Beyond Petroleum or British Petroleum?

PLUS: Chevron's hydrogen bet, Cemvita-United deal, Amazon invests in DAC, Sage Geothermal, Lyten $200mm raise

  • CarbonCapture Inc. receives equity investment from Amazon’s Climate Pledge Fund.

  • Collaboration between CarbonCapture and Amazon to make 100,000 tons of carbon removal credits available.

  • Amazon's Climate Pledge Fund was co-founded by Amazon in 2019 to achieve net-zero carbon by 2040.

  • The fund has over 400 signatories, including Best Buy, IBM, Microsoft, PepsiCo, Siemens, Unilever, Verizon, and Visa.

  • CarbonCapture aims to democratize access to and reduce the cost of carbon removal credits with Amazon's support.

  • Amazon is committed to decarbonizing its operations through renewable energy, sustainable materials, and electrifying its delivery fleet, while also investing in direct air capture technology to reduce atmospheric carbon.

  • Frontier facilitates $7 million in carbon removal purchases from 12 companies on behalf of Stripe, Shopify, and H&M Group.

  • The companies involved in the purchases are Airhive, Alkali Earth, Banyu Carbon, Carbon Atlantis, CarbonBlue, CarbonRun, EDAC Labs, Holocene, Mati, Planetary Technologies, Spiritus Technologies, and Vaulted Deep.

  • Stripe also provides $500,000 in R&D grants to Carboniferous and Rewind, as well as $200,000 to Arbon and Vycarb through a partnership with Activate.

  • Frontier evaluated 132 applications and 230 pages of technical reviews over the last three months from its global network of scientific experts.

  • There was a significant increase in applications proposing solutions capable of storing CO₂ for 1,000+ years compared to three years ago.

  • The selected companies pursue 14 different approaches to carbon removal, including extracting CO₂ from seawater, slurry sequestration technology, and enhancing carbon absorption in rivers.

  • These approaches address all five priority innovation areas identified in Frontier's RFP, including reducing the energy and cost of direct air capture and accelerating weathering rates of geochemical approaches.

  • The cohort of companies is geographically diverse, with headquarters in five different countries and deployment sites spanning various locations, including India, Indiana, Nova Scotia, and Israel.

  • The selected companies project that they could collectively remove over half a million tons of CO₂ annually by 2026.

Lots of action in the Carbon Removal space. Most recently:

  • BP CEO Bernard Looney resigns abruptly over past relationships with colleagues.

  • The company cites that Looney was "not fully transparent" about these relationships, leading to his immediate departure.

  • Chief Financial Officer Murray Auchincloss will serve as interim CEO.

  • Looney had been leading BP's transition towards renewable energy and had a prominent role in the company.

  • BP had recently faced challenges in defining its pace of the energy transition.

  • The board reviewed allegations of personal relationships between Looney and colleagues in May 2022, finding no breach of company code.

  • However, further allegations emerged, leading Looney to acknowledge he was not fully transparent in his disclosures.

  • Looney had been named CEO in 2019 and was known for advocating for a greener, low-carbon future for the company.

  • He had pledged to reduce oil and gas output and invest more in clean energy.

  • Looney's 2022 bonus was reduced due to safety issues, including worker deaths at a BP refinery.

  • BP shares have faced pressure, and Looney's departure follows shifts in the company's renewable energy strategy.

  • BP's transition strategy had been dialed back earlier this year, leading to changes in its share price.

  • The company faces pressure to demonstrate improved returns from renewable energy investments.

  • BP shares have been relatively flat compared to competitors like Shell.

  • Looney's resignation is not the first abrupt executive transition for BP, as it had experienced one in 2007 when then-CEO John Browne stepped down.

With Bernard steering the ship of the energy transition despite constant setbacks, will the new BP look revert to its roots?

  • Cemvita Corporation enters into an offtake agreement with United Airlines for up to 1 billion gallons of sustainable aviation fuel (SAF) from Cemvita's full-scale SAF plant.

