Heathrow to JFK (on used cooking oil)

PLUS: Commonwealth CCS, TIME piece on geothermal, ChampionX-Cemvita, Infinium's $75mm raise, Nasdaq carbon credits, Deloitte-CarbonCure, Graphyte-AA

  • Graphyte, a carbon removal startup backed by Breakthrough Energy Ventures, signs its first carbon removal purchase agreement with American Airlines.

  • American Airlines will purchase 10,000 tons of permanent carbon removal from Graphyte, to be delivered in early 2025.

  • Graphyte's Carbon Casting process uses biomass, efficient processing, and advanced monitoring to make carbon dioxide (CO2) removal quantifiable and permanent.

  • Carbon Casting removes and stores CO2 more efficiently and at a lower cost compared to existing carbon removal methods.

  • American Airlines aims to reach net-zero emissions by 2050 and is investing in various technologies to reduce its carbon footprint.

  • Carbon credits, including removals, play a critical role in eliminating aviation's residual emissions, and American's purchase from Graphyte supports this goal.

  • The first commercial-scale deployment of Carbon Casting will occur at a Graphyte facility in Pine Bluff, Arkansas, utilizing readily available biomass byproducts and state-of-the-art underground storage.

  • Deloitte Canada has entered into a multi-year agreement with CarbonCure Technologies to purchase carbon credits.

  • CarbonCure Technologies is known for injecting captured and liquefied CO2 into concrete, permanently storing CO2 and increasing concrete strength.

  • The partnership supports Deloitte's carbon management strategy and promotes the development of carbon removal technologies.

  • CarbonCure's technology reduces the carbon footprint of concrete production, which is a significant source of emissions.

  • Cement manufacturing accounts for 7% of global CO2 emissions, and concrete is the most widely used construction material worldwide.

  • The agreement aligns with Deloitte's commitment to a 1.5-degree science-based target and sustainability.

  • CarbonCure's innovation aims to have a positive impact on the construction industry's environmental footprint.

  • Commonwealth LNG has signed an MOU with OnStream CO2 LLC for carbon capture and storage at its LNG facility in Cameron, Louisiana.

  • OnStream CO2 will design, construct, own, and operate CO2 capture equipment near the Commonwealth LNG site, with the captured CO2 being stored at the Cameron Parish CO2 Hub.

  • Commonwealth LNG will dedicate CO2 emissions from its facility for a 20-year term.

  • The Carbonvert-Castex joint venture will store CO2 in a hub with a capacity for more than 250 million metric tons.

  • Commonwealth LNG plans to make a final investment decision on its LNG project in the first half of 2024, with cargo deliveries expected in 2027.

“The State of Louisiana took the lead in LNG exports and now CCUS. Louisiana’s looming primacy in permitting Class VI wells will further secure that lead. Carbonvert and Castex are excited to enable lower carbon LNG exports in southwest Louisiana.”

David Heikkinen, EVP – Commercial & Strategy of Carbonvert

  • Background: In September, Karine Kleinhaus from the Environmental Defense Fund addressed oil industry executives in Houston, discussing transitioning away from fossil fuels and utilizing oil companies' resources for geothermal energy development.

  • Geothermal Energy Basics: Geothermal power, known since 1904, is reliable and has a small land footprint but is traditionally limited to regions with hot rocks near the surface. Currently, it makes up only 1.6% of the U.S. energy mix.

  • Next-Generation Geothermal: Recent interest in advanced geothermal technologies, using drilling methods from the shale oil boom, could expand geothermal power beyond traditional areas. These methods include deeper and horizontal drilling and possibly fracking techniques.

  • Importance of Geothermal Energy: Geothermal could provide constant baseload power, complementing intermittent wind and solar energy, and could power 65 million homes in the U.S. by 2050.

  • Government Support and Industry Involvement: The Department of Energy awarded $165 million for next-gen geothermal development. Many startups in this field are staffed by former oil industry professionals.

  • Investment Dynamics: Major oil companies, like Chevron, Devon and H&P and Nabors are investing in geothermal startups, but these investments are relatively small compared to their oil and gas ventures.

  • Challenges and Opportunities: There's skepticism about whether startups can scale geothermal quickly enough. Oil and gas companies have the capital and expertise but are cautious about investing in new technologies. Some executives see geothermal as part of a low-carbon strategy.

  • Business Realities: Geothermal development is a new sector for oil companies, and there are concerns about profitability compared to oil and gas investments.

