Buona CERA

PLUS: KKR’s solar bet, Infinium e-fuels, Jerry Jones bets on the boys, EDP/Volt Energy, AMI update, CapturePoints tax credit sale, e-NG coalition

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:

  • CapturePoint closed a private Section 45Q direct transfer tax credit transaction related to CO2 captured at its Arkalon facility in Kansas.

  • The captured CO2 is used for Carbon Dioxide Enhanced Oil Recovery (CO2-EOR) operations in Oklahoma and Texas.

  • The Arkalon facility can capture 250,000 metric tons of CO2 annually from nearby bio-ethanol production and transports it through a regional CO2 pipeline network to active CO2 injection wells.

  • The facility generates Section 45Q tax credits, and a Tax Credit Transfer Agreement includes placing 100% of these credits with the buyer for 12 years.

  • Marathon Capital facilitated the Section 45Q tax credit transfer transaction.

  • CapturePoint is focused on carbon management innovation and is developing deep underground carbon storage sites to sequester CO2 emitted by industrial sources.

  • With transactions in Coffeyville, Kansas, and Arkalon, CapturePoint now utilizes nearly one million metric tons per year of CO2 for CO2-EOR operations, generating 45Q tax credits.

  • Mitsubishi Corporation, along with Engie, Osaka Gas, Sempra Infrastructure, TES, Tokyo Gas, Toho Gas, and TotalEnergies, has formed the e-NG Coalition dedicated to electric natural gas (e-NG or e-methane).

  • e-NG is a synthetic gas produced from renewable hydrogen and recycled CO2 through methanation, with a molecular composition identical to conventional natural gas.

  • The coalition aims to promote e-NG as a sustainable solution for gas consumers without requiring modifications to existing infrastructure.

  • It believes e-NG can contribute significantly to the energy transition by accelerating renewable hydrogen development.

  • The e-NG Coalition will raise awareness, promote global tradability and use of e-NG, foster policy support, and encourage collaboration across stakeholders for the reliable, affordable, and sustainable development of e-NG.

  • Infinium's Project Pathfinder is the world's first fully operational eFuels facility, located in Corpus Christi, Texas.

  • The facility produces synthetic, ultra-low carbon electrofuels (eFuels) suitable for heavy transportation and chemical processes.

  • Infinium eFuels are made from captured carbon dioxide (CO2) and green hydrogen, producing sustainable aviation fuel (eSAF), eDiesel, and eNaphtha without sulfur or process emissions.

  • Project Pathfinder integrates novel production technology, electrolyzers, a laboratory, logistics, and delivery mechanics for efficient eFuels production.

  • Infinium has multiple eFuels projects under development globally.

“eFuels are here today.”

Robert Schuetzle, CEO of Infinium

  • Founded by Chesapeake Energy, EQT, and Equitrans Midstream Corporation, AMI completed its 2023 pilot methane emissions monitoring program.

  • It found that condensate tanks and compressors were major sources of emissions among gas facilities.

  • Non-oil and gas sources, particularly coal mines and vents, contributed significantly to methane emissions.

  • AMI emphasizes the importance of actual operational data for accurate emissions inventories.

  • In 2024, AMI aims to expand its monitoring area significantly.

  • Ascent Resources, CNX Resources, MPLX LP, and Seneca Resources joined AMI for the 2024 campaign.

  • The 2024 campaign plans to monitor over 20,000 square miles, including gas production facilities representing 31.5 bcf/d of capacity, and increase monitoring of oil and gas sites from 600 to over 6,000.

  • Majority shareholder Jerry Jones to invest $100.5 million in Comstock Resources

  • Investment through two entities controlled by Jerry Jones, acquiring 12,500,000 shares of common stock at $8.036 per share.

  • Jerry Jones's ownership in Comstock will increase from approximately 65% to about 67% after the equity investment.

  • Proceeds from the investment will be used by Comstock to pay down bank debt, which was partially incurred for recent acquisitions of 200,000 net undeveloped acres in the Western Haynesville play for $58.7 million.

Jerry doubling down on the boys at a time where many believe nat gas is at the bottom of the cycle.

  • Google, Microsoft, and Nucor will collaborate to develop new business models and aggregate demand for advanced clean electricity technologies.

  • The initiative aims to accelerate the development of first-of-a-kind (FOAK) and early commercial projects, including advanced nuclear, next-generation geothermal, clean hydrogen, long-duration energy storage (LDES), and others.

  • The companies will issue a Request for Information (RFI) in multiple US regions to identify potential projects and encourage participation from technology providers, developers, investors, utilities, and others.

  • The initiative will focus on proving out the demand aggregation and procurement model through pilot projects in the US, aiming to reduce risks for utilities and developers and bring projects online by the early 2030s.

  • The companies will share lessons learned and encourage other companies to support advanced clean electricity projects.

  • KKR acquired a majority stake in Avantus, a U.S. developer of large utility-scale solar and solar-plus-storage projects.

  • The transaction marks KKR's first U.S. investment from its Global Climate Strategy.

  • Existing investor EIG and KKR will commit up to $1 billion for the next phase of growth.

  • Avantus, founded in 2009, owns a project pipeline of 30 gigawatts peak (GWp) of solar capacity and 94 gigawatt-hours (GWh) of battery storage, sufficient to provide clean power to 20 million people.

  • Avantus has successfully developed and sold 6.5 GWp and 6.3 GWh of solar and storage projects, respectively.

  • The company focuses on solar and energy storage development throughout the project lifecycle, from site selection to operations.

  • Avantus benefits from secular tailwinds supporting renewables development in the U.S., with significant growth opportunities.

  • KKR plans to leverage its resources and expertise to accelerate Avantus' growth and support the energy transition.

  • EDPR NA and Volt Energy Utility announced the development of Hickory Solar Park, a 110 MWac photovoltaic project in Illinois, with Microsoft purchasing electricity and renewable energy credits for fifteen years.

  • The partnership uses an Environmental Justice Power Purchase Agreement (EJ PPA) to support clean energy investments in communities impacted by environmental injustices.

  • Hickory will contribute funding to the Sharing the Power Foundation for environmental justice programs, focusing on sustainable environmental, social, and economic results.

  • The project company pledges carbon neutrality and empowers career pathways for women and minority-owned businesses in project management and construction.

  • Microsoft's collaboration with EDPR NA expands, with recent power purchase agreements for other solar projects expected to be operational by the end of 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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