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. Occasionally, we add memes.
Here’s what we have for you today:
HYDROGEN
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The U.S. Department of Energy (DOE) has released a Notice of Intent to invest up to $1 billion in a demand-side initiative to support Regional Clean Hydrogen Hubs (H2Hubs).
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The H2Hubs program aims to establish a national clean hydrogen network to reduce emissions in energy-intensive sectors like industry, chemical processes, and heavy-duty transportation.
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The initiative will provide market certainty to both producers and end users in the H2Hubs, unlocking private investment.
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The demand-side initiative is crucial to the commercial viability of H2Hubs and will support their growth by ensuring hydrogen producers have revenue certainty and end users have confidence in long-term availability.
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The DOE seeks public input through a Request for Information to refine the program’s design, engage private sector institutions, and explore operating models and governance structures.
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The H2Hubs program is funded by the President’s Bipartisan Infrastructure Law and managed by the DOE’s Office of Clean Energy Demonstrations.
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Six to ten H2Hubs will be selected later this year, with a total federal funding of up to $7 billion.
EMISSIONS REDUCTION
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The Department of Interior has announced $650 million in funding to address orphaned oil and gas wells.
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The funding comes from the Bipartisan Infrastructure Law and is available to 27 states.
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Orphan wells are abandoned wells that pose safety, health, and environmental hazards, including methane leaks.
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Approximately 14 million Americans live near orphaned wells, with communities of color disproportionately affected.
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The funding aims to clean up toxic sites, reduce methane emissions, and protect the environment.
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Kansas has already received $25 million in funding and is eligible for an additional $25 million.
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The bipartisan law includes a total of $4.7 billion for orphan well management.
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The administration previously granted $560 million for plugging orphaned wells in 2022.
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States have until December 31 to apply for the next round of grants, with varying potential amounts.
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The administration plans to offer performance grants under the infrastructure law later in the year.
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The EPA has proposed updates to greenhouse gas emissions reporting requirements for the oil and gas sector.
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The revisions aim to improve the accuracy of reported methane emissions, which are a major contributor to climate change.
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The proposed changes are in line with the Methane Emissions Reduction Program under the Inflation Reduction Act.
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The amendments would address gaps in methane emissions reporting by including new covered sources and capturing abnormal emission events.
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New calculation methodologies and technologies, such as remote sensing, would be used to improve the accuracy of reported emissions data.
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Data would be collected at a more granular level to enhance verification and transparency.
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The proposed revisions would become effective on January 1, 2025, with implementation starting in 2025 reporting year.
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The EPA is seeking public comments on these proposals for 60 days after publication in the Federal Register.
CARBON CAPTURE
Source: Carbfix
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Fluor Corporation and Carbfix have entered into a memorandum of understanding (MOU) to collaborate on carbon capture and storage (CCS) solutions.
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The partnership aims to address carbon dioxide (CO2) emissions in hard-to-abate sectors such as steel, aluminum, and cement.
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Fluor will contribute its Econamine FG Plus carbon capture technology and engineering expertise, while Carbfix will provide its CO2 mineral storage technology that injects CO2 into porous basaltic rock formations, converting it into stable carbonate minerals.
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The collaboration will offer end-to-end CO2 reduction solutions for clients.
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The MOU also allows the companies to explore CO2 removal projects like direct air capture and bioenergy carbon capture and storage.
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Carbfix has successfully applied its CO2 mineralization method in Iceland and plans to expand its operations to achieve large-scale CO2 storage.
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The collaboration aims to contribute to the scaling up of carbon capture and storage to help achieve climate targets.
LOW-CARBON FUELS
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Dutch fertilizer company OCI is constructing a $1 billion plant in Texas to produce low-emission ammonia, despite lacking sales contracts.
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The plant aims to capture and sequester 95% of the emissions produced during ammonia production, making it the world’s first commercial facility with such capabilities.
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Producing low-emission “blue ammonia” costs more than the conventional method, but U.S. subsidies cover the difference.
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The success of OCI’s venture depends on Asian utilities paying premium prices for blue ammonia as fuel for coal-burning power plants and ships.
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The $430 billion U.S. Inflation Reduction Act supports the project, but further government incentives are needed from Japan and South Korea for blue ammonia economics to be viable.
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If utility premiums do not materialize, OCI plans to use the blue ammonia for fertilizer production or sell it to industrial buyers in the Netherlands or the United States.
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Global ammonia demand is expected to increase significantly, reaching 470 million tons by 2050.
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Other companies like CF Industries, Yara, Nutrien, JERA, Mitsui, and Mitsubishi are exploring or planning low-emission ammonia projects.
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The technical challenges include developing technology for co-generating electricity with coal using ammonia and addressing safety concerns and higher costs associated with ammonia-fueled ships.
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The profitability and global availability of ammonia as a fuel for ocean-going ships are uncertain for the foreseeable future.
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bp invests $10 million in WasteFuel to develop a global network of plants converting waste into bio-methanol.
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WasteFuel plans to build its first waste-to-bio-methanol plant in the UAE.
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bp and WasteFuel have a memorandum of understanding for bp to purchase the produced bio-methanol and collaborate on improving production yields and economics.
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Bio-methanol has potential for decarbonizing hard-to-abate sectors like shipping.
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WasteFuel aims to develop multiple bio-methanol plants globally in collaboration with local partners.
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The investment supports bp’s commitment to bioenergy as part of its transition to an integrated energy company and net-zero ambition.
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bp plans to produce around 100,000 barrels per day of biofuels by 2030.
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WasteFuel’s production of bio-methanol will contribute to decarbonization efforts in the shipping industry.
BATTERY STORAGE
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Hithium, a China-based lithium-ion battery manufacturer focused on energy storage, has raised $621 million in a Series C funding round.
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The funds will be used for capacity expansion, equipment purchases, and research and development.
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The company produces cells for the battery energy storage system (BESS) sector, with a focus on the energy storage market rather than electric vehicles (EVs).
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The funding round was led by China Life Insurance’s private equity investment arm and Beijing Financial Street Capital, with participation from other investors such as BOC Financial Asset Investment, Goldstone Investment, and CS Capital.
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Existing shareholders, including Hainan Fenghe Private Equity Management, Matrix, ABC International, and ZBGT, also contributed to the funding.
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Hithium plans to expand its manufacturing capacity from 70GWh to 135GWh by 2025 and has a strong presence in the Chinese BESS market.
CLIP OF THE WEEK
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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.