  • Cemvita will supply United Airlines with up to 50 million gallons annually for 20 years, producing SAF from CO2.

  • United Airlines Ventures President Michael Leskinen highlights Cemvita's technology as a path forward to address the shortage of available SAF and producers.

  • Cemvita's technology offers a potential supply of SAF with minimal land, water, and electricity requirements and aims to be cost-competitive with existing crop-based feedstocks.

  • The SAF produced using Cemvita's technology has the potential to be carbon-negative.

  • United Airlines has been actively investing in SAF producers and innovative technologies to decarbonize air travel.

  • They have launched the UAV Sustainable Flight Fund

    to support startups focused on SAF research, technology, and production, with Cemvita as part of the portfolio companies.

  • United Airlines has invested more in SAF production than any other global airline.

  • Chevron U.S.A. Inc., through Chevron New Energies, acquires 100% of Magnum Development, LLC and a majority stake in ACES Delta, LLC, a joint venture with Mitsubishi Power Americas, Inc.

  • ACES Delta is developing the Advanced Clean Energy Storage project in Delta, Utah.

  • The project uses electrolysis to convert renewable energy into hydrogen and stores it in solution-mined salt caverns for seasonal, dispatchable energy storage.

  • The first phase, capable of converting and storing up to 100 metric tons of hydrogen per day, is under construction and expected to be operational by mid-2025.

  • Chevron aims to support the Intermountain Power Project's "IPP Renewed" initiative and provide hydrogen to utility, transportation, and industrial sectors in the western U.S.

  • Chevron's involvement is part of its commitment to lower carbon energy solutions and expanding the hydrogen supply.

  • The partnership with Mitsubishi Power aims to create a cost-competitive market for emerging lower carbon solutions.

  • Sage Geosystems announces results from its full-scale commercial pilot for energy storage and geothermal technology.

  • The technology offers short- and long-duration energy storage, making it suitable for baseload energy generation.

  • It is cost-competitive with lithium-ion batteries, pumped storage hydropower, and natural gas peaker plants.

  • Sage's energy storage technology enhances grid reliability and offers stable power output.

  • No induced seismicity was observed during operations.

  • The storage technology is scalable and can be used in newly drilled or existing wells, not limited by geography.

  • It can optimize energy flow from low-demand to high-demand periods.

  • Sage's energy storage provides a cleaner option for ancillary and black start services, and redistributing curtailed energy.

  • The EarthStore™ technology harnesses pressure energy and benefits from the formation's heat.

  • Key pilot results include generating 200kW for over 18 hours (long-duration) and 1MW for 30 minutes (load-following), high subsurface system efficiencies, and costs in line with other storage solutions.

  • It can interconnect with power grids or develop microgrids.

  • Sage is also working on Enhanced Geothermal Systems (EGS) with a design that halves the cost of traditional EGS two-well systems.

  • Lyten, Inc. raises $200 million in an oversubscribed Series B funding round.

  • The funding will be used to scale manufacturing and commercialize three product lines: Lithium-Sulfur batteries, lightweighted composites, and next-generation IoT sensors.

  • The round is led by Prime Movers Lab, with significant participation from strategic investors like Stellantis, FedEx Corporation, Honeywell, and Walbridge Aldinger Company.

  • This funding round brings Lyten's total equity investment to over $410 million since its founding in 2015.

  • Lyten aims to deliver commercial Lithium-Sulfur batteries from its automated pilot line in San Jose, CA, by early 2024.

  • The company's mission is to create materials that enable major greenhouse gas-emitting sectors to achieve net-zero emissions without sacrificing performance or profitability.

  • The company intends to break ground on scaled-up 3D Graphene and Lithium-Sulfur battery manufacturing facilities in 2024 in the US.

  • These batteries offer higher energy density than lithium-ion without using NMC (nickel, manganese, cobalt) or graphite.

  • Lyten collaborates with Stellantis, FedEx, the U.S. Government, and other industry leaders to develop lightweight composites and ultra-high sensitivity sensing networks.

  • They aim to deliver their first commercial composites application by year-end.

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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.