Summit cleans house

PLUS: CO2 leak insurance, DOE's $254mm, Climeworks-Svante DAC, Permian DLE, Amazon's offshore wind purchase

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:

  • POET LLC, the world's largest ethanol producer, is partnering with Summit Carbon Solutions to capture carbon dioxide emissions at 17 of its U.S. Midwest ethanol plants.

  • This collaboration is part of Summit's multi-state pipeline project aimed at carbon capture and storage (CCS).

  • POET had previously partnered with Navigator CO2 Ventures for a similar carbon pipeline project, which was canceled in October due to regulatory challenges.

  • The carbon capture efforts will help reduce emissions in ethanol production and support POET's climate goals.

  • Summit plans to capture and store 4.7 million metric tons of CO2 from 12 POET plants in Iowa and five in South Dakota.

  • Summit's overall project aims to capture 18 million metric tons of CO2 at 33 biofuel plants along a 2,000-mile, five-state route.

  • The Summit project has faced opposition from landowners concerned about potential carbon dioxide leaks, farmland damage, and eminent domain issues.

  • Regulatory challenges and safety concerns have led to permit denials in South Dakota and North Dakota, with a pending decision in Iowa.

After Navigator shut down, many people asked me what was going to happen to Midwest carbon capture. My take was: Summit is going to clean house.

  • Howden has launched a groundbreaking insurance facility for carbon capture and storage (CCS) facilities, covering the leakage of carbon dioxide (CO2).

  • This insurance product addresses environmental damage and loss of revenue resulting from CO2 leaks in CCS projects, supporting the global transition to net-zero emissions.

  • The facility was designed by Howden and led by SCOR's syndicate at Lloyd's.

  • It provides coverage for damage and revenue loss caused by the sudden or gradual release of CO2 from CCS projects into the air, land, and water.

  • This insurance covers liabilities related to carbon credits and allowances, including UK and EU ETS liabilities, which are crucial for the financial viability of CCS projects.

  • The initiative is part of the effort to accelerate the net-zero transition and has the support of the Sustainable Markets Initiative and Lloyd's.

  • Climeworks and Svante have entered into a collaboration and supply agreement to advance commercial-scale solutions for direct air capture.

  • Both companies will collaborate on three significant CO₂ removal projects, a crucial step towards creating direct air capture hubs in the U.S. capable of capturing large amounts of CO₂.

  • Climeworks' Orca plant in Iceland is the world's largest direct air capture and storage facility and serves as a model for their projects.

  • The collaboration aims to plan the supply of Svante's contactor blocks for Climeworks' major projects, with the goal of establishing a commercial-scale supply agreement for megaton direct air capturing hubs in the U.S.

  • Climeworks was selected by the U.S. Department of Energy to develop three such hubs, making them eligible for over USD 600 million in government funding.

  • Svante is finalizing its commercial filter manufacturing facility in Canada, well-equipped to supply the industrial point source and direct air capture markets.

  • The Administration is providing $254 million to support the decarbonization of America's industrial sector and boost domestic manufacturing.

  • These funds will be allocated to 49 projects in 21 states aimed at reducing industrial greenhouse gas emissions and advancing innovative decarbonization technologies.

  • An additional $83 million funding opportunity is open to address emissions from challenging industrial sectors, representing 30% of total U.S. carbon emissions.

  • Projects include research and development in various sectors, including industrial heat, low-carbon fuels, cross-sector R&D, chemicals, iron and steel, food and beverage, cement and concrete, and forest products.

  • These projects aim to reduce energy usage and greenhouse gas emissions, with a focus on addressing challenges common to different industries.

  • Element3® successfully extracted lithium chloride from oil and gas wastewater in a field test conducted at a Double Eagle Energy Holdings IV, LLC subsidiary's recycling facility.

  • The extraction technology, which is patent-pending, eliminates the need for pre-concentration, making it possible to efficiently extract lithium from the wastewater.

  • This breakthrough opens the door to tapping into a new domestic lithium resource from the vast wastewater produced as a byproduct of U.S. oil and gas operations, estimated at one trillion gallons annually.

  • The extraction process recovered more than 85% of lithium from wastewater with a concentration of less than 40 parts per million lithium.

  • Element3 plans to initiate a commercial demonstration of its operations later in the year.

  • Amazon has signed a corporate power purchase agreement (CPPA) with ENGIE to procure 473MW of renewable energy from the Moray West offshore wind farm in Scotland.

  • The wind farm, located in the Moray Firth, is under construction and is expected to begin generating power in 2024.

  • Amazon's share of the wind farm's output will help power the equivalent of over 650,000 UK homes annually.

  • The Moray West project is developed by Ocean Winds, a joint venture between EDP Renewables and ENGIE focused on offshore wind.

  • Amazon aims to power all of its operations with 100% renewable energy by 2025, five years ahead of its original target.

  • ENGIE has signed several CPPAs in recent years, expanding its portfolio to 7.3GW of clean energy capacity.

  • The Moray West project aligns with Ocean Winds' goal of developing 5-7 GW of projects in operation or construction by 2025.

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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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