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. Occasionally, we toss in a meme.
Here’s what we have for you today:
Chevron is investing in two lower carbon projects in Western Australia (WA).
Chevron will fund the WA-based Carbon Sync for a soil carbon sequestration pilot project covering up to 80,000 hectares of WA’s cropping and grazing region.
Chevron has also partnered with Deakin University’s Blue Carbon Lab for a multi-year research project exploring CO2 sequestration possibilities in WA’s coastal wetlands.
Carbon Sync Founder and CEO Louise Edmonds highlighted the potential of the partnership to transform the carbon equation for WA’s agricultural industry and create jobs while improving sustainability and biodiversity.
Professor Peter Macreadie from Deakin University’s Blue Carbon Lab emphasized the importance of addressing knowledge gaps regarding WA’s blue carbon assets and the opportunities for conservation and restoration of coastal wetlands.
Chevron New Energies VP of Offsets and Emerging Barbara Harrison and Chevron Australia’s GM, Energy Transition, David Fallon expressed Chevron’s dedication to exploring various pathways on the lower carbon journey
Kimmeridge, an alternative asset manager, released a white paper proposing a standardized rating system for carbon credits.
The rating system aims to be similar to the bond market, providing a transparent methodology for quantifying the environmental integrity of removal and avoidance credits.
The system would enhance visibility for buyers, allowing them to better understand the offsets they are acquiring and offer premium prices for high-quality credits.
The goal is to create a level playing field for carbon removal developers and buyers, incentivizing investment in economically viable carbon removal projects.
The proposed rating system would assess additionality (A-E) and durability (1-100+) of carbon credits, enabling comparisons across categories like direct air capture (DAC), carbon capture and storage (CCS), and nature-based solutions (NBS).
This system aims to address the lack of consistency and understanding in the carbon credit market and facilitate the transition to net-zero goals.
Kimmeridge emphasizes that a unified carbon credit market can drive carbon removal, co-benefits, and energy transition through a market-based approach.
The paper highlights the importance of scalability and economic feasibility in various carbon offset categories, such as DAC, CCS, and afforestation/reforestation.
The Administration is allocating up to $1.2 billion for direct air capture (DAC) projects in Texas and Louisiana.
The U.S. Department of Energy (DOE) will fund two commercial-scale DAC facilities as part of the Regional DAC Hubs program.
These DAC hubs will be the first of their kind in the U.S., targeting carbon removal and complementing emissions reduction efforts.
The projects aim to remove over 2 million metric tons of CO2 annually, equivalent to emissions from about 445,000 cars, and create jobs in Texas and Louisiana.
Two projects are selected: Project Cypress in Louisiana and South Texas DAC Hub in Texas.
Project Cypress plans to capture 1 million metric tons of CO2 yearly and store it underground
South Texas DAC Hub aims to remove 1 million metric tons of CO2 annually
There are plans for additional DAC Hub studies to explore future demonstrations.
DOE also intends to support the development of carbon dioxide removal technologies through funding opportunities and prizes.
The initiatives are part of DOE’s broader Energy Earthshots Initiative to drive innovation in carbon removal and combat climate change.
1PointFive, a subsidiary of Occidental, has been chosen to receive a grant from the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) to develop the South Texas Direct Air Capture (DAC) Hub.
The hub will be situated on the King Ranch in Kleberg County and is planned to feature the world’s first DAC plant capable of removing up to 1 million metric tons of CO2 annually.
The selection allows 1PointFive to enter award negotiations with OCED, collaborating to establish the South Texas DAC Hub.
OCED funding will support planning, detailed design, environmental permitting, and equipment procurement for the DAC Hub.
The South Texas DAC Hub’s lease agreement with King Ranch covers around 106,000 acres of pore space that could hold up to 3 billion metric tons of CO2 in saline formations.
The hub is estimated to have the potential to remove and store up to 30 million metric tons of CO2 yearly through DAC.
The site’s proximity to industrial emitters on the Texas Gulf Coast makes it suitable for capturing, transporting, and securely sequestering CO2.
1PointFive, in partnership with Carbon Engineering and Worley, is adapting the design of their first DAC plant, Stratos, for the South Texas Hub.
Preparations are underway to drill test wells at the South Texas Hub site to gather geological data required for CO2 sequestration permits.
The South Texas DAC Hub is expected to generate around 2,500 jobs in construction, operations, and maintenance.
Carbon TerraVault Holdings, a subsidiary of California Resources Corporation (CRC), announced that the California Direct Air Capture (DAC) Hub has received $11.8 million in funding from the U.S. Department of Energy (DOE).
The funding is part of the Regional DAC Hubs Initiative and aims to develop California’s first full-scale DAC plus storage (DAC+S) network of regional hubs.
DAC+S focuses on removing and permanently storing atmospheric carbon dioxide (CO2) using low carbon emission energy, benefiting local communities.
The funding will be used for Front End Engineering Design (FEED) studies in 2024 for proposed DAC facilities in Kern County, with development potentially starting in 2025.
The California DAC Hub consortium involves around 40 organizations from various sectors, including industry, community, tribes, technology, government, academia, labor, and more.
The California DAC Hub plans to establish a network of DAC+S hubs across the state, contributing to carbon removal goals
The first hub will launch in Kern County, with plans to expand to other locations in the state.
BP has invested in a startup, Advanced Ionics, to develop technology that reduces the production costs of zero-carbon hydrogen using vapour from heavy industry.
BP Ventures, along with Mitsubishi Heavy Industries, Clean Energy Ventures, and Gatemore Capital Management, participated in a $12.5 million Series A financing for Advanced Ionics.
Green hydrogen, produced through electrolysis using renewable energy, is vital for decarbonizing transport and industries.
Currently, green hydrogen is produced on a small scale and is expensive compared to hydrogen from natural gas.
The investment will support Advanced Ionics in deploying its water vapour-based electrolysers for heavy industry.
Their technology, Symbion, uses heat from plant operations to reduce electricity consumption, significantly cutting production costs.
The reduced electricity usage will lower green hydrogen costs to less than $1 per kilogram, making it competitive with alternative production.
Advanced Ionics is piloting its technology with Repsol, a Spanish oil and gas company.
BP aims to produce 0.5 to 0.7 million tonnes per year of green hydrogen by 2030 as part of its carbon emissions reduction strategy.
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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.