Summit scores Valero

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Summit scores Valero’s CO2 for carbon capture pipeline project

• Summit Carbon Solutions has enlisted Valero, a major ethanol producer, as a shipper for its carbon capture project, a significant move in advancing low-carbon fuel production.

• Eight ethanol plants owned by Valero located across Iowa, Nebraska, Minnesota, and South Dakota will be integrated into Summit’s project.

• This collaboration is projected to capture 3.1 million metric tons of CO2 annually and will contribute an additional 1.1 billion gallons of ethanol production per year.

• The initiative is aimed at reducing the carbon intensity of ethanol production and expanding access to low-carbon fuel markets.

• With Valero’s participation, Summit’s project now encompasses 57 ethanol production facilities, with plans to capture over 16 million metric tons of CO2 annually.

• After the recent POET announcement, Summit locks up the top two ethanol producers in the country.

No surprise – Summit continues to clean house.

Weyerhaeuser and Lapis explore CO2 sequestration in AR, LA and MS

• Weyerhaeuser and Lapis Energy have signed an exclusive exploration agreement for carbon dioxide sequestration in Arkansas, Louisiana, and Mississippi.

• The agreement covers 187,500 acres across the three states, including five potential sequestration sites.

• Lapis will assess the sequestration potential of each site over the next two years and upon successful assessment, Lapis has the option to proceed with full-scale development agreements.

• The focus is on permitting, building, and operating permanent CO2 sequestration sites for large-scale industrial sources.

Exxon and Shell form S-Hub consortium to partner with Singapore on CCS

• ExxonMobil and Shell have formed the S-Hub consortium to collaborate with the Government of Singapore on a carbon capture and storage (CCS) project.

• The project aims to evaluate and develop a cross-border CCS initiative to reduce carbon dioxide (CO2) emissions in Singapore.

• The S-Hub consortium, led by ExxonMobil Asia Pacific Pte. Ltd. and Shell Singapore Pte. Ltd., was chosen to develop a CCS project capable of capturing and storing at least 2.5 million tons of CO2 annually by 2030.

• The project is subject to definitive agreements between the parties.

• The project plans to capture and store CO2 emissions deep underground or under the seabed after rigorous analysis to ensure site suitability.

   

Chevron to develop 5-MW solar to hydrogen production project in California

• Chevron New Energies, a division of Chevron U.S.A. Inc., is developing a 5-megawatt hydrogen production project in California’s Central Valley.

• The project aims to create lower carbon energy by utilizing solar power, land, and non-potable produced water from Chevron’s existing assets at the Lost Hills Oil Field in Kern County.

• Electrolytic hydrogen will be produced through electrolysis, splitting water into hydrogen and oxygen.

• Chevron’s strategy focuses on delivering large-scale hydrogen solutions to support a lower carbon world, with the facility designed to produce two tons of low carbon intensity (LCI) hydrogen per day.

• The project’s development is expected to span multiple years, contingent upon legislative and regulatory energy policies, engineering design, permitting, and material acquisition.

Trafigura acquires Greenergy from Brookfield

• Trafigura Group Pte Ltd has agreed to acquire Greenergy, a UK-based road fuels supplier and major biodiesel producer, from Brookfield Asset Management and Brookfield Business Partners for an undisclosed sum.

• Greenergy, established in 1992, has grown into one of Europe’s largest biofuels suppliers, with manufacturing facilities in the UK and the Netherlands.

• The acquisition aims to bolster Trafigura’s fuel supply operations in Europe and expand its biofuels business.

• Greenergy’s European business will continue to be led by its current management team post-acquisition.

• The collaboration between Trafigura and Greenergy is expected to enhance existing operations and explore new market opportunities.

BlackRock and Morgan Stanley funds to acquire TC Energy’s Portland Natural Gas Transmission System for $1.14 billion

• BlackRock Inc. and Morgan Stanley investment funds are set to acquire TC Energy Corp.’s Portland Natural Gas Transmission System in a $1.14 billion deal.

• The acquisition includes the assumption of $250 million in debt and will provide TC Energy with pretax cash equity proceeds of about C$740 million ($545 million).

• BlackRock aims to expand its presence in the infrastructure sector, following recent acquisitions such as Global Infrastructure Partners for $12.5 billion and a $500 million investment in Canadian Solar Inc.

• The sale aligns with TC Energy’s strategy to divest assets worth C$3 billion this year to reduce its debt burden.

• The Portland Natural Gas Transmission System encompasses 295 miles (475 kilometers) of natural gas pipelines in northern New England and Atlantic Canada.

Three Philippine energy firms partner on $3.3 billion integrated LNG facility

• Three top Philippine energy firms join forces to establish a large-scale integrated liquefied natural gas (LNG) facility, a first-time collaboration.

• Aboitiz Power and a subsidiary of Manila Electric (Meralco) agree to invest in the gas-fired power plants of a unit of San Miguel Corp.: the 1,278 MW Ilijan power plant and a new 1,320 MW facility expected to start operating by the end of the year.

• The partnership also involves acquiring the import and regasification terminal owned by Linseed Field Corp. to store and process LNG fuel for the two power plants.

• The Philippines began importing LNG last year due to the impending depletion of its only gas field by 2027, with the Malampaya field currently supplying a significant portion of the country’s power requirements.

• Infraclear raises $5.8 million seed (led by 8090 Industries) to Standardize Data on Infrastructure Projects

• Global energy-related CO2 emissions hit record high in 2023 – IEA

• Braya Renewable Fuels Commences Commercial Operations

• Latest Sunya Stories podcast with Steve Trauber

• Sunya Stories podcast with Chesapeake’s Jim Grant

• Last Thursday’s edition – Geothermal goldrush

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.