Navigator cancels CO2 pipeline

Navigator CO2 cancels Midwest CO2 pipeline

• Navigator CO2 Ventures cancels plans for a Midwest CO2 pipeline network

• The cancellation is a win for environmentalists and farmers opposing the project

• Regulatory and government processes’ unpredictability led to the project’s cancellation

• The project aimed to build 1,300 miles of pipelines to transport 15 million metric tons of CO2 for burial in Illinois

• It was part of a series of controversial carbon pipeline projects in the region

• These projects are considered crucial for achieving U.S. net-zero emissions by 2050, supported by public subsidies

• Challenges include navigating complex regulations and facing strong opposition from various groups

• Environmentalists see the projects as supporting fossil fuels, while landowners resist pipeline construction on their property

• South Dakota’s public utilities commission rejected a permit application from Navigator

• Summit Carbon Solutions, another company with similar plans, has delayed its launch to 2026 due to roadblocks.

Unfortunately, the rumor mill ended up true. Getting across the tough landowner and political (state-level) landscape was too much to get this project to the next phase.

It’s astonishing to see “environmentalist” oppose a fairly ambitious project aimed to store 15 million tons of CO2 a year. Emissions that otherwise will continue to be vented into the atmosphere.

It’s a step back for the industry but naturally positive for Summit.

Milestone Carbon signs carbon hub agreement with TPL in Permian

• Milestone Carbon, a subsidiary of Milestone Environmental Services, announces a land agreement for carbon hub development in the Permian Basin (Oct 19, 2023)

• The agreement involves leasing over 22,000 acres of land and pore space from Texas Pacific Land Corporation (TPL)

• The land is located in Loving and Midland counties and will be used for permanent geologic sequestration of CO2 to support carbon capture and storage (CCS) projects in West Texas, including natural gas processing and power plants.

• Milestone Carbon has recently announced the development of a CO2 sequestration hub in the southwestern Midland Basin, which can support multiple wells for permanent carbon dioxide storage.

• The carbon sequestration hubs in the Midland and Delaware Basins will help reduce emissions from natural gas processing, electricity generation, and other industries and attract new industries and technologies to West Texas.

Corio and Rise invest $420 million to partner with Total on 3 GW of offshore wind

• TotalEnergies partners with Corio Generation and Rise Light & Power for a wind project off the coast of New York and New Jersey.

• The partnership involves a $420 million cash investment from Corio and Rise.

• Corio Generation acquires a 27.7% stake in the project, while Rise Light & Power takes a 16.3% stake.

• Rise will also contribute its assets and interconnection capabilities in New York City to the project.

• TotalEnergies retains the majority stake of 56% in the project.

• The project aims to develop over 3 gigawatts of offshore wind capacity, potentially providing electricity for more than a million homes in the two states.

Japan and Denmark team up on offshore wind

• Japan and Denmark plan to collaborate on floating offshore wind power technology

• The partnership aims to combat climate change by researching and developing floating offshore wind technologies.

• The nascent floating offshore wind industry is expected to see significant growth in the coming decade as countries seek to reduce carbon emissions.

• The agreement will be formalized through a letter of intent signed by Japan’s trade and industry ministry and the Danish climate and energy ministry.

• Japan has ambitious goals, aiming for 10 gigawatts (GW) of offshore wind power by 2030 and up to 45 GW by 2040, with renewables contributing 36%-38% of its electricity mix by the end of the decade.

• Japan is also working on a roadmap for floating offshore wind power, expected to be delivered by March 2024.

Proman and Mitsubishi team up on low-carbon ammonia in US gulf coast

• Proman and Mitsubishi Corporation have signed an MoU to explore building a world-scale ultra low-carbon ammonia facility in Lake Charles, Louisiana

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• The proposed plant aims to produce around 1.2 million tonnes per year of clean ammonia using advanced carbon capture and sequestration technology.

• The facility will be located on Proman’s existing site in Lake Charles, near their natural gas to methanol plant currently under development.

• Proman’s CEO, David Cassidy, expresses enthusiasm for the project, highlighting ammonia’s role as a fertilizer, fuel, and decarbonized energy source.

• The plant, equipped with cutting-edge carbon capture technology, will contribute to meeting the growing demand for clean ammonia as a fuel.

• Ammonia produced at the facility will primarily be exported to Japan to support its decarbonization efforts by reducing emissions from coal-fired power plants.

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.