- Sunya Scoop
- Charif is out
Charif is out
PLUS: Frontier's $57mm bet on Lithos, Congruent's $275mm raise, KKR's $1.6bn SMS buyout, Golden Pass delays, DW raises $2.5mm, Lufthansa carbon removal
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Frontier buyers have signed enhanced weathering offtake agreements with Lithos Carbon.
They will pay Lithos $57.1 million to remove 154,240 tons of CO₂ between 2024 and 2028.
This marks the largest purchase facilitated by Frontier and the largest enhanced weathering purchase to date.
Enhanced weathering accelerates carbon absorption in rocks and can remove gigatons of CO₂ annually.
Lithos uses superfine crushed basalt on farmlands and measures removal empirically.
Lithos uses a novel technique to measure carbon removal by monitoring soil's geochemical profile and leverages existing industrial and agricultural practices, using waste basalt to deacidify soil, reducing costs.
Partnerships with quarries and farms across the US enable significant carbon removal.
The price of carbon removal through Lithos has fallen by 26% since 2022 and may reach ~$100/t by 2030.
Lufthansa Group joins Airbus' carbon-removal initiative, focusing on Direct Air Carbon Capture and Storage (DACCS) technology to reduce CO2 emissions.
They signed a contract for pre-purchase of verified and durable carbon-removal credits of 40,000 tonnes of CO2 through Airbus' ACCO service, with certificates available from 2026.
The commitment aligns with Lufthansa Group's sustainability strategy and goal of achieving net-zero carbon emissions by 2050, emphasizing the importance of carbon removal solutions in aviation's decarbonization efforts.
Tellurian Inc. removed Charif Souki, its chairman and co-founder, as an executive officer.
Souki played a pivotal role in creating the U.S. LNG export market but faced challenges at Tellurian.
Martin Houston will replace Souki as chairman, while Souki will remain on the company's board.
Tellurian has struggled to secure potential clients for its Driftwood LNG project, leading to changes in strategy and auditors issuing a "going concern" warning.
Tellurian remains focused on completing the construction of Driftwood LNG despite previous challenges and strategy shifts.
Am old enough to remember this isn’t the first time. Charif is a force of nature and am excited to see his next move.
ExxonMobil delays startup of Golden Pass LNG terminal to H1 2025, previous timeline was late 2024
No comment provided for the reason behind the delay
Peak capacity of the terminal: 18.1 million mt/year
QatarEnergy is the majority owner of the project and ExxonMobil will market 30% of the LNG production
Expectation of slower growth in US LNG feed gas demand in 2024
LNG volumes from Golden Pass may not meet 2024-2025 winter demand
Golden Pass's request for commissioning approval pending and the Golden Pass Pipeline expansion expected in the second half of 2024
Continued delays in gulf coast LNG put further pressure on nat gas that’s been taking a beating in the last weeks. It will no doubt have an effect on upcoming guidance for 2024.
Congruent Ventures raised $275 million for its Congruent Ventures III fund to support early-stage startups working on carbon emissions reduction technologies.
The fund exceeded its initial goal of $200 million by 38% and raised 57% more than its predecessor fund from 2021.
The fundraising process took less than six months and received offers totaling $600 million from investors.
Investors in the fund include the California State Teachers’ Retirement System, the Grantham Foundation, Cambridge Associates-advised investors, Sobrato Capital, and Strategic Investment Group.
Congruent Ventures, founded in 2017, now manages over $1 billion in total assets.
Climate allocations are increasing even as overall venture capital investments decline in some areas.
Congruent's strategy focuses on backing startups with promising climate technologies that typically require small investments.
Past investments by Congruent include Avalanche Energy Designs, Meati Foods (plant-based meat substitutes), and Lydian Labs (fuels made from captured carbon dioxide).
Digital Wildcatters, a community platform for energy professionals, successfully raised $2.5 million in seed plus funding led by Chuck Yates and included participation from Diamondback Energy, ProFrac, and other angel investors in the energy sector.
Digital Wildcatters will use the funds to further develop and commercialize their professional networking app, 'Collide,' which aims to modernize the energy industry.
The funding round closed on Dec 1, and supports Digital Wildcatters' mission to empower the next generation of energy professionals and address global energy challenges.
KKR & Co. plans to acquire Smart Metering Systems, a London-listed company, to boost renewable energy in the UK for $1.63 billion.
KKR will purchase the company for 955 pence per share in cash, representing a 40% premium to the previous closing price.
Smart Metering Systems provides technology including electricity meters, utility-scale storage batteries, and electric vehicle charging systems.
KKR sees the company as a national leader in battery systems for the UK power grid, crucial for drawing from renewable energy sources.
The deal values the business at approximately 20 times its adjusted pretax earnings, highlighting the company's long-term contracts, inflation-protected cash flows, and its role in helping the UK government reach its net-zero carbon goal.
KKR is investing through its fourth infrastructure fund and will secure financing from banks.
Smart Metering Systems expects to accelerate its growth and transition into an end-to-end energy infrastructure company as a private entity.
The company's shares surged by 41% following the announcement, suggesting potential for a higher offer.
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