Public markets better like hydrogen

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.

Here’s what we have for you today:

• Global Hydrogen Energy to go public via SPAC merge with Dune

• Cheniere signs long-term LNG deal with Korea Southern Power

• Morgan Stanley raises $500mm for climate private equity fund

• NGP and Aventurine (Carnelian) lead $75mm Series B in Noveon Magnetics

• Emirates commits $200 million to SAF fund

• Frontier buyers sign $53 million in carbon removal offtake agreements with Charm Industrial

• 3M and Svante team up on products for Direct Air Capture

   

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HYDROGEN

Global Hydrogen Energy to go public via SPAC merge with Dune

• Global Hydrogen Energy LLC and Dune Acquisition Corporation have entered into a definitive agreement for a business combination.

• The combined company will be called Global Gas Corporation and will be publicly listed on Nasdaq under the ticker symbol “HGAS.”

• Global Hydrogen is a 100% minority-owned business that focuses on hydrogen and industrial gas projects, including those supported by government entities.

• The company primarily targets renewable waste as feedstock for its industrial gases and seeks partnerships with wastewater treatment plants, food waste processing facilities, farms, landfills, and renewable natural gas producers.

• The partnership aims to address the growing demand for low carbon hydrogen and recovered carbon dioxide and oxygen in the transition to a zero-emission transportation future.

• The transaction values the combined enterprise at approximately $112 million.

• The proposed business combination is subject to approval by Dune’s stockholders and customary closing conditions, expected to be completed in the second half of 2023.

Back to back Hydrogen companies going public…

LNG

Cheniere signs long-term LNG deal with Korea Southern Power

• Cheniere Energy has signed a long-term LNG sale and purchase agreement with Korea Southern Power Co. Ltd (KOSPO).

• KOSPO will purchase approximately 0.4 million tonnes per annum (mtpa) of LNG from Cheniere Marketing on a delivered ex-ship basis from 2027 through 2046, with a smaller annual quantity starting in 2024.

• The purchase price for LNG before 2027 will be market-based, and thereafter it will be indexed to the Henry Hub price plus a fee.

• The volumes associated with the agreement from 2028 through 2046 are contingent on a positive final investment decision for the first train of the Sabine Pass Liquefaction Expansion Project.

• The agreement supports KOSPO’s expanding natural gas-fired power generation capacity and is expected to benefit the SPL Expansion Project’s development.

• Cheniere Energy emphasizes its leadership in providing flexible and environmentally friendly energy supply to meet customer needs in the short and long term.

• The SPL Expansion Project aims to have up to three natural gas liquefaction trains with a total production capacity of ~20 mtpa of LNG.

• Cheniere Energy Partners’ subsidiaries have initiated the pre-filing review process for the SPL Expansion Project with the Federal Energy Regulatory Commission.

FUNDRAISING

Morgan Stanley raises $500mm for climate private equity fund

• Morgan Stanley Investment Management (MSIM) has raised $500 million for the first close of the 1GT climate private equity strategy.

• Investors include public and private pension funds and an insurance company from the Nordic region, Germany, and the UK.

• The strategy aims to invest in growth-stage companies that collectively avoid or remove one gigaton of carbon dioxide-equivalent emissions from the Earth’s atmosphere by 2050.

• Vikram Raju, MSIM’s Head of Climate Private Equity Investing and 1GT, highlights the strong investor support and the twin goals of investing in high-growth companies while delivering transformational climate impact.

• 1GT targets investments in private companies across mobility, power, sustainable food and agriculture, and circular economy themes.

• The strategy is classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation, promoting environmental and social characteristics and integrating sustainability into the investment process.

• The team has recently co-led a $50 million funding round for Everstream Analytics to enhance global supply chain sustainability and reduce emissions for leading brands.

• Jessica Alsford, Chief Sustainability Officer and CEO of the Institute for Sustainable Investing, praises the achievement as a response to the demand for innovative climate change solutions.

• David N. Miller, Head of Morgan Stanley Private Credit and Equity, expresses satisfaction with investor support and highlights the strategy’s ability to address climate issues and accelerate climate impact and earnings growth.

