7 point 1 bil

PLUS: BlackRock's 1.2 bn climate fund, floating LNG, Cornish Lithium, Talos CCS, Chevron-Cummins low-carbon fuels, Synthica RNG

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:

  • Talos is exploring a capital raise to expand its TLCS (Talos Low Carbon Solutions) portfolio development and accelerate growth.

  • The Bayou Bend partnership plans to drill an offshore stratigraphic well operated by Talos in the second half of 2023.

  • A Chevron-operated onshore stratigraphic well is expected to be drilled by the partnership in the first half of 2024.

  • TLCS has submitted its first EPA Class VI permit for the Harvest Bend CCS project (formerly River Bend CCS) in August 2023, where TLCS holds a 60% interest.

  • TLCS intends to submit at least one more EPA Class VI permit application for its portfolio by the end of the year.

  • New Fortress Energy (NFE) plans to commence operations at the first of three floating LNG plants in Altamira, Mexico, in September.

  • The Altamira hub, a $1.3 billion project, is a collaboration between New Fortress Energy and Mexico's state-owned power utility CFE.

  • The facility will convert U.S. and Mexican natural gas into liquefied natural gas (LNG) for export.

  • Two more floating LNG plants in Altamira are under construction, set to start operations in Q1 2025.

  • The Altamira plants will be supplied via marine pipelines from Texas and Pemex's system.

  • Mexico's President, Andres Manuel Lopez Obrador, believes the project will ensure ample gas supply in Mexico and facilitate exports.

  • A total of nine onshore and floating LNG facilities are planned in Mexico, with some of the LNG to be exported to Germany.

  • New Fortress is selling its La Paz power plant in Mexico to CFE for around $180 million, to be finalized in Q1 2024.

  • New Fortress subsidiary is managing Puerto Rico's power generation system and expanding presence in the Caribbean.

  • LNG terminals in Brazil (Barcarena and Santa Catarina) are set to start operations by early 2024.

  • New Fortress expects increased commercial activity and supply contracts in the coming months.

  • Synthica Energy receives equity investment from Goldman Sachs Asset Management's Infrastructure Business.

  • The investment will support scaling operations and developing anaerobic digestion facilities for renewable natural gas (RNG).

  • Synthica aims to convert pre-consumer organic waste into RNG.

  • The funding will facilitate facility development across multiple U.S. states, including Ohio, Texas, Georgia, Kentucky, and Louisiana, with future plans for more states.

  • The partnership seeks to reduce carbon and methane emissions by diverting waste from landfills and converting it into valuable RNG.

  • Synthica's focus on pre-consumer organic waste ensures a consistent and stable supply of input material.

  • The company's RNG production will be sold through contracts to gas utilities, energy companies, and industrial purchasers.

  • Synthica's first facility in Ohio aims to divert significant organic waste from landfills and sewers, contributing to emissions reduction.

  • New Zealand's government and BlackRock Inc are collaborating to launch a NZ$2 billion ($1.22 billion) climate infrastructure fund.

  • The fund aims to invest in various green technologies including solar, wind, green hydrogen, and battery storage.

  • Larry Fink, Chairman and CEO of BlackRock, stated that this initiative is the largest single-country low-carbon transition investment they've created so far.

  • The fund's goal is to enable New Zealand companies to access more capital for developing climate infrastructure in the energy system.

  • Although no launch date details were provided, the joint statement from the government and BlackRock announced the fund's creation.

  • New Zealand's electricity sector is largely renewable, but the government aims for it to be 100% renewable.

  • The fund is expected to expedite New Zealand's emissions reduction efforts, with a specific focus on achieving fully renewable electricity.

  • New Zealand's Energy Minister, Megan Woods, mentioned that the country's record levels of renewable electricity generation position it well to achieve a fully renewable electricity system.

Blackstone says, hold my beer.

  • Blackstone has closed its energy transition credit fund, named Blackstone Green Private Credit Fund III (BGREEN III).

  • BGREEN III achieved a final close at its maximum funding limit of $7.1 billion.

  • This marks the largest-ever private credit energy transition fund raised.

  • Dwight Scott, Global Head of Blackstone Credit, emphasizes the company's strong position in energy transition and infrastructure private credit markets.

  • Robert Horn, Global Head of Sustainable Resources Group for Blackstone Credit, highlights the increasing need for private capital due to the impact of the energy transition.

  • BGREEN III is managed by Blackstone Credit's Sustainable Resources Platform.

  • The platform focuses on providing private credit to renewable energy, infrastructure, and energy transition sectors.

  • The Sustainable Resources Platform has around 40 investment professionals across North America, Europe, and Asia.

  • It invests across various credit types including investment grade, non-investment grade, preferred, and convertible securities.

  • Blackstone's broader plan involves investing approximately $100 billion in energy transition and climate change projects over the next decade.

  • Cornish Lithium, a UK mining firm, has secured an initial investment of over £53 million.

  • The investment is led by the UK Infrastructure Bank, which marks its first direct equity investment.

  • Other investors include Energy & Minerals Group (EMG) and Cornish Lithium's existing shareholder TechMet.

  • The funding aims to strengthen the UK's lithium supply chain and support the transition to net-zero emissions.

  • Cornish Lithium plans to extract lithium from a repurposed China clay pit at Trelavour Downs.

  • The company aims to produce around 8,000 tonnes per year of battery-grade lithium hydroxide.

  • Lithium is crucial for making power cells in electronic devices and electric vehicle batteries.

  • The global lithium industry is projected to be worth nearly $19 billion by 2030.

  • The investment is aligned with the UK's net-zero ambitions and aims to boost domestic EV battery production.

  • The CEO of Cornish Lithium, Jeremy Wrathall, expressed enthusiasm about the institutional investment enabling commercial production of their projects.

  • The funds will be used to advance the Trelavour hard rock lithium project and develop a geothermal waters extraction facility.

  • Cummins Inc. and Chevron U.S.A. Inc. (a Chevron Corporation subsidiary) have entered a memorandum of understanding for strategic collaboration.

  • Collaboration focuses on hydrogen, natural gas, and other low carbon fuel value chains.

  • Builds upon previous partnership on hydrogen and renewable natural gas.

  • Aims to expand into liquid renewable fuels like renewable gasoline blends, biodiesel, and renewable diesel.

  • Goal is to encourage commercial and industrial adoption of these technologies in North America.

  • Cummins' Destination Zero strategy for emissions reduction is a key driver.

  • Collaboration intends to improve fuel and infrastructure access for customers while reducing emissions.

  • Both companies have experience in alternative fuels innovation and technology deployment.

  • Focus on enabling commercial-scale development of alternative fuels production and transportation systems.

  • Target consumption includes transportation vehicles manufactured by Cummins.

  • Collaboration covers various low carbon intensity fuels including compressed natural gas and liquid renewables.

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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.