Nuclear-powered oil and gas

PLUS: Aker Carbon Capture, MN8's $325mm raise, Nucor data center buy, Kimmeridge's open letter. Southwest buys SAFFire

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:

  • Aker Carbon Capture has been awarded a pre-FEED (Front-End Engineering and Design) contract from Statkraft in Norway for capturing 220,000 tonnes of CO2 per year at the Heimdal waste-to-energy plant.

  • This initiative aims to reduce up to 25% of Trondheim municipality’s CO2 emissions by capturing and storing these emissions permanently.

  • The pre-FEED includes CO2 capture, compression, purification, liquefaction, and temporary storage at the Heimdal plant, with liquid CO2 transported by truck to an export terminal for ship transport to permanent storage.

  • Aker Carbon Capture was previously awarded a full FEED contract by Hafslund Oslo Celsio to develop carbon capture at their waste-to-energy facility in Oslo.

  • Statkraft's waste-to-energy plant at Heimdal contributes significantly to Trondheim municipality's heating demand and plays a role in Norway's journey towards net zero emissions.

  • Statkraft is part of 'CCS Midt-Norge', an industry cluster for CO2 capture and storage in central Norway, aiming to increase understanding and progress in CCS technology.

  • Nucor Corporation has acquired Southwest Data Products, Inc. (SWDP) for $115 million, a manufacturer and installer of data center infrastructure based in San Bernardino, California.

  • This acquisition launches Nucor Data Systems, a new business unit focused on serving the data center infrastructure industry.

  • SWDP's capabilities in airflow containment structures, manufacturing cabinets/enclosures, and caging for data centers will complement Nucor's Warehouse Systems businesses, creating growth opportunities.

  • The acquisition also aligns with Nucor's core steelmaking business, as SWDP uses various types of steel as raw material, sourced from Nucor facilities, ensuring low embodied carbon steel for the digital economy.

  • SWDP has a strong reputation for quality products, fast lead times, and installation services, serving leading companies in the data center sector driven by AI, cloud services, and video streaming applications.

  • Kimmeridge, owning 12.9% of SilverBow Resources, issued an open letter urging SilverBow to engage in good faith negotiations for a value-enhancing combination.

  • Proposed combining Kimmeridge Texas Gas (KTG) and SilverBow with a $500 million investment, aiming to create a leading Eagle Ford shale operator with an estimated enterprise value of around $3.6 billion.

  • Criticized SilverBow's lack of engagement, launch of a misleading PR campaign, and rejection of the proposal without proper evaluation or engagement with Kimmeridge.

  • Filed preliminary proxy materials with the Securities and Exchange Commission to nominate three highly qualified, independent directors to SilverBow's Board of Directors.

  • Provided comprehensive financial and operational data on KTG, including well performance data, production information, cost data, and inventory analysis, to assist shareholders in analyzing the proposal's potential value.

  • Emphasized the significant upside for shareholders in participating in a larger, more resilient company positioned for growth and consolidation in the Eagle Ford.

  • Encouraged constructive dialogue with SilverBow but indicated readiness to nominate independent directors if the board continues to resist engagement or proper evaluation of the proposal.

  • Southwest Airlines (NYSE: LUV) acquires SAFFiRE Renewables, LLC (SAFFiRE) as part of its sustainability-focused investment portfolio.

  • SAFFiRE is involved in a Department of Energy (DOE) supported project to develop scalable renewable ethanol for sustainable aviation fuel (SAF) production.

  • The acquisition marks Southwest's transition from investor to sole owner of SAFFiRE, showcasing confidence in its technology and potential to advance sustainability goals.

  • Southwest initially invested in SAFFiRE during phase one of the pilot project in 2022, and now plans to proceed with phase two at Conestoga's Arkalon Energy ethanol facility in Kansas.

  • SAFFiRE's technology license from NREL will be used to process corn stover into renewable ethanol, which will then be converted into SAF by LanzaJet, Inc.

  • Renewable ethanol is seen as a crucial feedstock for affordable SAF and plays a role in Southwest's Nonstop to Net Zero plan for achieving net zero carbon emissions by 2050.

  • The acquisition aligns with Southwest's broader sustainability efforts, including collaborations with SAF technology providers like LanzaJet, Inc.

  • MN8 Energy LLC closed a private placement, raising $325 million from the issuance of convertible preferred stock.

  • Mercuria Energy Group contributed $200 million, and Ridgewood Infrastructure invested $125 million in the private placement.

  • Stockholders can convert their preferred stock into common stock in the future.

  • Mercuria will gain one seat on MN8's board of directors, while Ridgewood will receive an observer seat.

  • The investment aims to support MN8's growth and innovative solutions in renewable energy.

  • MN8 and Mercuria have formed a strategic collaboration to identify commercial opportunities for sustainable and reliable energy systems.

  • US oil companies, including Diamondback Energy Inc., are considering small nuclear reactors to power drilling operations in Texas’s Permian Basin.

  • Diamondback has signed a nonbinding letter of intent with Oklo Inc. for future power needs.

  • Oklo is developing advanced fission reactors and has discussed similar arrangements with other oil companies.

  • Small nuclear reactors could offer reliable power without greenhouse gas emissions, addressing the Texas grid's occasional instability.

  • Oklo's 15-megawatt system is much smaller than conventional reactors, making it suitable for industrial sites in remote areas.

  • Nuclear power is seen as a way to reduce emissions while meeting ongoing oil demand.

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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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