RARE EARTH MAGNETS

NGP and Aventurine (Carnelian) lead $75mm Series B in Noveon Magnetics

• Noveon Magnetics has closed a $75 million Series B funding round led by NGP and Aventurine Partners.

• The funding will be used to expand Noveon’s manufacturing facilities and strengthen its position as a provider of rare earth magnets.

• The magnets are used in various industries including automotive, defense, energy production, medical, and consumer goods.

• James Wallis from NGP will join Noveon’s Board of Directors.

• Noveon CEO Scott Dunn emphasizes the company’s commitment to producing magnets for a low-carbon future and strengthening the domestic supply chain.

• James Wallis praises Noveon’s sustainable manufacturing capabilities and its contribution to industries focused on electricity generation.

• Noveon’s San Marcos facility is operational and expected to produce 2,000 tons of magnets annually by 2024.

• Noveon was recognized as one of Fast Company’s Most Innovative Companies of 2023 for its sustainable rare earth magnet manufacturing technologies.

LOW-CARBON FUELS

Emirates commits $200 million to SAF fund

• Emirates airline has committed $200 million to a research fund focused on reducing the impact of fossil fuels in commercial aviation.

• The airline believes that currently available options are insufficient to achieve net-zero emissions targets.

• The funds will be distributed over three years, and Emirates will seek partnerships with organizations working on fuel and energy technologies.

• The airline will prioritize the use of sustainable aviation fuel (SAF) where feasible while continuing to explore other environmentally responsible practices.

• The production of SAF is expected to meet only 2% of aviation fuel needs by 2025, according to the International Air Transport Association (IATA).

• SAF is produced in limited quantities from sources like cooking oils and animal waste, and it is more expensive than conventional jet fuels.

CARBON REMOVAL

Frontier buyers sign $53 million in carbon removal offtake agreements with Charm Industrial

• Frontier buyers sign $53mm in offtake agreements with Charm Industrial.

• Charm Industrial will remove 112,000 tons of CO₂ between 2024 and 2030 on behalf of Frontier buyers.

• Biomass Carbon Removal and Storage (BiCRS) offers a promising path to permanent carbon removal at scale.

• Frontier Founding Members Stripe, Alphabet, Shopify, Meta, and McKinsey Sustainability, as well as Autodesk, H&M Group, and Workday, have made purchases through Frontier.

• Aledade, Boom Supersonic, Canva, SKIMS, Wise, and Zendesk have purchased via Watershed’s partnership with Frontier.

• Charm Industrial uses pyrolysis to convert waste biomass into bio-oil, which is then injected into underground wells for permanent storage.

• Charm Industrial is a leader in biomass carbon removal and storage (BiCRS).

• Offtake agreements help carbon removal suppliers scale their operations and provide future demand guarantees to investors.

• Frontier’s technical staff and a group of 50 scientific and technical reviewers evaluate candidates for offtake agreements.

• Frontier founders and members, along with additional companies, will make purchases as part of the agreement.

DIRECT AIR CAPTURE

3M and Svante team up on products for Direct Air Capture

• 3M and Svante have entered into a joint development agreement to develop and produce carbon dioxide removal (CDR) products using Direct Air Capture (DAC) technology.

• The partnership aims to find materials science-based solutions to achieve net-zero emissions and combat global warming.

• 3M, known for its expertise in filtration technology, is committed to scaling the production and supply of carbon removal materials to meet global demand.

• 3M Ventures has participated in Svante’s recent fundraising round to support the manufacturing of Svante’s carbon capture and removal technology.

• Svante has developed a process that involves coating solid sorbents onto laminate sheets for industrial point-source capture and direct air capture.

• The technology can be applied to a wide range of industries, including hydrogen, cement, steel, aluminum, pulp & paper, and refineries.

• The joint development agreement focuses on parallel channel structured adsorbent technology for the CDR industry.

• 3M aims to scale up production to meet the needs of Svante’s DAC applications and contribute to combating climate change.

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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.