BlackRock wants more mining

PLUS: Oxy selling carbon removal to TD, CHK-Vitol LNG, KPMG's "Decarb hub", Trouble in offshore wind, Infinitum's $185mm raise

Author

Sunya Scoop
November 02, 2023

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, a carbon capture company, and TD Bank Group (TD) have announced the purchase of carbon dioxide removal (CDR) credits from STRATOS, 1PointFive's Direct Air Capture (DAC) plant in Texas.

  • TD Securities has agreed to purchase 27,500 metric tons of DAC CDR credits over four years, marking one of the largest purchases of DAC CDR credits by a financial institution.

  • STRATOS is designed to be the first large-scale commercial DAC deployment globally, aiming to capture and remove up to 500,000 metric tons of CO2 from the atmosphere annually.

  • TD Securities intends to expand its portfolio of voluntary carbon offsets and enhance its carbon advisory and trading capabilities in voluntary and compliance carbon markets.

  • TD also plans to use a portion of the credits to offset its own operational emissions.

  • The partnership with 1PointFive supports both organizations' decarbonization goals and offers a practical solution for organizations to address their emissions.

  • TD is committed to transitioning to a lower carbon economy and has a focus on providing clients with ESG solutions.

  • The captured CO2 will be stored through geologic sequestration, not enhanced oil recovery.

  • TD's Climate Action Plan aims for net-zero greenhouse gas emissions associated with its activities by 2050.

  • TD Securities is actively involved in emissions trading and carbon markets.

  • TD has invested in carbon reduction initiatives, such as the Boreal Wildlands Carbon Project.

  • TD has also set a Sustainable & Decarbonization Finance Target to mobilize $500 billion CAD by 2030 through various financial activities.

  • CarbonCure Technologies and Heirloom have signed an agreement through 2025 to permanently store atmospheric CO2 captured by Heirloom’s Direct Air Capture (DAC) technology in concrete using CarbonCure’s carbon mineralization technologies.

  • In February, Heirloom, CarbonCure, and Central Concrete demonstrated the ability to capture CO2 from the atmosphere and embed it permanently in concrete, marking a historic achievement.

  • The recently-signed agreement will involve CarbonCure permanently storing CO2 captured by Heirloom’s DAC facilities in nearby concrete plants.

  • CarbonCure provides a proven and immediately-available concrete storage solution, enabling Heirloom to scale its technology.

  • Heirloom uses limestone to pull CO2 from the air through a cyclic process, and the captured CO2 is stored either underground or embedded in concrete.

  • Heirloom has received Department of Energy (DOE) selection for a proposal related to Direct Air Capture (DAC) Hubs and signed a significant CO2 removal deal with Microsoft.

  • CarbonCure licenses carbon mineralization technologies to concrete plants worldwide, reducing carbon emissions, water usage, and waste material in concrete production.

  • CarbonCure’s global network of concrete producer partners has removed and reduced over 365,000 metric tons of CO2, equivalent to taking more than 80,000 gas-powered cars off the road for a year.

  • The U.S. wind-energy sector is experiencing impairments due to high interest rates, inflation, and supply-chain issues, which are causing delays and raising questions about the industry's future.

  • Orsted, BP, and Equinor have collectively written off $4.8 billion against U.S. offshore wind projects.

  • Orsted booked a $4.02 billion impairment charge against its U.S. offshore portfolio and abandoned two wind projects off the coast of New Jersey due to rising costs and supplier delays.

  • Other companies like BP and Equinor also faced impairments and challenges in renegotiating power-purchase terms.

  • Some projects have been canceled, and developers are seeing increased project costs.

  • Siemens Energy warned of worse-than-expected losses in its wind-turbine business due to quality issues and rising costs.

  • Despite challenges, some projects are still moving forward, and policymakers in Europe are working to address industry challenges with an action plan.

  • Dominion Energy received approval for its offshore wind project in Virginia, and Orsted remains confident in its European and Asia Pacific properties.

  • European policymakers aim to streamline permitting, improve auction criteria, and enhance access to finance to support the wind industry.

  • BlackRock warns investor reluctance toward mining could hinder the green energy transition.

  • The scarcity of metals crucial for green technologies, like wind turbines and electric cars, may occur without sufficient funding for the mining sector.

  • Valuation multiples for mining companies are low compared to the S&P 500, despite expected demand for metals.

  • Executives in the mining sector find the cost of capital too high to develop projects.

  • The mining sector's contribution to decarbonization and emissions reduction efforts have been overlooked.

  • BlackRock expects a re-rating of the mining sector as perceptions change.

  • Investor wariness of the mining sector stems from its cyclical nature and past financial challenges.

  • Mining companies have become more disciplined in managing their finances in recent years.

  • BlackRock warns that the demand for metals and materials for the green energy transition has been underestimated.

  • Chesapeake Energy Corporation and Vitol Inc. have signed a Heads of Agreement (HOA) for a long-term LNG supply.

  • Chesapeake will supply up to 1 million tonnes of LNG per annum to Vitol for 15 years.

  • The purchase price will be indexed to the Japan Korea Marker (JKM).

  • Chesapeake and Vitol will jointly select an optimal liquefaction facility in the United States for gas liquefaction.

  • The targeted start date for the agreement is in 2028.

  • This agreement expands the relationship between Chesapeake and Vitol, aiming to deliver reliable, affordable, lower carbon energy to global markets.

  • Both companies see it as an important step toward being LNG ready and satisfying the growing global LNG demand.

  • KPMG in Canada launches Decarbonization Hub to assist organizations in achieving emissions reduction and energy transition goals.

  • The Hub aims to provide innovative solutions to combat climate change by addressing the complexity of emissions reduction in businesses.

  • KPMG's Decarbonization Hub brings together infrastructure, finance, climate, and technology specialists to help clients create and implement realistic transition plans.

  • It collaborates with deal and tax professionals to facilitate transactions related to decarbonization efforts.

  • The Hub is led by Andrew McHardy, a partner with over 25 years of experience in emissions reduction solutions, renewable fuels, carbon capture, and renewable power.

  • KPMG's Decarbonization Hub offers services such as developing decarbonization pathways, end-to-end support for implementing solutions, navigating climate policy and incentives, and arranging financing for decarbonization projects.

  • It also emphasizes effective reporting on commitments and progress aligned with ESG reporting standards and frameworks.

  • Infinitum secures $185 million in Series E funding led by Just Climate, with participation from Galvanize Climate Solutions and NGP, along with existing investors.

  • The industrial sector is a major emitter of greenhouse gases, and the growth in global electricity demand is expected to come from industrial motors by 2040.

  • Motors in the US industrial sector consume nearly 70% of total electricity, but many operate at a single speed, leading to energy wastage.

  • Infinitum's advanced motors have a built-in variable frequency drive (VFD) that reduces energy consumption by running the motor at lower speeds when possible.

  • These motors are 50% smaller, lighter, use less copper, and consume 10% less energy compared to traditional motors.

  • Infinitum's air-core motors replace the copper-wound iron core with a lightweight printed circuit board stator, making them more reliable and less carbon-intensive.

  • The adoption of high-efficiency, variable speed motors can potentially save 127 terawatt-hours per year, resulting in $14.7 billion in cost savings and reducing 90.2 million metric tons of CO2 emissions.

  • Rockwell Automation and Infinitum are jointly developing a motor system compatible with Rockwell's industrial automation solutions, which will enable clients to deploy sustainable motor systems and reduce energy consumption and costs.

  • Infinitum's motors aim to contribute to the industrial sector's sustainability objectives and the challenge of achieving net-zero emissions.

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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.