1 point 4 billion

PLUS: Summit's rehearing, Total/BlackRock's RNG play, ammonia for ships, DOE's $362mm loan, Fervo/Turboden, Air Products hydrogen refueling network

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:

  • Summit, in its second attempt at obtaining a permit for its carbon pipeline, highlighted the economic benefits of the project, including paying over $14 million annually for electricity and potential enhancements to the price of corn for farmers in North Dakota.

  • The Public Service Commission (PSC) hearings focused on demonstrating minimal adverse effects on the environment and people of North Dakota, with Summit addressing deficiencies cited in the previous permit denial, such as route changes around Bismarck.

  • Dan Pickering of Pickering Energy Partners emphasized the economic potential for North Dakota, including support for corn prices and enhanced oil recovery through carbon infrastructure.

  • Concerns from landowners and residents near Baldwin north of Bismarck included potential rises in electric rates, safety issues related to leaks or ruptures, and references to a CO2 pipeline rupture in Mississippi in 2022.

  • Summit considered a southern route but faced constraints related to environmental, cultural, and Tribal lands, ultimately opting for a reroute north of Bismarck that added 55 new miles and is longer.

  • The pipeline project has acquired a significant portion of its route through voluntary easements, with potential use of eminent domain remaining a point of protest for pipeline opponents.

  • State Rep. Mike Brandenburg highlighted the importance of the pipeline for North Dakota agriculture despite safety concerns raised by some residents.

  • The PSC hearings, initially planned for the entire week, are expected to conclude in one day, with additional hearings scheduled for May and June in other locations.

  • TotalEnergies and Vanguard Renewables, a BlackRock portfolio company, have formed a joint venture to develop Farm Powered® renewable natural gas (RNG) projects in the United States.

  • The joint venture aims to advance 10 RNG projects into construction within the next year, with an annual RNG capacity of 2.5 Bcf (0.8 TWh).

  • Initial projects in Wisconsin and Virginia, each with a unit capacity of nearly 0.25 Bcf (75 GWh) per year, are already under construction.

  • Future plans include considering investment in about 60 projects across the country for a total capacity of 15 Bcf (5TWh) per year.

  • TotalEnergies aims to produce 10 TWh of renewable natural gas by 2030, aligning with its objective to support the clean energy transition.

  • Vanguard Renewables, headquartered near Boston, currently operates 17 organics-to-RNG facilities with an annual capacity exceeding 1.5 Bcf (440 GWh).

  • The partnership leverages Vanguard Renewables' RNG expertise in the US market and TotalEnergies' industrial experience and global partnerships.

  • The joint venture will market RNG through long-term purchase agreements with buyers committed to decarbonizing industrial processes, transforming food waste, and reducing carbon emissions for major US brands.

  • Vanguard Renewables' network includes leading food industry brands, and the Farm Powered Strategic Alliance facilitates organic waste recycling and renewable energy purchase opportunities for Alliance members.

  • Hanwha Ocean, Amogy, and Hanwha Aerospace have formed a partnership to decarbonize the maritime sector using ammonia as a zero-emission fuel.

  • Hanwha Ocean has signed a contract to purchase Amogy's ammonia-to-electrical power system, including Hanwha Aerospace's hydrogen fuel cell system.

  • The collaboration aims to deploy the technology for ammonia-powered vessels and drive industry-wide transformation in maritime sustainability.

  • Turboden and Fervo Energy have partnered to innovate geothermal energy, aiming to revolutionize carbon-free energy production.

  • Fervo Energy's Cape Station project in Utah, with an anticipated 400 MW capacity, represents a significant step in geothermal energy production.

  • Turboden will provide ORC technology for the initial 90 MW phase of Cape Station, involving three generators with six ORC turbines for optimal energy conversion.

  • The success of Cape Station will validate enhanced geothermal systems (EGS) technology and pave the way for future geothermal power projects in the United States.

  • Air Products plans to build a network of commercial-scale multi-modal hydrogen refueling stations connecting Edmonton and Calgary, Alberta, Canada, supporting the clean energy transition.

  • The initiative aligns with Canada's climate and energy goals and the 5,000 Hydrogen Vehicle Challenge.

  • The stations will cater to heavy-duty vehicles and light-duty hydrogen fuel cell cars along the Queen Elizabeth II Highway, enabling a fueling experience similar to gasoline or diesel.

  • Each station can fuel up to 200 heavy-duty trucks or 2,000 cars per day, contributing to Western Canada's goal of having 5,000 hydrogen or dual-fuel vehicles on the road in five years.

  • The first station in Edmonton, near Air Products' net-zero hydrogen energy complex, is scheduled to be operational in 2025, supported by funding from Natural Resources Canada’s Zero Emission Vehicle Infrastructure Program.

  • Decarbonization Partners, a joint venture between BlackRock and Temasek, has closed its inaugural late-stage venture capital and growth private equity investment fund, The Decarbonization Partners Fund I, at US$1.40 billion, exceeding its target of US$1 billion.

  • The Fund attracted over 30 institutional investors from 18 countries, including pension funds, sovereign wealth funds, insurance companies, corporates, and family offices across North America, Europe, and Asia Pacific.

  • Investors in the Fund include Allstate, BBVA, KIRKBI, Mizuho Bank Ltd., MUFG Bank Ltd., TotalEnergies, and several Singaporean institutional investors, reflecting a diverse and global investor base focused on climate investing.

  • The success of the fundraise demonstrates confidence in Decarbonization Partners' ability to support decarbonization and the transition to a net-zero economy through investments in climate technology companies.

  • Decarbonization Partners has already invested in seven companies focusing on sustainable materials, clean hydrogen, carbon management services, battery recycling, EV fleet management, and industrial thermal energy storage.

  • The Administration announced a $362 million loan to CelLink Corporation (CelLink) to support domestic manufacturing of key electric vehicle (EV) supply chain components.

  • The loan, provided by the U.S. Department of Energy (DOE) through its Loan Programs Office (LPO), will finance the construction of a facility in Georgetown, Texas, to produce lighter and more efficient flexible circuit wiring harnesses for EVs.

  • The facility is expected to produce enough wiring harnesses to support the manufacture of approximately 2.7 million EVs per year and create 165 construction jobs and over 1,200 permanent jobs.

  • CelLink's domestically produced flex harnesses are lighter, smaller, quicker to produce, and expected to be less expensive than conventional wiring harnesses, addressing current challenges in wire harness production.

  • CelLink's technology has applications beyond EVs, including aviation, aerospace, consumer electronics, and appliances, originally developed for use in solar panels.

  • The loan is part of DOE's Advanced Technology Vehicles Manufacturing (ATVM) program, aiming to achieve the administration's goal that half of all new vehicles sold in 2030 are zero-emissions vehicles.

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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.

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