoPhillips’ growing global LNG portfolio and contributes to a diversified energy portfolio.

EQT signs tolling agreement with Commonwealth LNG

• EQT Corporation has entered into a Heads of Agreement (HOA) with Commonwealth LNG.

• The agreement pertains to liquefaction services at Commonwealth LNG’s facility in Cameron, Louisiana.

• EQT plans to produce 1 million tons per annum of LNG under a 15-year tolling agreement.

• Final terms are subject to negotiation for a definitive agreement.

• Commonwealth expects to make a final investment decision on the project in Q1 2024, with initial cargo deliveries set for 2027.

• EQT’s President and CEO, Toby Z. Rice, highlights the importance of this agreement in their LNG strategy, aiming to diversify production for international markets while managing risks.

• EQT’s tolling capacity allows them to sell gas directly to global end users and pursue long-term purchase agreements with international buyers.

• EQT emphasizes its scale, inventory depth, and low emissions natural gas as factors that position them to enhance energy security and reduce emissions through coal displacement, both domestically and abroad.

Galvanize closes $1 billion decarbonization fund

• Galvanize Climate Solutions closed its Innovation + Expansion Fund at over $1 billion.

• The fund attracted commitments from various institutional investors, including endowments, foundations, and family offices.

• The fund focuses on early- to growth-stage climate companies driving decarbonization and offers capital and interdisciplinary resources.

• Galvanize was founded by experienced investors dedicated to scaling climate companies.

• The firm has an expert team in climate science, technology, regulatory affairs, market development, impact measurement, and talent acquisition.

• The fund aims to identify, evaluate, and support transformative climate companies.

• Tom Steyer, Co-Executive Chair of Galvanize, emphasized the need for more than capital to address climate challenges.

• The fund is led by Veery Maxwell, Saloni Multani, and Cliff Ryan, experts in climate with experience at global firms.

• The global economy is undergoing a transformation driven by various factors, including regulatory progress and technological advancements.

• The fund takes an interdisciplinary approach, offering resources like customer introductions, talent recruitment, and regulatory analysis to its portfolio companies.

• Galvanize has already invested in 11 companies across different sectors, including electricity, transport, industry, buildings, agriculture, and carbon removal.

UBQ raises $70 million for waste-to-plastic

• UBQ Materials, a climate tech developer of advanced materials from waste, has secured $70 million in funding led by Eden Global Partners.

• Other participants in the financing round include TPG Rise Climate, TPG’s Rise Fund, Battery Ventures, and M&G’s Catalyst strategy.

• The funds will support the company’s global expansion and R&D efforts for additional product lines.

• UBQ Materials converts household waste into a sustainable thermoplastic material called UBQ™, which is recyclable and climate-positive.

• The investment will enable the expansion of facilities in Europe and North America and the opening of an industrial-scale facility in the Netherlands with an 80,000-ton annual production capacity.

• UBQ™ has been integrated into products by leading brands like Mercedes-Benz, PepsiCo, and McDonald’s.

• UBQ Materials aims to address climate change and waste management issues, replacing oil-based plastics and diverting waste from landfills and incinerators.

• The company is investing in research and development to create new product lines for various industries, including construction, consumer durables, automotive, and logistics.

$12 billion Carbon Dioxide Removal Research and Development Act of 2023 is introduced

• The Carbon Dioxide Removal Research and Development Act of 2023, introduced by Senator Brian Schatz and Rep. Paul Tonko

• Aims to support increased investment in research, development, and demonstration is necessary to develop a diverse portfolio of CDR solutions, reducing costs and risks.

  • Providing over $12 billion in funding for cross-agency CDR research and development over ten years.

  • Allocating $2 billion for competitive carbon removal demonstration projects, with $500 million for smaller-scale projects.

  • Distributing funding to nine government agencies to explore various CDR pathways, including ocean-based carbon removal, governance frameworks, and carbon mineralizing cement for transportation infrastructure.

BCG’s full report, The Time for Carbon Removal Has Come linked here

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.