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.
We are your energy transition sherpa. We’ll guide you through the unpredictable mountains of the energy market and ensure you don’t get lost in the fog of FOMO.
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CARBON CAPTURE
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EPA has opened public comment on a proposal to grant Louisiana primary responsibility for Class VI wells under the UIC Program
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Class VI wells are used for carbon capture and storage and are crucial in reducing carbon emissions
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EPA’s proposal follows guidance from the Council on Environmental Quality to ensure the responsible advancement of carbon capture, utilization, and sequestration technologies
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EPA is committed to advancing environmental justice and worked with Louisiana to strengthen practices that protect vulnerable communities
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EPA has determined that Louisiana’s Class VI UIC program meets all requirements for approval and will enforce it consistent with the Safe Drinking Water Act
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The public can provide comments through the Federal Register within 60 days of publication
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EPA will hold a public hearing on June 15, 2023, in Baton Rouge, LA
Louisiana has pretty much been granted primacy subject to this comment period. Soon to join the elite club with Wyoming and North Dakota.
FUNDRAISING
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Mitsubishi Corp. plans to launch a decarbonization fund, investing $1 billion in startups with promising technology
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The fund will focus on renewable energy, next-generation fuels, storage batteries, and other areas, mainly investing in startups’ projects that are yet to be commercialized
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Mitsubishi will create the Marunouchi Climate Tech Growth Fund through a management company jointly established with MUFG bank and South Korean private equity fund Pavilion Private Equity
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Mitsubishi’s stake in the management company is over 90%, and it will take the lead in selecting investments
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The fund aims to expand to $1 billion by April 2024 and will be one of the largest funds led by an operating company in Japan
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Investments are expected to range between $20 million and $100 million per startup, with around 20 investments to be made by April 2029
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Mitsubishi plans to facilitate collaboration between the startups and Japanese and other Asian companies via its global business network to promote decarbonization efforts
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To achieve net-zero CO2 emissions by 2050, an average annual investment of $2 trillion will be required in 2022 to 2025, rising $4 trillion per year in 2026 to 2030
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Mitsubishi plans to put 2 trillion yen ($15 billion) into decarbonization projects by fiscal 2030 and has already invested $100 million in Breakthrough Energy Catalyst in 2022.
CARBON CAPTURE
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Carbon TerraVault (CTV) submitted a Class VI permit to the EPA for 34 million metric tons of CO2 storage for CTV IV, bringing CTV’s total potential permitted storage to 174 MMT
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CTV signed two storage-only Carbon Dioxide Management Agreements (CDMAs) with Yosemite Clean Energy, LLC for 40,000 metric tons per annum (MTPA) of CO2 injection, and InEnTec Inc. for 100,000 MTPA of CO2 injection, bringing the total CTV injection rate to 610,000 MTPA with 200,000 MTPA targeted to Elk Hills reservoir and 410 MTPA targeted in the Sacramento basin area
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Yosemite Clean Energy, LLC CDMA involves sequestering at least 40,000 MTPA of CO2 at CTV carbon storage vaults from a new hydrogen plant to be constructed in Oroville, Northern California, and the produced CO2 will be captured and stored permanently underground by CTV
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InEnTec CDMA involves sequestering initially at the minimum 100,000 MTPA of CO2 from InEnTec’s facility in the CTV I carbon storage vault, and the facility is expected to produce 80 to 100 tons per day of renewable dimethyl ether (rDME) from waste materials
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Both agreements provide CTV with an injection fee on a per ton basis that fits within the previously disclosed economic type-curve for projects that require a storage-only solution
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Francisco Leon, CRC’s President and Chief Executive Officer, said they are evaluating the strategic positioning of their carbon management business which could include a potential separation from their legacy oil and gas business.
RENEWABLES
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KKR & Co Inc. will invest an additional $250 million in Serentica Renewables, an Indian decarbonization platform
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The investment will support Serentica’s goal of achieving 4,000 MW of installed renewable energy capacity to aid clean energy delivery to large-scale industrial customers
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KKR had previously committed to investing $400 million in Serentica in November 2022
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Serentica focuses on industrial decarbonization by making renewables the primary source of energy for the commercial and industrial sectors in India
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India’s renewables sector has been attracting increasing foreign investment and was among its top five industries for overseas funds in the last fiscal year, with a 5% share of all inflows from April to September 2022.
EV CHARGING
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Daimler Truck North America, NextEra Energy Resources, and BlackRock Alternatives have announced the name of their joint venture to design, develop, install, and operate a US nationwide, high-performance zero-emission public charging and hydrogen fueling network for medium- and heavy-duty battery-electric and hydrogen fuel cell vehicles called Greenlane
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Greenlane aims to provide a publicly available, nationwide electric charging infrastructure for commercial vehicles, especially for long-haul freight operations, to develop a sustainable zero-emission vehicle ecosystem across North America
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The joint venture has made significant progress since its inception in 2022, with its first site in Southern California and multiple additional sites being acquired along various freight routes
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The network of charging sites will be built on critical freight routes along the east and west coasts and in Texas, and Greenlane will leverage existing infrastructure and amenities while also adding complementary greenfield sites
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Greenlane’s initial focus will be on battery-electric medium- and heavy-duty vehicles, followed by hydrogen fueling stations for fuel cell trucks, with plans to expand access to light-duty vehicles in the future to serve the greater goal of electrifying mobility.
NATURAL GAS
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Enbridge to acquire Aitken Creek Natural Gas Storage from FortisBC Holdings Inc. for $400 million.
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Enbridge will acquire FortisBC Midstream Inc. from FortisBC Holdings Inc., which holds a 93.8% interest in Aitken Creek Gas Storage facility and a 100% interest in Aitken Creek North Gas Storage facility.
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Aitken Creek Storage is an underground reservoir located in British Columbia and is the largest and only underground natural gas storage facility in BC.
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The facility has a working gas capacity of 77 billion cubic feet and is an integral part of the natural gas transmission system in Western Canada.
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The transaction is expected to close later in 2023, subject to receipt of customary regulatory approvals and closing conditions.
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Enbridge’s acquisition of Aitken Creek Storage will enable it to continue to meet regional energy needs and support increasing demand for west coast LNG exports.
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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.