Touchdown for Carbon Removal

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.

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Sunya Scoop
January 10, 2023

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:

  • Chart of the day

  • Houston Texans and 1PointFive

  • Raven, Chevron and Hyzon to produce hydrogen from waste

  • Equinor and RWE building low-carbon hydrogen

Chart of the day

No. This isn't the cryptocurrency your nephew was shilling at Thanksgiving...it's front month Henry Hub natural gas!

Nat gas has taken a beating this past month but the typical US producer should be fine at these price levels as well as combined with any hedges.

This sort of volatility is going to make capex assumptions for the year difficult to pinpoint.

US price levels coming down likely makes a more attractive LNG story for European and Asian buyers trying to decarbonize away from coal.

  • 1PointFive, a subsidiary of Oxy's Low Carbon Ventures business, has announced a sponsorship and agreement with the Houston Texans football team

  • The Texans will purchase carbon dioxide removal credits from 1PointFive's first Direct Air Capture plant, which is set to be operational in late 2024

  • The credits will offset the estimated carbon emissions from the team's air travel to away games for three seasons

  • Direct Air Capture technology captures and removes large volumes of CO2 from the atmosphere, which can be safely stored underground in geologic formations

  • 1PointFive will become the Texans' Preferred Carbon Removal Partner and educate fans on the importance of carbon removal

  • The partnership aims to reduce the carbon footprint of the Texans and address carbon emissions associated with air travel

  • Raven SR, Chevron New Energies, and Hyzon Motors are collaborating to build a green waste-to-hydrogen production facility in Richmond, California

  • The facility will use a non-combustion Steam/CO2 Reforming process to produce up to 2,400 metric tons of renewable hydrogen per year from up to 99 wet tons of green and food waste per day

  • The project is expected to avoid up to 7,200 metric tons of CO2 emissions per year and to produce at least 60% of its own electricity by upgrading the landfill gas electric generators at the site

  • Chevron plans to market its share of the hydrogen in Northern California fueling stations and Hyzon plans to provide refueling for hydrogen fuel cell trucks at a hydrogen hub in Richmond

  • The facility is expected to come online in Q1 2024 and will be owned by a new company called Raven SR S1, which will be operated by Raven SR and owned 50% by Chevron, 30% by Raven SR, and 20% by Hyzon

  • The project aims to help California fulfill its SB 1383 mandates and to support the transition to zero-emission vehicles in the region

Source: Equinor

  • Equinor and RWE are partnering to develop large-scale hydrogen value chains in Germany and Norway to replace coal-fired power plants with hydrogen-ready gas-fired power plants and to produce low-carbon and renewable hydrogen.

  • They will jointly own new gas power plants fueled initially with natural gas and shifting to hydrogen when available, and produce low-carbon hydrogen in Norway with CCS and store CO2 offshore.

  • They plan to develop offshore wind farms for renewable hydrogen, and construct a hydrogen pipeline from Norway to Germany for export.

  • Goal is to make Norway a key supplier of hydrogen to Germany and Europe and build a hydrogen industry in Norway for domestic use.

  • Germany aims to phase out coal-fired power plants by 2030 and hydrogen pipeline feasibility study is currently ongoing.

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

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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.