Watt are you thankful for?

Wolf withdraws CO2 pipeline permit application in Illinois

• Wolf Carbon Solutions is withdrawing its permit application in Illinois for a carbon capture pipeline designed to transport up to 12 million tons of carbon dioxide annually to a storage site in the state.

• This withdrawal follows setbacks faced by other carbon capture pipeline projects, such as Navigator CO2 Ventures' Heartland Greenway pipeline and Summit Carbon Solutions' denied permit applications in North Dakota and South Dakota.

• Wolf's pipeline is intended to capture carbon dioxide from Archer-Daniels-Midland's ethanol plants in Iowa and transport it to a sequestration site managed by ADM in Decatur, Illinois.

• The Illinois Commerce Commission (ICC) staff recommended denying Wolf's permit application in October due to the absence of a final agreement with ADM.

• Wolf plans to refile its application in early 2024 to address concerns raised by the ICC staff while remaining committed to the project.

• ADM is in ongoing discussions with Wolf and supports the use of carbon capture and storage (CCS) at its Decatur facility.

• Carbon capture pipelines have faced resistance from landowners, including concerns about eminent domain, carbon leakage, and farmland damage.

• A group called Citizens Against Predatory Pipelines in Illinois opposes the Wolf project and plans to continue opposing any future permit application.

• The ethanol industry sees CCS as crucial to reducing emissions from ethanol production amid increasing competition from electric vehicles and as a potential feedstock for sustainable aviation fuel.

• Another setback in Midwest CCS. We covered the news on Navigator here.

Japanese firms partner with Petronas on offshore CCS

• Japanese companies are partnering with Malaysian energy firm Petronas for a carbon capture and storage (CCS) project.

• The project is expected to begin storing carbon dioxide (CO2) emissions by the end of 2028.

• Japan is actively working towards carbon neutrality by 2050 and is exploring various renewable and alternative energy sources, including CCS technology.

• Japan Petroleum Exploration Co (JAPEX) is collaborating with JGC Holdings Corp, Kawasaki Kisen Kaisha (K Line), and Petronas on this project.

• The companies plan to commence front-end engineering design next year and store CO2 from Japan and Malaysia in depleted oil and gas fields off the Malaysian coast.

• Initial injection is planned at 2 million metric tons of CO2 per year, increasing to 5 million tons annually by the end of the decade and over 10 million tons in the early 2030s.

• Japan has set a target of achieving an annual CO2 storage capacity of 6-12 million tonnes by 2030 as part of its long-term roadmap for CCS, which involves removing CO2 emissions from the atmosphere and storing them underground.

ADNOC and Santos team up on CCS

• ADNOC and Santos sign a strategic collaboration agreement (SCA) to establish a potential global carbon management platform.

• The collaboration focuses on advancing carbon capture and storage (CCS) technologies for industry decarbonization.

• Both companies will explore the development of a CO2 shipping and transportation network to enable the capture, shipment, and permanent storage of carbon emissions.

• ADNOC aims to achieve net zero by 2045 and plans to have a CCS capacity of 10 million tonnes per annum (mmtpa) by 2030.

• ADNOC currently operates the Al Reyadah facility, capable of processing 800,000 tonnes of CO₂ annually.

• The agreement supports the transition towards a low-carbon future and follows ADNOC's recent agreements to explore CCS and direct air capture (DAC) projects in the UAE and internationally.

• ADNOC's carbon management strategy targets a carbon capture capacity of 10 mmtpa by 2030, equivalent to removing over 2 million internal combustion vehicles from the road.

• Separately, ADNOC kicked off the DAC pilot with 44.01 on CO2 mineralization

Equinor and BP’s offshore wind project approved by Dept of Interior

• The U.S. Department of the Interior has approved the Empire Wind offshore project, owned by Equinor and BP, making it the sixth commercial-scale wind farm approved under President Joe Biden's administration.

• Empire Wind faces construction and financing cost issues, but it may benefit from a new auction planned by New York state.

• Equinor and BP, along with Danish counterpart Orsted, have incurred $5 billion in writedowns on incomplete U.S. offshore wind projects.

• The approval of Empire Wind aligns with the U.S. goal of deploying 30,000 MW of offshore wind by 2030.

• New York state also aims to develop 9,000 MW of offshore wind by 2035.

• Empire Wind includes two offshore wind farms, Empire Wind 1 (816 MW) and Empire Wind 2 (1,260 MW), located off Long Island and Long Branch, New Jersey.

• The project is expected to provide renewable power for over 700,000 homes annually.

• Empire Wind 1 is set to start production in 2026, with Empire Wind 2 following a year later.

• Equinor and BP have faced impairments on their New York projects, leading to plans for a new offshore wind solicitation open to all bidders in November 2023.

Fortescue greenlights $750 million in energy transition investments

• Fortescue approved approximately $750 million in investments for three green projects.

• The approved projects include the U.S. hydrogen hub in Phoenix, Arizona, the Gladstone 50-megawatt green hydrogen project in Queensland, Australia, and the Christmas Creek green iron trial commercial plant in Western Australia.

• About $550 million will be allocated to develop an electrolyzer and liquefaction facility in Phoenix, targeting the first production of liquid green hydrogen by 2026.

• Fortescue plans to expand its green energy projects in Brazil, Kenya, and Norway.

• The company is establishing an advanced manufacturing center in Michigan and an office in New York (Fortescue Capital) to attract more investment to its green energy initiatives.

• Fortescue is shifting from allocating 10% of net profit to its green energy unit to a competitive capital allocation model, where projects and investments will compete for funding, including external investments.

• Fortescue anticipates holding stakes of 25% to 50% in projects with outside investors.

Maersk signs landmark green methanol deal

• Maersk signs a significant green methanol offtake agreement with Chinese developer Goldwind.

• The agreement covers annual volumes of 500KT (thousand metric tons) to enable low-carbon operations for the first 12 large methanol-enabled Maersk vessels on order.

• The first volumes of green methanol are expected to be available in 2026.

• This marks the first large-scale green methanol offtake agreement in the global shipping industry.

• Maersk aims to achieve net-zero greenhouse gas emissions by 2040.

• The agreement reduces risks for Maersk's net-zero goals and supports the growth of a competitive green methanol market by 2030.

• The production facility for green bio-methanol and e-methanol will utilize wind energy in Northeast China, starting production in 2026.

• Goldwind expects to finalize investment decisions for the facility by the end of the year.

• Maersk is set to receive its first large ocean-going methanol-enabled vessel in Q1 2024 and is actively collaborating with global partners for solutions across its vessel series delivered in 2024-25.

• Green methanol is seen as a viable low-emission solution for ocean shipping in the current decade, contributing to decarbonization efforts.

Rabobank launches energy transition team

• Rabobank announces the launch of an Energy Transition Team.

• The team includes new hires in New York, consisting of bankers and research analysts.

• Rabobank aims to focus on sustainable growth in North America.

• The bank has a 20-year track record in renewable energy and project finance.

• The expansion includes senior bankers and RaboResearch analysts dedicated to the energy transition.

• Rabobank now has one of the largest clean energy financing teams in North America with 30 professionals.

• The bank plans to become a dominant player in the energy transition field in the next five years.

• Key hires include Joshua Dale and Jon Castaldo in banking, and Nina Fahy and Amit Mathrani in research.

• The bank is a top lender in renewable energy globally and has financed 27 gigawatts in various sectors.

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.