BlackRock's $500 million solar bet

PLUS: EPA approves Class VI permits, Heimdal-CapturePoint, XGS geothermal, Infinium-Amogy, Bloomberg and Rio Tinto sign solar deals

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.

  • Heimdal has partnered with CapturePoint to co-locate its DAC (direct air capture) facility, Project Bantam, at CapturePoint's Oklahoma Carbon Hub.

  • Project Bantam will be capable of capturing up to 7,000 tons of CO2 annually, aiming to become the world's largest DAC facility upon operation.

  • Heimdal will initially develop a 5-acre facility with an initial capacity of 7,000 tons of CO2 per year, with plans to upscale in the future to hundreds of kilotons and eventually megatons of CO2 capture.

  • The partnership ensures that as Heimdal's DAC technology captures larger volumes of CO2, the development of Class VI sequestration wells in the Oklahoma Carbon Hub will provide permanent underground storage.

  • CapturePoint will significantly expand CCS capacity in Osage and Kay Counties, aiming to grow from just over a million tons of CO2 per year to several million tons annually in the next 3 to 5 years.

  • The U.S. Environmental Protection Agency (EPA) has approved permits for Wabash Carbon Services LLC (a sub of Wabash Valley Resources) to construct two underground injection wells for carbon dioxide storage in Vermillion and Vigo Counties, Indiana.

  • These wells will store carbon dioxide captured from nearby fertilizer production, reducing emissions contributing to climate change.

  • EPA conducted a thorough review and public engagement process, considering over 1,000 public comments, and determined that the wells meet safety and health requirements.

  • Wabash Carbon Services plans to inject up to 1.67 million metric tons of carbon dioxide per year over a 12-year period, with continuous monitoring and reporting to ensure proper functioning and groundwater protection.

  • The selected well sites have about 2,100 feet of solid rock, including low-permeability shale, ensuring the safe storage of carbon dioxide below the ground.

  • The Biden administration has delayed a decision on the Louisiana LNG export project, Calcasieu Pass 2 (CP2), which would be the largest in the U.S.

  • CP2, led by Venture Global LNG Inc., could have an export capacity of around 20 million metric tonnes per year, making Venture Global one of the world's largest LNG companies if built.

  • The White House has directed the DOE to expand the review of LNG export projects to include more climate change criteria, possibly leading to delays for 16 proposed LNG export projects.

  • Delaying the decision on CP2 until after the U.S. presidential election could help avoid criticism from environmentalists, who are part of President Biden's base.

  • Venture Global expressed concern about the potential action, warning of its impact on the global energy market and alliances with the US.

  • A moratorium on LNG export approvals could delay investment decisions for new facilities and regulatory paths, potentially pushing final investment decisions to the next year.

  • Environmentalists view halting expanded gas exports as an important move to address the climate crisis.

  • Commonwealth LNG, another project, has been waiting for permits and declined to comment but had plans to start construction late this year with export deals in mind.

The irony is LNG exports are one of the most powerful emissions reducing technology we have - displacing foreign coal.

Further delays would be bearish for US gas, difficult for European and Asian buyers, and bullish for Qatar who will likely gobble up more LNG export market share.

  • Infinium and Amogy have partnered to develop green ammonia and eFuels solutions.

  • They aim to integrate their technologies in the eFuels and green ammonia value chain.

  • Collaboration possibilities with Mitsubishi Heavy Industries (MHI) Group and SK Innovation are being explored.

  • The focus is on identifying applications to accelerate decarbonization in heavy industries using eFuels and green ammonia.

  • Key to the partnership is integrating Amogy's ammonia-cracking technology to produce low-cost green hydrogen for Infinium's eFuels.

  • The partnership includes strategic pilot programs, scalable implementations, and further collaboration opportunities for commercial use cases in these sectors.

  • Recurrent Energy, a subsidiary of Canadian Solar Inc., has secured a $500 million preferred equity investment commitment from BlackRock.

  • This investment represents 20% of Recurrent Energy's outstanding fully diluted shares and is convertible into common equity.

  • Canadian Solar will still retain the majority shares of Recurrent Energy after the investment.

  • The capital injection will support Recurrent Energy's transition from a developer to an owner and operator in select markets, including the U.S. and Europe.

  • Recurrent Energy is a major player in utility-scale solar and energy storage project development, with a global portfolio of around 9 GWp of solar and 3 GWh of battery storage power plants.

  • They have a significant development pipeline, expecting to have 4 GW of solar and 2 GWh of storage in operation in the U.S. and Europe by 2026.

  • XGS Energy has secured $9.7 million in new financing to advance its geothermal energy technology.

  • The funding round was led by Constellation Technology Ventures and included BlueScopeX, Thin Line Capital, and individual inside investors.

  • This financing will support the demonstration of XGS' proprietary Thermal Reach Enhancement™ (TRE) geothermal technology at full commercial scale in North America.

  • XGS' prototype aims to validate performance models and is a crucial step for its first commercial projects in the Western United States, Japan, and the Philippines.

  • ESGEN Acquisition Corp. (ESGEN) and Sunergy Renewables announce amended transaction terms for their pending business combination.

  • ESGEN's sponsor, ESGEN LLC, commits to purchasing up to $15 million in Convertible Preferred Equity Securities, with $10 million funded at the close of the Business Combination and $5 million optional for up to six months after closing.

  • The updated pro forma implied enterprise value of the combined company is expected to be $390 million, and the proceeds will support operations and growth.

  • The amended terms increase Energy Spectrum's commitment in the common stock PIPE and involve the forfeiture of founder shares.

  • Sunergy provides residential solar and energy efficiency solutions, while ESGEN is backed by Energy Spectrum, an energy infrastructure investment firm.

“We believe that these restructured terms position Sunergy to unlock growth both organically and through future M&A moving forward.”

Nader Daylami, ESGEN CFO
  • Rio Tinto has announced a 25-year deal to purchase power from a new solar farm in Queensland, Australia.

  • The agreement is with green energy company European Energy Australia, which is constructing the 1.1 gigawatt Upper Calliope solar farm in Queensland, set to become the country's largest.

  • Once completed, the solar farm has the potential to reduce Rio's carbon emissions by 1.8 million tonnes annually.

  • Rio Tinto, the 10th largest emitter in Australia, aims to cut its direct and indirect emissions by 50% by 2030, with a significant portion coming from its aluminum division.

  • This solar power deal will also support Rio's efforts to power its Boyne aluminum smelter, Yarwun alumina refinery, and Queensland Alumina refinery in Gladstone.

  • Ørsted has signed an 80MW power purchase agreement (PPA) with Bloomberg for renewable energy from the Mockingbird Solar Center, a 471MW project under construction in Texas.

  • This marks Ørsted's largest solar project in the U.S. and includes conservation efforts to protect native tallgrass prairie.

  • Bloomberg is one of four corporate customers buying power from this project, aiming to achieve its RE100 commitment of 100% renewable-sourced electricity for its U.S. usage and 80% of global usage.

  • A unique aspect of the project is Ørsted's agreement with The Nature Conservancy to preserve nearly 1,000 acres of rare tallgrass prairie.

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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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