• Sunya Scoop
  • Posts
  • ⚡ Shell charges into EV market with Volta acquisition

⚡ Shell charges into EV market with Volta acquisition

and Japanese companies purchase US-produced clean ammonia and SAF

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:

  • Shell acquires Volta EV Charging

  • CF Industries working on clean ammonia and CCS in Louisiana

  • Raven SR to produce SAF for Japan Airlines

  • Quote of the Week - John Kerry

  • Shell is acquiring Volta in an all-cash deal for $169 million or $0.86 a share

  • This is a far cry from the ~$2 billion valuation after the SPAC merger in spring 2021 and less than the $600mm raised during that process

  • The acquisition aims to bring together Volta's powerful dual charging and media network with Shell's established brand to unlock growth opportunities in EV charging.

  • No change to the driver experience, Volta Media Network for advertisers, or services for commercial properties and retail locations.

  • Shell will provide cash to bridge Volta through the closing of the transaction

  • This acquisition combines one of the leading EV charging and media companies in the US with one of the biggest energy suppliers in the world.

  • This could be the beginning of majors and industrials going bargain hunting for energy transition companies who went public via SPAC in the last 24 months who have seen valuations plummet 80%+

  • CF Industries, the world's largest producer of ammonia, has signed a MOU with JERA, Japan's largest energy generator, for the supply of up to 500,000 metric tonnes per year of clean ammonia starting in 2027

  • The clean ammonia will be co-fired with coal at JERA's Hekinan Thermal Power Station in Japan to reduce CO2 emissions and will be required to be produced with at least 60% lower carbon emissions than conventionally produced ammonia

  • The MOU establishes a framework for the companies to assess how CF Industries would best supply JERA with clean ammonia under a long-term offtake agreement

  • CF Industries has been working on decarbonizing its ammonia production network and is positioned to supply a substantial volume of clean ammonia within the next few years through projects such as leveraging carbon capture and sequestration (CCS) technologies

  • The companies expect to evaluate a range of potential supply options, including an equity investment alongside CF Industries to develop a greenfield clean ammonia facility in Louisiana and a supplementary long-term offtake agreement from CF Industries’ Donaldsonville Complex in Louisiana

  • Raven SR Inc., a renewable fuels company, announced it has signed a MOU to supply sustainable aviation fuel (SAF) to Japan Airlines (JAL) for major global routes

  • The MOU provides for an initial 50,000 tons of SAF supply in the first year, 2025, with annual incremental increases to 200,000 tons for year 10

  • The supply will be produced by Raven SR at facilities, starting in California then Europe, planned for major global markets outside Japan to serve specific international routes of JAL

  • Raven SR uses waste as feedstock for its SAF production which is expected to stabilize both the supply and pricing of SAF

  • Raven SR's technology is a non-combustion thermal, chemical reductive process that converts organic waste and landfill gas to hydrogen and Fischer-Tropsch synthetic fuels.

  • The third-generation synthetic SAF produced using Raven SR's proprietary technology is projected to reduce CO2 emissions compared to conventional jet fuel and extend the lifespan of jet engines

  • The Japanese airline industry is required by the country to reach a goal of achieving net-zero CO2 emissions from aircraft by 2050 and reduce/offset 15% (from 2019 levels) by 2024

Quote of the Week

What we need to do is get less coal and begin to move away from coal...coal that is unabated, coal that is not reducing the emissionsis the greatest challenge right now on the planet.

John Kerry, US Special Climate Envoy (in Bloomberg Interview at Davos)

Something we agree on.

That's a wrap for today. If you like what you read, send to a friend. 

If someone forwarded you this and you liked it, consider subscribing below.

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.