NPWR makes public debut

PLUS: BlackRock eyes $7 billion, Canadian Bio-fuels, Rio-Tinto Chinese steel

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  • NET Power and Rice Acquisition Corp. II have completed their merger, forming NET Power Inc.

  • NET Power's technology generates clean, affordable, and reliable energy with near-zero emissions.

  • The combined company has an enterprise value of approximately $1.5 billion.

  • The Class A common stock of NET Power began trading on the New York Stock Exchange under the ticker symbol "NPWR" on June 9, 2023.

  • The transaction has provided more than $675 million in gross proceeds, including $540 million from PIPE capital and $135 million from RONI's trust account.

  • The funds will be used to support corporate operations and accelerate the deployment of NET Power's patented technology.

  • Existing strategic investors, including Occidental, Baker Hughes, Constellation, and 8 Rivers, have rolled 100% of their equity into the combined company.

  • NET Power has upsized its PIPE capital, started the Front End Engineering and Design for its first utility-scale project, and announced a joint venture with SK Group.

  • The technology offers decarbonized baseload power and supports net-zero ambitions.

  • Global deployment of affordable, reliable, and clean power is crucial for accelerating carbon reductions and achieving climate goals.

  • Canadian biofuels producers are considering building their next projects in the United States to take advantage of rich subsidies for clean fuel.

  • This move could cost Canada C$10 billion ($7.5 billion) of investment and undermine Prime Minister Justin Trudeau's efforts to build a greener economy.

  • Fuel retailer Parkland canceled a renewable diesel plant in British Columbia due to competition concerns about the U.S. Inflation Reduction Act (IRA).

  • The IRA, signed into law by U.S. President Joe Biden, aims to cut carbon emissions across the U.S. economy.

  • Canada's proximity to the United States makes it particularly vulnerable to potential competition from cheaper U.S. biofuels.

  • The lack of similar financial support in Canada, combined with negative incentives such as a carbon tax, is driving companies to consider investments in the United States.

  • Canadian companies may have to charge higher prices for their fuel compared to U.S. producers, and they could face difficulties in sourcing feedstocks used in production.

  • Biofuels companies are urging the Canadian government to increase support, including investment tax credits and de-risking mechanisms.

  • The government plans to seek feedback on possible new supports and is expected to provide an update later this year.

  • Canadian executives believe there is room for more government support in Canada to compete effectively with the United States.

  • BlackRock aims to raise up to $7 billion for its fourth Global Renewable Power Fund.

  • The fund will focus on projects in OECD countries, including solar, wind, batteries, and grid infrastructure.

  • There is growing demand from institutional investors to support climate-friendly investments.

  • Investors are seeking to align their portfolios with the transition to a low-carbon economy.

  • The United States and European Union's financial backing for clean energy has contributed to the increased demand.

  • Pension schemes are particularly interested in assets that match their long-term liabilities.

  • Despite some pushback from U.S. Republicans, institutional investors remain committed to investing in both current and future infrastructure.

  • The fourth fund targets $5 billion to $7 billion, following the successful $4.8 billion raise for its predecessor.

  • The International Energy Agency estimates that annual clean energy investment needs to triple to $4 trillion by the end of the decade to reach net-zero emissions by 2050.

  • Previous investments by the fund include high-power charging network IONITY and the Waratah Super Battery in Australia.

  • The fund aims to make 18-22 investments across early stage and developed projects, with potential for co-investments.

  • Roughly one-third of the fund is likely to be invested in Europe, the Americas, and Asia, although there are no set targets.

  • China Baowu and Rio Tinto have extended their climate partnership to decarbonize the steel value chain.

  • They have signed a Memorandum of Understanding (MoU) to explore new projects in China and Australia.

  • The companies plan to advance specific decarbonization projects to play a leading role in the industry's low-carbon transformation.

  • The projects include the research and demonstration of a pilot-scale electric melter for low-carbon steel making, optimization of pelletization technology for low-carbon shaft furnace-based direct reduction, expansion of China Baowu's HyCROF technology to mitigate CO2 emissions, and the study of low-carbon iron production in Western Australia.

  • The collaboration is an outcome of the longstanding partnership between Rio Tinto and China Baowu.

  • Both companies will share resources and expertise to progress each initiative.

  • The partnership aims to address the challenge of developing a low-carbon pathway for low-to-medium grade iron ores.

  • The commitment of China Baowu aligns with their mission of promoting green development and addressing climate change.

  • Rio Tinto and China Baowu have a history of collaboration on project development, technology research, and emissions reduction in the steel industry.

  • Solar energy parts manufacturer CubicPV has raised $103 million to build a U.S. factory for making silicon wafers, key components of solar panels.

  • The investment was led by the clean energy arm of Thai conglomerate SCG, with additional funding from existing investors Hunt Energy Enterprises and Breakthrough Energy Ventures, backed by Bill Gates.

  • CubicPV aims to pioneer domestic wafer manufacturing and plans to complete a 10 gigawatt factory in 2024, with the location to be announced this year.

  • Currently, China produces about 98% of the world's wafers, and the U.S. seeks to reduce its reliance on imports to achieve President Joe Biden's clean energy and climate change goals.

  • Some solar manufacturers pushed for federal rules mandating domestic wafer production to qualify for new subsidies, but the U.S. Treasury Department did not impose such requirements.

  • CubicPV's equity financing demonstrates investor support for its plan to manufacture wafers in the United States.

  • The company has named Dave Gustafson, formerly VP of commercial manufacturing at Bridgestone, as the president of its wafer facility.

  • The initial $33 million of the investment is available immediately, with the remaining funds tied to undisclosed project milestones.

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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.latest