Generate grabs $1.5 billion

Microsoft commits to carbon credits from Grassroots Carbon

• Grassroots Carbon has entered into an agreement to provide Microsoft with soil carbon drawdown credits.

• This marks Microsoft’s first investment in carbon credits generated from regeneratively managed grasslands.

• Soil carbon storage is considered crucial in addressing climate change, and this partnership aims to support regenerative ranching practices.

• Improved soil health not only sequesters carbon but also enhances water storage, prevents erosion, and improves grasslands ecology.

• Carbon credit investments will directly benefit ranchers adopting regenerative land management practices.

• Currently, 41% of U.S. grasslands are used for livestock grazing, with the potential to sequester over 500 million tons of carbon dioxide annually.

• Grassroots Carbon focuses on transitioning land managers to regenerative practices by providing income opportunities through carbon storage.

• Microsoft’s carbon removal strategy includes supporting high-quality soil carbon credit solutions.

• The partnership utilizes PastureMap, a measurement, reporting, and verification (MRV) software to incentivize ranchers’ transition to rotational grazing and advance the soil carbon market through MRV innovations and data collection.

Generate Capital raises $1.5 billion for sustainable infrastructure

• Generate Capital has closed a capital raise of $1.5 billion from global institutional investors.

• New investors in this round include CalSTRS and HESTA, while existing investors like QIC and AustralianSuper also participated.

• This brings Generate’s total capital raised since its inception in 2014 to over $10 billion.

• Generate focuses on accelerating the transition to sustainable infrastructure by partnering with project developers, technology companies, and investors.

• They have established a diverse portfolio of thousands of sustainable infrastructure projects globally.

• Generate’s subsidiaries and portfolio companies are actively involved in various aspects of the infrastructure transition, including sustainable power production and waste management.

• Generate has entered joint ventures to promote electric school buses and energy efficiency.

• CalSTRS’ participation in this capital raise establishes a strategic partnership with Generate.

• Generate has achieved significant milestones in 2023, including investments in energy transition, joint ventures for energy-as-a-service and electric school buses, and energy-efficient solutions for schools.

• Pine Gate Renewables, esVolta, and Ubiquity are some of Generate’s successful portfolio companies and subsidiaries.

Natural gas industry responds to LNG moratorium

• EQT CEO Toby Rice’s letter to Secretary Jennifer Granholm

• Williams presentation on the benefits of US LNG

DOE announces $31 million for enhanced geothermal

• The U.S. Department of Energy’s Geothermal Technologies Office (GTO) announces a funding opportunity of up to $31 million.

• The funding supports projects related to enhanced geothermal systems (EGS) wellbore tools and the use of low-temperature geothermal heat for industrial processes.

• There are two topic areas for the funding opportunity:

  • Topic Area 1: Up to $23.1 million to support projects addressing downhole cement and casing evaluation tools for high-temperature and hostile geothermal wellbores.

  • Topic Area 2: Up to $7.9 million for a demonstration project involving low-temperature (<130°C) reservoir thermal energy storage (RTES) technology, applicable to industrial processes.

• Projects in Topic Area 1 aim to reduce costs and technical challenges associated with EGS wellbore construction to expand domestic geothermal energy opportunities.

• Projects in Topic Area 2 aim to reduce emissions from energy-intensive industrial heating processes and promote RTES technology as a long-term decarbonization solution for U.S. industry and manufacturing.

DOE to provide $1.5 billion loan to keep Michigan nuclear plant open

• Holtec International is set to receive a $1.5 billion conditional loan from the U.S. Energy Department in February to help reopen the Palisades nuclear power plant in Michigan.

• The loan is expected to be officially announced in late February.

• Holtec is optimistic about the federal loan process and hopes to bring the plant back to full power operation by the end of 2025.

• Holtec purchased Palisades in 2022 and plans to reopen it after it struggled to compete with natural gas-fired plants and renewable energy.

• The Loan Programs Office (LPO) cannot confirm or deny the existence of an applicant as the information is business confidential.

• Bloomberg reported that the administration is likely to loan Holtec $1.5 billion as soon as next month.

• Holtec has signed an agreement with Wolverine Power Cooperative to purchase up to two-thirds of the power generated by Palisades.

• The Biden administration recently finalized $1.1 billion in credits to keep PG&E Corp’s Diablo Canyon nuclear power plant in operation in California.

Oklo receives DOE sign off on nuclear fuel fabrication facility

• Oklo Inc. receives U.S. Department of Energy (DOE) approval for the Safety Design Strategy (SDS) for the Aurora Fuel Fabrication Facility at Idaho National Laboratory (INL).

• The facility is designed to demonstrate the reuse of recovered nuclear material for Oklo’s planned commercial advanced fission power plant demonstration at INL.

• Oklo was selected for access to fuel material through a competitive process initiated in 2019 by INL to accelerate the deployment of commercially viable reactors.

• The DOE is supporting INL in producing High-Assay, Low-Enriched Uranium for advanced reactors by recovering uranium from used fuel from the decommissioned Experimental Breeder Reactor-II.

• Oklo and Battelle Energy Alliance are now focusing on the Conceptual Safety Design Report (CSDR) as the next phase in the approval process.

• Oklo is progressing towards its goal of launching its commercial advanced fission power plant in the United States, with provisional site, fuel, and facility design in progress.

• Drax partners with Molpus Woodlands to fuel BECCS operations in the Southeast US

• Crux Raises $18.2 Million Series A Funding Round to Catalyze Sustainable Finance

• BlueLayer raises $10mm to empower carbon project developers

• Boston Metal Secures $20M in Series C2 Funding, Bringing Total Round to $282M

   

• Latest Sunya Stories podcast episode with Chuck Yates

• We published our first Sunya Spotlight profile on Oxy’s STRATOS DAC project.

• Tuesday’s edition – covered Summit’s massive deal with POET

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.