Blue steel

PLUS - $4Bn in tax credits, EV Realty-Greenpoint $200mm JV, Adani's renewable empire, Avina's SAF plans, Torus $67mm raise

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:

  • U.S. Steel and CarbonFree signed a definitive agreement to capture carbon emissions at U.S. Steel’s Gary Works Blast Furnaces using CarbonFree’s SkyCycle™ technology.

  • The project aims to capture and mineralize up to 50,000 metric tons of carbon dioxide annually, equivalent to emissions from nearly 12,000 passenger cars.

  • This project will be the first commercial-scale carbon capture utilization plant at a steel plant in North America.

  • U.S. Steel’s involvement aligns with its goals of reducing greenhouse gas emissions intensity by 20% by 2030 and achieving net-zero emissions by 2050.

  • Construction on the SkyCycle plant is expected to start in summer 2024, with operations beginning in 2026, and the agreement has a 20-year term.

  • CarbonFree’s SkyCycle solution captures carbon emissions and converts them into carbon-neutral calcium carbonate, useful in various industries.

  • Avina plans to build a cutting-edge Sustainable Aviation Fuel (SAF) plant in the Midwest, starting operations in 2027.

  • The plant will produce 120 million gallons of SAF annually using alcohol-to-jet production technology, with significantly reduced carbon emissions compared to traditional jet fuel.

  • Avina has completed the preliminary Front End Engineering Design (Pre-FEED) and expects FEED to start in Q2 2024.

  • Funding commitments for the project have been secured, and Avina is in advanced talks with investors for further funding.

  • Avina has secured long-term supply agreements with ethanol suppliers for low carbon intensity (CI) ethanol feedstock, aiming to avoid around 840,000 metric tons of aviation-related carbon emissions annually.

  • The project will leverage existing infrastructure for optimal delivery of SAF to airports in the region, supporting the US airline industry's goal of using three billion gallons of SAF by 2030.

  • Adani Green Energy Limited (AGEL) has become India’s first renewable energy company to surpass 10,000 megawatts (MW) of operational portfolio, including solar, wind, and wind-solar hybrid capacities.

  • The operational portfolio of 10,934 MW is the largest in India, with contributions from various projects including the 2,000 MW solar capacity at Khavda.

  • In FY24, AGEL added 2,848 MW of renewables capacity to its portfolio.

  • AGEL's 10,934 MW portfolio powers over 5.8 million homes and avoids about 21 million tonnes of CO2 emissions annually.

  • The company is setting a global precedent for giga-scale renewable energy development, with plans to achieve 45,000 MW by 2030 and build the world's largest renewable energy project of 30,000 MW at Khavda, Gujarat.

  • AGEL's focus on sustainable practices includes being 'single-use plastic free', 'zero waste-to-landfill', and 'water positive for plants with more than 200 MW capacity'.

  • AGEL's contributions to India's renewable energy goals include creating over 3,200 direct green jobs and representing about 11% of India’s installed utility-scale solar and wind capacity.

  • BloombergNEF's analysis indicates a shift in the oil and gas sector away from renewables and power in favor of low-carbon molecule technologies.

  • Investment in renewable power and electrification has decreased for two consecutive years, with a focus now on carbon capture and storage (CCS), renewable fuels, and advanced materials.

  • North American oil firms, especially in the US and Canada, are leading in adopting clean molecules technologies due to supportive policies like tax credits and emission reduction regulations.

  • European oil majors, transitioning from "Big Oil" to "Big Energy," have reduced their focus on renewable energy and electrification, with BP and Shell increasing investment in clean molecules possibly due to lower returns in renewables.

  • TotalEnergies, however, remains committed to expanding its renewable power portfolio and building an integrated power business across the electricity value chain.

  • The Administration has announced $4 billion in tax credits for over 100 projects in 35 states to accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions.

  • These tax credits, under the Qualifying Advanced Energy Project Tax Credit (48C), support large, medium, and small businesses, state, and local governments, requiring prevailing wage and apprenticeship standards for a 30% investment tax credit.

  • $1.5 billion of the tax credits are allocated to projects in historic energy communities, aiming to create jobs, lower energy costs, and support climate and energy security goals.

  • The DOE is collaborating with the Treasury and IRS to implement the 48C Program funded by the President’s Inflation Reduction Act, with at least $4 billion allocated for projects in designated energy communities.

  • Round 1 of the program received significant interest, with applicants seeking nearly $42 billion in tax credits, covering clean energy manufacturing, critical materials recycling, processing, refining, and industrial decarbonization.

  • Clean energy manufacturing and recycling projects received $2.7 billion, critical materials recycling got $800 million, and industrial decarbonization received $500 million in tax credits.

  • Torus, a global energy solutions company, secured $67 million in venture financing, led by Origin Ventures and other notable institutional investors.

  • The funding will be used to expand Torus' energy solutions portfolio in commercial and large-scale utility sectors and add talent to its team.

  • Torus offers a Virtual Power Plant ecosystem, energy management systems, unified customer experience solutions, and Flywheel energy storage technology.

  • The Virtual Power Plant ecosystem enables efficient grid management, predictive analytics, and participation in demand response programs.

  • EV Realty and GreenPoint Partners have formed a joint venture to build $200 million in EV charging hubs across California and strategic U.S. markets.

  • The joint venture combines EV Realty's EV infrastructure development platform with GreenPoint's real estate investment expertise to develop Powered Properties™ for medium and heavy-duty commercial fleet electric vehicles.

  • EV Realty's track record includes installing 70 Supercharger hubs and over 7,000 EV chargers in California in the last five years, addressing key barriers for fleet operators and supporting California's climate and transportation goals.

  • The partnership aims to enable large-scale electrification of commercial fleets by securing properties with significant grid capacity, creating a scalable solution for charging infrastructure.

  • The joint venture is expected to expand EV Realty's portfolio of charging projects, including existing ones in Oakland, Livermore, and San Bernardino.

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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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