Is Lithium the new gold?

LITHIUM

Exxon partners with Tetra for Arkansas lithium

• Exxon Mobil has partnered with Tetra Technologies to develop over 6,100 acres of lithium-rich land in Arkansas.

• The move reflects Exxon’s expansion into the lithium sector and the growing interest of traditional energy companies in emerging technologies.

• Tetra, a producer of chemicals for water treatment and recycling, signed an agreement with Saltwerx, a subsidiary of Exxon, to develop the brine deposits filled with lithium and bromine.

• The financial terms and production timeline have not been disclosed yet, and certain details need to be finalized.

• Tetra gains a capital-intensive partner in Exxon to help produce bromine, while Exxon gains access to a new U.S. supply of lithium for the expanding electric vehicle supply chain.

• Both companies plan to file an amended application to develop the brine deposits with Arkansas officials.

• Exxon will need to choose a direct lithium extraction (DLE) technology to filter the metal from the brine, and it has held talks with International Battery Metals and EnergySource Minerals about licensing DLE technology.

• Tetra had previously agreed to lease land to Standard Lithium for lithium production, and Standard has begun preliminary work on the project.

CARBON CAPTURE

Denbury partners with Lapis Energy for CCS in SE Louisiana

• Denbury has formed a joint venture with Lapis Energy to develop a CO2 sequestration project in St. Charles Parish, Louisiana.

• The joint venture company, Libra CO2 Storage Solutions, will operate the project, which has the potential to store at least 200 million metric tons of CO2.

• Denbury plans to connect the sequestration site to its existing CO2 pipeline network with a 45-mile pipeline connection.

• Denbury has also secured a CO2 sequestration site in St. Helena Parish through an agreement with Soterra LLC.

• The site, named “Virgo,” has an estimated potential CO2 sequestration capacity of at least 100 million metric tons.

• Denbury’s total CO2 sequestration portfolio now includes 10 sites across several states, with a total potential storage volume of approximately 2 billion metric tons of CO2.

• The company plans to submit Class VI permits to the EPA for 2 to 3 additional dedicated sequestration sites this year and intends to drill additional stratigraphic test wells across its portfolio by the end of 2023.

• Denbury aims to provide CO2 sequestration by the end of 2025 and expand its CO2 transportation and storage network.

With Louisiana receiving primacy (more or less) for Class VI wells, we expect further project announcements and traction on those underway

NATURAL GAS AND LNG

Cheniere signs LNG deal with China’s ENN

• Cheniere Energy and ENN Natural Gas have signed a long-term LNG sale and purchase agreement.

• ENN will purchase approximately 1.8 million tonnes per annum of LNG from Cheniere Marketing.

• Deliveries will start in mid-2026 and ramp up to 0.9 million tonnes per annum in 2027.

• The remaining 0.9 million tonnes per annum delivery is subject to the positive Final Investment Decision on the Sabine Pass Liquefaction Expansion Project.

• The agreement extends until the 20th anniversary of the start of commercial operations of Train Seven.

• This is the second long-term agreement between ENN and Cheniere.

• Cheniere’s CEO highlights China’s shift to natural gas and the importance of LNG in enabling environmental performance.

• Wang Yusuo, Chairman of ENN Natural Gas, emphasizes the compatibility of Cheniere’s LNG production capacity with China’s growing natural gas market.

• The Sabine Pass Liquefaction Expansion Project aims to include up to three natural gas liquefaction trains with a total production capacity of around 20 million tonnes per annum.

The trend of China locking up as much long-term LNG as possible continues

LOW-CARBON FUELS

BASF and Yara explore Gulf Coast blue ammonia

• BASF and Yara Clean Ammonia are collaborating on a joint study for a low-carbon blue ammonia production facility in the U.S. Gulf Coast.

• The facility aims to have a total capacity of 1.2 to 1.4 million tons per year to meet the growing global demand for low-carbon ammonia.

• The project focuses on capturing approximately 95 percent of the CO2 generated during production and storing it underground.

• Yara plans to supply clean ammonia with a reduced carbon footprint to its customers, including agriculture, shipping fuel, power production, and hydrogen carrier applications.

• BASF sees the facility as a backward integration to meet its own demand for low-carbon ammonia and reduce the carbon footprint of its ammonia-based products.

• BASF and Yara have a history of successful collaboration, including a joint ammonia plant in Freeport, Texas.

• The feasibility study for the low-carbon blue ammonia production facility is expected to be completed by the end of 2023.

• Blue ammonia has the same characteristics as conventionally produced ammonia but plays a significant role in transitioning to less carbon-intensive products.

• BASF aims to reduce its CO2 emissions by 25 percent by 2030 and achieve net-zero emissions by 2050, while Yara has a track record of greenhouse gas abatement and aims to become climate-neutral.

Vertex has first sale of renewable diesel

• Vertex Energy has announced the completion of its first commercial sales of renewable diesel (RD) from its Mobile Refinery in Alabama.

• The initial sales totaled approximately 110,000 barrels of RD to Idemitsu Apollo Renewable Corporation.

• The company expects to increase RD production volumes as planned, currently at a rate of approximately 7,700 barrels per day (bpd).

• Vertex aims to reach a target production level of approximately 8,000 bpd by the end of the second quarter of 2023.

   

RENEWABLES

European renewable firms Renantis and Ventient to merge

• Renantis and Ventient Energy are planning to merge and form one of the largest renewable independent power producers (IPPs) in Europe.

• The combined company will have a total installed capacity of 4.2 GW and an 18 GW pipeline, making it one of the top five European onshore wind IPPs.

• The companies are owned by investors advised by the Global Infrastructure group at J.P. Morgan Asset Management

• The organizations operate a diversified portfolio of onshore wind farms, solar plants, and energy storage facilities across nine countries in Europe and the USA.

• The integrated company will continue to provide energy management, asset management, and technical advisory solutions to industrial clients.

• Renantis has a significant pipeline of projects, including floating offshore wind projects, while Ventient has a strong presence in onshore wind with integrated energy market solutions.

• The headquarters of the combined company will be in Italy, and Renantis has been delivering renewable energy since 2002.

• Ventient Energy is a pan-European renewable energy business with a focus on onshore wind and integrated energy solutions.

COMMENT OF THE WEEK

In response to Ford’s $9bn DOE loan for EV battery manufacturing covered in Tuesday’s Scoop

Doubtful, my friend. Doubtful…

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.