All aboard the CCS acquisition train

CARBON CAPTURE

After last week’s Exxon-Denbury news, things are getting hot in CCS M&A land:

Buckeye acquires CCS developer, Elysian

• Buckeye Partners has acquired Elysian Carbon Management.

• EnCap Flatrock-backed Elysian provides carbon capture and storage (CCS) solutions for industrial and power facilities.

• The acquisition aligns with Buckeye’s lower-carbon solutions strategy.

• CCS technologies offer synergies with Buckeye’s project development capabilities and pipeline network.

• Buckeye aims to meet evolving customer needs in the energy transition.

• Buckeye is committed to reducing carbon emissions and becoming a net-zero energy business by 2040.

• The acquisition strengthens Buckeye’s position in the energy transition and expands its customer base.

• Elysian’s expertise in CCS technologies will be integrated across the energy value chain.

Who’s next?

Marubeni invests with Bison for CCS in Alberta

• Marubeni Corporation has entered into a share subscription agreement with Bison Low Carbon Ventures Inc.

• Bison is a private corporation developing carbon capture and storage (CCS) projects in Alberta, Canada.

• The Meadowbrook CCS Project aims to develop a world-scale storage operation of 3 million tons of CO2 per annum.

• Detailed geological evaluation and drilling work will begin in the second half of 2023.

• Storage operations are planned to commence by the end of 2024, expanding to full capacity based on market demand.

• The Project will contribute to Canada and Alberta’s 2050 carbon neutrality goal and the creation of new industries.

• Marubeni will have the opportunity to invest in the North Drumheller CCS Project and other Bison-developed energy transition initiatives.

• Marubeni aims to become a forerunner in green business and contribute to the decarbonization of hard-to-abate industries through CCS projects.

NATURAL GAS AND LNG

Chesapeake achieves recertification of Marcellus natural gas

• Chesapeake Energy Corporation achieved recertification for its Marcellus operations – 4.4 bcf/d of gross gas.

• The company received a grade A under the MiQ methane emissions standard.

• Chesapeake also received a grade A- from Equitable Origin’s EO100™ Standard for Responsible Energy Development.

• The certifications focus on environmental, social, and governance (ESG) performance.

• Chesapeake’s commitment to reducing methane intensity and emissions is highlighted.

• The MiQ certification supports the company’s goal of achieving net-zero greenhouse gas emissions by 2035.

• Equitable Origin awarded Chesapeake an A- based on its performance in five core principles.

• Chesapeake was the first producer to achieve MiQ and EO100™ certification across two major basins in 2022.

• The company expects to obtain recertification for its Haynesville assets in December.

RENEWABLES

EverWind Fuels announces $1 billion in wind farms

• EverWind Fuels has announced the purchase of three wind farm development projects in Nova Scotia: Windy Ridge, Bear Lake, and Kmtnuk.

• The wind farms represent a private investment of $1 billion for renewable energy generation.

• The projects will support Phase 1 of EverWind’s green hydrogen and ammonia production.

• The wind farms will contribute to Nova Scotia’s 80% Renewable Energy Standard by 2030.

• Renewable Energy Systems Ltd. (RES) will develop and build the wind farms.

• Black & Veatch will assist in the development and construction of the green hydrogen and ammonia plant.

• The farms will increase wind-generated electricity on Nova Scotia Power’s grid and excess power can be made available for customer consumption.

• EverWind’s production will rely on newly built renewable energy sources and may include solar power.

• EverWind plans to scale its production and develop additional wind projects for Phase 2.

• The company is also working on a green hydrogen project in Newfoundland and Labrador.

GOVERNMENT FUNDING

EPA announces $20 billion in green grants

• The U.S. Environmental Protection Agency (EPA) has launched two competitive grant programs with $20 billion in funding to promote clean energy investments, particularly in low-income communities.

• The programs are part of the $27 billion Greenhouse Gas Reduction Fund established by President Biden’s Inflation Reduction Act.

• The $14 billion National Clean Investment Fund will provide grants to national clean financial institutions to partner with the private sector for financing clean technology projects.

• The $6 billion Clean Communities Investment Accelerator competition will support nonprofit groups in building the clean financing capacity of local lenders in disadvantaged communities.

• The fund is modeled after more than 20 green banks in states like Michigan and Maryland, which invest in programs such as residential solar and energy-efficient technologies.

• The green banks help reduce project risks in lower-income communities and attract private sector investment.

• The EPA administrator, Michael Regan, believes the fund will stimulate private investment and create economic opportunities for underserved communities.

• No Republicans voted for the IRA legislation that established the fund, with some expressing concerns about utility bills and affordability.

• In June, the administration launched a $7 billion grant program for low-income communities to access residential solar panels.

• The deadline for applying to the programs launched on Friday is October 12th.

FUNDRAISING

Azolla Ventures and Prime Coalition launch $239 million climate venture fund

• Azolla Ventures and Prime Coalition have launched a $239 million blended fund to support overlooked climate solutions.

• The fund focuses on early-stage climate innovation with impact-first capital.

• Azolla Ventures evaluates commercial potential and manages portfolio companies, while Prime Coalition evaluates impact and additionality.

• The fund aims to invest in companies that can significantly impact climate change but are overlooked by traditional capital sources.

• Investments must meet three criteria: impact, additionality, and commercial potential.

• Azolla Ventures embraces high risk at the earliest stages and helps safeguard impact as companies scale.

• Initial investments include companies working on high-temperature heat pumps, optimizing forest microbiome, low-cost battery recycling, carbon capture systems, decarbonizing shipping, and modularizing EV drivetrains.

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.