VinFast's SPAC Soars

Heidelberg and Mitsubishi partner on carbon capture for cement

• Heidelberg Materials North America and Mitsubishi Heavy Industries (MHI) are working together to achieve the first full-scale Carbon Capture, Utilization, and Storage (CCUS) solution for the cement industry.

• MHI has installed a compact CO2 pilot capture system called "CO2MPACTTM" at Heidelberg Materials' cement plant in Edmonton, Alberta, Canada.

• The project is a partnership between Heidelberg Materials, the Government of Canada, and the Government of Alberta.

• The CCUS facility aims to capture more than 1 million tonnes of CO2 annually from the Edmonton cement plant and an integrated combined heat and power facility.

• The facility is expected to be operational by late 2026.

• Heidelberg Materials seeks to lead the decarbonization of the cement industry.

• The project leverages MHI's Advanced KM CDR ProcessTM using the KS-21TM solvent, and the pilot plant will test various fuel sources and operating modes.

• The captured CO2 will be transported via pipeline and permanently sequestered.

• MHI will provide remote support services for the facility using its proprietary remote monitoring system.

Asian buyers eyeing US LNG if Australian labor disputes don’t resolve

• Asian LNG buyers may turn to U.S. LNG if worker-related disputes at key LNG facilities in Australia worsen.

• Disputes at Woodside Energy Group and Chevron facilities in Australia could lead to increased demand for U.S. LNG as electricity demand rises due to warm weather.

• Uncertainty over labor disputes has driven Asian LNG prices to a five-month high, with potential for further increases.

• Up to 700 workers at Australian facilities could go on strike over pay and job security, potentially impacting output at facilities responsible for over 10% of global LNG production.

• Prolonged strikes could lead to increased competition for spot LNG cargoes, prompting Chevron and Woodside to seek alternatives to meet commitments.

• U.S. and Qatar could be alternative LNG sources for Asia, potentially diverting LNG scheduled for Europe.

• Japanese electricity demand surge contributes to concerns over LNG inventories, especially as Japan's summer cooling demand continues.

• Japan, as a top LNG importer, is most vulnerable to disruptions from the strife-hit Australian facilities.

• Maintenance work at the North West Shelf and potential strikes could lead to reduced Australian LNG production and tighter markets.

• Woodside Energy's CEO notes a tight balance in the LNG market due to reduced Russian supply to Europe and potential impacts from labor disputes.

China continues to add LNG contracts from US and Qatar

• Chinese LNG importers are expanding or setting up trading desks in London and Singapore to manage their increasing and diverse supply portfolios in a volatile global market.

• About a dozen Chinese companies, including ENN Natural Gas, China National Offshore Oil Corp (CNOOC), and China Gas Holdings, are expanding their trading teams or establishing new trading desks.

• Chinese companies have raised their long-term LNG contracts with Qatar and the U.S. by nearly 50% since late 2022, totaling over 40 million metric tons per year (mtpy).

• China aims to become more international and domestic trading players, with state-run companies like PetroChina, Sinopec, Sinochem Group, and CNOOC already actively trading to capitalize on their portfolios.

• By 2026, Chinese companies are expected to have contracted more than 100 million tons of LNG supplies, potentially creating a surplus of up to 8 million tons or a deficit of 5 to 6 million tons.

• Growing domestic output and increased piped gas from Central Asia and Russia give Chinese gas companies the ability to trade or swap portfolio cargoes.

• China could become a seasonal seller to regions like Southeast Asia, South Korea, Japan, and Europe due to its growing LNG capacity.

• U.S. LNG contracts have no destination restrictions, and estimates suggest that U.S. volume could make up a quarter of China's long-term contracts by 2030.

• China's expansion into the LNG trading market is driven by market shifts caused by factors like Russia's gas supply disruption to Europe and the liberalization of China's domestic gas market.

Rondo Energy secures $60 million for heat batteries for industrial decarbonization

• Rondo Energy secures $60 million in financing to accelerate the global rollout of Rondo Heat Batteries (RHBs) and transform the energy storage market.

• Global leaders including Rio Tinto, Microsoft's Climate Innovation Fund, Aramco Ventures, SABIC, SCG, and TITAN invest alongside climate investors like Breakthrough Energy Ventures, Energy Impact Partners, SDCL Energy Efficiency Income Trust (SEEIT), and John Doerr.

• The funding will support international operations, storage project development, and growth of Rondo's capacity to meet customer demand.

• Rondo's Strategic Investor Advisory Board (SIAB) is formed with participation from Rio Tinto, Aramco Ventures, SABIC, SCG, TITAN, and SEEIT.

