Transaction Thursday

PLUS: CHK-SWN merger, Sunya Stories podcast, 8 Rivers ammonia project, ECP buys Triple Oak, Equinor-Linde, Arclight forms Alpha Generation

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:

Introducing Sunya Stories. The podcast series covers conversations with those in energy.

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  • Chesapeake Energy Corporation and Southwestern Energy Company are merging in an all-stock deal worth $7.4 billion.

  • The merger will create a leading energy company with a strong natural gas portfolio and 7.9 Bcfe/d of net production

  • It is expected to result in annual operational and overhead synergies of about $400 million.

  • The merged company plans to expand its marketing and trading business to supply lower-cost, lower-carbon energy to meet growing domestic and international LNG demand.

"The world is short energy and demand for our products is growing, both in the U.S. and overseas. We will be positioned to deliver more natural gas at a lower cost, accelerating America's energy reach and fueling a more affordable, reliable, and lower carbon future.

  • Sustainability is a focus, with a commitment to low emissions, net zero Scope 1 and 2 GHG emissions by 2035, and investment in low-carbon solutions.

The combined company's board of directors will have 11 members, with Mike Wichterich as Non-Executive Chairman and Nick Dell'Osso as President and CEO.

The rumor mill had been flowing on this one for a while. Glad to see it finally print. Excited for the next chapter of Chesapeake.

  • 8 Rivers announced the Cormorant Clean Energy Project, utilizing 8RH2 Ultra-Low Carbon Hydrogen Technology.

  • The project, located in Port Arthur, Texas, will produce 880,000 tonnes of low-carbon ammonia per year.

  • It aims to accelerate the decarbonization of transportation, industrial processes, and agriculture in the Gulf Coast region.

  • The project is expected to attract over $1 billion in investment and create 1,000 new construction jobs from 2024 to 2027.

  • 8RH2 is an oxy-combustion hydrogen process that eliminates CO2 emissions and lowers costs.

  • It will convert hydrogen into ultra-low-carbon ammonia for various applications, with high efficiency and carbon capture.

  • The project leverages existing infrastructure, a skilled workforce, and the region's commitment to the energy transition in the U.S. Gulf Coast.

  • The Cormorant Clean Energy Project is a significant step in deploying the 8RH2 platform at scale for clean fuel production.

  • It represents an economical and scalable solution to decarbonize industries like shipping, transportation, aviation, and power generation.

  • Equinor and Linde are collaborating to develop a 1GW blue hydrogen project in the Netherlands.

  • The project, called H2M Eemshaven, aims to produce around 210,000 tonnes of blue hydrogen per year starting in 2028.

  • The hydrogen will primarily serve customers in steel production, chemicals, and power production.

  • Gas for the project will be sourced from Norway.

  • Equinor and Linde will jointly own and operate the hydrogen and carbon capture facilities.

  • They aim to achieve a 95% carbon capture rate, although there is skepticism about this target.

  • Equinor will handle the marketing of blue hydrogen, some of which will go into onshore hydrogen pipelines in the Netherlands and Germany.

  • The details of the "project development agreement" and the required capital expenditure have not been disclosed.

  • This project is part of Equinor's strategy to develop hydrogen production in major industrial clusters in Europe by 2035.

  • Other companies are also investing in blue hydrogen projects in the Netherlands, making it a low-carbon hydrogen hub in Europe.

  • Energy Capital Partners (ECP) has acquired Triple Oak Power from EnCap Energy Transition Fund I, along with co-investors Yorktown Partners and Mercuria Energy.

  • Triple Oak Power, founded in 2020 and headquartered in Portland, Oregon, specializes in developing and monetizing high-quality renewable energy projects to support the transition to renewable energy in the U.S.

  • The company manages a pipeline of over 8.0GW of renewable development projects, primarily in utility-scale wind opportunities in the central and western United States.

  • ECP aims to collaborate with Triple Oak Power to deliver cost-effective, clean energy and facilitate the company's continued growth.

  • ArcLight Capital Partners has formed Alpha Generation, LLC (AlphaGen) to manage its power infrastructure portfolio.

  • AlphaGen aims to provide reliable, secure, safe, and sustainable access to power to support growing electrification infrastructure needs.

  • AlphaGen will oversee one of the largest domestic power portfolios, generating nearly $2 billion in annual revenue.

  • Curt Morgan will serve as CEO and Chairman of AlphaGen, starting from May 1, 2024. He was previously the CEO of Vistra, a leading electricity and power generation company.

  • AlphaGen will manage ArcLight's power infrastructure portfolio, which includes low-cost, low-carbon assets supplying key demand centers in the tri-state area of New York, New Jersey, and Connecticut.

  • The partnership aims to capitalize on electrification and energy transition trends, with a focus on renewables, battery storage, and transition infrastructure.

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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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