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  • "The problem is not oil and gas. It's emissions."

"The problem is not oil and gas. It's emissions."

PLUS: ArcelorMittal CCU, Sumitomo-Alberta, Yara-Northern Lights, BP wind farms, Monarch-LS Power hydrogen, Fortescue Capital

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:

  • ArcelorMittal achieves the first industrial production of ethanol at its Steelanol plant in Gent, Belgium.

  • Steelanol plant is Europe's first carbon capture and utilization (CCU) project.

  • The project involves collaboration with partners LanzaTech, Primetals Technologies, and E4Tech.

  • The plant captures carbon-rich industrial gases from steel production and converts them into ethanol using LanzaTech's carbon biorecycling process.

  • The plant's inauguration took place in December 2022, followed by cold commissioning and inoculation with biocatalysts.

  • Gases from the blast furnace have been introduced into bioreactors, leading to the first industrial-scale ethanol production.

  • The plant has a capacity of producing 80 million liters of advanced ethanol and could reduce carbon emissions by 125,000 tons annually at the Ghent plant.

  • Ethanol produced can be used in various products, including sustainable transport fuels, packaging materials, clothing, and cosmetics.

  • Funding for the project was obtained from sources like the European Union's Horizon 2020 program, the European Investment Bank, and the Flemish government's support via VLAIO.

  • Sumitomo Corporation of Americas (SCOA) and Invest Alberta sign MOU for clean energy initiatives in Alberta, Canada.

  • The partnership aims to support SCOA's development of clean energy projects in Alberta.

  • Alberta is known for its advanced regulatory system for emission reductions and incentives for new projects.

  • SCOA is committed to helping Alberta transition to a carbon-neutral society.

  • The collaboration will leverage Sumitomo's expertise and international network to advance clean energy initiatives.

  • The Consulate General of Japan in Calgary also supports the partnership.

  • SCOA already has partnerships in Alberta, including the East Calgary Carbon Transportation & Sequestration Project.

  • SCOA has been operating in Canada since 1955 and has a significant focus on Energy Innovation.

  • Specific project areas include biogenic CO2 utilization, carbon capture & storage, critical minerals, hydrogen supply chain, sustainable aviation fuel, and more.

  • Yara International and Northern Lights sign a binding commercial agreement for the cross-border transportation and storage of CO2.

  • Yara aims to reduce its annual CO2 emissions by 800,000 tons from ammonia production at Yara Sluiskil.

  • The CO2 will be transported from the Netherlands to storage on the Norwegian continental shelf, 2.6 kilometers below the seabed.

  • Yara's goal is to remove approximately 12 million tons of CO2 from its Sluiskil production over the next 15 years.

  • Yara Sluiskil has a history of reducing emissions and is taking steps to decarbonize further.

  • Clean ammonia can be used to decarbonize sectors like shipping, chemical production, and power generation.

  • Yara is transitioning to decarbonize its core production assets and considering various funding options.

  • CCS is essential for decarbonizing hard-to-abate industries in Europe, and this agreement aims to kickstart the commercial market for CCS.

  • CCS is seen as a cost-efficient decarbonization solution compatible with existing European production infrastructure.

  • Yara Sluiskil will capture CO2 from ammonia production, expand CO2 liquefaction capacity, and ship the liquefied CO2 to Norway for storage.

  • Operations are set to begin in 2025 and continue for 15 years.

  • BP completes technology upgrade at Fowler Ridge 1 wind farm in Indiana

  • Upgraded wind turbines expected to generate 40% more energy

  • New Vestas turbines produce electricity more efficiently at lower wind speeds

  • Project involved upgrading 40 turbines, including 120 blades and 40 nacelles

  • BP's capital investment in the project was approximately $100 million

  • BP plans to recycle decommissioned blades, preventing 3.3 million pounds of material from ending up in landfills

  • Onshore wind is a critical component of BP's renewables & power business

  • BP operates all three Fowler Ridge wind farms in Indiana, supporting 195,000 homes annually

  • BP operates nine onshore wind farms across six states with a gross capacity of 1.7 gigawatts

  • BP's US wind farms generate renewable electricity for over 540,000 homes per year.

  • Monarch Energy and LS Power partner for green hydrogen projects in the U.S.

  • LS Power to invest up to $400 million in projects by Monarch under Clean Hydrogen Fuels, LLC.

  • LS Power provides $25 million in preferred equity financing for Monarch Energy and gains a seat on Monarch's Board of Directors.

  • Investment to advance Monarch's pipeline of large-scale electrolyzer projects for cost-competitive green hydrogen.

  • Target industries include refining, chemicals, fertilizer, long-haul transport, and hard-to-decarbonize sectors.

  • Partnership leverages LS Power's expertise in project development, commodities, environmental attributes, power marketing, and more.

  • Focus on advancing clean fuel solutions for the energy transition.

  • US Department of Energy's estimate highlights the potential for significant growth in low-carbon hydrogen production by 2030 and 2050 to support renewable generation and sustainable growth.

  • Glencore, a major coal player, is planning to exit the coal industry and focus on green metals.

  • CEO Gary Nagle is leading this strategic shift.

  • The company recently agreed to a multibillion-dollar deal to eventually divest its coal mines.

  • Glencore will pay $6.93 billion for a 77% stake in Teck Resources' coal business and intends to spin off the combined coal business within two years.

  • This move aims to boost the company's value by reducing its exposure to coal.

  • The new stand-alone coal business plans to have its primary listing in New York.

  • Glencore is already a significant player in copper, cobalt, nickel, and zinc, key metals for electric vehicle batteries and green technologies.

  • The company is based in Switzerland and has seen its shares rise after the coal deal with Teck was announced.

  • Gary Nagle became CEO in 2021, succeeding Ivan Glasenberg, who was a staunch defender of coal.

  • Nagle has worked to improve Glencore's reputation after legal issues in 2022.

  • He is focused on critical minerals, metals recycling, and expanding the company's presence in the metals market.

  • Glencore is striving to become a major supplier of metals for electric vehicle batteries and green technology.

  • Fortescue Metals Group Ltd launches Fortescue Capital in New York City.

  • Fortescue Capital is a green energy investment accelerator platform, part of Fortescue's commitment to green energy projects and decarbonization.

  • Aims to deliver higher returns for shareholders.

  • Fortescue Energy CEO, Mark Hutchinson, emphasizes the company's global green hydrogen and green ammonia projects.

  • Robert Tichio, with over 17 years at Riverstone Holdings, joins Fortescue as CEO.

  • Senior leadership team includes Nathan Craig, Rael McNally, and Jennifer Zarrilli, serving as Managing Directors in New York.

  • Fortescue Capital to focus on capital formation for large-scale decarbonization solutions.

  • Will work with institutional investors and hold equity stakes between 25% and 50% in projects, along with third-party investors.

  • Potential capital partners include sovereign wealth funds, pension funds, endowments, insurance companies, and family offices.

Despite progress toward net zero, serious obstacles remain. Many of the ideas being put forward to accelerate the energy transition are not based in economic, technological, or political reality.

To get serious about net zero, the world needs to get real.

We cannot replace overnight an energy system that took 150 years to build. The size and complexity are simply too vast.   

Those who would tear down the existing energy system have the wrong problem statement. The problem is not oil and gas. It’s emissions.

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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.