🧊 Brace Yourself for Winter: IEA Head Warns of Possible Energy Shortage

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:

Three US LNG projects making headway
Japanese ITOCHU strikes renewable deals with Amazon and Facebook
Verde Clean Fuels goes public and strikes JV with Diamondback
EnBW and Equinor partner on developing offshore wind in Germany
IEA head Fatih Birol warns of energy shortage for this coming winter
Chart of the week

LNG

Three LNG projects making headway

U.S. LNG producers poised to leapfrog rivals with three new projects

At least three proposed U.S. liquefied natural gas (LNG) export plants have likely found enough customers to receive financial approvals this year, according to Reuters calculations, developments that would make the country the world’s largest LNG exporter for years to come.

https://www.reuters.com/business/energy/us-lng-producers-poised-leapfrog-rivals-with-three-new-projects-2023-02-16/

At least three proposed US liquefied natural gas (LNG) export plants have secured enough customers to receive financial approval this year, according to Reuters calculations.
The US is set to become the largest LNG exporter for years to come with the pace of approvals for LNG plants having accelerated since Europe shifted away from Russian gas.
Around a dozen developers are hoping to make final investment decisions (FID) this year.
Projects best positioned to move ahead include Sempra Energy’s Port Arthur plant, Energy Transfer LP’s Lake Charles, and NextDecade Corp’s Rio Grande in Texas.
The United States should export around 11.8 billion cubic feet per day (bcfd) of LNG this year and 12.6 bcfd next.
The next US LNG plants expected to open are the QatarEnergy-Exxon joint venture at Golden Pass in Texas in late 2024, the first phase of Venture Global LNG’s Plaquemines in Louisiana in 2024-2026, and Cheniere Energy Inc’s expansion at its Corpus Christi plant in Texas in 2025.
It takes approximately four years to build these giant plants, so their LNG is not likely to reach markets before 2027.

RENEWABLES

Japanese ITOCHU strikes deals with big tech: Facebook and Amazon

ITOCHU Announces Investment in a New Wind Power Plant in US State of Texas | Press Releases | ITOCHU Corporation

Provides information about [ITOCHU Announces Investment in a New Wind Power Plant in US State of Texas]. ITOCHU, one of the leading sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, foods, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

https://www.itochu.co.jp/en/news/press/2023/230215_2.html

ITOCHU Announces Signing of Long-Term Power Purchase Agreement with Amazon | Press Releases | ITOCHU Corporation

Provides information about [ITOCHU Announces Signing of Long-Term Power Purchase Agreement with Amazon]. ITOCHU, one of the leading sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, foods, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas.

https://www.itochu.co.jp/en/news/press/2023/230215.html

ITOCHU has announced an agreement with Fengate Asset Management to invest in the Prairie Switch Wind Project in Texas, USA.
The wind power plant will have a generating capacity of 160 MW and comprise 48 wind turbines with a generating capacity of 3.4 MW each.
A corporate power purchase agreement has been executed with Meta Platforms for the long-term sale of power.
The Project is scheduled to be commercially operational by the end of 2023.
ITOCHU has previously invested in six wind power projects through subsidiary, Tyr, and is currently developing renewable energy projects with a combined generating capacity of approximately 2 GW.
The company aims to expand its renewable energy business in North America

ITOCHU will provide off-site corporate PPA services to Amazon in Japan, allowing the long-term provision of electricity generated from renewable energy with additionality.
Clean Energy Connect (CEC), an ITOCHU portfolio company, will develop 700 non-FIT low-pressure solar power plants to supply 70 MW DC and 38 MW AC power to Amazon in Japan by 2024.
Amazon aims to procure all energy used in its business operations from renewable energy sources by 2025.
ITOCHU has been supporting the development and financing of solar power plants through CEC, with the goal of installing approximately 5,000 solar power plants with additionality in Japan by FY2025 and a cumulative total output of 500MW.

While Itochu partners with FAANG, the oil and gas FANG strikes…

RENEWABLE FUELS

Verde Clean Fuels goes public and announces JV with Diamondback in the Permian

Verde Clean Fuels has completed its previously announced business combination with CENAQ Energy Corp. and Bluescape Clean Fuels Intermediate Holdings, and will now trade on NASDAQ under the symbol VGAS.
Verde’s proprietary syngas-to-gasoline technology produces renewable gasoline using waste feedstocks that are otherwise landfilled or flared or economically disadvantaged natural gas, resulting in over a 60% reduction in carbon intensity versus traditional hydrocarbon-based gasoline.
Verde is currently developing its 1st commercial facility in Maricopa, Arizona, expected to produce 7 million gallons / year of renewable gasoline during its first phase.
Diamondback Energy has made a $20m equity investment in Verde and has entered into an equity participation right agreement to participate and jointly develop Permian Basin facilities utilizing Verde’s STG+ technology for the production of gasoline.
In following with the classic Diamondback snake-themed affiliates, their venture arm’s name was unveiled as Cottonmouth Ventures

RENEWABLES

Equinor and EnBW partner on German offshore wind

EnBW and Equinor to jointly pursue German offshore wind opportunities in 2023

EnBW and Equinor today announce their interest in developing offshore wind together .

https://www.equinor.com/news/20230217-enbw-equinor-jointly-pursue-german-offshore-wind-opportunities

EnBW and Equinor express interest in jointly developing offshore wind projects
EnBW plans to invest around €4 billion in wind and solar energy by 2025, with 50% of its generation portfolio consisting of renewables
Equinor aims to take leading positions in energy transition and increase its renewables capacity to 12-16 GW by 2030, with a large share in the North and Baltic Sea
Both companies have offshore wind farms in operation and under development in the North Sea and Baltic region.

ENERGY SECURITY

IEA head warns of an energy shortage this winter

“Even though we have enough LNG import terminals, there may not be enough gas to import and therefore it will not be easy this coming winter for Europe…We need all energy sources to help us for the next winter”

Fatih Birol (Head of IEA)

INDUSTRIAL DECARBONIZATION

Chart of the week

Nat Bullard

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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.