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.
Here’s what we have for you today:
CARBON CAPTURE
California Resources Corporation (CRC)‘s Carbon TerraVault (CTV) announces a storage-only Carbon Dioxide Management Agreement (CDMA) with Verde Clean Fuels Inc. (Verde).
The CDMA commits Verde to sequester a minimum of 100 thousand metric tons per annum (KMTPA) of CO2 at the CTV I carbon storage vault in California.
CTV more than doubles the expected sequestration volume of its Lone Cypress blue hydrogen project to 205 KMTPA of associated CO2 to be permanently sequestered at CTV I reservoir.
CTV’s total projected CO2 injection rate under CDMAs reaches 815 KMTPA, targeting 405 KMTPA in the San Joaquin Basin and 410 KMTPA in the Sacramento basin.
CTV submits a 17 million metric tons (MMT) Class VI permit to the U.S. EPA for CTV V CO2 reservoir, bringing the total projected storage capacity with Class VI permits submitted to the EPA to 191 MMT.
The CDMA with Verde involves the construction of a renewable gasoline plant at CRC’s Net Zero Industrial Park at Elk Hills, California, expected to produce 21,000 gallons per day of renewable gasoline from biomass and agricultural waste feedstock.
Project Final Investment Decision (FID) for the Verde facility is targeted for 2025, with operations expected to begin in 2027. CTV JV will provide in-field transportation and a permanent CO2 sequestration site at CTV I.
Oxy and ADNOC will evaluate investment opportunities in Direct Air Capture (DAC) facilities and CO2 sequestration hubs in the United States and the United Arab Emirates (UAE) to accelerate net-zero goals.
The strategic collaboration aims to deploy carbon capture, utilization, and sequestration technology at scale to help industries achieve their net-zero targets and purchase carbon dioxide removal credits.
ADNOC may participate in DAC plants and CO2 sequestration hubs in the US developed by Occidental’s subsidiary, 1PointFive, and jointly develop UAE-located CO2 sequestration hubs with Occidental.
Feasibility studies for a 1 million tonne-per-year DAC plant in the UAE are also being considered to provide emissions reduction solutions for carbon-intensive industries in the region.
The collaboration will explore opportunities to incorporate CO2-based technologies, including emissions-free power and sustainable fuels in the UAE.
The agreement is enabled by the UAE-U.S. Partnership for Accelerating Clean Energy (PACE), which aims to mobilize $100 billion in clean energy and carbon management projects by 2035.
NATURAL GAS AND LNG
BP and OMV signed a 10-year LNG supply agreement.
The agreement covers the supply of up to 1 million tonnes of LNG per year from 2026.
BP will provide OMV with LNG from its global portfolio, received and re-gasified through the Gate LNG terminal in Rotterdam or other European terminals.
The agreement contributes to OMV’s diversification of supply sources and supports the security of supply to customers in Austria and Europe.
This partnership with OMV is an important strategic step for both companies towards long-term supply diversification and energy transition.
BP considers LNG as an essential part of the energy transition and their own pivot to becoming an integrated energy company.
The agreement further demonstrates BP’s LNG supply capability in Europe, supporting security of supply for their European customers.
Venture Global LNG’s Calcasieu Pass 2 (CP2) project in Louisiana receives final U.S. Federal Energy Regulatory Commission’s (FERC) environmental approval.
CP2 is the first U.S. liquefied natural gas (LNG) project in 2023 to receive a final investment decision for expanding the natural gas liquefaction facility.
FERC states that the potential impacts of the project would not significantly affect local resources and has developed specific mitigation measures for construction and operation.
The project would increase greenhouse gases’ atmospheric concentration, but FERC does not classify it as “significant or insignificant” and recommends measures to reduce its effects.
Venture Global expects a commission vote and construction to begin later this year.
About 9.25 million tonnes per annum (mtpa) of CP2’s 20 mtpa capacity have been sold under 20-year sales and purchase agreements, with ongoing discussions for the remaining capacity.
CP2’s LNG customers include Exxon, Chevron, and Japan’s top LNG buyer JERA, among others.
RENEWABLES
Capital Energy is selling a renewable energy portfolio worth up to $1 billion.
The portfolio consists of 4.3 gigawatts (GW) of onshore wind and solar power plants in Spain.
The sale includes 48 projects ready to start construction within 15 months (1.6 GW), 0.7 GW of solar PV potential, and 2 GW of early-stage wind assets.
Bidders can offer to buy projects closer to completion, less developed assets, or both.
Spain aims to increase wind generation capacity to 62 GW, photovoltaic solar generation capacity to around 76 GW, and power storage capacity to 22 GW.
The sale includes a team of 45 employees from Capital Energy.
Capital Energy currently employs 355 people and holds a renewable portfolio of 25 GW, with 10 GW in advanced development.
Bids expected this fall.
The clean energy transition has led to a surge in demand for long-distance electricity cables, known as interconnectors, and other energy infrastructure like wind turbines.
The shift away from fossil fuels and the increase in offshore wind projects have contributed to the need for extensive cabling to transmit electricity over longer distances.
The high demand is causing delays in projects due to challenges in acquiring supplies of electricity cable and converter stations needed for grid connections.
The supply chain for electricity cables is concentrated among a few companies, and there are concerns about shortages and cost increases in the future.
High-voltage direct current (HVDC) systems are being used for subsea cables, but producing them is a complex process, and transportation is also challenging.
The surge in demand has led to rising costs, longer lead times, and concerns about copper shortages for cable production.
Grid operators in both Europe and the US are facing difficulties getting equipment, and manufacturers are cautious about investing in additional capacity without planning certainty.
The market is starting to adapt, with plans for new HVDC factories to meet the growing demand for interconnectors and other energy infrastructure.
However, competition is fierce, and developers need to be determined and financially prepared to navigate the global market for energy infrastructure.
TWEET OF THE WEEK
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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.