ECP raises $6.7 billion

PLUS: Ørsted-MSFT carbon removal, Google's Japan solar, RWE wind farms, Energy Transfer's $3.25bn acquisition

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:

  • Ørsted has entered a major agreement with Microsoft to sell one million tonnes of carbon removal over ten years from its Avedøre Power Station, part of the Ørsted Kalundborg CO2 Hub project.

  • Microsoft's total purchase commitment under contract with Ørsted now stands at 3.67 million tonnes of CO2.

  • The Ørsted Kalundborg CO2 Hub project involves establishing carbon capture at the Asnæs Power Station and Avedøre Power Station in Denmark by 2026, with biogenic CO2 storage in the North Sea.

  • Microsoft will take one million tonnes of carbon removal from the straw-fired unit at Avedøre Power Station starting in 2026, contributing to negative emissions.

  • The Ørsted Kalundborg CO2 Hub project received a subsidy from the Danish Energy Agency and focuses on bioenergy-based carbon capture and storage (BECCS) technologies crucial for limiting global warming.

  • The project involves capturing 150,000 tonnes of biogenic CO2 per year from the straw-fired unit and 280,000 tonnes from the wood chip-fired unit at Asnæs Power Station, contributing to sustainable energy practices.

  • The Administration announces new Principles for Responsible Participation in Voluntary Carbon Markets (VCMs).

  • The Principles, co-signed by top officials including Treasury Secretary Janet Yellen and Energy Secretary Jennifer Granholm, focus on advancing high-integrity VCMs with clear incentives and guardrails.

  • The principles emphasize credible atmospheric integrity standards for carbon credits, avoidance of environmental harm, and transparent disclosure of credit usage.

  • They also highlight the role of corporate buyers in prioritizing measurable emissions reductions and contributing to market integrity efforts.

  • The administration's actions include creating opportunities for farmers and forest landowners, conducting credit purchases, advancing carbon dioxide removal (CDR) technology, leading international standards setting, supporting international market development, providing clear guidance to financial institutions, enhancing monitoring capabilities, and addressing fraud and abuse in VCMs.

  • A Task Force on Voluntary Carbon Markets has been established to coordinate these efforts across federal agencies and offices.

  • Energy Capital Partners (ECP) completes a $6.7 billion fundraise for its fifth flagship equity strategy, ECP V ("Fund V").

  • The fund surpassed its initial target of $4.0 billion by 10%, reaching total capital commitments of $4.4 billion, and raised an additional $2.3 billion of co-investment capital.

  • Fund V will focus on transforming companies in power generation, renewable and storage assets, and critical sustainability and decarbonization infrastructure.

  • Recent investments under Fund V include the $2.6 billion take-private of Atlantica Sustainable Infrastructure plc, the take-private of Biffa, a UK-based waste management business, and investment in Harvestone, a biofuels platform with a carbon capture project.

  • Commitments to Fund V came from a mix of existing and new investors globally, including public and private pensions, insurance companies, asset managers, and family offices.

  • ECP, founded in 2005, is a leading investor in energy transition, electrification, and decarbonization infrastructure assets, with over $30 billion in capital commitments raised.

  • Google signed its first solar Power Purchase Agreements (PPAs) in Japan, totaling 60MW capacity.

  • The agreements are with Itochu's partner Clean Energy Connect and Shizen Energy.

  • Clean Energy Connect will construct around 800 small-scale solar plants across Japan, generating 40MW of clean energy.

  • Shizen Energy will develop a 20MW utility-scale solar project in Inzai City, Chiba prefecture, supporting Google's data center operations.

  • Google aims to run on 24/7 carbon-free energy on every grid by 2030 and is investing nearly $690 million in sustainable infrastructure in Japan.

  • RWE signed two 15-year Power Purchase Agreements (PPAs) with Microsoft, aiming to support Microsoft's goal of achieving 100% renewable energy coverage by 2025.

  • The agreements involve clean electricity from two new RWE onshore wind farms in Texas, with a combined capacity of 446 megawatts (MW).

  • RWE broke ground on the Peyton Creek II onshore wind farm and decided to invest in the Lane City project, expanding its footprint in Texas to nearly 5 gigawatts.

  • The V163 4.5 MW turbines from Vestas North America will be used for these projects, with construction led by Wanzek Construction, Inc., and RES.

  • RWE's renewables portfolio in Texas will grow to 4.8 gigawatts (GW) after completing these projects, contributing to its total U.S. renewables portfolio of 9.3 GW across wind, solar, and batteries.

  • Energy Transfer is acquiring WTG Midstream in a $3.25 billion transaction from affiliates of Stonepeak, the Davis Estate, and Diamondback Energy, Inc.

  • WTG Midstream operates the largest private Permian gas gathering and processing business, expanding Energy Transfer's network in the Permian Basin.

  • The acquisition includes eight gas processing plants (1.3 Bcf/d) and two under construction (0.4 Bcf/d), along with over 6,000 miles of gas gathering pipelines.

  • Energy Transfer will also gain a 20% ownership interest in the BANGL NGL Pipeline.

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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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