“Any money that you have to invest in geothermal is competing with other projects”

  • Public Perception and Investment Risks: Oil companies face challenges in getting public recognition for their efforts in green energy and need co-investments from green funders. The image problem of oil companies complicates partnerships in green projects.

  • ChampionX and GH2 (Gold H2, Inc.) are collaborating on field trials of GH2's hydrogen production technology.

  • GH2, a subsidiary of Cemvita Factory Inc., specializes in subsurface microbiology solutions for in-situ hydrogen production from depleted oil reservoirs (Gold Hydrogen).

  • ChampionX offers services and chemical technologies to optimize oil and gas reservoir production.

  • ChampionX's expertise in the oil and gas industry positions it well to support GH2 in these field trials.

  • The collaboration aims to advance applied microbiology and oil and gas operations, contributing to the energy transition.

  • GH2's technology, combined with ChampionX's production expertise, forms the basis for testing and innovation in this partnership.

“We need to reinvent the industry in a way that leverages our existing infrastructure and talent. Gold Hydrogen is the perfect example of that. Turning depleted reservoirs into a natural hydrogen bioreator, therefore turning a plug & abandonment liability into a valuable asset. SpaceX reinvented the space industry by making rockets reusable, that's what we are doing with Gold H2”

Moji Karimi, CEO of Cemvita Factory

  • Infinium receives a $75 million equity commitment from Breakthrough Energy Catalyst for Project Roadrunner in West TX.

  • Project Roadrunner will convert waste CO2 and renewable power into sustainable aviation fuel (SAF) and other low-carbon fuels.

  • It's the largest Power-to-Liquids (PtL) eFuels project in North America.

  • PtL SAF is expected to reduce aviation GHG emissions by around 90%.

  • Project Roadrunner will also produce eNaphtha for plastics manufacturing and eDiesel for hard-to-electrify transportation.

  • American Airlines and Infinium have entered into an innovative offtake agreement for Infinium eSAF.

  • Citi and American Airlines will transfer associated emission reductions to Citi to support the scaling of this technology.

  • Infinium has various eFuels projects in development worldwide.

  • The investment from Breakthrough Energy Catalyst will accelerate Project Roadrunner's completion and the delivery of eFuels from waste CO2 and renewable power.

  • American Airlines' commitment to purchase eFuels demonstrates collaboration to decarbonize the aviation industry.

  • Citi supports the commercialization of sustainable aviation fuel and hopes the offtake arrangement with American serves as a model for low-emissions air travel solutions.

“The Infinium team is delighted to be partnered with Breakthrough Energy Catalyst, American Airlines and Citi on this project that will help to get eFuels into the market that will help our customers decarbonize their Heavy Transportation fleets.”

Robert Schuetzle, CEO of Infinium

  • A Virgin Atlantic passenger jet completed a London-to-New York flight using 100% sustainable aviation fuel (SAF).

  • This flight marked the first time a commercial airliner has flown long-haul on 100% SAF.

  • SAF currently accounts for less than 0.1% of total global jet fuel use and is more expensive than regular jet fuel.

  • The flight had no paying passengers or cargo and carried only a few individuals, including Richard Branson.

  • The aviation industry is exploring SAF made from waste materials to reduce emissions by up to 70%.

  • Commercial engines are not yet certified to fly on more than 50% SAF, and most flights use a lower SAF blend with traditional jet fuel.

  • Virgin's flight used SAF made from used cooking oil, waste animal fat, and synthetic aromatic kerosene.

  • European airlines aim to use 10% SAF by 2030 as part of their goal to achieve "net zero" emissions by 2050.

  • SAF is seen as a key solution to decarbonize commercial flights in the medium term, but challenges remain in terms of volume and cost.

This is cool. Whatever your take is on SAF, this is a pretty great milestone. Also not shocked to see Richard Branson be the one to pull it off.

The world will always assume something can’t be done… until you do it. The spirit of innovation is getting out there and trying to prove that we can do things better for everyone’s benefit.

  • Nasdaq has launched new technology for carbon credits, digitizing issuance, settlement, and custody.

  • The technology offers smart contract capabilities and can be used with centralized databases or private blockchains.

  • It aims to standardize digital credits, improve market liquidity, and enhance transparency.

  • Nasdaq has partnered with Puro.earth to register CO2 Removal Certificates (CORCs) and modernize carbon crediting infrastructure.

  • Puro.earth's Puro Standard is the first carbon removal standard for engineered carbon removal methods. CORCs are verified and can be bought to offset carbon footprints.

Cost of carbon capture

What'd ya think of today's email?

Login or Subscribe to participate in polls.

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.