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.
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CARBON CAPTURE
The Biden administration has proposed a plan to reduce greenhouse gas emissions from power plants in the United States.
The proposal aims to limit carbon dioxide emissions from power plants, which account for over a quarter of U.S. emissions.
Power companies will be required to install carbon capture equipment or use low-emissions hydrogen as a fuel to meet the new standards.
The plan is projected to reduce carbon emissions from coal and gas plants by 617 million tonnes between 2028 and 2042.
The proposal aligns with President Biden's goal of achieving net-zero power sector emissions by 2035.
The EPA, under Administrator Michael Regan, believes the plan relies on proven technologies and supports a cleaner future.
The proposal has faced criticism from fossil-fuel-producing states, who argue it represents government overreach and could destabilize the electric grid.
The EPA's authority to regulate power plants was constrained by a Supreme Court ruling, which prevents a system-wide shift from fossil fuels to renewables.
The proposal will undergo a regulatory rule-making process and a public comment period before being finalized.
The EPA estimates the proposal will cost the power industry over $10 billion but yield health and climate benefits of around $85 billion.
The plan relies on tax incentives and credits from President Biden's climate bill to lower costs for deploying carbon capture and hydrogen technologies.
The proposal sets different standards for new and existing natural gas and coal plants, with more stringent requirements for older coal plants.
Environmental groups have welcomed the proposal, stating that it has been carefully crafted to withstand legal challenges.
CARBON CAPTURE
BP plans to make a final investment decision in 2024 on a cluster of carbon capture projects in northern England, including a gas-fired power plant in Teesside
The British government chose BP's Net Zero Teesside power plant among other projects in March for the next phase of a government support program to decarbonize industrial processes
The Department for Energy Security and NZT said it would take until mid-September to make a decision on whether to grant permission for the gas-fired power station
The carbon captured from the NZT power plant would be pumped through pipes and fed into the Endurance carbon storage site in the North Sea
BP expects its spending to be equally divided between oil and gas and energy transition businesses by 2030, with a total budget of up to $18 billion a year
BP's partners for the NEP project include Equinor and TotalEnergies, while Shell pulled out of the project this year.
RNG
Renewable natural gas (RNG) developer Casey Holsapple launches RNG platform Redtail Renewables
Redtail Renewables will develop and operate RNG facilities in the US
Redtail will dispense RNG fuel downstream to logistics, industrial, and utility customers
Holsapple previously helped build a leading RNG platform for Kinetrex Energy, which was acquired by Kinder Morgan in 2021
Redtail co-founder and CFO is Corey Holsapple, a finance executive with prior experience at Fortis Financial and Boston Consulting Group
Redtail has secured an equity commitment from Boston-based Inyarek Partners
Redtail plans to add more industry professionals to the team in the coming months
Redtail is seeking landfills and other partners to complement its existing opportunities and plans to grow significantly over the next 12 months.
FUSION
Microsoft has signed an agreement to purchase electricity from a nuclear fusion generator developed by Helion Energy.
Nuclear fusion is seen as a potentially limitless source of clean energy, but its commercialization has been challenging.
Helion Energy, backed by investors including Sam Altman, aims to connect the world's first commercial fusion generator to a power grid in Washington by 2028.
The goal is to generate at least 50 megawatts of power, surpassing the capacity of existing offshore wind farms.
Helion uses a plasma accelerator that heats fuel to extreme temperatures and uses magnetic fields to compress the plasma until fusion occurs.
Achieving commercial fusion at scale and at an affordable cost remains a significant challenge.
Altman's involvement as a funder and his close relationship with Microsoft highlight the interest of tech leaders in nuclear fusion as a potential solution for clean and sustainable energy.
LOW-CARBON FUELS
Honeywell International announces a new technology to produce lower-carbon aviation fuel from green hydrogen and carbon dioxide captured from industry
The technology combines green hydrogen and carbon dioxide to create lower-carbon methanol, which can be turned into sustainable aviation fuel (SAF)
The process can reduce greenhouse gas emissions by 88% compared with traditional petroleum-based jet fuel
The US government has targeted 3 billion gallons of SAF production per year by 2030 to combat climate change
Honeywell's fuel technology announcement is part of a growing number of projects focused on expanding feedstocks for SAF
Honeywell's technology will be used by energy producer HIF Global to recycle around 2 million tons of captured carbon dioxide to make around 11,000 barrels per day of SAF by 2030.
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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.