Not your grandma’s geothermal

Microsoft to buy carbon removal credits from Neustark

• Neustark enters a multi-year offtake agreement with Microsoft to deliver 27,600 tons of high-quality carbon removal credits over 6 years.

• Neustark’s solution involves capturing CO2 at point source and storing it within mineral waste, such as demolition concrete, offering durable carbon removal.

• Neustark has rapidly grown, with 14 operational sites removing over 5,000 tons of CO2 per year, and more under construction across Europe.

• The carbonated granules produced by Neustark’s process can be used in road construction or recycled concrete production.

• Neustark’s technology has been tested and proven effective, with 14 operational sites and over 20 under construction to scale up carbon removal efforts.

• The company aims to permanently remove one million tons of CO2 by 2030, contributing significantly to global carbon reduction efforts.

Sage raises $17 million Series A led by Chesapeake for geothermal as energy storage

• Sage Geosystems has secured $17 million in Series A funding, with Chesapeake Energy leading the investment round. Other notable investors include technology investor Arch Meredith, Helium-3 Ventures, as well as continued support from existing investors Virya, LLC, Nabors Industries Ltd., and Ignis Energy Inc.

• This funding will be instrumental in supporting the construction of the world’s first commercial Geopressured Geothermal System (GGS) facility in Texas.

• The 3MW facility, named EarthStore™, will leverage Sage Geosystems’ innovative technology to extract energy from pressurized water stored underground. EarthStore™ is designed to offer both short and long-duration energy storage capabilities, complementing intermittent renewable energy sources such as wind and solar, and providing baseload power to the electric grid.

• Construction of the 3MW facility is slated to commence in Q2 2024, with an anticipated commission date in Q4 2024. The specific location of the facility will be disclosed in due course.

• Sage Geosystems previously demonstrated the effectiveness of its EarthStore™ system in a full-scale commercial pilot project in Texas in 2023, showcasing its impressive efficiency and reliability.

Fervo announces drilling efficiency improvements at Cape Station geothermal project

• Fervo Energy’s drilling operations at Cape Station exceed DOE expectations for enhanced geothermal systems (EGS)

• Fervo achieved a 70% reduction in drilling time compared to its previous project

• Drilling campaign at Cape Station began in June 2023, resulting in one vertical and six horizontal wells drilled

• Cost reductions achieved, with drilling costs falling from $9.4 million to $4.8 million per well

• Expected learning rate of 35% for drilling time improvement, indicating further advancements in performance and cost reduction

• Fervo’s approach to enhanced geothermal resembles the early days of the shale revolution

• Increased rate of penetration and life of drill bits contribute to improved drilling performance

• Fervo utilized modern oil and gas drilling equipment, such as polycrystalline diamond compact (PDC) drill bits and mud coolers

• Applicability of oil and gas technology to enhanced geothermal underscored by Fervo’s results

DOE drops $60 million on enhanced geothermal

• The Administration invests $60 million in three projects to expand clean, renewable geothermal energy.

• These projects aim to scale Enhanced Geothermal Systems (EGS) to power the equivalent of 65 million U.S. homes.

• The projects include Chevron New Energies in California, Fervo Energy in Utah, and Mazama Energy in Oregon.

• Geothermal resources currently generate about four gigawatts of electricity in the U.S., with the potential to reach 90 gigawatts by 2050.

• EGS technology creates human-made reservoirs to tap heat energy where natural conditions are inadequate.

• Funded by DOE’s Geothermal Technologies Office, the projects represent the first round of EGS Pilot Demonstrations, with future rounds planned for the eastern U.S.

Koloma raises $246 million to drill for geologic hydrogen

• Koloma, a startup in carbon-free hydrogen extraction from underground deposits, secures $245.7 million in its latest funding round, bringing its total funding to over $300 million.

• This substantial investment bolsters Koloma’s efforts in advancing research and development to enhance underground hydrogen production methods.

• Noteworthy investors contributing to this round include prominent entities such as Khosla Ventures, Amazon’s Climate Pledge Fund, and United Airline’s Sustainable Flight Fund. Previous backing from Bill Gates’ Breakthrough Energy Ventures and Energy Impact Partners.

• Spearheaded by cofounder and CTO Tom Darrah, leveraging extensive research from Ohio State University.

• Proposed regulatory measures, such as the Treasury Department’s potential incentives offering up to $3 per kilogram of clean, zero-carbon hydrogen, further highlight the growing significance of geologic hydrogen extraction methods.

GIP buys 50% stake in offshore wind projects from Eversource Energy for $1.1 billion

• Eversource Energy sells its 50 percent ownership share in South Fork Wind and Revolution Wind projects to Global Infrastructure Partners (GIP)

• Transaction yields approximately $1.1 billion in cash proceeds for Eversource, expected to close in mid-2024

• Eversource retains certain cost sharing obligations for Revolution Wind construction, with an estimated cap of $240 million

• Proceeds may be adjusted based on final construction costs and updated project economics post-commercial operation

• Eversource to maintain tax equity investment in South Fork Wind; Ørsted unaffected by sale

• Ørsted to enter into partnerships with GIP; regulatory approvals required for transaction completion

• Eversource emphasizes focus on regulated transmission operations amidst ongoing offshore wind industry evolution

United Airlines brings on new corporate partners with Sustainable Flight Fund exceeding $200 million

• United Airlines welcomes new corporate partners, including Aircastle, Air New Zealand, Embraer, Google, HIS, Natixis CIB, Safran, and Technip Energies, to its Sustainable Flight Fund.

• The fund now exceeds $200 million and aims to reduce emissions and drive sustainable aviation fuel (SAF) production through investments in startups.

• United customers have contributed nearly $500,000 since February 2023 to supplement the fund’s investments.

• SAF reduces greenhouse gas emissions associated with air travel and United has invested in over five billion gallons of SAF production.

• United aims to be net zero by 2050 and has launched initiatives such as the Eco-Skies Alliance and United Airlines Ventures to decarbonize air travel.

   

• Blue Tide Environmental Completes Initial Phase of State-of-the-Art Base Oils Re-Refining Facility

• Rimere Receives $10 Million Strategic Investment from Clean Energy for nat gas to hydrogen technology

• Fluor Selected for World’s First Renewable Hydrogen-Based Integrated Steel Mill in Sweden

• New Mexico Fourth State To Pass Clean Fuel Standard

• Japan offers billions in energy transition bonds

   

• Latest Sunya Stories podcast episode with Chuck Yates

• Sunya Spotlight profile on Oxy’s STRATOS DAC project

• Past Tuesday’s edition – It’s a love story. Autry, just say yes.

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.