• Rondo Heat Batteries offer a cost-effective solution for transforming industrial heat processes, addressing a quarter of global carbon pollution from high temperature heat in industries.

• Rondo's technology converts intermittent wind and solar power into continuous, high-temperature clean heat for industrial processes.

• Rondo's first commercial unit lowered the carbon intensity of biofuel produced by Calgren Renewable Fuels in the US.

• Partnership with Siam Cement Group (SCG) leads to Heat Battery storage production capacity of 2.4GWh/year, with plans to reach 90GWh/year.

• Rondo Heat Batteries store energy at half the cost of other technologies like green hydrogen and chemical batteries, using brick and iron wire materials.

• Rondo's technology aids rapid and deep decarbonization in energy-intensive and hard-to-decarbonize industries.

Vietnamese EV-maker VinFast goes public via SPAC

• Vietnamese electric vehicle maker VinFast's shares (VFS.O) surged on its Nasdaq debut after a $23 billion backdoor listing following its merger with a special purpose acquisition company (SPAC), Black Spade Acquisition (BSAQ.A).

• The stock opened at $22 per share, doubling the agreed $10 per share value with the SPAC partner, valuing VinFast at $23 billion.

• The stock further surged during the session, ending at $37.06, giving VinFast a market capitalization of $85 billion, surpassing the market values of Ford and General Motors.

• VinFast aims to challenge Tesla with a $4 billion factory under construction and a new sales approach. Founder Pham Nhat Vuong, Vietnam's richest man, owns 99% of VinFast's shares.

• The company plans to raise money from global investors within 18 months, with a focus on strategic and institutional investors.

• VinFast, which has shipped almost 3,000 vehicles to North America, is changing its distribution model to partner with dealers in overseas markets while maintaining its showrooms.

• The company experienced a first-quarter revenue drop of 49% and posted a net loss of $598 million, but it has started construction on a $4 billion plant in North Carolina.

• VinFast's VF8 EV is priced at $46,000 in California, competing with Tesla's Model Y. The company plans to introduce its larger VF9 EV to the U.S. market by the end of the year.

• VinFast is also in the process of certifying its cars with Europe's safety regulator for entry into the European market.

Northvolt raises $1.2 billion for battery manufacturing factories

• Swedish lithium-ion battery producer Northvolt has raised $1.2 billion in a new funding round to support the construction of new factories in Europe and North America.

• The funding was secured through a convertible note, reflecting increasing investor interest in companies positioned for the low-carbon economy transition.

• Investors in the funding round include BlackRock, Canada Pension Plan, Ontario Municipal Employees Retirement System, and Investment Management Corporation of Ontario.

• Other participants in the funding round are Goldman Sachs, Volkswagen, Baillie Gifford, Swedbank Robur, Singapore's GIC, and Hong Kong-based Chow Tai Fook Enterprises.

• Some funds investing in the note have received the 'dark green' classification under the EU's sustainable finance framework, indicating environmental approval.

• The funds will facilitate the expansion of Northvolt's factory operations, including a recent investment of 600 million euros for a German plant.

• Northvolt is reportedly close to finalizing plans for a multibillion-dollar battery factory in Canada, expected to be announced later this year.

• The company has raised over $9 billion in debt and equity since 2017 to become Europe's leading battery manufacturer.

• Northvolt has secured orders worth over $55 billion from companies like BMW, Fluence, Scania, Volvo Cars, and Volkswagen.

• Additionally, Northvolt has produced its first energy storage system products in Poland and anticipates starting customer deliveries this year.

• While the possibility of going public has been speculated, Northvolt's CFO declined to comment on whether the company is preparing for an IPO, which has been reported to value the company at over $20 billion.

Indonesia and Kenya partner on geothermal exploration

• Pertamina Geothermal Energy (PGE), a unit of Indonesian state energy firm Pertamina, has entered into initial agreements with two Kenyan companies for potential geothermal power project partnerships.

• PGE signed a memorandum of understanding (MoU) with Geothermal Development Company to explore a partnership that could be worth $1.5 billion.

• Another MoU was signed with Africa Geothermal International No. 1 Ltd (AGIL No. 1) for a potential deal valued at $700 million.

• The agreements were signed during President Joko Widodo's visit to Kenya, aiming to pave the way for broader energy cooperation, including in oil and gas and renewable energy sectors.

• PGE's partnership with AGIL No. 1 targets the development of geothermal power in the Longonot concession in Kenya, with the potential to produce up to 500 megawatts of geothermal power, of which 140 MW is ready for exploitation.

• Pertamina, PGE's parent company, also signed an MoU to explore partnership opportunities with the National Oil Corporation of Kenya during the same visit.

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.