SEC splits 3-2

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Red Trail Energy with Puro.earth generates carbon removal credits from ethanol facility

• Red Trail Energy (RTE), in collaboration with Puro.earth, has become the first ethanol production facility to generate CO2 Removal Certificates (CORCs) in the voluntary carbon market (VCM).

• RTE’s issuance of CORCs marks the largest durable carbon removal project registered to date, showcasing significant progress in capturing and storing biogenic CO2 from ethanol plants.

• RTE will offer its CORCs through its marketing arm, RPMG, providing new opportunities for sustainable practices.

• The project was successfully registered under the Puro Standard, with carbon dioxide removal (CDR) credits generated through bioenergy with carbon capture and storage (BECCS) from ethanol production.

• CORCs represent CO2 sequestration from the fermentation process at RTE’s ethanol plant, injected into an underground well for permanent storage.

• With guidance from EcoEngineers, RTE obtained more than 150,000 CO2 Removal Certificates from the first 14 months of BECCS operation.

• Puro.earth-issued CORCs indicate over 1,000 years of carbon sequestration durability, listed in the Puro Registry for traceability and transparency.

SEC votes to approve Scope 1 and 2 emissions disclosure for larger public companies

• The Securities and Exchange Commission (SEC) approved new disclosure requirements for public companies regarding emissions with a 3-2 vote.

• The amended rule mandates reporting of Scope 1 and Scope 2 emissions but excludes certain indirect emissions, categorized as Scope 3.

• Environmental groups criticize the omission of Scope 3 emissions.

• Companies will also be required to report climate-related risks, actions taken to mitigate them, and losses incurred due to severe weather.

• Both Republican commissioners voted against the rule, citing concerns about spamming investors with climate details and decreasing attractiveness of U.S. capital markets.

• Emission reporting for fiscal year 2026 will be mandatory for companies, with some exemptions for smaller companies.

• Legal challenges are expected against the new rule from industry, state attorneys general, and environmental groups.

• Similar disclosure requirements are emerging globally, with California and the European Union implementing regulations.

This has been in the works for a few years now. And Scope 3 getting axed has been rumored since 2022. We’ll see how it shakes out legally but voluntarily most larger public companies are doing some version of this disclosure as it is.

Bloom and Shell team up on hydrogen electrolyzers

• Bloom Energy Inc. (NYSE: BE) has partnered with Shell Plc. (Shell) to explore decarbonization solutions using Bloom’s hydrogen electrolyzer technology.

• The collaboration aims to develop replicable, large-scale solid oxide electrolyzer (SOEC) systems to produce hydrogen for potential use at Shell assets.

• Bloom’s SOEC technology produces clean hydrogen at scale, replacing fossil fuel-powered “grey” hydrogen supplies with clean or “green” hydrogen produced from water electrolysis using renewable energy.

• Bloom’s electrolyzers are manufactured in California and Delaware, with the largest operating electrolyzer manufacturing capacity globally.

• A successful demonstration of Bloom’s tech took place at the NASA Ames research facility, producing 2.4 metric tons of hydrogen per day with a 4 MW solid oxide electrolyzer.

• Bloom’s high-temperature, high-efficiency electrolyzer outperformed commercially demonstrated lower temperature electrolyzers like proton electrolyte membrane (PEM) or alkaline.

Bunge and Chevron to build oilseed processing plant in Louisiana

• Bunge and Chevron jointly announced final investment decision for Bunge Chevron Ag Renewables LLC to construct a new oilseed processing plant in Destrehan, LA.

• The plant will be adjacent to the existing processing facility on the Gulf Coast will have a flexible design to process soybeans and softseeds, including novel winter oilseed crops like winter canola and CoverCress.

• Expected to be operational in 2026, it aims to meet the increased market demand for renewable fuel feedstocks and support feed and protein markets through meal production.

• Bunge Chevron Ag Renewables focuses on renewable fuel feedstocks, utilizing Bunge’s expertise in oilseed processing and farmer relationships, along with Chevron’s expertise in renewable fuels production and marketing.

• Bunge operates the JV’s processing plants in Destrehan and Cairo, Ill., while Chevron has purchase rights for the oil to use as feedstock for manufacturing lower lifecycle carbon intensity transportation fuels.

Exxon files for arbitration for pre-emptive rights on the Hess stake in Guyana oil project

• Exxon Mobil has filed for arbitration to protect its right to pre-empt Chevron’s bid for a stake in an oil project off Guyana, potentially disrupting Chevron’s $53 billion deal to buy Hess.

• Chevron had warned investors that Exxon and China’s Cnooc claimed the right to counter its offer for Hess’s stake in the Guyana project, which is operated by Exxon and is one of the largest oil finds in years.

• Exxon SVP Neil Chapman stated that Exxon filed for arbitration in the International Chamber of Commerce in Paris, citing the company’s responsibility to shareholders to realize the value it created in Guyana.

• Much of the value in Chevron’s proposed acquisition of Hess was tied to Hess’s 30% stake in the Guyanese drilling consortium, which has seen rapid oil production growth and expects to pump over a million barrels a day in the future.

• Chevron believes that a right-of-first-refusal doesn’t apply to the Hess deal, and remains fully committed to the transaction.

• The dispute revolves around the terms of a joint operating agreement signed more than a decade ago, with Exxon and Cnooc asserting their rights under the agreement to participate in ownership changes.

• Exxon holds a 45% share in the Guyana oil project, with Cnooc owning the remaining 25%.

So, not a total nothing burger. Unsure how material this will ultimately be but for now, it’s heating up.

AWS buys nuclear-powered data center for $650 million from Talen Energy

• AWS buys nuclear-powered data center in a $650 million deal with Talen Energy

• Cumulus data center complex acquired, located near Talen’s 2.5 gigawatt Susquehanna nuclear power plant in Pennsylvania

• Cumulus had a 48-megawatt capacity, set to expand to 475 megawatts under Talen’s ownership

• Amazon to pay $350 million upfront with an additional $300 million upon certain development milestones completion

• Talen to continue supplying Amazon with direct access to power from Susquehanna plant

• AWS aims to power data centers with cleaner energy sources

• Amazon commits to carbon-free and renewable energy sources despite controversy surrounding nuclear energy

This trend will continue. Massive AI data center build-outs will consume a tremendous amount of power and the owners are committed to carbon-free energy. Nuclear is an obvious solution.

Sosteneo buys 49% stake in Enel’s battery storage business for $1.2 billion

• Enel, Italy’s largest utility, has agreed to sell 49% of its energy storage business to Generali’s Sosteneo for approximately 1.1 billion euros ($1.2 billion).

• The sale is part of Enel’s strategy to reduce its net debt and seek partners for joint ventures in energy transition initiatives.

• The deal values Enel’s energy storage business, known as Enel Libra Flexsys, at around 2.5 billion euros, including debt.

• Enel Libra Flexsys, currently fully owned by Enel, comprises 23 battery energy storage systems (BESS) with a total capacity of 1.7 gigawatts (GW) and three renovation projects for gas-fired power plants with a capacity of 0.9 GW.

• Last year, Sosteneo SGR, Generali’s green transition investment manager, collaborated with Edison and Saipem to develop a project aimed at decarbonizing Italy’s largest energy and steel hub.

• Invesco joins list of US asset managers to exit CA100+ climate group

• Mitsubishi Corp to invest in Canadian lithium project

• Japan’s J-Power makes bid to acquire Australian renewable firm Genex Power

• Chevron idles two US Midwest biodiesel plants as profits slip

• Latest Sunya Stories podcast with Steve Trauber

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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.