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
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.
Joined the Oil & Gas Methane Partnership (OGMP) 2.0, a UN-backed program focused on methane reporting and mitigation in the oil and gas sector.
It plans to submit its full implementation plan for OGMP 2.0 in 2024.
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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