- Sunya Scoop
- Infra is the new tech
Infra is the new tech
PLUS: BlackRock buys GIP for $12.5bn, Oxy strikes 2 CDR deals, General Atlantic buys Actis, Talos buys $1.29bn in GOM, Northvolt raises $5bn, EDF-Enbridge solar
Is it a coincidence that within a week of publishing the Sunya Spotlight on Oxy’s STRATOS DAC project they sign not one but two new deals? (Check it out here)
1PointFive and Trafigura have announced an agreement for the purchase of carbon dioxide removal (CDR) credits.
Trafigura, a global commodities industry leader, will purchase CDR credits produced from 1PointFive's Direct Air Capture (DAC) facility, STRATOS, currently under construction in Texas.
This marks Trafigura's first step towards fulfilling its commitment as a Founding Member of the First Movers Coalition to buy at least 50,000 tons of durable and scalable net carbon dioxide removal credits by 2030.
The agreement aims to support early-stage technologies and promote the adoption of 1PointFive's CDR credits to help industries address emissions.
STRATOS is designed to capture up to 500,000 metric tons of CO2 annually and is expected to become the world's largest facility of its kind.
The captured CO2 will be stored through subsurface saline sequestration.
1PointFive and Boston Consulting Group (BCG) have announced a strategic agreement for carbon removal.
BCG will purchase 21,000 metric tons of carbon dioxide removal (CDR) credits from 1PointFive over three years.
The collaboration involves BCG providing consulting services to develop business processes supporting Direct Air Capture (DAC) CDR credits.
The CDR credits will be enabled by 1PointFive's STRATOS, an industrial-scale DAC facility currently under construction.
The agreement demonstrates the commitment to DAC as a carbon removal solution and its potential for companies to meet net-zero goals.
BCG has been supporting 1PointFive in designing IT architecture for Measurement Reporting and Verification (MRV) of STRATOS.
BlackRock is acquiring Global Infrastructure Partners for $12.5 billion in cash and stock.
This is BlackRock's largest acquisition in 15 years.
Global Infrastructure Partners (GIP) owns and operates energy, transportation, water, and waste companies, including a stake in London's Gatwick Airport.
BlackRock will pay $3 billion in cash and 12 million of its own shares for GIP.
Five of GIP's six founding partners, including CEO Bayo Ogunlesi, will join BlackRock, with Ogunlesi sitting on BlackRock's board.
The acquisition will boost BlackRock's private assets by about 30% and double its private-market base management fees.
GIP manages about $100 billion and has $80 billion in combined revenue from its portfolio companies.
The deal is expected to close in the second or third quarter, creating the second-largest private infrastructure manager globally.
BlackRock believes that growing government deficits increase the need for private financing of major infrastructure projects.
General Atlantic is acquiring Actis, a leading global investor in sustainable infrastructure.
The acquisition will create a diversified, global investment platform with approximately $96 billion in combined assets under management (AUM).
Actis currently has around $12.5 billion in AUM and a track record of delivering competitive returns while supporting critical infrastructure themes.
Actis will become the sustainable infrastructure arm within General Atlantic's investment platform.
Torbjorn Caesar will continue to lead Actis, and the firm will retain independence over its investment decisions and processes.
General Atlantic, founded in 1980, has deployed over $60 billion in global growth companies and has a focus on growth equity, credit, and climate solutions.
The partnership aims to unlock opportunities at the intersection of energy transition, digitization, and growth markets.
EDF Renewables North America and Enbridge Inc. have announced the full operational status of Phase 1 of the Fox Squirrel Solar project, the largest solar complex in Ohio.
Fox Squirrel Solar has a total capacity of 749 MWdc/577 MWac and is being constructed in three phases in Madison County, Ohio.
Phase 1 generates 150 MWac of solar energy and includes 1.4 million panels and 159 inverters.
During peak construction of Phase 1, 650 workers installed 10,000 panels per day.
Enbridge invested in the first phase and plans to decide on the following phases in 2024, subject to certain conditions.
The project has secured 20-year power purchase agreements and is expected to power the equivalent of 118,000 average Ohio homes.
Northvolt has secured a $5 billion non-recourse project financing to expand its Northvolt Ett gigafactory in northern Sweden.
This represents the largest green loan raised in Europe to date.
The financing will not only expand cathode production and cell manufacturing at Northvolt Ett but also the adjacent recycling plant, Revolt Ett, with a significantly lower carbon footprint.
The recycling plant recovers battery-grade metals and enables a fully integrated circular battery production setup, unique outside Asia.
Long-term offtake contracts worth over $55 billion with partners like BMW, Scania, Volvo Cars, and Volkswagen Group supported this financing.
The financing involves 23 commercial banks, the European Investment Bank (EIB), and the Nordic Investment Bank (NIB), supported by the European Commission’s InvestEU program.
Northvolt has now secured over $13 billion in equity and debt for expansion in Europe and North America across multiple facilities.
Talos Energy is acquiring QuarterNorth Energy in a $1.29 billion cash and stock deal to strengthen its presence in Mexico.
QuarterNorth Energy is a privately held U.S. Gulf of Mexico exploration and production company with ownership in six major fields.
The acquisition is expected to reduce Talos's base decline rate by about 20%.
QuarterNorth Energy will receive approximately 24.8 million shares of Talos's common stock and around $965 million in cash.
The acquisition will add about 30 thousand barrels of oil equivalent per day (Mboe/d) for the current year and 69 million barrels of oil equivalent (MMBoe) in proved reserves.
Talos Energy and Grupo Carso jointly hold 17.4% of Zama, a Mexican oil and gas project in the Gulf of Mexico with significant resources.
The deal is anticipated to generate annual run-rate synergies of about $50 million by the end of 2024.
We released a podcast, Sunya Stories.
We published our first Sunya Spotlight profile on Oxy’s STRATOS DAC project.
The largest deal last week was the Chesapeake - Southwestern merger which we covered in Thursday’s edition
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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.