- Sunya Scoop
- Haynesville slow down
Haynesville slow down
PLUS: DOE $45mm for CO2, Hydrogen tax credit, BlackRock's $400mm investment, LyondellBasell renewables
DOE is investing $45.6 million in nine projects to advance CO2 capture technologies and establish a carbon transport and storage industry.
Some projects aim to develop cost-effective CO2 capture technologies for permanent geologic storage or conversion into long-lasting products in industries like cement, steel, glass, and natural gas power generation.
Others focus on creating transportation hubs to accelerate the movement of CO2, considering multiple transport modes.
Selected projects include carbon capture system testing at industrial facilities and natural gas power plants, as well as engineering-scale tests under real conditions and pre-FEED studies for CO2 transport and storage networks.
Interesting data point.
Black Stone Minerals, L.P. (BSM) received notice that Aethon Energy is exercising "time-out" provisions in their joint exploration agreements in East Texas.
These provisions allow Aethon to temporarily suspend its drilling obligations for up to 9 consecutive months and a maximum of 18 total months in any 48-month period when natural gas prices fall below specified thresholds.
Aethon has not invoked these provisions before, and the duration of the suspension is not specified.
Starting to see the impact of falling nat gas prices. Imagine other nat gas producers will be dropping rigs, building DUCs and deferring production.
Energy Transfer accused of "anticompetitive" behavior by a natural gas pipeline developer in Louisiana.
Energy Transfer denied three projects from crossing its pipelines, leading to a legal battle impacting over $2 billion of energy infrastructure.
Momentum Midstream affiliate, New Generation Gas Gathering LLC, claims Energy Transfer is hindering its $1.6 billion project by refusing pipeline crossing, potentially allowing Energy Transfer to control 80% of the market.
Energy Transfer previously sued to block Momentum's project from crossing its pipelines, and it won a similar case against DT Midstream earlier.
Private equity-backed developers, including Momentum, argue that Energy Transfer's exclusive rights in key parts of the state could disrupt the gas pipeline industry, increase costs, and harm America's energy export status.
Energy Transfer has also sought restraining orders against Williams Cos. and DT Midstream affiliates for two projects, citing safety concerns and exclusive land rights.
Louisiana's attorney general is concerned about the consequences of these legal disputes for the energy sector and national energy independence.
Energy Transfer has experienced delays and legal issues in its own projects, including the Dakota Access crude pipeline.
The Haynesville faces bottlenecks due to a lack of pipeline capacity, affecting natural gas production in the region.
Further delays in nat gas pipeline development. This slow down will spill into the Haynesville-related carbon capture hubs. Permitting might not be the biggest bottleneck, it might be right-of-way.
The Administration has proposed strict new rules for a climate subsidy related to hydrogen production, despite concerns from major energy companies.
These rules determine who receives tax credits for producing hydrogen, which is considered a viable replacement for fossil fuels in heavy industries.
Companies like NextEra Energy, BP, and Constellation Energy have warned that these strict rules could lead to project cancellations and hinder the growth of the hydrogen industry.
The regulations govern how companies must purchase electricity for hydrogen production and have sparked debate between environmental groups and some companies.
The U.S. aims to increase clean hydrogen production significantly to meet climate goals.
The tax credit for clean hydrogen is based on emissions reduction, with the cleanest hydrogen receiving a maximum credit of $3 per kilogram.
Labor unions and lawmakers have called for looser rules to support the hydrogen industry and create jobs, while senior administration officials argue that the proposed criteria are essential to achieve environmental goals.
Final rules will be set after a 60-day period for companies and environmental groups to provide additional comments.
The conditions for this credit are tough. To me, it's unclear if it will make hydrogen development happen on a large scale.
BlackRock's Diversified Infrastructure group is investing up to $400 million in Positive Zero, a decentralized decarbonization infrastructure business in the UAE.
The investment is aligned with COP28 decarbonization goals, including tripling renewable power and doubling energy efficiency by 2030.
Positive Zero aims to promote sustainable energy adoption in the Gulf Cooperation Council (GCC) region while reducing carbon emissions and energy costs.
Positive Zero is a consolidation of SirajPower, Taka Solutions, and HYPR Energy, and it offers comprehensive sustainable energy solutions.
The investment will enhance Positive Zero's ability to provide fully financed sustainable energy solutions for commercial, industrial, and public sector clients.
The company's approach includes decentralized power generation, resource efficiency, and clean mobility.
LyondellBasell signs two new Power Purchase Agreements (PPA) in the United States.
These agreements bring the company's total procured renewable electricity to 1,366 MW, representing 89% of its goal.
The company aims to procure at least 50% of its electricity from renewable sources by 2030.
One PPA is for 125 MW of renewable electricity from TotalEnergies' Brazoria Solar project in Texas.
The other PPA is for 50 MW of renewable electricity from Industrial Sun's Industrial Bravo solar project in Texas.
These agreements support the company's efforts to reduce greenhouse gas emissions and transition to low-carbon energy.
The Brazoria Solar project is expected to generate 300,000 MWh of solar power annually, equivalent to the electricity consumption of over 28,000 American homes.
LyondellBasell is committed to achieving net-zero scope 1 and 2 emissions by 2050, with renewable electricity playing a crucial role in this goal.
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