Calpers commits colossal cash

PLUS: Mizuho $13bn hydrogen, TPG's $1.5bn snag, ADNOC ammonia, Pertamina-Exxon CCS, JERAs decarb plan, Crescent buys SilverBow

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:

  • Pertamina and ExxonMobil plan appraisal drilling for a carbon capture and storage (CCS) hub in Indonesia.

  • They signed an initial storage deal with South Korea's KNOC.

  • Indonesia allows CCS operators to reserve 30% of storage capacity for imported carbon.

  • Pertamina and ExxonMobil signed a deal for preliminary work on the Asri Basin Project CCS hub.

  • Appraisal drilling will collect data for hub development.

  • The Asri basin can store up to 3 gigatonnes of CO2, requiring $2 billion in investments.

  • They also signed a framework agreement with KNOC for partnership and emissions injection into the facility.

  • ADNOC delivers the world's first certified bulk commercial shipment of low-carbon ammonia enabled by carbon capture and storage (CCS) to Mitsui & Co., Ltd. for clean-power generation in Japan.

  • The shipment is part of ADNOC's efforts to support customers in decarbonizing their operations, particularly in hard-to-abate sectors, and is certified by TÜV SÜD, a renowned certification agency.

  • The cargo is sourced from Fertil, Fertiglobe’s facility in Abu Dhabi, with the carbon dioxide (CO2) captured and stored in the world’s first fully sequestered CO2 injection well in a carbonate saline aquifer.

  • ADNOC aims to capture 5% of the global low-carbon hydrogen market by 2030 as part of the UAE’s National Hydrogen Strategy.

  • ADNOC is actively developing facilities in Abu Dhabi for low-carbon hydrogen production and a large-scale low-carbon ammonia facility in partnership with TA’ZIZ, Fertiglobe, G.S. Energy Corporation, and Mitsui.

  • KeyState Energy, CNX Resources Corp., and Pittsburgh International Airport are collaborating on a $1.5 billion project to advance hydrogen and sustainable aviation fuel (SAF) development.

  • The integrated facility at Pittsburgh International Airport can produce up to 68,000 metric tons of hydrogen annually or 70 million gallons of SAF per year.

  • The partners signed a Letter of Intent (LOI) and are evaluating market targets for SAF usage in aviation and clean hydrogen for various applications.

  • The project leverages ultra-low carbon intensity waste coal mine methane emissions as feedstock for low-cost alternative fuels.

  • KeyState serves as the project developer, CNX provides feedstock services, and the airport offers strategic advisory planning and industry expertise.

  • Mizuho Financial Group plans to provide JPY 2 trillion (~$13bn) in financing for hydrogen production and related technologies by 2030.

  • Mizuho's sustainability focus includes initiatives such as supporting Japanese government strategies, developing key technologies, conducting research on hydrogen trends, and promoting the construction of hydrogen supply chains.

  • The bank has been involved in formulating roadmaps for electrolyzers and fuel cells, providing digital simulation support, managing collaborative research projects, and investing risk capital into hydrogen-related startups.

  • Mizuho has supported feasibility studies for hydrogen production and power generation technologies, participated in global hydrogen initiatives like the Hydrogen Council, and arranged finance for green hydrogen projects internationally.

  • The bank's efforts also include granting transition loans in the green energy sector, providing financial advisory services to hydrogen players, and issuing green and transition bonds for clean hydrogen supply chain projects.

  • Calpers, the US's largest public pension plan, will invest over $25 billion in green-related private market investments.

  • The investment is part of a larger commitment of $53 billion to an expanded low carbon assets portfolio.

  • Calpers will focus on private equity, real estate, and infrastructure in Asia and Europe over the next six years.

  • This allocation aims to make Calpers one of the world's largest investors in climate solutions.

  • The investment strategy includes generating alpha, reducing carbon intensity, and targeting green buildings and renewable infrastructure.

  • Calpers sees significant opportunities in Asia and Europe, particularly in emerging markets.

  • TPG and Hassana Investment Company have announced a $1.5 billion strategic partnership in TPG Rise Climate platform.

  • The partnership includes a substantial commitment to TPG Rise Climate's new Transition Infrastructure fund.

  • Both TPG and Hassana aim to capitalize on global climate investment opportunities.

  • The collaboration signifies the importance of international and local partnerships in addressing climate challenges.

  • TPG Rise Climate deploys capital across various climate sectors like energy transition, sustainable fuels, and carbon solutions.

  • The partnership combines TPG's global capabilities with Hassana's local expertise to drive positive change and capitalize on climate investment opportunities globally.

  • JERA unveiled its 2035 growth strategy focused on decarbonization and responsible energy solutions, aligning with its 2050 zero-emission goals.

  • The strategy integrates three key business pillars: LNG, renewables, and hydrogen & ammonia, aiming for specific targets by fiscal year 2035.

    • LNG: Targeting more than 35 million tons of transaction volume.

    • Renewables: Aiming at 20 GW of capacity.

    • Hydrogen & Ammonia: Targeting approximately 7 million tons of handling volume and pioneering the global hydrogen & ammonia value chain.

  • Environmental targets include reducing CO2 emissions intensity by 20% by 2030, total CO2 emissions by 60% by FY2035, and achieving zero CO2 emissions by 2050.

  • JERA plans to phase out inefficient coal-fired thermal power by FY2030, convert all other coal-fired power generation to ammonia by 2040, and eliminate coal completely.

  • Crescent Energy Company is acquiring SilverBow Resources in a $2.1 billion transaction.

  • The combined company will be the second-largest operator in the Eagle Ford region.

  • SilverBow shareholders can opt for 3.125 shares of Crescent stock per share or $38 per share in cash.

  • The combined entity will focus on disciplined capital allocation and generating significant annual synergies.

  • The transaction is expected to close by the end of the third quarter, pending shareholder and regulatory approvals.

  • After the merger, Crescent's board will expand, and John Goff will continue as Non-Executive Chairman, with David Rockecharlie as CEO.

Given the Kimmeridge - SilverBow management proxy battle, it’s a bit surprising to see this. Will make for a juicy proxy filing.

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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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