📣 CERAWeek Announcements

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.

Deals have been flowing at CERA…we have a new logo suggestion:

Here’s what we have for you today:

• Chevron makes 2 CCUS announcements, one in US/Australia with JERA and one in Indonesia with Pertamina

• SLB introduces low-carbon cement alternative

• 1PointFive (Oxy) announces carbon removal deal with Houston Astros

• Marathon Petroleum Corp acquires 49.9% of RNG producer LF Bioenergy for up to $100mm

• Baker Hughes, Ecopetrol and CHEC explore geothermal in Colombia

• Li-Cycle receives $375 million DOE loan for lithium recycling

• Siemens Energy to provide equipment for Oxy’s first DAC plant

CARBON CAPTURE

Chevron with back to back carbon capture announcements…

Chevron and JERA sign MOU to look at CCS in US and Australia

• Chevron New Energies and JERA Co. have signed a Memorandum of Understanding (MOU) for collaboration on carbon capture and storage (CCS) projects in the United States and Australia.

• This MOU builds upon their existing LNG relationship and commitment to advancing lower carbon solutions.

• The collaboration follows their announcement in November 2022 about potentially co-developing lower carbon fuel in Australia and studying liquid organic hydrogen carriers (LOHC) in the United States.

• Chevron has expertise and experience in CCS projects and is actively developing them around the world.

• JERA aims to reduce CO2 emissions from its domestic and overseas businesses to zero by 2050 under its ‘JERA Zero CO2 Emissions 2050’ objective.

Chevron and Pertamina sign JSA to explore CCUS in Indonesia

• Pertamina and Chevron New Energies have signed a Joint Study Agreement (JSA) to examine the feasibility of carbon capture storage and carbon capture utilization and storage in East Kalimantan, Indonesia

• The agreement was signed on the sidelines of CERAWeek 2023, where Chevron and Pertamina leaders joined government officials, thought leaders, academics, technology innovators and financial leaders to explore ideas and solutions

• This is the second joint study agreement to come from the collaboration between Chevron and Pertamina announced in May 2022 to explore potential lower carbon business opportunities in Indonesia

• The first agreement announced in November 2022 aimed to explore the development of selected green hydrogen and green ammonia projects using renewable energy in Indonesia

• Minister of Energy & Mineral Resources Arifin Tasrif praised Pertamina and Chevron for their consistent efforts in supporting Indonesia’s net zero emission target of 2060 and said the government fully supports this partnership

SUSTAINABILITY

SLB introduces low-carbon cement alternative

• SLB has introduced the EcoShield geopolymer cement-free system for well construction.

• This technology eliminates up to 85% of embodied CO2 emissions compared with conventional well cementing systems.

• The EcoShield system has the potential to avoid up to 5 million metric tons of CO2 emissions annually.

• The system uses locally sourced natural materials and industrial waste streams, making it a more sustainable well integrity method.

• The cement-free system can be deployed throughout various phases of the well life cycle including abandonment.

• Pioneer Natural Resources successfully deployed the EcoShield system on an 18-well field testing campaign in the Permian Basin.

• The EcoShield system is part of SLB’s Transition Technologies portfolio, which includes proven technologies that reduce CO2 emissions.

• The announcement was made as part of CERAWeek

CARBON CAPTURE

1PointFive (Oxy) announces 2nd carbon removal deal with sports team – Houston Astros

• CCUS company 1PointFive (Oxy subsidiary) and the Houston Astros have announced a carbon removal credit agreement

• The Astros will purchase carbon dioxide removal credits from 1PointFive’s Direct Air Capture (DAC) plant in Ector County, Texas

• DAC technology captures and removes large volumes of CO2 directly from the atmosphere that will be sequestered in saline reservoirs not associated with oil and gas production

• The Astros will use removal credits across various activities throughout the ballpark over the next three years to work towards a carbon neutral footprint

• The agreement is a demonstration of the Astros’ commitment to continuous improvement of their fan experience via environmental investment

• 1PointFive is excited about the opportunity that Direct Air Capture presents to help organizations reduce their carbon footprint

• The Astros remain committed to continuous improvement of their stadium for their fans and purchasing carbon removal credits is an important investment for them

With this announcement, Oxy has signed up the Texans and Astros. Only the Rockets left…

RNG

Marathon Petroleum Corp acquires 49.9% of RNG-producer LF Bioenergy for up to $100 million

• Marathon Petroleum Corp. has acquired a 49.9% interest in LF Bioenergy, an emerging producer of renewable natural gas (RNG) in the United States, from Cresta Fund Management for $50 million.

• The acquisition includes the potential for up to an additional $50 million based on predetermined earn-out targets.

• LF Bioenergy has a portfolio of dairy farm-based, low carbon intensity RNG projects, with the first facility expected to be in service in the first half of 2023.

• Marathon Petroleum Corp. will fund its share of capital expenditures as specific project milestones are achieved, building out the portfolio to produce over 6,500 MMBtu per day by the end of 2026.

• This acquisition demonstrates Marathon Petroleum Corp.’s commitment to lower carbon investments and will help to lower the carbon intensity of its operations and products.

GEOTHERMAL

Baker Hughes, Ecopetrol and CHEC team up on Colombian geothermal

• Ecopetrol, Baker Hughes, and CHEC signed a memorandum of understanding to conduct feasibility studies for a geothermal power generation project in the Nereidas Valley, Caldas, Colombia.

• The project aims to generate 50-100MW of renewable energy to benefit over 250,000 families.

• The collaboration agreement extends over 12 months to conduct technical studies, subsoil analysis, and structuring of financing sources.

• Ecopetrol is also evaluating the installation of a geothermal pilot plant in the Apiay field, which will generate around 200 kilowatts (KW) of renewable energy by taking advantage of the heat generated by the production fluids of existing oil wells.

BATTERY TECHNOLOGIES

Li-Cycle scores $375 million loan from the DOE ATVM program

• Li-Cycle Holdings Corp. has received a conditional commitment for a $375 million loan from the U.S. Department of Energy Loan Programs Office.

• The loan supports the development of the company’s Rochester Hub, which is expected to become the first source of recycled battery-grade lithium in North America.

• This is the first conditional commitment from the DOE Advanced Technology Vehicles Manufacturing (ATVM) program for a sustainable pure-play battery materials recycling company.

• The loan validates Li-Cycle’s sustainable Spoke & Hub Technologies™ and industry-leading position as a U.S. domestic supplier of recycled battery-grade materials.

• The loan strengthens the company’s balance sheet and enhances financial flexibility for future network expansion.

• The loan remains subject to documentation of long-form agreements and certain conditions will have to be satisfied prior to closing, expected to occur in Q2 2023.

• Li-Cycle will be a leading domestic producer of recycled battery-grade materials for accelerating electrification demand

• The investment reduces reliance on China, strengthens America’s battery supply chain and the facility is projected to be the biggest source of lithium carbonate in the US.

CARBON CAPTURE

Siemens Energy to provide equipment for Oxy’s first large scale DAC facility

• Siemens Energy will provide compressors for Occidental’s Direct Air Capture (DAC) plant in Texas’ Permian Basin developed by 1PointFive.

• The two compressor packages will help capture up to 500,000 metric tons of CO2 per year when fully operational.

• The plant aims to provide practical solutions that hard-to-decarbonize industries can use to achieve net zero.

• The captured CO2 will be sequestered in saline formations, used for EOR, or enable lower-carbon or net-zero transportation fuels

That’s a wrap for today. If you like what you read, send to a friend.

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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.