The latest defense tech: geothermal

PLUS: JERA/CF ammonia, Chestnut's carbon removal sale, Equinor battery storage, Climeworks new offering, Infinium-Kinetik, A16Z electrification plan, LNG GHG report

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:

  • Chestnut Carbon announces the sale of its first Improved Forest Management (IFM) carbon removal credits at $34 per credit.

  • These credits are sourced exclusively from Chestnut’s forested properties in the southeastern United States.

  • The higher price reflects the quality of Chestnut's offerings and the increasing demand for removal credits that demonstrate true additionality and durability.

  • Chestnut's IFM program focuses on 100% carbon removal and boasts carbon sequestration terms of 60+ years, surpassing many existing programs in the market.

  • The sale demonstrates growing interest from corporate organizations in nature-based solutions to meet carbon reduction goals.

For Chestnut, the objective is simple: offer premium credits that help our customers meet their emissions reduction goals and make a lasting impact on our planet.

Ben Dell, Managing Partner and Co-Founder of Kimmeridge
  • Climeworks now offers tailored carbon removal portfolios combining DAC, engineered, and nature-based solutions.

  • Breitling is the first customer, signing a 12-year agreement to enhance its net-zero efforts.

  • Climeworks ensures quality and verification, guaranteeing effective CO2 removal.

  • The company simplifies carbon removal complexities for clients, meeting diverse needs and suggests market demand is strong, with nearly 30 clients negotiating similar agreements.

  • Climeworks anticipates a trillion-dollar market by 2050, attracting new buyers.

  • CF Industries and JERA announce a joint development agreement to explore low-carbon ammonia production at CF Industries’ Blue Point Complex in Louisiana.

  • The agreement aims to develop an approximately 1.4 million metric ton capacity low-carbon ammonia plant, with JERA contemplating a 48% ownership stake and procuring over 500,000 metric tons annually for low-carbon fuel demand in Japan.

  • The project, expected to reach a final investment decision within a year, targets production commencement in 2028.

  • JERA plans to use low-carbon clean ammonia to replace coal in its existing thermal coal power plants, aiming to reduce CO2 emissions.

  • Infinium and Kinetik have reached an agreement for CO2 utilization in eFuels production, focusing on decarbonization benefits.

  • The agreement involves purchasing CO2 captured from Kinetik's gas gathering system in the Permian Basin for use in producing ultra-low carbon electrofuels (eFuels).

  • Infinium's eFuels are made using waste CO2 and green hydrogen from renewable sources, offering sustainable alternatives for transportation.

  • Project Roadrunner, part of Infinium's initiatives, aims to produce sustainable aviation fuel (eSAF) with reduced lifecycle greenhouse gas emissions.

  • The agreement aligns with Kinetik's sustainability goals and marks a step towards decarbonization in the energy industry.

  • Infinium operates a commercial-scale eFuels facility in Texas and has multiple projects globally, contributing to carbon reduction efforts in transport and chemical processing.

  • The Department of Defense (DoD) is expanding geothermal energy initiatives to enhance installation energy resilience, with six companies supporting the U.S. Air Force, U.S. Army, and U.S. Navy at seven installations.

  • Three new companies—Fervo Energy, GreenFire Energy, and Sage Geosystems—join existing efforts to deploy novel geothermal technologies at DoD installations in California, Nevada, and Texas.

  • Fervo Energy focuses on enhanced geothermal systems (EGS) for 24/7 carbon-free energy at Naval Air Station (NAS) Fallon in Nevada.

  • GreenFire Energy uses GreenLoop ® closed-loop technology for clean, continuous geothermal energy at Naval Air Facility (NAF) El Centro in California.

  • Sage Geosystems develops geopressured geothermal system (GGS) technologies for increased electricity production at Fort Bliss Army installation in Texas.

  • The Department of Energy predicts that next-generation geothermal technology could significantly increase geothermal energy production in the United States by 2050.

  • Equinor announces its first two battery storage projects in the United States, with a combined capacity of 110 megawatts (MW), enhancing energy security for the Texas grid.

  • The projects, Sunset Ridge Energy Center in Frio County and Citrus Flatts in Cameron County, Texas, are part of Equinor's expansion in renewables following the acquisition of East Point Energy in 2022.

  • Sunset Ridge, a 10 MW/20 MWh project, will strengthen reliability for South Texas Electric Cooperative (STEC) and is expected to be operational in the second half of 2024.

  • Citrus Flatts (acquired from Black Mountain Energy Storage), a 100 MW/200 MWh project, will connect to the transmission network of American Electric Power and aims for commercial operations in early 2026.

  • Both projects will operate on a merchant basis in Texas' ERCOT power market and are planned to be commercialized by Equinor's energy trading house, Danske Commodities.

  • Equinor's renewable energy portfolio in the US also includes offshore wind projects, carbon capture initiatives, and a longstanding presence in oil and gas.

A16Z’s blog post on decentralizing the grid

  • The electric grid faces a critical challenge as electricity demands are expected to nearly double by 2040.

  • More than 2,000 gigawatts (GW) are waiting to connect to the grid, with over 700 GW of projects entering queues in 2022 alone.

  • Historically, only 10-20% of queued projects have materialized, often taking over 5 years post-application to connect.

  • To meet high-load growth by 2035, within-region transmission must increase by 128% and inter-region transmission by 412%.

  • California's grid operator, CAISO, stopped accepting new requests in 2022 due to the surge in applications.

  • Over 20 GW of power needs to be quickly ramped up in high-solar-penetration areas like California.

  • California faced a 2,400 GWh waste in 2022 due to renewable intermittency.

  • Batteries are critical, with hundreds of gigawatt-hours needed for peak load smoothing.

  • ERCOT lacks a traditional capacity market and relies on price spike incentives for emergency reserves.

  • Amazon and Microsoft are pursuing nuclear-powered data centers.

  • Successful navigation of the shift to a decentralized grid will result in significant economic growth.

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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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