☀️ A SPAC-tacular announcement

PLUS: Louisiana primacy, Tourmaline-Clean Energy RNG, TC Energy-Chemours Hydrogen

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  • Sunergy Renewables, LLC has entered into a business combination agreement with ESGEN Acquisition Corp.

  • The combined company is expected to be listed on the NASDAQ

  • Sunergy is a leading provider of integrated rooftop solar, energy storage, and energy efficiency solutions to residential customers.

  • Sunergy delivered approximately $123 million of revenue and approximately $11 million of EBITDA in 2022, underpinned by nearly 2,400 installations performed during the year.

  • Sunergy is growing rapidly in the residential solar market with a differentiated sales approach, vertically integrated offerings, a geographic focus on high growth markets in Florida, Texas and Arkansas, and plans to expand further in the future.

  • ESGEN’s sponsor, Energy Spectrum, has committed to a common stock PIPE investment of $10 million at $10 per share.

  • The transaction is currently expected to provide gross proceeds of up to $65 million to the combined company.

  • The proceeds will provide growth capital to Sunergy for expansion of customer offerings and general corporate purposes.

  • The pro forma implied enterprise value of the combined company is expected to be $475 million and expects to close in the 4th quarter


Source: Clean Energy Fuels

  • Tourmaline Oil and Clean Energy Fuels have announced a $70 million Joint Development Agreement to build and operate a network of compressed natural gas (CNG) stations across Western Canada.

  • The investment is expected to establish a commercial fueling network for heavy-duty natural gas trucks in the region.

  • Tourmaline and Clean Energy plan to construct and commission up to 20 CNG stations over the next five years, with Clean Energy operating the stations.

  • Mullen Group has expressed support for the initiative and expects to use the network of stations to fuel its growing fleet of CNG-powered trucks.

  • The use of CNG is expected to result in significant CO2 emission reductions and cost savings for the transportation industry, with fueling vehicles with CNG resulting in up to 50% cost savings when compared to retail diesel prices.

  • The initiative also paves the way for renewable natural gas (RNG) availability in the future.

  • The first station, located north of Edmonton, is already operational, and the next stations are expected to be commissioned in the first half of 2024 in Calgary, Grande Prairie, and Kamloops.

  • Chemours and TC Energy have signed a memorandum of understanding (MOU) for the potential development of two electrolysis-based hydrogen production facilities in West Virginia.

  • The facilities will be located at or near Chemours’ Washington Works and Belle manufacturing sites in West Virginia and will utilize Chemours’ Nafion ion exchange membranes.

  • The MOU supports the companies’ participation in and goals of the Appalachian Regional Clean Hydrogen Hub (ARCH2) in West Virginia.

  • The agreement covers the companies’ interest in developing, constructing, and operating clean hydrogen production facilities and associated infrastructure.

  • A non-binding off-take agreement for hydrogen produced by the project would be executed, supporting the facility demands of Chemours.

  • Hydrogen produced in excess of the off-take agreement would be stored and available for loading and shipment to nearby merchant users.

  • Louisiana is expected to receive permitting authority over Class VI wells, which capture and store greenhouse gases, by the end of 2023.

  • Congressman Garret Graves has confirmed the move, saying that the state has more expertise and capacity than the Environmental Protection Agency (EPA) does at this point.

  • Primacy, or permitting and enforcement authority, allows states to speed up approvals for these wells and ensure investment dollars for carbon sequestration and storage hubs flow to the state.

  • Louisiana has a large number of refineries and other industrial facilities and is vying for control over the wells.

  • Occidental Petroleum Corp and Talos Energy have carbon capture projects proposed for Louisiana, while EnLink is eying various carbon dioxide pipeline projects to connect emitters to storage sites.

  • North Dakota and Wyoming are the only two states with primacy and have been able to speed up the permitting of Class VI or carbon-injecting wells to months instead of years.

  • Boreal Carbon Corporation has acquired an institutional-quality timberland asset in Northern Ontario, exceeding 20,000 acres.

  • The acquisition will allow Boreal to build a portfolio of timberland assets that generate high-quality, verifiable carbon credits through sustainable forest management practices.

  • The acquisition represents a significant milestone for the company and its unique, value-add business model as a full-service forest carbon credit developer.

  • Boreal plans to enhance and protect the ecological attributes of the property for generations by developing it as a carbon credit project.

  • The company is actively pursuing other timberland acquisition and management opportunities to take a leading role in this growing field.

Visual of the week (from Lazard LCOE presentation)

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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.