2022 DEALS THAT CAUGHT OUR EYE 👀

Good Afternoon. This is the Sunya Scoop. The newsletter that takes energy transition news and turns it into an easy-to-read email for you.

Good Afternoon. This is the Sunya Scoop. The newsletter that takes energy transition news and turns it into an easy-to-read email for you.

Welcome to the launch!

Here's what we got for you today:

  • Deals that caught our eye in 2022

Let's get right into it.

DEALS THAT CAUGHT OUR EYE IN 2022

  • Absolutely massive deal that had a lot of people head scratching

  • Archaea (and the Rice family) built a pure-play landfill gas giant. They leased up "the core" and built something that could not be duplicated. They built the Chesapeake Energy of landfill gas.

  • With BP's move to energy transition investments and their massive downstream trading with Clean Energy, this was a natural fit.

  • In terms of valuation, it will take years to find out how this plays out but one thing is for certain - BP is now poised to dominate the US landfill RNG business

  • Another great opportunity to decarbonize natural gas

  • Energy private equity stepping in, with an anchor E&P like Chesapeake Energy, to create a natural gas processing plant that offsets its footprint via CCS

  • Regardless if the monetization ends up being 45Q or just an avenue for Net Zero credit, imagine this is will be the first of many Haynesville CCS projects

  • North Dakota, Harold Hamm and a whole lot of CO2

  • One of the most straightforward plans - sequester CO2 in state with primacy and quality storage reservoir and collect low-cost feedstock

  • Can see this setting a pretty interesting precedent with other projects underway:

  • Step 1 - secure a string of pearls with high-purity emitters like ethanol and ammonia plants

  • Step 2- partner with a big E&P who provides a checkbook and expertise to sequester

  • Majors getting in early

  • With reports earlier in the year of Exxon buying up Denbury for $5bn to build their carbon capture division, it seems Chevron took another avenue: get in early

  • Talos and Carbonvert were collectively early movers in Gulf Coast CCS

  • Didn't take long before bringing in a strategic investment from Chevron which could pan out much more interesting than alternative capital

  • Chevron JVed in the RNG space with Mercuria and Beyond6 in late 2021 and announced an intention to acquire the entire business, a year later

  • Yes, two Rice deals on the same list. A monumental 2022 for them.

  • While it's still early days, the idea of making natural gas power plants carbon-free via carbon sequestration could be a game-changer for both the natural gas industry and provides a practical pathway to industrial decarbonization

  • Combining the IRA incentives, these power plants could be almost completely subsidized by 45Q credits

  • Time will tell but Danny Rice at the helm combined with a capital stack of strategic investors including Oxy, Baker Hughes and Constellation Energy give this the best chance of moon-shoot

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.