Coal carbon capture

PLUS: DOE cuts permitting red tape, QatarEnergy's $6bn LNG order, Dallas solar, South Carolina renewables, Howard buys JV interest

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:

  • The administration finalizes climate policies targeting US power plant emissions, with stricter standards for existing coal and new gas plants.

  • Rules recommend carbon capture and storage tech for emissions control, facing legal challenges and criticism for excluding existing gas plants.

  • EPA's rules address coal ash management, toxic metal, and water pollution from coal plants, aiming for comprehensive environmental protection.

  • Regulations tailored to withstand legal challenges, following Supreme Court's scrutiny on EPA's environmental rules.

  • Existing coal plants required to cut 90% of pollution by 2039, with phased reductions starting from 2032, using carbon capture for compliance.

  • New gas plants to face emissions rules from 2032, with lowered capacity threshold for standards application.

  • Exclusion of existing gas plants reduces expected emissions impact, estimated to cut 1.38bn metric tonnes of carbon pollution through 2047.

  • Biden administration aims for significant emissions reduction, but challenges remain regarding existing gas plants' regulation and feasibility of rapid carbon capture deployment.

I’m a big fan of coal-to-gas switching. It’s the greatest emissions reduction technology deployed to date and the U.S. is a great case study. That said, coal is still going to be in the power stack 20 years out.

Carbon capture on coal plants is uneconomic with today’s incentives. Perhaps that will change by 2030 or 2035. Who knows. If I were a betting man, which I am, an administration change will tear this apart and this game will go back and forth a few times before 2039.

  • QatarEnergy orders 18 LNG carriers from China State Shipbuilding Corp. for $6 billion.

  • Each carrier has a capacity of 271,000 cubic meters and will be made at Hudong-Zhonghua shipyard.

  • Delivery timeline: 8 ships in 2028-2029, 10 ships in 2030-2031.

  • QatarEnergy expanding annual LNG capacity to 142 million tons by 2030 from 77 million tons currently.

  • Agreements signed to charter 19 vessels last month in preparation for increased production.

  • Astatine Investment Partners exits HEP Catalyst InvestCo investment successfully.

  • AIP, formerly Alinda Capital Partners, focuses on infrastructure investments.

  • Investment involved a 50% stake in an oil gathering and gas processing system in the Permian Basin.

  • Investment sold to joint venture partner Howard Energy Partners.

  • Catalyst Midstream Partners expanded under Howard's leadership to include three gas processing plants.

  • Devon Energy remains an anchor producer with a 50% interest in Catalyst Midstream Partners.

  • DOE streamlines environmental review processes for energy storage, transmission, and solar projects.

  • Amends NEPA categories, simplifying review for projects with limited environmental impact.

  • Aims to slash costs and time for analysis by up to 30% for battery systems, transmission line upgrades, and solar photovoltaic systems.

  • Decision based on years of experience and industry engagement.

  • Focuses on boosting development of energy storage systems, transmission line upgrades, and solar projects.

  • Highlights benefits like integrating over 5 GW of renewable energy into the grid and improving transmission efficiency by 15%.

  • Increases size of solar projects eligible for streamlined reviews under NEPA to over 100 MW.

  • WEC Energy Group acquires 90% of Delilah I Solar Energy Center, a 300-megawatt project near Dallas.

  • Investment totals $459 million for 90% ownership, generating renewable energy under a long-term contract.

  • Samson & Delilah solar portfolio, including Delilah I, is one of the largest in the U.S.

  • WEC's Infrastructure segment has 11 solar and wind projects, totaling over 2 gigawatts in capacity.

  • Serving 4.7 million customers across Wisconsin, Illinois, Michigan, and Minnesota.

  • Investment qualifies for production tax credits under the Inflation Reduction Act.

  • Initiative Equity Partners acquires 16% equity in ArtIn Energy, a renewable energy leader.

  • ArtIn Energy focuses on photovoltaics, energy storage, electrical mobility, and green hydrogen.

  • Recently awarded contracts worth $2.7 billion, positioning for growth in clean energy.

  • ArtIn Energy optimizes solar panel placement using AI algorithms for maximum energy generation.

  • The acquisition aims to accelerate deployment of renewable energy technologies.

  • ArtIn Energy to operate under existing brand and management, gaining access to capital and expertise.

  • Solar energy investments on the rise, with growing markets in states like Texas, Florida, and New York.

  • energyRe secures $155 million in project financing and $85 million tax equity commitment for Lone Star Solar project.

  • Lone Star Solar includes a 108 MWdc solar installation and a 198MWh Battery Energy Storage System (BESS).

  • Expected to be the largest BESS installation in South Carolina, operational by Fall 2024.

  • Financing includes construction debt, tax equity bridge facility, and letter of credit facility with Santander as Coordinating Lead Arranger.

  • Bank of America commits $85 million in tax equity; project qualifies for Investment Tax Credits (ITCs) under the Inflation Reduction Act (IRA).

  • energyRe's market leadership highlighted; 10-year power purchase agreement with Dominion Energy South Carolina (DESC) announced in January 2023.

On Direct Air Capture:

“If you tried to apply that across the emissions challenge the planet has, the world won’t be able to pay for that,” the CEO said during Exxon’s quarterly earnings call. “We’re focused on how we can make this technology broadly applicable at a cost that society can afford.”

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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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