Exxon says low-carbon business could outgrow oil and gas

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:

• Bourbon Madness Continues: Championship bottle

• Exxon suggests low-carbon businesses could grow to be larger than base business

• Linde signs CO2 offtake agreement with Exxon

• Kinder Morgan’s California renewable diesel hubs now fully operational

• Ørsted and Google sign power purchase agreement for wind project in Texas

• Building materials company, Holcim, plans to invest $2.2 billion in CCUS

• KBR’s tech chosen for Avina’s green ammonia project

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BOURBON MADNESS

Continuing Bourbon Madness, as a reminder:

• We’ve selected an Elite Eight of the finest bourbons in the world and pitted them against each other in a bracket-style tournament that will leave your taste buds begging for more.

• Cast your votes, sip your favorites, and let’s see which one comes out on top. It’s Bourbon Madness, and it’s time to get sippin’!

You’ll be entered to win the winning bottle if:

1. you vote in all polls in all 3 brackets – Elite Eight (last Tuesday’s edition), Final Four (last Thursday’s edition), Championship (Tuesday’s edition)

2. you have completed the Gentleman’s Agreement (or Lady’s Choice). If you haven’t seen it, scroll down to the “Share Sunya Scoop” section towards the end of this newsletter

Here were the results of Bourbon Madness 2023:

In a surprise to absolutely no one at all – Blanton’s wins!

The lucky winner of Blanton’s from Bourbon Madness 2023 among Sunya Scoop subscribers will be revealed in the Tuesday (4/11) edition.

Don’t forget to complete the Gentlemen’s Agreement (Lady’s Choice)! Scroll down to “Share Sunya Scoop”

ENERGY TRANSITION

Exxon suggests low-carbon businesses could grow to be larger than base business

• ExxonMobil expects low-carbon businesses to potentially become more lucrative than fossil fuel production

• Company outlines plans to generate billions from biofuels, hydrogen, and carbon capture within a decade

• Low-carbon business could be worth “hundreds of billions of dollars” as world approaches net zero

• Success dependent on reducing hydrogen fuel and carbon capture costs, and government incentives

• Critics question Exxon’s commitment to reducing emissions and ability to build large-scale projects

• Company has announced several hydrogen and carbon capture projects, expecting cash generation by 2025

• Exxon plans to spend $17 billion on low-carbon business through 2027, about 10% of oil and gas project spending

CARBON CAPTURE

Linde signs CO2 offtake agreement with Exxon

• Linde signs long-term agreement with Exxon for carbon dioxide off-take

• Deal linked to Linde’s new clean hydrogen production in Beaumont, Texas

• Linde to supply clean hydrogen and nitrogen to OCI Global’s blue ammonia plant

• Facility expected to start up in 2025, integrated with Linde’s U.S. Gulf Coast infrastructure

• Exxon to transport and store 2.2 million metric tons of CO2 annually from Linde’s hydrogen facility

• Agreement supports Linde’s strategy to decarbonize customer processes and supply low-carbon hydrogen

• Collaboration contributes to heavy industry’s decarbonization and net zero goals

LOW-CARBON FUELS

Kinder Morgan’s California renewable diesel hubs now fully operational

• Kinder Morgan has announced the full commercial in-service of its Southern and Northern California renewable diesel (RD) hub projects.

• RD is an alternative fuel that allows trucks, trains, and any equipment that uses diesel to operate with significantly lower life-cycle emissions.

• Kinder Morgan’s RD hubs are the most efficient and least carbon-intensive method of transporting this lower emissions fuel from the Los Angeles refinery basin to San Diego and the Inland Empire and from the San Francisco Bay area to Sacramento, San Jose, and Fresno.

• The initial phases of both hubs are fully subscribed with customer commitments.

• The Southern California hub provides a throughput of up to 20,000 barrels per day (bpd) of blended diesel across the two inland destination truck racks, with deliveries to San Diego since the beginning of February 2023.

• The Northern California hub provides a throughput in aggregate of 21,000 bpd of RD via the SFPP northern pipeline system from the San Francisco Bay area to KMI’s Bradshaw, Fresno, and San Jose terminals.

RENEWABLES

Ørsted and Google sign power purchase agreement for wind project in Texas

• Google has signed a 150 MW power purchase agreement (PPA) with Ørsted to purchase renewable energy generated by Helena Wind Farm for the next 15 years.

• The project is located in Bee County, Texas and provides low-cost electricity to the South ERCOT service territory, enough to power an estimated 90,000 homes.

• This marks the first agreement between Google and Ørsted in the US, and the second agreement globally, both contributing to Google’s commitment to operate on 24/7 carbon-free energy by 2030.

• The Helena Wind Farm is a 268 MW onshore wind farm located in Pawnee, Texas and creates nearly 300 jobs.

• Ørsted aims to deliver approximately 1.5 GW of additional capacity annually while growing a clean energy portfolio consisting of wind, solar, storage, and renewable hydrogen.

CARBON CAPTURE

Building materials company, Holcim, plans to invest $2.2 billion in CCUS

• Swiss building materials company, Holcim, plans to invest $2.19 billion in carbon-capture, utilization, and storage projects by 2030.

• The investment aims to capture more than 5 million metric tons of CO2 annually.

• Holcim targets a 25% reduction in carbon emissions per ton of cementitious material by 2030.

• This is an increase from its previous goal of a 21% cut.

• Holcim achieved a 21% reduction in CO2 emissions per net sales in 2022.

• It aims to reduce emissions by more than 10% this year.

• The company previously committed to achieving net-zero greenhouse gas emissions across its value chain by 2050.

LOW-CARBON FUELS

KBR’s tech chosen for Avina’s green ammonia project

• KBR’s K-GreeN® technology selected by Avina Clean Hydrogen for a green ammonia project in the U.S.

• KBR to provide process technology license and engineering design for a grassroots project

• Project aims to produce 2,200 metric tons of green ammonia per day

• Ammonia to play a leading role in decarbonizing power generation and marine transport

• KBR design includes fully integrated green ammonia solution from electrolysis to ammonia synthesis

• Largest green ammonia project in North America to date

• KBR has licensed and designed over 250 ammonia plants worldwide since 1943

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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.