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:
EV BATTERY
Ford’s joint venture with SK On is receiving a record $9.2 billion loan from the Department of Energy to finance battery plants in Tennessee and Kentucky.
The loan commitment is the largest single investment in the Department of Energy’s Loan Programs Office’s history.
The joint venture, named BlueOval SK, involves a total investment of $11.4 billion.
Ford is investing $7 billion in the BlueOval projects, while SK is investing $4.4 billion.
Ford aims to scale up EV production to an annual rate of two million vehicles globally by the end of 2026.
The Loan Programs Office previously reached a $2.5 billion loan deal with a joint venture between General Motors and LG Energy Solution for battery production.
The Loan Programs Office has committed more than $3 billion to companies in the battery materials and recycling industry, including an $850 million commitment to battery maker Kore Power.
NATURAL GAS AND LNG
Venture Global LNG has signed a 20-year contract with Germany’s Securing Energy for Europe GmbH (SEFE) to provide 2.25 million tonnes per annum (MTPA) of LNG.
This deal makes Venture Global the largest LNG supplier to Germany, with a combined LNG supply of 4.25 MTPA.
The contract is for supplies from Venture Global’s LNG Calcasieu Pass 2 (CP2) project, with approximately half of CP2’s 20 MTPA capacity already sold.
Construction of the CP2 project in Louisiana is expected to commence later this year.
The deal with SEFE brings the total committed capacity for CP2 to 9.25 MTPA out of the 20 MTPA nameplate capacity.
GEOTHERMAL
Chevron New Energies Japan and Mitsui Oil Exploration Co (MOECO) have signed definitive agreements for pilot testing of advanced geothermal technology.
The pilot tests will focus on advanced closed loop (ACL) technology, which involves sub surface heat exchange through circulating a working fluid to generate electricity using sub surface geothermal heat.
ACL technology does not require direct extraction of hot water or steam from underground reservoirs like conventional geothermal.
The pilot test will take place in the Niseko region of Hokkaido, Japan, with the aim of derisking, scaling, and commercializing geothermal power generation based on ACL technology.
The learnings from this pilot will be used to consider commercial applications both in Japan and globally.
Chevron and MOECO believe that geothermal energy can be a significant enabler in Japan’s lower carbon and net-zero journey.
The collaboration between Chevron and MOECO builds on their longstanding relationship in energy development in the APAC region.
MOECO aims to contribute to the stable supply of energy and sustainable development through renewable energy projects like geothermal power generation.
Baker Hughes has made a second strategic investment with Baseload Capital, a specialized investment entity focused on geothermal heat and power.
The investment aims to fund high-potential opportunities for geothermal development and operation and accelerate the commercialization of next-generation geothermal technologies.
The collaboration strengthens Baker Hughes’ position in the global geothermal market, allowing for technology provision and collaboration in renewable energy.
The partnership between Baker Hughes and Baseload Capital demonstrates their commitment to innovation and growth in the evolving energy transition landscape.
The companies aim to position geothermal as a baseload (get it), clean, and renewable energy source in globally through high-impact projects.
They also plan to implement new commercial and development models to drive rapid market growth and increase geothermal capacity.
Baker Hughes has extensive experience in geothermal projects across more than 30 countries and is actively investing in hydrogen and CCUS.
FUNDRAISING
Nabors Industries Ltd. has announced the filing of a SPAC registration statement.
Nabors Energy Transition Corp. II (NETD), a newly formed special purpose acquisition company and affiliate of Nabors, filed the registration statement with the SEC.
NETD plans to conduct an initial public offering (IPO) and list its units on the Nasdaq Global Market under the symbol “NETDU.”
Each unit will include one Class A ordinary share of NETD and half of one redeemable warrant to purchase one Class A ordinary share.
NETD aims to facilitate the global energy sector’s transition from fossil-based systems to renewable energy sources.
NETD will leverage Nabors’ energy transition experience, mobile assets, advanced technologies, and industry relationships to identify and execute investment opportunities.
NETD plans to raise $300 million through the sale of units comprising ordinary shares and warrants.
ENERGY TRANSITION
The dominance of fossil fuels persisted in 2022, accounting for 82% of global energy supply, despite a record increase in renewables capacity of 266 gigawatts.
Global energy demand increased by 1%, with consumption remaining 3% above pre-coronavirus levels in 2019, except in Europe.
Renewables (excluding hydropower) made up 7.5% of global energy consumption, a 1% increase from the previous year.
Wind and solar power accounted for 12% of global electricity generation, surpassing nuclear, which declined by 4.4%.
Coal remained dominant in power generation, representing around 35.4%.
Oil consumption rose by 2.9 million barrels per day (bpd) to 97.3 million bpd, with growth slowing compared to the previous year. Most oil demand growth came from jet fuel and diesel-related products.
Global energy-related emissions reached a new high of 39.3 billion tonnes of CO2 equivalent, an increase of 0.8%.
Gas demand fell by 3% but still constituted 24% of primary energy consumption.
LNG production increased by 5% to 542 billion cubic meters, with Europe experiencing significant LNG demand growth.
Coal prices rose by 145% in Europe and 45% in Japan, while coal consumption increased by 0.6%.
Lithium carbonate prices jumped by 335% and cobalt prices increased by 24%, while lithium and cobalt production rose by 21%.
EMISSIONS REDUCTION
Piñon Midstream expands Dark Horse Treating Facility in New Mexico.
Second acid gas injection (“AGI”) well in service, making it the largest active AGI system in the state.
Third amine treating unit (“Train III”) on track for start-up in January 2024, increasing sour gas treating capacity by 50%.
NACE compliant compression capabilities expanded to 200 MMcf/d.
Engineering underway for fourth amine treating unit (“Train IV”) targeting Q4 2024 in-service.
Dark Horse Facility reduces environmental impact through carbon capture and sequestration.
Over 100,000 metric tons of CO2 and H2S sequestered to date.
Expansion includes AGI wells, amine treating units, compression capacity, and redelivery pipelines.
TWEET OF THE WEEK
What’d ya think of today’s email? |
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.