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  • DOE's $750mm hydrogen grant and $2bn lithium loan

DOE's $750mm hydrogen grant and $2bn lithium loan

PLUS: ATT carbon removal, Primergy's $588mm raise for solar, Orsted sale to Stonepeak, KKR's $3bn Encavis takeover, CarbonCapture's $80mm raise, Li-Cycle's $75mm infusion

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:

  • 1PointFive and AT&T announce agreement for AT&T to purchase carbon dioxide removal (CDR) credits from STRATOS, 1PointFive’s large-scale Direct Air Capture (DAC) facility under construction in Texas.

  • STRATOS designed to capture up to 500,000 metric tons of CO2 annually, aiming to be the world's largest facility of its kind.

  • AT&T's purchase aligns with its commitment to become carbon neutral in global operations by 2035.

  • Captured CO2 will be stored through durable saline sequestration.

  • 1PointFive joins AT&T’s Connected Climate Initiative (CCI) to collaborate on connectivity-based solutions to reduce greenhouse gas emissions.

  • CCI aims to reduce emissions by one gigaton by 2035, bringing together diverse organizations for Smart Climate Solutions utilizing AT&T connectivity.

  • CarbonCapture Inc. closes $80 million Series A financing led by Prime Movers Lab, with strategic investments from Amazon's Climate Pledge Fund, Aramco Ventures, and Siemens Financial Services.

  • Funds to be utilized for technology development and field deployments of direct air capture (DAC) systems.

  • CarbonCapture's modular DAC systems based on patented open systems architecture aim for scalability and efficiency.

  • Company has pre-sold over $26 million in carbon removal credits to major corporations like Microsoft, Alphabet, and JPMorgan Chase & Co.

  • Investors highlight CarbonCapture's progress and potential impact in decarbonizing the atmosphere.

  • Amazon's Climate Pledge Fund sees CarbonCapture's DAC system as crucial for achieving a net-zero carbon future, complementing its existing carbon reduction efforts.

  • Aramco Ventures supports CarbonCapture's unique DAC platform.

  • Siemens Financial Services collaborates with CarbonCapture to commercialize DAC in the US, leveraging expertise in digital process simulation, automation, and control solutions.

  • The DOE announces $750 million investment in the American hydrogen industry as part of the Investing in America agenda.

  • 52 projects across 24 states funded to advance clean hydrogen technology, create jobs, and reinforce global leadership.

  • Funding aims to reduce costs, improve manufacturing, and support electrolysis technologies, directly creating over 1,500 jobs.

  • Projects aligned with U.S. National Clean Hydrogen Strategy and Roadmap, targeting 14 gigawatts of fuel cells and 10 gigawatts of electrolyzers per year.

  • Investments complement Regional Clean Hydrogen Hubs, tax incentives, and ongoing research for hydrogen production.

  • Clean hydrogen crucial for reducing emissions in heavy-duty transportation, industrial processes, and energy storage.

  • Projects categorized into areas like electrolyzer manufacturing, component development, and fuel cell supply chain enhancement.

  • Emphasis on job creation, economic growth, and environmental sustainability.

  • Primergy Solar LLC secures $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas.

  • The company signs a long-term power purchase agreement (PPA) with Microsoft for the entire capacity of the plant.

  • The Ash Creek Solar site is strategically located near existing fossil fuel plants and high energy demand areas.

  • Once operational, the project is expected to generate enough carbon-free energy for approximately 90,000 homes annually.

  • Financing includes a construction loan, tax credit transfer bridge loan, and related facilities led by MUFG Bank, Ltd. and SMBC, along with other coordinating lead arrangers.

  • Ash Creek Solar was originally developed by Orion Power Generation, LLC, acquired by Primergy in 2021.

  • Ørsted signs deal with Stonepeak to divest an equity stake in four US onshore wind farms, totaling 957 MW capacity.

  • Transaction valued at approximately USD 300 million, with previous tax equity proceeds totaling USD 700 million, bringing total proceeds to USD 1 billion.

  • Stonepeak to receive 80% of cash distributions from the projects, while Ørsted continues to operate them.

  • Ørsted retains a call option for Stonepeak’s interests post-transaction.

  • Deal aligns with Ørsted’s strategy of recycling capital for future renewable energy projects while retaining operational control.

  • Portfolio includes wind farms in Illinois, Texas, and Kansas, with total capacity across three markets: ERCOT, MISO, and SPP.

  • All projects are operational with power purchase agreements in place.

  • Ørsted maintains management of the partnership and asset management services for the projects.

  • Ørsted currently manages nearly 6 GW of onshore wind, solar, and battery storage projects in the US.

  • Private equity firm KKR launches a €2.8 billion ($3.06 billion) takeover offer for German electricity and energy producer Encavis.

  • Offer made through Elbe Bidco, an investment vehicle owned by KKR, at €17.50 ($19.13) per Encavis share.

  • Encavis shares surge by 27% in early Frankfurt trading following the announcement.

  • Encavis management and supervisory boards express support for the offer after confirming talks with KKR last week.

  • German family business Viessmann to invest as a shareholder in the KKR-led consortium, holding a significant minority stake.

  • KKR and management board plan to delist Encavis post-closure, with management remaining onboard under new ownership.

  • KKR secures 31% of Encavis shares from major shareholders, offering a 30% premium over the MDAX small cap index closing price.

  • Takeover aims to bolster Encavis's role in Europe's green energy transition by strengthening project pipeline, expanding capacity, and market presence.

  • Encavis operates 40 onshore wind farms and 190 solar farms across Europe, with activities including construction and maintenance of wind and solar parks through an Italian subsidiary.

  • Li-Cycle secures a $75 million strategic investment from Glencore, a significant player in battery materials.

  • Glencore reaffirms commitment to Li-Cycle’s Spoke & Hub model and patented recycling technology.

  • Agreement extends maturity, reprices market-based conditions, and adds security interest in future tranches.

  • Investment complements existing partnership, following Glencore’s $200 million investment in June 2022.

  • Formation of a Special Committee, engaging Moelis & Company, led to the agreement with Glencore.

  • Glencore designated Li-Cycle as a preferred recycling partner, supporting a global customer base and aligns with efforts to promote sustainable circularity in battery material supply chains.

  • Glencore to purchase a senior secured convertible note of $75 million, convertible into Li-Cycle common shares.

  • Terms include options for cash or in-kind interest payments, with mandatory redemption provisions.

  • U.S. Department of Energy to lend Lithium Americas up to $2.26 billion for Nevada's Thacker Pass lithium project.

  • Thacker Pass mine to become North America's largest source of electric vehicle battery metal, supplying General Motors.

  • Initial construction started in March 2023 after winning a court case against conservationists and Indigenous communities.

  • Major construction expected to start after loan closure, targeting three years for completion of first phase producing 40,000 metric tons of lithium carbonate annually.

  • Project cost increased to nearly $2.93 billion due to various factors including higher engineering costs and housing facility construction.

  • GM's $650 million investment last year, making it the largest shareholder, combined with DOE loan, to fund most of the first phase.

  • Full capacity expected in 2028, aiming to produce 80,000 metric tons per year from a clay deposit.

  • Project involves building a rail terminal 60 miles away to import sulfur and other materials necessary for lithium extraction.

  • DOE loan includes an estimated $290 million of interest over three years.

  • Previous DOE loan went to ioneer for Rhyolite Ridge lithium project last year.

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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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