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Blastr Green Steel Expands INTERFER Collaboration with Low-Carbon Steel Offtake
LPO makes $4.9B Commitment to Grain Belt Express HVDC Transmission Project
Copenhagen Infrastructure Partners (CIP) and AMPIN Expand Partnership in India
Fengate and Alpha Omega Power Close on 400MWh Battery Storage in California
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Climate Action Plan: $100 billion goal by 2030; emissions intensity reduction by 50% by 2030 and net-zero by 2050.
Current Commitments: Climbed from $47B to $53B in a year, including $3.6B in new investments in private equity and infrastructure.
Key Investments: Partnerships with Brookfield for grid reliability and TPG Rise Climate for global energy transition and green mobility projects.
Octopus Energy Stake: Investment in UK-based renewable energy company expanding into the US market.
Future Pipeline: Reviewing $3.2B in additional climate investments.
Member Reach: Serves 2.2M in the retirement system and 1.5M+ families through benefits administration.
Investment: $7 billion for the Tangguh Ubadari Carbon Capture, Utilization, and Storage (CCUS) and Compression Project in Papua Barat, Indonesia.
Gas Potential: Unlocks ~3 trillion cubic feet of natural gas to meet Asia's energy demand.
Carbon Storage: Aims to sequester 15 million tonnes of CO₂ in its first phase, Indonesia’s first large-scale CCUS project.
Timeline: Production from the Ubadari field expected by 2028.
Strategic Importance: Classified as a national strategic project by Indonesia.
Capacity Boost: Tangguh LNG capacity increased to 11.4 million tonnes per year with a third train added in 2023.
Local Workforce: Targeting 85% Papuan workforce by 2029.
Ownership: bp holds a 40.22% stake, alongside Indonesian and international partners.
Planned Investments: Hydrogen-ready DRI-EAF facilities to replace blast furnaces, supported by EU-backed funding.
Delays: Green hydrogen projects postponed due to slow technology development, high costs, and an uncompetitive natural gas-based DRI process.
Policy Concerns: Uncertainty around carbon border adjustment mechanism (CBAM) effectiveness and insufficient customer demand for low-carbon steel.
Future Milestones: Key 2025 developments include a CBAM review and the release of the EU Steel and Metals Action Plan, which will inform final investment decisions.
Emission Reductions: European emissions have dropped 28.2% since 2018, primarily due to lower production amid weak demand.
Ongoing Projects: A 1.1M tonne EAF in Gijón, Spain, under construction to cut CO₂ emissions by 1M tonnes annually; revamped Sestao plant targeting 1.6M tonnes of low-carbon steel output.
Product Expansion: Sales of XCarb® low-carbon steel expected to double to 400,000 tonnes in 2024.
Net-Zero Commitment: ArcelorMittal remains committed to achieving net-zero by 2050, exploring near-zero technologies like CCUS.
CEO's Perspective: Aditya Mittal emphasized the need for supportive policies to accelerate decarbonization, acknowledging that the approach to achieving net-zero may evolve.
Market Challenges: Demand for low-carbon steel remains limited, with customers hesitant to pay a premium.
Offtake Volume: Blastr will supply INTERFER Edelstahl Group with 150,000 tonnes of ultra-low CO₂ steel annually under a Memorandum of Understanding.
Production Scale: Represents 10% of planned capacity at Blastr’s green steel plant in Inkoo, Finland, which will produce 2.5 million tonnes of steel annually.
Emission Reduction: Steel to have total embodied CO₂ emissions under 500 kg/tonne, compared to ~2,200 kg/tonne in conventional steelmaking.
Hydrogen Process: Steel will be produced using hydrogen instead of coal, aligning with Europe’s decarbonization goals.
Delivery Timeline: Shipments to begin by the end of 2029, with a binding agreement expected in early 2025.
Customer Benefits: INTERFER will integrate ultra-low CO₂ steel into its product portfolio, enhancing offerings for sustainability-focused clients.
Locations: New data centres in Eskilstuna, Katrineholm, and Västerås, completion by mid-2025.
