🤠 June Roundup

THE BREAKDOWN

Here’s the breakdown of the top ten most clicked announcements. A big month for carbon capture.

10. CARBON CAPTURE

Navigator CO2 partners with Puro.earth on CDR credits

• Navigator CO2 has partnered with Puro.earth to validate and certify its carbon dioxide removal (CDR) credits generated from the Heartland Greenway CCUS project.

• The partnership combines Puro’s Geologically Stored Carbon Methodology with Navigator’s CCUS system, providing access to stakeholders across the CDR spectrum and enabling scalability and impact in the Voluntary Carbon Market (VCM).

• The Heartland Greenway project, one of the largest CCUS projects in North America, will have the capacity to permanently sequester up to 15 million metric tons of biogenic carbon dioxide per year.

• The partnership with Puro.earth ensures that Navigator’s activities are certified as carbon net-negative, and the project’s CO2 removal capacity is independently verified through a comprehensive lifecycle assessment.

• Puro’s Standard is endorsed by the International Carbon Reduction and Offset Alliance and focuses on durable carbon removal, with CO2 Removal Certificates recorded in the Puro Registry to ensure traceability and transparency.

• The partnership aims to address the undersupply of high-quality CDR products in the market and position Navigator as a key supplier of net-negative emissions to the VCM by 2025.

• Navigator is actively engaging in negotiations for offtake frameworks and plans to deliver CDR at a multi-megaton scale on an ongoing basis starting in 2026.

9. CARBON CAPTURE

Howard secures DOE funding for FEED study 

• Howard Energy Partners (HEP) selected for $3 million funding opportunity through the U.S. Department of Energy’s Carbon Capture Technology Program.

• Funding will be used to evaluate feasibility of transporting up to 250 million tons per year of CO2 from multiple sources in Gulf Coast region.

• HEP one of three projects selected for Front-End Engineering Design (FEED) as part of DOE’s investment in carbon management capabilities.

• HEP previously selected for $9 million CarbonSAFE funding opportunity with Talos Energy Inc. and the Port of Corpus Christi (POCC) to collect geologic data for CO2 storage onshore.

• HEP aims to develop centralized solution for capturing and sequestering industrial CO2 emissions.

• HEP and Talos formed Coastal Bend Carbon Management Partnership (CBCMP) to develop carbon management solutions in Corpus Christi.

• CBCMP has contracted over 13,000 acres of pore space in the Port of Corpus Christi for carbon sequestration.

8. FUNDRAISING

NET Power and Rice SPAC complete merger and NPWR makes public debut

• NET Power and Rice Acquisition Corp. II have completed their merger, forming NET Power Inc.

• NET Power’s technology generates clean, affordable, and reliable energy with near-zero emissions.

• The combined company has an enterprise value of approximately $1.5 billion.

• The Class A common stock of NET Power began trading on the New York Stock Exchange under the ticker symbol “NPWR” on June 9, 2023.

• The transaction has provided more than $675 million in gross proceeds, including $540 million from PIPE capital and $135 million from RONI’s trust account.

• The funds will be used to support corporate operations and accelerate the deployment of NET Power’s patented technology.

• Existing strategic investors, including Occidental, Baker Hughes, Constellation, and 8 Rivers, have rolled 100% of their equity into the combined company.

• NET Power has upsized its PIPE capital, started the Front End Engineering and Design for its first utility-scale project, and announced a joint venture with SK Group.

• The technology offers decarbonized baseload power and supports net-zero ambitions.

• Global deployment of affordable, reliable, and clean power is crucial for accelerating carbon reductions and achieving climate goals.

7. FUNDRAISING

Just Climate announces $1.5 billion fund

• Just Climate has announced the closing of its inaugural fund, Climate Assets Fund I, raising $1.5 billion in institutional capital.

• The fund exceeded its $1 billion target and will invest in high-impact solutions that can significantly reduce or eliminate emissions while generating attractive financial returns.

• The fund attracted a diverse group of institutional investors from around the world, including pensions, sovereign wealth funds, insurers, financial institutions, endowments, foundations, and family offices.

• Founding investors of the fund include Microsoft’s Climate Innovation Fund, IMAS Foundation, Ireland Strategic Investment Fund, Harvard Management Company, Goldman Sachs’ Imprint Group, Hall Capital Partners, and others.

• Just Climate focuses on industrial climate solutions and will invest in growth-stage, asset-heavy companies globally in sectors such as energy, mobility, industry, and buildings.

• The fund has made investments in ABB E-mobility, H2 Green Steel, and Meva Energy.

• Just Climate’s approach includes an integrated performance fee structure where financial returns and greenhouse gas abatement goals are linked.

• The team at Just Climate combines expertise in growth equity, project finance, engineering, and impact measurement to identify and support transformative solutions for hard-to-abate industries.

6. CARBON CAPTURE

Tailwater-backed Frontier announces carbon storage hub in Wyoming

• Frontier Carbon Solutions announces the Sweetwater Carbon Storage Hub in southwestern Wyoming.

