Wall street withdraws

PLUS: PIMCO pulls out, Equinor LNG, CenterPoint's $1.2bn sale, CCUS in Alberta, KoBold's copper discovery, WSJ piece on mining, Greenalia's $200mm

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:

  • Heidelberg Materials North America announces a milestone in the Edmonton CCUS Project.

  • The project aims to implement Carbon Capture, Utilization, and Storage (CCUS) technology in the cement sector.

  • Technip Energies has been selected to provide front-end engineering and design (FEED) for carbon capture technology.

  • The FEED study will utilize the Shell CANSOLV® CO2 capture system.

  • Heidelberg Materials North America aims to achieve the world's first net-zero cement production.

  • The Edmonton plant will capture and store an estimated 1 million metric tons of CO2 annually.

  • The project is anticipated to commence carbon capture operations in late 2026, pending funding agreements.

  • CenterPoint Energy announces the sale of its natural gas assets in Louisiana and Mississippi, which includes approximately 12,000 miles of main pipeline serving around 380,000 metered customers, to Bernhard Capital Partners for $1.2 billion.

  • Transaction valuation represents approximately 32 multiple of 2023 Louisiana and Mississippi Local Distribution (LDC) earnings.

  • CenterPoint reallocates approximately $1 billion of future capital investments from Louisiana and Mississippi assets elsewhere across its regulated Electric and Natural Gas utility footprint.

  • Company reiterates long-term confidence in and commitment to its Natural Gas Business and Louisiana and Mississippi LDCs represent less than 4% of the company's overall rate base.

  • Equinor signs a 15-year LNG agreement with Deepak Fertilisers, an Indian fertiliser and petrochemical company.

  • Deliveries of liquefied natural gas (LNG) under the agreement will commence in 2026.

  • Equinor's LNG portfolio includes supply from its Hammerfest LNG Plant in Norway and LNG sourced mainly from the US.

  • Deepak Fertilisers will mainly use the LNG as feedstock for ammonia production in its newly commissioned plant for manufacturing fertilisers and petrochemicals.

  • The agreement entails an annual supply of approximately 0.65 million tons (about 9 TWh) of LNG for 15 years starting in 2026.

  • Ammonia produced from the natural gas will be used domestically by Deepak.

  • Equinor sees this agreement as an opportunity to strengthen its relationship with key players in the growing Indian market.

  • Both parties express interest in exploring further collaboration on petrochemicals feedstocks and low-carbon ammonia in the future.

Two take-aways:

1. Interesting to see a deal straight to the consumer of the gas, no Petronet or commodity firm in the middle.

2. Looks like the LNG permit pause isn’t really getting in the way of deals getting signed.

  • Greenalia secures $200 million of three-year credit facilities for U.S. market expansion.

  • Funds support development of solar and wind projects in the U.S., particularly in the ERCOT region.

  • Greenalia's U.S. subsidiary, Greenalia Power US Advanced II, LLC, will utilize the facilities for project equipment and development expenses.

  • The financing marks Greenalia's first foray into the North American market, reflecting its rapid growth in the U.S.

  • Nomura Infrastructure & Power Business (IPB) and PEI Global Partners express excitement about the partnership and its potential to advance renewable energy projects.

  • The financing structure combines bank and private credit capital, aiming to accelerate Greenalia's project pipeline.

  • Several major financial firms, including JPMorgan, State Street, and Pimco, have withdrawn from Climate Action 100+, a coalition aimed at addressing climate issues.

  • This retreat represents a reversal of Wall Street's earlier environmental pledges.

  • Concerns about legal risks and fiduciary duties prompted the firms to pull out as the coalition shifted its focus toward pressuring companies to reduce emissions.

  • BlackRock, Bank of America, and others scaled back their environmental commitments, citing legal considerations and regulatory differences.

  • Despite leaving Climate Action 100+, some firms maintain their commitment to sustainable investing and addressing climate risks.

  • The withdrawals highlight the challenges facing businesses in fulfilling their environmental promises amid legal and political pressures.

  • KoBold Metals, backed by Bill Gates and Jeff Bezos, discovers large copper deposit in Zambia.

  • The Mingomba copper project in Zambia is expected to become one of the world's biggest high-grade large copper mines.

  • The discovery is significant for global efforts to secure critical materials for the energy transition, given copper's high demand in renewable energy and electric vehicles.

  • Zambia, Africa's second-largest copper producer, stands to benefit from the economic ramifications of the project.

  • KoBold Metals utilizes artificial intelligence to locate new deposits of copper, lithium, cobalt, and nickel.

  • Investors in KoBold Metals include Andreessen Horowitz, Equinor, BHP, and Breakthrough Energy, founded by Bill Gates.

  • KoBold Metals aims to begin copper production within 10 years, potentially addressing the global shortage of critical minerals for the energy sector.

  • Producers of lithium and nickel pause projects due to plummeting prices and a slowdown in electric-vehicle (EV) sales growth.

  • Albemarle, a major lithium company, defers spending on a $1.3 billion plant in South Carolina amidst cost-cutting measures and reduced demand.

  • Glencore suspends production at an unprofitable nickel mine in New Caledonia, seeking a buyer for its stake.

  • BHP Group considers shutting down its Australian nickel business due to weak market conditions, impacting supply deals with Tesla and Ford Motor.

  • The global market faces an oversupply of battery metals as EV sales momentum wanes, prompting delays in investments from automakers like Ford and General Motors.

  • Lithium producers favor pausing projects over shutting down existing operations, but some nickel miners face no choice but to close unprofitable mines.

  • Australian officials designate nickel as a critical mineral to address supply chain concerns.

  • The downturn in the nickel industry threatens national security and the environment, according to U.S. Department of Energy officials.

  • Some lithium producers aim to capture market share despite the market downturn, while some nickel miners are forced to close operations due to economic unviability.

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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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