Carbon Capture, Removal, and Credits

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.

Author

Sunya Scoop
January 17, 2023

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:

  • CVR and CapturePoint

  • Climeworks makes DAC history

  • TPG / Anew Climate makes $640mm NBS investment

  • CVR Partners and CapturePoint just closed a deal with some third-party investors to get some major tax credits from the IRS for their carbon capture and sequestration efforts in Coffeyville, Kansas, specifically from production on blue ammonia and hydrogen.

  • CVR Partners' subsidiary, Coffeyville Resources Nitrogen Fertilizers, LLC, and CapturePoint each received an initial payment of around $18 million and are expected to receive more money coming in quarterly until 2030. If they hit certain milestones, they could see an additional $38 million each.

  • CVR Partners' CEO Mark Pytosh said they're proud to be a leader in producing low-carbon fertilizer while also being environmentally responsible. CapturePoint's CEO Tracy Evans is excited to partner up and continue expanding their carbon capture and sequestration services.

  • Nice to see there's going to be an innovative financial market to accelerate upfront payments and liquidity for the 45Q generating projects

Climeworks Orca Facility Source: Climeworks

  • Climeworks, a Direct Air Capture (DAC) startup, announced that it has provided third-party certified CDR services to its first corporate customers: Microsoft, Shopify, and Stripe.

  • The services were certified by DNV, a leading independent quality and assurance company, after a successful audit, based on a rigorous direct air capture and storage (DAC+S) methodology co-developed by Climeworks and Carbfix and validated by DNV in 2022.

  • Climeworks has put more than 15 projects into operation across Europe, including Orca, the world's only commercial DAC+S plant. This field experience enabled the creation and implementation of the certification methodology, leading to the world's first certification of CDR services via DAC+S.

  • Microsoft announced a purchase last year of 1,400 tons and Stripe purchased 322 tons at $775 a ton

  • A very historic announcement, the trillion dollar question is - will it scale? 

  • Anew Climate (TPG Rise-backed), a climate solutions company, is committing up to $640 million to Terra Global Capital to finance nature-based solutions that produce carbon credits.

  • Anew will be the anchor investor in Terra Global's Terra Bella Nature-Based Solutions Carbon Pool, a new investment vehicle aimed at financing emission reduction and removal projects in developing countries

  • The pool aims to produce significant climate change mitigation benefits on up to 20 million hectares of improved forest and managed land, and to direct private sector climate finance funds to host countries

  • Terra Global's activities span the full value chain of nature-based solutions, including program design, analytics, monitoring and locally aligned business management training

  • The collaboration aims to accelerate the development of high-quality nature-based solutions projects that deliver real, local community co-benefits and in demand carbon credits.

  • TPG Rise continues to be a large financier in the carbon credit development, last year they announced the launch of Rubicon Carbon as another channel to sell to corporates

That's a wrap for today. If you like what you read, send to a friend.

If someone forwarded you this and you liked it, consider subscribing below.

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.