UK changes its tone

Carbonvert and Castex team up on offshore Louisiana CCS project

• Carbonvert Inc. and Castex Energy, Inc. (through Castex Carbon Solutions, LLC) have executed an operating agreement with the State of Louisiana for an offshore carbon storage hub project.

• The project will be situated on a 24,000 acre tract of land in State waters, offshore Cameron Parish, with the goal of permanently storing carbon dioxide (CO2).

• The collaboration combines Castex's decades-long operational, commercial, and subsurface expertise with Carbonvert's specialized knowledge in carbon capture and storage (CCS).

• The Cameron Parish CO2 Hub is strategically positioned to offer efficient and sustainable decarbonization solutions for regional emitters.

• It has a total storage capacity of over 250 million metric tons of CO2, primarily serving existing industrial emitters and potential new projects like ammonia and LNG facilities.

• The JV Partners are exploring opportunities to repurpose existing pipeline infrastructure to support the project.

• Castex will operate the Cameron Parish CO2 hub.

• The project is expected to contribute to Louisiana's low-carbon future, boost the local economy, address regional CO2 emissions, and align with environmental and economic goals.

• The joint venture aims to provide tailored CO2 storage solutions for industrial corridors in need of economically viable options.

NextDecade secures $356 million in loans for Rio Grande LNG Phase 1

• NextDecade's subsidiary, Rio Grande LNG, secured $356 million in senior loans.

• These loans will finance a portion of Phase 1 of the Rio Grande LNG export facility in Texas.

• The loans were disbursed in a single advance on September 15, 2023.

• This reduced the outstanding commitments under existing term loan facilities from $11.1 billion to under $10.8 billion.

• The senior loans will mature in July 2033 and carry a fixed interest rate of 6.72%.

• They rank pari passu (equal ranking) with RGLNG's existing term loan facilities, working capital facility, and senior notes.

• This financing aligns with NextDecade's long-term balance sheet strategy for Phase 1, focusing on debt maturities, capital diversification, and interest rate exposure mitigation.

• Over 80% of the projected debt for Phase 1 construction is protected from interest rate fluctuations through executed interest rate swaps.

Repsol filing a case against Venture Global LNG for lack of performance

• Repsol SA has initiated an arbitration case against U.S. gas exporter Venture Global LNG for failing to fulfill its liquefied natural gas (LNG) contract or provide compensation.

• This marks the fourth European customer taking legal action against Venture Global LNG for its failure to supply LNG from a plant in operation for 18 months.

• Venture Global LNG has attributed the plant's operational issues to faulty power equipment but has sold over 200 cargoes in the spot market at higher prices than those agreed upon in long-term contracts with companies like BP, Shell, Edison SpA, and others.

• Customers allege that the U.S. firm has capitalized on the global gas market rally following Russia's invasion of Ukraine.

• Venture Global LNG has informed Repsol that it won't be able to deliver cargoes until late 2024 or early 2025.

• Repsol's arbitration case was accepted by the International Chamber of Commerce, and a panel of three members has been appointed to assess the dispute.

• Repsol seeks either the delivery of cargoes or compensation of over $100 million for undelivered fuel.

• As of now, Venture Global LNG and Repsol have not provided comments on the matter.

Ontario Teachers acquires KKR’s stake in GreenCollar

• Ontario Teachers’ Pension Plan (Ontario Teachers’) is acquiring KKR and other shareholders’ stakes in GreenCollar, an Australian environmental markets platform.

• The financial terms of the transaction were not disclosed.

• Ontario Teachers’ had initially invested in GreenCollar in March 2022, and with this new investment, they are taking a significant majority stake in the company.

• GreenCollar's CEO and Co-founder, James Schultz, will continue to lead the business and remain a significant shareholder.

• Ontario Teachers' Natural Resources group, part of the Infrastructure and Natural Resources department, has experience in investing in various natural resources sectors, including agriculture and climate solutions in Australia.

• KKR initially invested in GreenCollar in 2020 as part of its Global Impact strategy, focusing on companies contributing to the United Nations Sustainable Development Goals (SDGs).

HSBC to fund early-stage climate tech with $1 billion

• HSBC plans to provide $1 billion in financing to early-stage climate tech companies globally.

• The funding will support startups working on various climate solutions, including EV charging, battery storage, sustainable food and agriculture, and carbon removal technologies.

• HSBC's initiative aligns with its recent launch of HSBC Innovation Banking and HSBC Asset Management's Climate Tech Venture Capital strategy.

• The goal is to assist climate tech companies in creating and scaling real-world solutions, addressing the financing needs of these pioneering firms.

• Venture capital funding for climate startups saw a 40% decline in the first half of 2023, prompting HSBC to step up its support for climate tech innovation.

• HSBC aims to allocate its $1 billion funding to promising climate tech companies worldwide, not limited to the USA and Europe.

• The initiative recognizes the importance of technologies in the demonstration or prototype phase, as they play a crucial role in achieving net-zero emissions by 2050.

• HSBC plans to help climate tech innovation scale by supporting early-stage companies and financing groundbreaking demonstration projects, including its $100 million investment in Breakthrough Energy Catalyst.

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UK rolls back it’s acceleration to Net Zero policies.

Directionally still chasing Net Zero but with less force than the tone leading into the election. Inflation has run rampant in the UK and some of these individual policies have added pressure to the average consumer.

There was some immediate pushback:

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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.