• Alicia Summers is promoted to Chief Development Officer.

• Receives a $40 million grant from the Department of Energy for the Carbon Storage Hub.

• The Sweetwater Carbon Storage Hub will be an open-source, multipurpose carbon storage hub.

• The hub spans over 45,000 acres and aims to store over 350 million metric tons of CO2 in geologic reservoirs.

• Frontier and the University of Wyoming’s School of Energy Resources will use the grant to develop the hub.

• Frontier aims to become the premier carbon management provider in the Rockies.

• Tailwater Capital is fully committed to developing the carbon storage hub in Southwest Wyoming.

5. HYDROGEN

Visual of the week – from DOE’s U.S. National Clean Hydrogen Strategy and Roadmap

Source: U.S. National Clean Hydrogen Strategy and Roadmap

4. LITHIUM

The Direct Lithium Extraction (DLE) race

• The direct lithium extraction (DLE) sector is reshaping global lithium production, challenging traditional methods such as evaporation ponds and open-pit mines.

• Key players in the global DLE space include Livent, Sunresin, Eramet, International Battery Metals, EnergySource Minerals, EnergyX, Rio Tinto, Albemarle, SQM, Compass Minerals International, Standard Lithium, Lilac Solutions, Summit Nanotech, E3 Lithium, IBC Advanced Technologies, Controlled Thermal Resources, Occidental Petroleum, Vulcan Energy Resources, and Berkshire Hathaway.

• Some companies blend evaporation ponds with DLE technology, while others focus on pure-play DLE projects.

• Major automakers like Ford, General Motors, and BMW have invested in or partnered with DLE companies.

• DLE projects are being developed in various countries, including Argentina, China, the United States, Germany, and Canada.

• The timeline for commercial production varies across companies, with some aiming for production in 2025 and others targeting 2026+

• These DLE technologies offer the potential for more efficient and sustainable lithium extraction for electric vehicle battery production.

3. RENEWABLES

Blackstone can’t get enough Invenergy – invests another $1 billion into the renewables platform

• Invenergy announces an approximately $1 billion equity investment from Blackstone Infrastructure Partners to support its expanding renewable energy business.

• This investment adds to Blackstone’s previous investments totaling nearly $3 billion in Invenergy in 2021 and 2022.

• Invenergy’s ownership includes Blackstone, CDPQ, and Invenergy management, with the management team remaining responsible for day-to-day operations.

• The additional capital will accelerate the execution of Invenergy’s existing project portfolio and new business initiatives.

• Invenergy is a leading developer, owner, and operator of clean energy projects, including solar and wind farms, energy storage facilities, offshore wind projects, transmission lines, clean hydrogen initiatives, solar panel manufacturing, and community solar.

• The investment will support Invenergy’s growth in the United States and globally.

2. CARBON CAPTURE

WSJ reports on oil giants bidding for pore space

• Energy giants like Oxy, Chevron, Conoco, and Exxon are engaging in a land grab to secure subsurface rights for carbon sequestration.

• They are offering significant amounts of money to lease porous rock deep underground for storing carbon dioxide (CO2).

• The goal is to inject CO2 deep underground to remove it from circulation and mitigate greenhouse gas emissions.

• Leasing activities in Texas and Louisiana for CO2 storage have covered around 480,000 acres of land, with offshore leasing in the Gulf of Mexico also expanding.

• Companies are paying signing bonuses per acre, with potential annual payments and royalties for CO2 injection rights.

• Now for the BUT…

  • Critics argue that carbon sequestration is a temporary solution that avoids more challenging decarbonization efforts.

  • Some legal and regulatory aspects, such as ownership rights and risks of leaks, remain unresolved.

  • Concerns have been raised about the safety and potential impacts of injecting large amounts of pressurized gas into the earth.

  • Projects have faced opposition, leading to proposed legislation to regulate and restrict carbon sequestration activities.

It’s no surprise these players are concentrating around the massive emitter base in Gulf of Mexico and Louisiana (who pretty much has primacy)

1. CARBON CAPTURE

Nucor teams up with Exxon for CCS in Louisiana

• Nucor Corporation has entered into an agreement with ExxonMobil for carbon capture and storage.

• ExxonMobil will capture and store up to 800,000 metric tons per year of CO2 from Nucor’s direct reduced iron (DRI) plant in Louisiana.

• The captured CO2 will be stored at an ExxonMobil-owned facility in Louisiana.

• The project is part of Nucor’s decarbonization strategy and aims to produce low embodied carbon DRI or HBI in North America.

• The collaboration supports Louisiana’s goal of achieving net-zero CO2 emissions by 2050.

• Nucor is known for its recycling-based steel production method, which already makes it one of the cleanest steelmakers.

• The carbon capture and storage agreement with ExxonMobil further enhances Nucor’s sustainability leadership and commitment to low embodied carbon steel production.

Separately, Exxon’s shareholders rejected shareholder proposals that were considered overwhelmingly “climate-focused.”

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.roundup