$12 billion for carbon removal

PLUS: Woodside-Japan CCS, Galvanize raises $1bn fund, Conoco and EQT's LNG moves

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:

  • Woodside Energy has signed a non-binding Memorandum of Understanding (MOU) with three Japanese companies (Sumitomo Corporation, Toho Gas Co., Ltd., and Kawasaki Kisen Kaisha, Ltd.) for carbon capture and storage (CCS) studies.

  • The MOU aims to explore the potential CCS value chain between Japan and Australia.

  • Sumitomo, Toho Gas, and Kawasaki will study the capture, storage, and transportation of CO2 emissions in the Chubu region of Japan.

  • Woodside will focus on studying the injection and storage of CO2 at Australian storage sites.

  • Woodside Executive Vice President Shaun Gregory highlighted the demand for large-scale and near-term decarbonization solutions.

  • CCS is seen as an opportunity to coordinate and collaborate between jurisdictions, governments, and industries.

  • CCS has the potential to assist countries like Japan in their emissions reduction efforts by providing a pathway for decarbonization.

  • Petra Nova, a carbon capture and storage (CCS) retrofit project, has resumed operations.

  • It aims to remove over 90% of CO2 from a 240-MW flue gas slipstream at the W.A. Parish generating station in Texas.

  • The $1 billion project was developed by NRG Energy and JX Nippon using the KM CDR Process.

  • Captured CO2 is transported to an oilfield for enhanced oil recovery.

  • During a three-year demonstration period, it captured 92.4% of CO2 from the flue gas.

  • Economic conditions led to a shutdown in May 2020, and NRG Energy sold its share to JX Nippon in September 2022.

  • JX Nippon plans to restart operations in June 2023.

  • The facility can capture approximately 1.4 million metric tons of greenhouse gases annually.

  • Petra Nova is one of only two commercial CCUS facilities in the power sector.

  • The CCS momentum has increased globally, with over 30 power generation CCS projects in various stages of development, spurred by incentives in the U.S., Europe, and Asia.

  • ConocoPhillips is diversifying its global liquefied natural gas (LNG) portfolio with a new agreement.

  • The company has signed a commercial agreement to secure additional regasification capacity in Europe at the Gate LNG terminal in the Netherlands.

  • This complements ConocoPhillips' existing LNG resource positions in Qatar and Australia, its involvement in Sempra's Port Arthur LNG Phase 1 project, its regasification agreement at the German LNG Terminal, and its offtake agreements at Mexico Pacific's Saguaro LNG export facility.

  • The expansion at the Gate LNG terminal aligns with ConocoPhillips' goal of providing reliable, lower-carbon energy to Europe through competitive LNG supply.

  • The 15-year throughput agreement covers approximately 1.5 million tonnes per annum (MTPA), or 2 billion cubic meters (BCM) equivalent, starting in September 2031.

  • This agreement secures access to the European market for ConocoPhillips' growing global LNG portfolio and contributes to a diversified energy portfolio.

  • EQT Corporation has entered into a Heads of Agreement (HOA) with Commonwealth LNG.

  • The agreement pertains to liquefaction services at Commonwealth LNG's facility in Cameron, Louisiana.

  • EQT plans to produce 1 million tons per annum of LNG under a 15-year tolling agreement.

  • Final terms are subject to negotiation for a definitive agreement.

  • Commonwealth expects to make a final investment decision on the project in Q1 2024, with initial cargo deliveries set for 2027.

  • EQT's President and CEO, Toby Z. Rice, highlights the importance of this agreement in their LNG strategy, aiming to diversify production for international markets while managing risks.

  • EQT's tolling capacity allows them to sell gas directly to global end users and pursue long-term purchase agreements with international buyers.

  • EQT emphasizes its scale, inventory depth, and low emissions natural gas as factors that position them to enhance energy security and reduce emissions through coal displacement, both domestically and abroad.

  • Galvanize Climate Solutions closed its Innovation + Expansion Fund at over $1 billion.

  • The fund attracted commitments from various institutional investors, including endowments, foundations, and family offices.

  • The fund focuses on early- to growth-stage climate companies driving decarbonization and offers capital and interdisciplinary resources.

  • Galvanize was founded by experienced investors dedicated to scaling climate companies.

  • The firm has an expert team in climate science, technology, regulatory affairs, market development, impact measurement, and talent acquisition.

  • The fund aims to identify, evaluate, and support transformative climate companies.

  • Tom Steyer, Co-Executive Chair of Galvanize, emphasized the need for more than capital to address climate challenges.

  • The fund is led by Veery Maxwell, Saloni Multani, and Cliff Ryan, experts in climate with experience at global firms.

  • The global economy is undergoing a transformation driven by various factors, including regulatory progress and technological advancements.

  • The fund takes an interdisciplinary approach, offering resources like customer introductions, talent recruitment, and regulatory analysis to its portfolio companies.

  • Galvanize has already invested in 11 companies across different sectors, including electricity, transport, industry, buildings, agriculture, and carbon removal.

  • UBQ Materials, a climate tech developer of advanced materials from waste, has secured $70 million in funding led by Eden Global Partners.

  • Other participants in the financing round include TPG Rise Climate, TPG's Rise Fund, Battery Ventures, and M&G's Catalyst strategy.

  • The funds will support the company's global expansion and R&D efforts for additional product lines.

  • UBQ Materials converts household waste into a sustainable thermoplastic material called UBQ™, which is recyclable and climate-positive.

  • The investment will enable the expansion of facilities in Europe and North America and the opening of an industrial-scale facility in the Netherlands with an 80,000-ton annual production capacity.

  • UBQ™ has been integrated into products by leading brands like Mercedes-Benz, PepsiCo, and McDonald's.

  • UBQ Materials aims to address climate change and waste management issues, replacing oil-based plastics and diverting waste from landfills and incinerators.

  • The company is investing in research and development to create new product lines for various industries, including construction, consumer durables, automotive, and logistics.

  • The Carbon Dioxide Removal Research and Development Act of 2023, introduced by Senator Brian Schatz and Rep. Paul Tonko

  • Aims to support increased investment in research, development, and demonstration is necessary to develop a diverse portfolio of CDR solutions, reducing costs and risks.

    • Providing over $12 billion in funding for cross-agency CDR research and development over ten years.

    • Allocating $2 billion for competitive carbon removal demonstration projects, with $500 million for smaller-scale projects.

    • Distributing funding to nine government agencies to explore various CDR pathways, including ocean-based carbon removal, governance frameworks, and carbon mineralizing cement for transportation infrastructure.

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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.