7 point 1 bil

Talos provides CCS update in latest earnings

• Talos is exploring a capital raise to expand its TLCS (Talos Low Carbon Solutions) portfolio development and accelerate growth.

• The Bayou Bend partnership plans to drill an offshore stratigraphic well operated by Talos in the second half of 2023.

• A Chevron-operated onshore stratigraphic well is expected to be drilled by the partnership in the first half of 2024.

• TLCS has submitted its first EPA Class VI permit for the Harvest Bend CCS project (formerly River Bend CCS) in August 2023, where TLCS holds a 60% interest.

• TLCS intends to submit at least one more EPA Class VI permit application for its portfolio by the end of the year.

New Fortress Energy to begin operations on Mexico floating LNG

• New Fortress Energy (NFE) plans to commence operations at the first of three floating LNG plants in Altamira, Mexico, in September.

• The Altamira hub, a $1.3 billion project, is a collaboration between New Fortress Energy and Mexico’s state-owned power utility CFE.

• The facility will convert U.S. and Mexican natural gas into liquefied natural gas (LNG) for export.

• Two more floating LNG plants in Altamira are under construction, set to start operations in Q1 2025.

• The Altamira plants will be supplied via marine pipelines from Texas and Pemex’s system.

• Mexico’s President, Andres Manuel Lopez Obrador, believes the project will ensure ample gas supply in Mexico and facilitate exports.

• A total of nine onshore and floating LNG facilities are planned in Mexico, with some of the LNG to be exported to Germany.

• New Fortress is selling its La Paz power plant in Mexico to CFE for around $180 million, to be finalized in Q1 2024.

• New Fortress subsidiary is managing Puerto Rico’s power generation system and expanding presence in the Caribbean.

• LNG terminals in Brazil (Barcarena and Santa Catarina) are set to start operations by early 2024.

• New Fortress expects increased commercial activity and supply contracts in the coming months.

Synthica raises equity from Goldman Sachs for RNG development

• Synthica Energy receives equity investment from Goldman Sachs Asset Management’s Infrastructure Business.

• The investment will support scaling operations and developing anaerobic digestion facilities for renewable natural gas (RNG).

• Synthica aims to convert pre-consumer organic waste into RNG.

• The funding will facilitate facility development across multiple U.S. states, including Ohio, Texas, Georgia, Kentucky, and Louisiana, with future plans for more states.

• The partnership seeks to reduce carbon and methane emissions by diverting waste from landfills and converting it into valuable RNG.

• Synthica’s focus on pre-consumer organic waste ensures a consistent and stable supply of input material.

• The company’s RNG production will be sold through contracts to gas utilities, energy companies, and industrial purchasers.

• Synthica’s first facility in Ohio aims to divert significant organic waste from landfills and sewers, contributing to emissions reduction.

BlackRock and New Zealand to launch $1.2 billion climate infra fund

• New Zealand’s government and BlackRock Inc are collaborating to launch a NZ$2 billion ($1.22 billion) climate infrastructure fund.

• The fund aims to invest in various green technologies including solar, wind, green hydrogen, and battery storage.

• Larry Fink, Chairman and CEO of BlackRock, stated that this initiative is the largest single-country low-carbon transition investment they’ve created so far.

• The fund’s goal is to enable New Zealand companies to access more capital for developing climate infrastructure in the energy system.

• Although no launch date details were provided, the joint statement from the government and BlackRock announced the fund’s creation.

• New Zealand’s electricity sector is largely renewable, but the government aims for it to be 100% renewable.

• The fund is expected to expedite New Zealand’s emissions reduction efforts, with a specific focus on achieving fully renewable electricity.

• New Zealand’s Energy Minister, Megan Woods, mentioned that the country’s record levels of renewable electricity generation position it well to achieve a fully renewable electricity system.

Blackstone says, hold my beer.

Blackstone raises largest energy transition credit fund – $7.1 billion

• Blackstone has closed its energy transition credit fund, named Blackstone Green Private Credit Fund III (BGREEN III).

• BGREEN III achieved a final close at its maximum funding limit of $7.1 billion.

• This marks the largest-ever private credit energy transition fund raised.

• Dwight Scott, Global Head of Blackstone Credit, emphasizes the company’s strong position in energy transition and infrastructure private credit markets.

• Robert Horn, Global Head of Sustainable Resources Group for Blackstone Credit, highlights the increasing need for private capital due to the impact of the energy transition.

• BGREEN III is managed by Blackstone Credit’s Sustainable Resources Platform.

• The platform focuses on providing private credit to renewable energy, infrastructure, and energy transition sectors.

• The Sustainable Resources Platform has around 40 investment professionals across North America, Europe, and Asia.

• It invests across various credit types including investment grade, non-investment grade, preferred, and convertible securities.

• Blackstone’s broader plan involves investing approximately $100 billion in energy transition and climate change projects over the next decade.

Cornish Lithium raises £53 million for lithium extraction

• Cornish Lithium, a UK mining firm, has secured an initial investment of over £53 million.

• The investment is led by the UK Infrastructure Bank, which marks its first direct equity investment.

• Other investors include Energy & Minerals Group (EMG) and Cornish Lithium’s existing shareholder TechMet.

• The funding aims to strengthen the UK’s lithium supply chain and support the transition to net-zero emissions.

• Cornish Lithium plans to extract lithium from a repurposed China clay pit at Trelavour Downs.

• The company aims to produce around 8,000 tonnes per year of battery-grade lithium hydroxide.

• Lithium is crucial for making power cells in electronic devices and electric vehicle batteries.

• The global lithium industry is projected to be worth nearly $19 billion by 2030.

• The investment is aligned with the UK’s net-zero ambitions and aims to boost domestic EV battery production.

• The CEO of Cornish Lithium, Jeremy Wrathall, expressed enthusiasm about the institutional investment enabling commercial production of their projects.

• The funds will be used to advance the Trelavour hard rock lithium project and develop a geothermal waters extraction facility.

Cummins and Chevron team up on low-carbon fuels

• Cummins Inc. and Chevron U.S.A. Inc. (a Chevron Corporation subsidiary) have entered a memorandum of understanding for strategic collaboration.

• Collaboration focuses on hydrogen, natural gas, and other low carbon fuel value chains.

• Builds upon previous partnership on hydrogen and renewable natural gas.

• Aims to expand into liquid renewable fuels like renewable gasoline blends, biodiesel, and renewable diesel.

• Goal is to encourage commercial and industrial adoption of these technologies in North America.

• Cummins’ Destination Zero strategy for emissions reduction is a key driver.

• Collaboration intends to improve fuel and infrastructure access for customers while reducing emissions.

• Both companies have experience in alternative fuels innovation and technology deployment.

• Focus on enabling commercial-scale development of alternative fuels production and transportation systems.

• Target consumption includes transportation vehicles manufactured by Cummins.

• Collaboration covers various low carbon intensity fuels including compressed natural gas and liquid renewables.

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.