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Cold front is in and energy security is back

PLUS: AMG acquires stake in Ara, Wyoming's 29% electricity cost increase, Duke hydrogen, Comstock-Quantum JV, X-energy's SPAC is off, Cheniere-Foran LNG

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.

Happy “I-need-to-leave-by-4-today-because-I-have-a-kid-thing-tonight” day!

Here’s what we have for you today:

  • AMG acquires the minority equity interest in Ara Partners that was previously held by Capital Constellation and its affiliated investment vehicles.

  • Ara Partners is a global private markets firm focused on investing in the transition to a lower-carbon economy, primarily in companies offering technologies, products, or services related to decarbonization across various industries.

  • The partnership with Ara Partners expands AMG's presence in private markets and sustainable investing.

  • Ara Partners will leverage AMG's strategic capabilities to enhance business development and growth initiatives.

  • The transaction terms were not disclosed, and Ara Partners' management team will continue to oversee the firm's daily operations.

  • Ara Partners has approximately $5 billion in assets under management and aims to address the growing demand for industrial decarbonization solutions to achieve carbon emission reduction goals.

  • Wyoming faces a proposed 29% increase in electric bills, causing concern among residents and local leaders.

  • The state's largest utility, Rocky Mountain Power, attributes the rate hike to rising fuel prices rather than renewable power projects.

  • Renewable energy's share has doubled in Wyoming, but coal still plays a

    significant role in electricity production.

  • Some lawmakers and residents suggest government intervention, including a state takeover of the utility.

  • Rocky Mountain Power defends renewable energy, stating that it saves money in a state prone to high winds.

  • The utility seeks a 21% rate increase to cover rising coal and natural gas costs and address drought impacts on hydroelectric generation.

  • A temporary 7.6% hike is also requested to offset fuel price surges caused by extreme weather.

  • Regulators are considering the proposed increases, which would result in an average monthly increase of $19.08 for residential customers.

  • Other utilities in the region are also seeking rate increases, with Rocky Mountain Power's proposal on the higher side.

  • Regulators are expected to make a decision on the rate increases in November and December.

  • Some residents are considering alternative energy options, such as wind turbines or solar panels, to mitigate rising costs.

  • Duke Energy plans to build an end-to-end green hydrogen system in Florida.

  • The project aims to produce, store, and use 100% green hydrogen.

  • Duke Energy is collaborating with Sargent and Lundy and GE Vernova, a General Electric unit, for this initiative.

  • The system will be located at Duke's existing facilities in DeBary.

  • Green hydrogen is produced through water electrolysis using renewable energy.

  • This project will contribute to decarbonizing various industries, including transport.

  • Construction of the DeBary demonstration project will begin later this year and may take approximately one year to complete.

  • It will start with the existing 74.5-megawatt DeBary solar plant, which will provide clean energy for two 1-megawatt electrolyzer units.

  • Duke Energy expects the system to be fully operational by 2024.

  • Rubicon Carbon announces new offerings for carbon removal and customized portfolio construction.

  • These offerings aim to align with the evolving voluntary carbon market (VCM) 2.0 standards.

  • Rubicon Carbon introduces Rubicon Carbon Tonne™ (RCT), allowing clients to access carbon removal credits.

  • RCTs are portfolios of high-quality carbon credits actively managed by Rubicon Carbon.

  • The company adjusts portfolios to ensure they reflect the desired greenhouse gas emissions reduction.

  • The carbon removal portfolio complements Rubicon's existing nature-based and industrial emissions reduction RCTs.

  • The new Carbon Removals RCT includes credits from proven carbon removal projects such as biochar conversion, afforestation, and more.

  • Rubicon also introduces a build-your-own RCT feature, allowing clients to customize portfolios to meet their sustainability goals.

  • Comstock is forming a midstream partnership with Quantum Capital Solutions (QCS), an affiliate of Quantum Capital Group, for its Western Haynesville acreage.

  • In the partnership, Comstock will contribute its Pinnacle gathering and treating system, consisting of a 145-mile high-pressure pipeline and the Bethel natural gas processing plant.

  • QCS will commit $300 million in capital to fund the expansion of the Western Haynesville midstream system over the next several years.

  • Comstock will retain control and operate the midstream system.

  • This partnership with QCS is expected to support the expansion of Comstock's Western Haynesville midstream development program over the next five years.

  • Petronet LNG, India's top gas importer, does not plan to request additional volumes when renewing its long-term LNG deal with Qatar.

  • Currently, Petronet has a 7.5-million metric ton per year (tpy) long-term LNG import deal with Qatar, while its promoters, including Indian Oil Corp, Bharat Petroleum Corp, and GAIL, have a 1 million tpy deal.

  • Previously, Petronet had indicated it might seek up to 1 million

    tons per annum of additional LNG during the renewal.

  • Renewal discussions between Indian companies and Qatar are ongoing, with negotiations extending beyond 2028.

  • Qatar, a major LNG exporter, aims to expand its liquefaction capacity significantly by 2027 and has signed recent long-term deals with various global companies.

  • Despite a diplomatic row between India and Qatar, Petronet LNG's CEO hopes it won't impact their business relations, and any issues will be handled at the highest levels of the countries.

  • Foran Energy Group, a Chinese natural gas distribution company, plans to sign a 20-year LNG purchase agreement with Cheniere Energy Inc., a U.S. company.

  • Cheniere will supply approximately 45 million British thermal units (about 860,000 metric tons) of LNG per year starting in 2028.

  • The purchasing prices will be linked to U.S. Henry Hub gas futures.

  • Cheniere is the largest producer and exporter of LNG in the United States.

  • X-Energy and Ares Acquisition mutually terminated a $2 billion deal to go public.

  • This decision highlights waning interest in special purpose acquisition companies (SPACs) due to economic uncertainty and constrained investor budgets.

  • SPACs were popular during the pandemic as a means for early-stage companies to go public.

  • X-Energy had initially agreed to merge with Ares in December but later reduced the deal value to $1.8 billion in June.

  • Challenging market conditions led to the joint decision not to proceed with the deal.

  • AAC will cease all operations except those needed for winding up its business starting from November 6 and expects its securities to be delisted from the NYSE.

  • X-Energy, founded in 2009, specializes in small modular nuclear reactors and fuel technology for clean energy generation.

What is going to trump over and above everything else is energy security. So if India, Vietnam, Indonesia, all the growing countries, they need to grow. They need energy.

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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.