"There are two sources that will be needed for a very long time...

WSJ report - tech and oil giants working on carbon removal

• Carbon removal technology is gaining prominence, backed by significant government support and involvement of large corporations.

• The Energy Department has allocated $1.2 billion to create two carbon-removal hubs in Texas and Louisiana, attracting major companies like Occidental Petroleum.

• Exxon Mobil, Occidental, and startups are making deals to establish corporate presence in carbon removal.

• Direct-air capture technology, using vacuum devices to pull carbon from air and bury it, is favored by both government and industry.

• This technology is crucial for limiting climate change, as transitioning away from fossil fuels requires addressing existing emissions.

• The Energy Department's investment aims to create a commercial wave of carbon removal projects.

• The two proposed hubs could annually remove 1 million metric tons of CO2, equivalent to emissions of about 220,000 gasoline cars.

• The Energy Department also pledges to pay $35 million for carbon removal, similar to carbon-credit purchases by companies like Microsoft and JPMorgan Chase.

• Large fossil-fuel companies see carbon removal as a way to offset their emissions.

• Critics raise concerns about the expense and whether carbon removal might enable continued fossil fuel pollution.

• Occidental is heavily investing in carbon removal, buying startups like Carbon Engineering for $1.1 billion.

• Exxon Mobil's recent acquisition of Denbury indicates its interest in carbon capture and storage through pipelines.

• Carbon-removal hubs were funded by the 2021 infrastructure law, with companies contributing funds and overseeing operations.

• Climeworks, operating Iceland's first commercial direct-air capture facility, plays a key role in the Louisiana carbon-removal hub.

• Carbon removal offers businesses a way to mitigate emissions with more certainty than other carbon credits.

Cheniere and BASF sign long-term LNG agreement

• Cheniere has made a long-term LNG sale and purchase agreement (SPA) with BASF.

• BASF will buy around 0.8 million tonnes per annum (mtpa) of LNG from Cheniere Marketing.

• The purchase price will be tied to the Henry Hub price, with an added fixed liquefaction fee.

• Deliveries start in mid-2026 and could increase to 0.8 mtpa upon the commercial operation of Train Seven in the Sabine Pass Liquefaction Expansion Project.

• The agreement's term extends until 2043.

• Cheniere aims to provide stable, sustainable, and affordable US natural gas to Europe through this deal.

• BASF seeks to diversify its energy portfolio and ensure reliable gas supply amid changes in the European gas market.

• The Sabine Pass Liquefaction Expansion Project plans for up to 20 mtpa of total LNG capacity.

• Cheniere Energy Partners' subsidiaries have initiated the pre-filing review process for the expansion project with regulatory authorities.

ENGIE acquires EnCap, Apollo, Mercuria-backed Broad Reach Power for $1 billion

• ENGIE is acquiring the battery storage business of Broad Reach Power from EnCap Energy Transition, Apollo Funds, and other partners for over $1 billion.

• Broad Reach Power, founded in 2019 with EnCap's backing, is a leading developer and operator of renewable energy and energy storage projects in Texas, California, and other regions.

• The acquisition covers 350 MW of operational grid-scale battery assets and 880 MW under construction, mainly in the Electric Reliability Council of Texas (ERCOT) area.

• A 1.7 GW pipeline of advanced-stage battery storage projects and a substantial pipeline of early-stage projects are also part of the deal.

• ENGIE's acquisition excludes Broad Reach's portfolio of 1.8 GW solar and wind projects and 4 GWh of battery storage in the Mountain West region.

• Broad Reach Power's management team, along with Apollo Funds and EnCap Energy Transition, have played a crucial role in the company's growth.

• EnCap Energy Transition, a key investor in the U.S. energy storage sector since 2019, has been instrumental in creating and developing large energy storage companies.

• The acquisition reflects the growing significance of energy storage in the renewable energy landscape.

Brightmark - Chevron achieve first RNG project in Florida

• Brightmark RNG Holdings LLC, a partnership between Chevron U.S.A. Inc. and Brightmark Fund Holdings LLC, achieves a significant milestone in Florida's largest family dairy.

• The Larson Project, located in Okeechobee County, Florida, marks the first renewable natural gas (RNG) initiative in the state.

• The project involves four lagoon anaerobic digesters situated at Larson Family Farms and aims to produce RNG for low-carbon transportation fuel.

• The process captures methane from cow manure through anaerobic digestion, converting it into renewable natural gas.

• The RNG is utilized as transportation fuel, and the remaining solids are transformed into organic fertilizer.

• The project delivers environmental benefits including odor reduction, air quality improvement, soil stabilization, and reduced carbon intensity in agriculture.

• The collaboration with Chevron and Larson Family Farms signifies the growth of the RNG market driven by the agricultural and food waste sector.

• Chevron's renewables general manager, Nuray Elci, highlights the support for affordable, reliable energy and lower carbon solutions through projects like these.

• Brightmark's portfolio of nearly 30 RNG projects across 40 farms has already reduced more than 500,000 tons of CO2eq and aims to further reduce over 57,000 tons CO2eq annually.

Apollo acquires majority stake in CATEC

• Apollo-managed funds have acquired a majority stake in Composite Advanced Technologies, Inc (CATEC), a leading provider of transportation and storage solutions for compressed natural gas (CNG), renewable natural gas (RNG), and hydrogen.

• CATEC's products and services aid the transition from carbon-intensive fuels to cleaner alternatives by manufacturing large format Type IV cylinders for natural gas and hydrogen applications.

• CATEC's lightweight, high-capacity trailers and storage solutions help customers decarbonize and make low-carbon energy sources more accessible.

• Apollo Funds plan to invest further to establish a comprehensive gaseous equipment manufacturing platform supporting the growth of the hydrogen transport and storage market.

• CATEC's capabilities are critical for reducing carbon emissions in industries that are difficult to decarbonize.

• Alberto Chiesara, Co-Founder and President of CATEC, is optimistic about joining forces with Apollo Funds to expand capabilities and support low-carbon fuel solutions' adoption.

• Apollo's commitment to sustainability is demonstrated by investing in companies supporting the energy transition.

• The acquisition aligns with Apollo's Sustainable Investing Platform, aiming to deploy $50 billion in clean energy and climate capital by 2027 and more than $100 billion by 2030.

• Over the past five years, Apollo Funds have invested over $23 billion in energy transition and sustainability-related projects, including clean energy, infrastructure, renewable fuels, electric vehicles, and decarbonization technologies.

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.