Nucor teams up with Exxon for CCS in Louisiana

CARBON CAPTURE

Nucor teams up with Exxon for CCS in Louisiana

• Nucor Corporation has entered into an agreement with ExxonMobil for carbon capture and storage.

• ExxonMobil will capture and store up to 800,000 metric tons per year of CO2 from Nucor’s direct reduced iron (DRI) plant in Louisiana.

• The captured CO2 will be stored at an ExxonMobil-owned facility in Louisiana.

• The project is part of Nucor’s decarbonization strategy and aims to produce low embodied carbon DRI or HBI in North America.

• The collaboration supports Louisiana’s goal of achieving net-zero CO2 emissions by 2050.

• Nucor is known for its recycling-based steel production method, which already makes it one of the cleanest steelmakers.

• The carbon capture and storage agreement with ExxonMobil further enhances Nucor’s sustainability leadership and commitment to low embodied carbon steel production.

Separately, yesterday, Exxon’s shareholders rejected shareholder proposals that were considered overwhelmingly “climate-focused.”

Howard secures DOE funding for FEED study 

• Howard Energy Partners (HEP) selected for $3 million funding opportunity through the U.S. Department of Energy’s Carbon Capture Technology Program.

• Funding will be used to evaluate feasibility of transporting up to 250 million tons per year of CO2 from multiple sources in Gulf Coast region.

• HEP one of three projects selected for Front-End Engineering Design (FEED) as part of DOE’s investment in carbon management capabilities.

• HEP previously selected for $9 million CarbonSAFE funding opportunity with Talos Energy Inc. and the Port of Corpus Christi (POCC) to collect geologic data for CO2 storage onshore.

• HEP aims to develop centralized solution for capturing and sequestering industrial CO2 emissions.

• HEP and Talos formed Coastal Bend Carbon Management Partnership (CBCMP) to develop carbon management solutions in Corpus Christi.

• CBCMP has contracted over 13,000 acres of pore space in the Port of Corpus Christi for carbon sequestration.

NuGen commits to the Summit carbon capture project

• Summit Carbon Solutions partners with NuGen Energy, an ethanol plant in Marion, South Dakota.

• NuGen Energy joins 32 other ethanol plants in the carbon capture and storage project led by Summit Carbon Solutions.

• The project aims to capture and store up to 18 million metric tons of carbon dioxide annually, reducing the carbon footprint of participating ethanol plants.

• The partnership with NuGen will remove and store an additional 450,000 metric tons of CO2 per year, contributing to the project’s environmental goals.

• Summit Carbon Solutions successfully acquired 70% of the pipeline route through voluntary easements with 2,500 landowners, indicating strong community support for sustainable agriculture and energy production.

LOW-CARBON FUELS

Pembina signs MOU with Marubeni low-carbon ammonia

• Pembina Pipeline has signed a Memorandum of Agreement with Marubeni Corporation to develop an end-to-end, low-carbon ammonia supply chain from Western Canada to Japan and other Asian markets.

• The project includes the joint development of a low-carbon hydrogen and ammonia production facility to be located in Alberta, Canada, near Pembina’s Redwater Complex.

• Low-carbon ammonia is in high demand in Japan and other Asian markets as an efficient carrier of hydrogen and a low-carbon fuel source.

• The facility is expected to have a design capacity of up to 185 kilotonnes per annum of low-carbon hydrogen production, which will be converted into approximately one million tonnes per year of low-carbon ammonia.

• The project aims to capture a significant amount of CO2 emissions using innovative technology and potentially utilize the Alberta Carbon Grid for transportation and sequestration.

• Pembina and Marubeni will leverage their respective strengths in energy infrastructure development, logistics, and marketing to execute the project.

• The project is anticipated to be structured as an infrastructure-style, fee-based business with investment-grade counterparties.

• It is expected that pre-Front End Engineering Design work will be completed by early 2024.

• The project aligns with Pembina’s vision to establish the Pembina Low Carbon Complex, an industrial complex for low-carbon energy infrastructure in the Alberta Industrial Heartland.

• The Pembina Low Carbon Complex aims to attract investments in low-carbon hydrogen, ammonia, methanol, and other energy transition technologies, with Pembina providing land, infrastructure, and shared services to tenants.

• Commercial discussions with potential tenants and strategic partners are ongoing.

Chevron and Brightmark to expand RNG production in Michigan

• Brightmark RNG Holdings LLC, a joint venture between Chevron U.S.A. Inc. and Brightmark Fund Holdings LLC, plans to expand renewable natural gas (RNG) production in western Michigan.

• The joint venture will develop five new anaerobic digestion dairy farm projects in Michigan to convert animal waste into renewable fuels.

• The projects include the Castor Project, the second-largest RNG project by Brightmark and Chevron.

• The other Michigan projects in the joint venture are Meadow Rock, Red Arrow, Willow Point, and SunRyz.

• The anaerobic digestion process captures animal manure and converts it into renewable natural gas, fertilizer, and water for reuse in agricultural and energy systems.

• The Chevron-Brightmark RNG joint venture now has a total of 20 RNG projects across the country.

• The projects are expected to reduce greenhouse gas emissions, improve land and water quality, and support lower carbon solutions.

• The partnership aims to create value from underutilized resources and contribute to a lower carbon energy future.

NATURAL GAS AND LNG

Enterprise completes Haynesville expansion

• Enterprise completes expansion of Acadian Haynesville Extension natural gas pipeline.

• Expansion adds approximately 400 million cubic feet per day of Haynesville natural gas takeaway capacity.

• Supports growing industrial demand in the Mississippi River Corridor and Louisiana LNG export market.

• Total natural gas transportation capacity increased from 2.1 Bcf/d to 2.5 Bcf/d.

• Expansion underwritten by long-term, take-or-pay contracts with credit-worthy customers.

• Part of $3.8 billion organic growth capital projects scheduled for completion in 2023.

• Other projects include a propane dehydrogenation facility, NGL fractionator, natural gas processing plants, and a new pipeline system.

• Enterprise Products Partners L.P. is a leading provider of midstream energy services in North America.

China’s natural gas consumption declined in 2022, first time in decades

• China’s natural gas consumption and LNG imports experienced a decline in 2022, marking the first annual drop since 1990.

• Natural gas consumption decreased by 1% (0.4 billion cubic feet per day) due to lower economic growth and higher gas prices.

• The decline in natural gas usage was attributed to slower economic growth caused by zero-COVID regulations, widespread lockdowns, and government policies prioritizing supply security over emissions targets.

• China, previously the world’s top LNG importer, saw a 20% decrease (2.0 Bcf/d) in LNG imports in 2022, primarily due to lower demand and higher prices.

• Despite increased domestic natural gas production, China is increasingly reliant on imports to meet its growing gas needs.

• From 2010 to 2022, China’s natural gas consumption more than tripled, driven by strong economic growth, urbanization, and environmental policies.

RENEWABLES

Indonesia seeks $700 million for solar

• Indonesian state utility, Perusahaan Listrik Negara (PLN), seeks $700 million investment for a 200 MW solar panel installation.

• The installation aims to replace diesel power generators and reduce carbon emissions.

• PLN plans to reach net zero carbon emissions by 2060 and install 4.68 GW of solar panels between 2021 and 2030.

• The 200 MW solar panel is the first phase of a plan to replace 1 GW of diesel power plants with solar power.

• A coalition of countries has pledged $20 billion of financing under the Just Energy Transition Partnership (JETP) to support Indonesia’s transition to cleaner energy.

• Indonesia aims to finalize a detailed plan for JETP fund allocation by August, with PLN’s plan serving as a pilot program in JETP.