Billions in transition funds

PLUS: CapturePoint-Energy Transfer CCS, Equinor's lithium bet, Oklo to go public,

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:

It’s concerning how many grown men are in my inbox asking for free swag.

Don’t worry - we’ll do another one of these later in the year.

The winners of the Sunya hat giveaway are:

  • Grayson Perry at Woodside Energy

  • Ian Keneally at Stakeholder Midstream

  • CapturePoint LLC announced updated agreements with Energy Transfer LP for a carbon capture and storage project in Louisiana.

  • The agreements consist of a revised Letter of Intent (LOI) and a definitive CO2 Offtake Agreement for Energy Transfer’s Haynesville natural gas treating facilities.

  • The agreements support the joint development of the Central Louisiana Regional Carbon Storage Hub (CENLA Hub), aimed at permanently storing CO2 underground.

  • The agreements grant Energy Transfer the right to participate in a joint venture owning and operating the CENLA Hub.

  • The project plans to capture and store up to two million tons of CO2 annually at the CENLA Hub.

  • CapturePoint is also exploring additional collaborations for CO2 capture from other Energy Transfer facilities in Louisiana.

  • Louisiana Department of Natural Resources is reviewing permit applications for Class VI CO2 injection sites at CENLA Hub in Vernon and Rapides Parishes.

  • CapturePoint is focused on developing regional deep underground storage hubs across multiple states, including ongoing projects in Colorado, Oklahoma, and Texas.

  • Standard Lithium and Equinor have formed a partnership to develop lithium projects in South West Arkansas and East Texas.

  • Equinor will invest up to $160 million, securing a 45% interest in two special purpose entities created with Standard Lithium.

  • The partnership aims to advance sustainable lithium production in the United States.

  • Transaction details include a $30 million initial cash payment from Equinor to Standard Lithium and commitments to fund further development:

    • Equinor will cover the first $40 million of development costs at the South West Arkansas project.

    • Equinor will also fund the first $20 million in exploration and development at the East Texas properties.

  • Post initial investments, subsequent capital expenditures will be funded proportionately by both parties.

  • Standard Lithium will receive up to $70 million in milestone payments, contingent upon both parties making final investment decisions.

  • Standard Lithium retains a 55% stake and operatorship of both projects.

  • EnCap Energy Transition has closed its second energy transition fund, EnCap Energy Transition Fund II (EETF II), with $1.5 billion in commitments.

  • EETF II is designed to invest in solutions to decarbonize the power industry and will also opportunistically invest in low carbon fuels and carbon management.

  • The fund has attracted strong support from existing investors and added new high-quality investors, both domestically and internationally.

  • EnCap now manages approximately $2.7 billion of capital commitments focused on decarbonization initiatives since its inception in 2019.

  • Through EETF II, EnCap has already made investment commitments to five portfolio companies: Linea Energy, Parliament Solar, PowerTransitions, Arbor Renewable Gas, and Bildmore Renewables.

  • EnCap expects to have 8-10 portfolio companies in total in EETF II, with a robust pipeline of potential investments in renewables, energy storage, clean fuels, and carbon solutions.

  • The first energy transition fund, EnCap Energy Transition Fund I, had $1.2 billion in commitments, invested in seven portfolio companies, and realized four investments, including Broad Reach Power, Jupiter Power, Triple Oak, and Paloma Solar & Wind.

  • HASI and KKR have formed a strategic partnership called CarbonCount Holdings 1 LLC (CCH1) to invest in sustainable infrastructure.

  • The partnership plans to invest up to $2 billion in climate positive projects across the U.S.

  • Each company has committed up to $1 billion to CCH1, aiming to invest in clean energy assets over the next 18 months.

  • HASI will manage the investments and continue to interact with clients, using its proprietary CarbonCount® tool to measure the emissions impact of the investments.

  • The initial investment focus will be on behind-the-meter, grid-connected, renewable natural gas, and transport projects.

  • CCH1 will be initially seeded with assets representing about 10% of the total $2 billion committed.

  • The partnership is part of HASI's strategy to shift towards a more capital-light model and reduce reliance on public equity markets for growth.

  • KKR, with over 15 years in infrastructure investing and more than $15 billion invested in renewable energy, aligns with HASI’s strategy and enhances their portfolio of sustainable infrastructure projects.

  • AltC Acquisition Corp. shareholders have approved the business combination with Oklo Inc.

  • The transaction is set to close on May 9, 2024.

  • Sam Altman will serve as the chairman of the newly appointed board of directors for Oklo.

  • The approved business combination will bring Oklo $306 million in gross proceeds.

  • The board of directors will consist of Sam Altman (chairman), Michael Klein, Jacob DeWitte, Caroline Cochran, Lt. Gen. (Ret.) John Jansen, Richard Kinzley, and Chris Wright.

  • Following the combination, Oklo is positioned to deliver clean, affordable energy globally, using advanced fast reactor technology.

  • Oklo has secured strong market interest, especially in sectors like AI, data centers, energy, defense, and industrial markets.

  • Post-transaction, the combined entity will be named Oklo Inc., and its Class A common stock is expected to start trading on the NYSE under the ticker "OKLO" on May 10, 2024.

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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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