It ain't easy gettin' a pipeline built
PLUS: KKR's $750mm investment, Oxy's Amazon deal, Google Ireland solar, Amazon-Maersk shipping
Time for results from the last week’s poll.
What will have the greatest impact on global emissions reduction in the next decade?
Nat gas and LNG was the champion with 22 votes.
2nd place is Renewables (accidentally listed twice so looks optically worse) with 14.
3rd place, Nuclear.
South Dakota regulators have denied a construction permit for the Navigator CO2 Ventures' Heartland Greenway pipeline project, which aimed to build a 1,300-mile pipeline network across several states to bury carbon dioxide emissions underground in Illinois.
The decision was based on various reasons, including the company's lack of promptness, objections to commission staff questions, and difficulties in notifying landowners.
The proposed South Dakota route covered 112 miles and would have served three ethanol plants.
Navigator expressed disappointment and is considering its options.
A separate CO2 pipeline project by Summit Carbon Solutions is also being considered in South Dakota, with a final decision expected by November 15.
Similar projects across the country aim to reduce carbon footprints, but face opposition from landowners and concerns about the technology's scalability.
North Dakota's Public Service Commission previously denied Summit a siting permit, and the company has requested a reconsideration.
Summit recently withdrew permit applications related to construction of injection wells for its underground CO2 storage site in central North Dakota after concerns were raised by the county's planning and zoning board.
Building infrastructure in the US, whether for CO2 or natural gas, remains challenging. The process is painstaking, requiring a longer-term perspective than in the past.
BKV Corporation and ENGIE Energy Marketing NA have entered into a contract for the sale and purchase of natural gas along with associated Carbon Sequestered Credits.
The agreement aims to provide a new carbon sequestered product, with BKV delivering physical natural gas and gas tokens representing responsible gas production and carbon capture.
The CO2 sequestration project, called Barnett Zero, is based in Bridgeport, Texas, and is expected to begin injections in December 2023. It's anticipated to be one of the first permanent commercial CO2 disposal and sequestration projects in the U.S.
Barnett Zero is expected to sequester up to approximately 210,000 metric tons of CO2e per year over its lifetime.
Delivery of Carbon Sequestered Gas is set to start in Q1 2024, with BKV committed to delivering up to 10,000 MMBtu/day of certified Carbon Sequestered Gas to ENGIE.
The collaboration aims to introduce a differentiated gas product to reduce greenhouse gas emissions and align with sustainability goals.
This initiative allows end-users to purchase measured and verified natural gas using blockchain technology, enhancing transparency and trust in the energy transition.
1PointFive and Amazon have entered into a 10-year Carbon Removal Credit Purchase Agreement.
Amazon will purchase 250,000 metric tons of carbon dioxide removal (CDR) credits over the agreement period.
The purchase will support Direct Air Capture (DAC) technology as a means to achieve climate goals.
The CDR credits for Amazon will come from 1PointFive's STRATOS DAC plant in Texas, capable of capturing up to 500,000 metric tons of CO2 annually.
The goal is to remove 1 trillion tons of CO2 from the atmosphere this century to limit global warming to 1.5 degrees Celsius, as per the IPCC.
1PointFive is advancing DAC technology and other decarbonization solutions to help organizations achieve net-zero emissions.
The captured CO2 underlying the CDR credits will be stored in saline reservoirs not associated with oil and gas production.
Amazon views direct air capture as a critical carbon removal solution, aligning with its sustainability goals.
Amazon is working towards achieving net-zero carbon by 2040 through various sustainability initiatives, including DAC technology investment.
Google signs its first long-term renewable energy deal in Ireland, supporting the country's decarbonization efforts.
The agreement with Power Capital Renewable Energy involves 58 MW of new renewable energy capacity from the Tullabeg Solar Farm.
This initiative will add renewable energy directly to Ireland's grid, helping Google's Irish offices and data center reach 60% carbon-free energy by 2025 on an hourly basis.
Google already matches 100% of its global electricity consumption with renewable energy purchases annually.
The project aligns with Ireland's Climate Action Plan, aiming to meet 80% of national electricity demand with renewable energy.
Google's efforts to achieve 24/7 carbon-free energy require a diverse and local portfolio of carbon-free energy resources to match electricity demand every hour, contributing to grid decarbonization and advanced clean energy technologies.
This milestone coincides with Google's 20th anniversary in Ireland and supports the company's broader sustainability and decarbonization goals.
Maersk and Amazon have agreed to transport 20,000 FFE (forty-foot equivalent) containers using green biofuel through Maersk's "ECO Delivery" ocean product offering in 2023-2024.
This agreement aims to reduce approximately 44,600 metric tons of CO2e (carbon dioxide equivalent) emissions compared to standard bunker fuel, which is roughly equivalent to 50 million pounds of coal burned.
It marks the fourth consecutive year of Amazon and Maersk collaborating on container shipping using low greenhouse gas (GHG) fuel options.
The ECO Delivery biofuel option provides externally verified GHG savings for customers without offsetting measures, such as carbon credits.
Amazon will benefit from a new feature in the ECO Delivery product that incorporates green methanol alongside biodiesel as a second green fuel in the vessel fleet.
The methodology for reporting emissions savings includes a more precise measurement of fuel consumption and accounts for other greenhouse gases in addition to CO2.
The ECO Delivery model offers price certainty and stability and is not tied to the fossil fuel market.
Both Amazon and Maersk are cosigners of the Climate Pledge, a commitment to achieving net-zero carbon emissions by 2040, which involves measuring and reporting emissions, implementing decarbonization strategies, and neutralizing remaining emissions with credible offsets.
Maersk defines "green fuels" as those with low to very low GHG emissions over their life cycle compared to fossil fuels, with verification by the International Sustainability and Carbon Certification (ISCC).
2 big Amazon deals this past week? Actually a 3rd - they made an investment in CarbonCapture which we’ll cover on Thursday.
It’s four deals if you count my prime membership renewal that just hit.
KKR is investing approximately $750 million in Zenobē, a leader in transport electrification and battery storage solutions, to accelerate global decarbonization efforts in the diesel fleet and energy sectors.
Infracapital, the current majority shareholder, will reinvest alongside KKR and the management team, resulting in both KKR and Infracapital becoming joint majority shareholders.
The investment is part of KKR's global climate strategy, dedicated to scaling net-zero solutions and transitioning higher emitting assets.
Zenobē, founded in 2017 and headquartered in London, provides electrification solutions for fleets and battery storage solutions for grid infrastructure, with a significant presence in the UK, Australia, New Zealand, and continental Europe.
Zenobē's EV fleet business offers end-to-end solutions for transitioning internal combustion engine vehicles to electric, including financing, batteries, and charging infrastructure.
In addition, Zenobē develops large-scale batteries connected to transmission grids, providing essential grid services to support intermittent low-carbon energy generation and help achieve net-zero goals.
KKR aims to work with Zenobē to meet the growing demand for electric vehicle adoption in the global bus and commercial fleet sectors, as well as expanding the grid-scale battery storage capacity.
The investment will support Zenobē's expansion in the UK, Australia, New Zealand, continental Europe, and North America, addressing the need for decarbonizing transportation and reducing carbon emissions in the transport sector.
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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.