UAE secures US LNG

PLUS: 280 Earth DAC, Aramco-Rondo, KKR's $300mm solar credit facility, Iberdrola acquires Avangrid, SCE-Lotus CA transmission lines

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:

  • 280 Earth announced the completion of a direct air capture (DAC) facility in Oregon to remove CO2 from the atmosphere.

  • The facility can permanently sequester captured CO2 underground or use it for industrial purposes like synthetic fuels or carbon-negative concrete.

  • This marks the first DAC plant in Oregon, showcasing years of research and development by X, The Moonshot Factory, to commercialize low-cost DAC technology.

  • The facility's first phase can capture up to 500 tonnes per year of CO2 and water from ambient air, with plans to scale up to a 5,000 tonne per year module.

  • Located in The Dalles, Oregon, the facility uses low-carbon electricity from hydropower and a low-temperature desorption process to minimize energy consumption.

  • Builders VC led a $50 million Series B funding round to support 280 Earth's DAC project development, aiming to meet urgent CO2 reduction goals.

  • ADNOC acquires an 11.7% stake in Phase 1 of NextDecade's Rio Grande LNG (RGLNG) project in Texas, marking its first strategic investment in the US.

  • The equity stake is acquired through an investment vehicle of Global Infrastructure Partners (GIP), with NextDecade retaining its expected economic interest in Phase 1, Train 4, and Train 5 expansion capacity.

  • ADNOC and NextDecade enter into a 20-year LNG offtake agreement for 1.9 million tons per annum (mtpa) from RGLNG Train 4, priced based on Henry Hub index, subject to Final Investment Decision (FID).

  • Rio Grande LNG is expected to produce less carbon-intensive LNG with a proposed carbon capture and storage (CCS) project targeting emissions reduction of over 90%.

  • ADNOC secures the option for equity participation in future Trains 4 and 5 of the Rio Grande LNG project.

  • NextDecade targets Final Investment Decision (FID) on Train 4 in the second half of 2024, pending EPC contract finalization, commercial arrangements, and adequate financing.

  • Aramco and Rondo Energy signed an MoU to deploy GW-scale thermal storage and explore hydrogen and carbon capture technologies.

  • The agreement aims to reduce operating costs and emissions at Aramco's global facilities, starting with the deployment of Rondo Heat Batteries.

  • Aramco Ventures previously invested in Rondo, and the companies plan to scale up to 1GWh deployment of Rondo Heat Batteries.

  • The technology also targets applications in hydrogen production, carbon capture (CCS), direct air capture (DAC), and solar desalination.

  • Rondo Heat Batteries store energy in brick materials, potentially supporting large-scale energy storage manufacturing in Saudi Arabia.

  • The MoU was witnessed by US Secretary of Energy Jennifer Granholm and Prince Abdulaziz bin Salman Al-Saud, Minister of Energy of Saudi Arabia.

  • Rondo Energy, known for its Heat Batteries and partnerships like with Siam Cement Group, operates high-efficiency energy storage systems in California and aims to expand production capacity significantly.

  • KKR provides a $300 million corporate credit facility to Origis Energy, a renewable energy and decarbonization solution platform.

  • The financing will support Origis' development and construction of solar and storage projects.

  • Origis Energy is ranked third by S&P Global Commodity Insights among the largest owners of planned solar installations through 2028.

  • Origis has developed over 250 solar and storage projects and has a portfolio of more than 12 gigawatts (GW) in the U.S., with an additional 13 GW in the pipeline.

  • Vikas Anand, CEO of Origis, expresses enthusiasm for the partnership with KKR and the company's growth trajectory.

  • Sam Mencoff, Director at KKR, highlights the strong demand for renewable energy financing and KKR's support for leading developers like Origis Energy.

  • KKR's investment aligns with its Asset-Based Finance (ABF) strategy, focusing on privately originated credit investments backed by diversified pools of assets, offering attractive risk-adjusted returns.

  • Iberdrola is acquiring the remaining 18.4% of Avangrid's common stock for $35.75 per share in an all-cash transaction.

  • The price represents an 11.4% premium over the closing price of Avangrid's stock on March 6, 2024, and a 15.2% premium over the 30-day average price.

  • Avangrid will continue paying regular quarterly dividends not exceeding $0.440 per share until the transaction's closing.

  • The Board of Directors of Avangr

    id unanimously approved the agreement, subject to customary conditions and shareholder approvals.

  • Pedro Azagra, Avangrid's President and CEO, expressed excitement about Iberdrola's investment and commitment to sustainability.

  • Southern California Edison (SCE) and Lotus Infrastructure Partners were chosen by CAISO to develop and operate a new high-voltage transmission line.

  • The transmission project will deliver energy from renewable sources like solar, wind, and batteries to Southern California, utilizing existing rights of way.

  • The project addresses the increasing demand for electricity in California due to factors like EVs, heat pumps, data centers, and economic electrification.

  • Lotus Infrastructure Partners, with experience in developing transmission assets, will lead the project's development.

  • Upon completion and regulatory approval, SCE will acquire the entire project, leasing 25% of the transmission capability to Lotus.

  • The project, known as the North of SONGS to Serrano project, is a 30-mile, 500-kilovolt overhead transmission line contributing to California's clean energy and climate goals.

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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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