- Sunya Scoop
- Post-Christmas calm, except the Gulf Coast
Post-Christmas calm, except the Gulf Coast
PLUS: Pattern's $11 billion raise, First Solar sells $700mm in tax credit, Japan's nuclear restart, India and Taiwan's carbon credit markets
India's Ministry of Power announced a carbon offset market, reversing its earlier stance.
Key amendments include the inclusion of reduction and removal projects in the scheme.
Obligated entities will have emissions reduction targets, while non-obligated entities can register projects for greenhouse gas reduction, removal, or avoidance.
The government had previously scrapped the voluntary scheme and announced a compliance sector for 2026.
The Bureau of Energy Efficiency (BEE) will identify sectoral scope and methodologies for carbon credits.
Details on whether existing global voluntary market carbon credits will be allowed are unclear, but the BEE is considering options that meet higher integrity standards.
The threshold for offset credits in the compliance scheme is under consideration, potentially following the South Korea and China model of 5%-10%.
India's compliance carbon market will begin in 2026, focusing on sectors like steel, iron ore, refineries, petrochemicals, and aluminum.
The sale of international carbon credits in Taiwan commenced on December 22, 2023.
27 companies, including Taiwan Semiconductor Manufacturing Co. (TSMC), Foxconn Technology Co., and Chimei Corp., collectively purchased nearly 90,000 metric tons of carbon dioxide emissions.
The Taiwan Carbon Solution Exchange (TCX) officially began trading and sold 88,520 metric tons of international carbon credits, valued at over US$80,000 (NT$2.49 million).
Domestic carbon emission reduction carbon fees regulations are still pending from the Ministry of Environment (MOENV) and expected to be finalized in the first quarter of 2024.
TCX features include trading in U.S. dollars, secure trust accounts for transactions, and a "sub-account framework" to handle financial and carbon credit flows efficiently.
The first international carbon credits came from various countries and projects, covering clean water, wind power, and solar energy.
Williams is acquiring a natural gas storage portfolio in the Gulf Coast for $1.95 billion from Hartree.
The portfolio includes six underground natural gas storage facilities in Louisiana and Mississippi with a total capacity of 115 billion cubic feet (Bcf).
Additionally, it includes 230 miles of gas transmission pipeline and 30 pipeline interconnects, connecting to attractive markets like LNG terminals and the Transco pipeline.
The acquisition is valued at approximately 10x estimated 2024 EBITDA.
The six facilities consist of four salt domes (92 Bcf capacity) and two depleted reservoirs (23 Bcf capacity).
These facilities have high injection and withdrawal capacities, making them among the most capable natural gas storage platforms in the U.S.
Two of the facilities, Pine Prairie and Southern Pines, are directly connected to Transco and are well-suited for expansions to meet growing demand.
Chatterjee Fund Management increases stake in Tellurian Inc (TELL.A) to 7.3% from 5.2%.
The investment is described as an investment and not an attempt to control the company.
Chatterjee purchased nearly 13 million shares between 12/13 and 12/22
This move came shortly after Tellurian ousted its chairman and co-founder, Charif Souki.
Chatterjee now holds a total of 46.1 million shares in Tellurian.
Tellurian's shares increased by 7.5% on the day of the announcement.
Auditors had previously raised doubts about Tellurian's ability to cover future expenses.
Charif Souki, a key figure in the U.S. LNG export market, was replaced as Tellurian's chairman.
Souki parted ways with the company following a settlement of over $8 million.
Chatterjee Fund Management was founded in 1989 by Purnendu Chatterjee and invests in various sectors, including petrochemicals, pharmaceuticals, biotech, financial services, and real estate.
Pattern Energy Group has closed an $11 billion non-recourse financing for the SunZia Transmission and SunZia Wind project.
SunZia Transmission is a 550-mile high-voltage direct current (HVDC) transmission line between central New Mexico and south-central Arizona, capable of transporting 3,000 MW of clean electricity.
SunZia Transmission will deliver power generated by Pattern Energy's 3,515 MW SunZia Wind facility, the largest wind project in the Western Hemisphere.
The financing includes various facilities, such as a construction loan, letter of credit facility, term facilities, tax equity term loan facility, and holding company loan facility.
Pattern Energy aims for this project to serve as an example for other renewable infrastructure initiatives, helping accelerate the transition to a carbon-free future.
The project is expected to bring clean power to 3 million Americans and generate over $20 billion in economic impacts.
Construction is already underway on this historic and ambitious clean energy infrastructure project.
First Solar plans to sell up to $700 million in tax credits earned from selling photovoltaic (PV) solar modules to Fiserv.
These tax credits were earned under the new guidelines of the Inflation Reduction Act (IRA), which offers incentives for producing clean energy components.
Specifically, First Solar is eligible for 45X credits, also known as Advanced Manufacturing Production tax credits, for domestically manufacturing clean energy products in the U.S.
First Solar is set to receive $0.96 per $1 of tax credits in the first half of 2024 as part of the agreement with Fiserv.
The U.S. Treasury recently issued guidelines specifying which components, such as inverters and PV solar equipment, are eligible for these tax credits.
Japan's nuclear power regulator lifted the operational ban on Tokyo Electric Power's Kashiwazaki-Kariwa nuclear power plant.
The plant has a capacity of 8,212 megawatts (MW) and had been offline since 2012 due to the Fukushima disaster.
Tokyo Electric Power (Tepco) needs local government consent from Niigata prefecture, Kashiwazaki city, and Kariwa village before restarting the plant.
The Nuclear Regulation Authority (NRA) imposed the ban in 2021 due to safety breaches, including inadequate nuclear material protection and unauthorized access to sensitive areas.
The ban prevented Tepco from transporting new uranium fuel and loading fuel rods, effectively blocking a resumption.
Tepco plans to regain trust in the local community, and the government will support the process, emphasizing safety.
Japan aims to reduce reliance on imported fossil fuels by bringing more nuclear power plants online.
Projections suggest a decline in LNG imports as more nuclear reactors restart and renewable energy sources increase.
What'd ya think of today's email?
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.