Steel Sourcing: ~70% of structural steel in Eskilstuna and Västerås from electric arc furnaces, significantly reducing CO₂ emissions.
Katrineholm Materials: Uses steel exclusively made from scrap melted in carbon-free electric arc furnaces, cutting emissions to 1/7th of conventional methods.
HYBRIT Collaboration: Partnering with SSAB and Ruukki to use hydrogen-produced steel, emitting only water vapor.
Sustainability Showcase: HYBRIT steel to be used in the façade of the Västerås facility.
Net-Zero Goal: AWS targets net-zero carbon across operations by 2040.
Loan Guarantee: Up to $4.9 billion pledged by LPO for the 578-mile Grain Belt Express Phase 1 HVDC transmission line.
Route: Connects Ford County, Kansas, to Callaway County, Missouri, enhancing electricity transmission across three regional grids.
Grid Integration: Links Southwest Power Pool, Midcontinent Independent System Operator (MISO), and Associated Electric Cooperative Incorporated to expand import/export capabilities.
Efficiency: Utilizes HVDC technology for lower line losses, improved reliability, and resilience over long distances.
Climate Impact: Expected to reduce annual CO₂ emissions by 3.1 million tons.
Timeline: Phase 1 focuses on addressing regional electricity gaps while advancing clean energy infrastructure.
New Equity: $300M joint investment for ~2 GWp of renewable projects, raising the asset base to $2.7–3B.
Project Scope: Solar, wind, hybrid, and storage technologies for grid-connected projects across India.
Growth: Builds on an initial 2021 partnership with ~$300M equity investment and target expansion from 1.7 GWp to 2.4 GWp.
AMPIN's Role: Manages 4 GWp portfolio across 21 states, driving renewable adoption in India.
CIP’s Presence: Oversees €31B in funds, focused on greenfield renewable energy investments globally.
Project Details: 400MWh Caballero Energy Storage project acquired from Origis Energy, covering six acres and supporting California's energy grid.
Capacity: Can power over 100,000 homes for up to four hours during peak demand, reducing reliance on thermal generation and lowering carbon emissions.
Financial Close: Tax equity commitment secured with U.S. Bancorp Impact Finance; construction and term debt arranged with MUFG Bank.
Timeline: Expected to be operational by early 2025.
Developer Partnership: First project by Fengate Asset Management and Alpha Omega Power, formed in 2023 to develop battery storage systems.
Grid Benefits: Enhances resiliency, supports renewable integration, and mitigates extreme weather impacts.
Corporate Highlights: Fengate manages over $7B in capital commitments, while Alpha Omega Power focuses on battery storage development for renewable energy transition.
CIP’s Jeonnam Offshore Wind 1 Delivers First Power in South Korea: South Korea’s first 96 MW commercial-scale offshore wind farm generates power, with full operations expected by 2025.
Schneider Electric Boosts Environmental Transparency via One Click LCA: Publishes product environmental data for the MEP sector through One Click LCA to drive transparency and decarbonization.
Expand Energy Corporation Completes Tender Offer for 2026 Notes: Successfully tenders 90.63% of 5.500% Senior Notes due 2026, optimizing its capital structure.
Ten years ago, most energy folks had a simple pre-Thanksgiving evening thinking about family, food and all sorts of fun things about to unfold the next day. But then the next day - referred to by some as an oil market bloodbath - actually arrived. 📉
— Robert Clarke (@RobertClarke_WM)
11:53 PM • Nov 27, 2024
Check out the latest Sunya Stories podcast with JP Morgan’s Rama Variankaval.
Rama Variankaval is Global Head of Corporate Advisory & Sustainable Solutions at J.P. Morgan. This group combines the capabilities of Corporate Finance Advisory, Center for Carbon Transition, Sustainable Solutions, and Infrastructure Finance Advisory.
We talk energy transition, carbon reduction, and the impact of AI on energy.
This episode is audio-only and you can find it on Spotify or Apple Podcasts as well.
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.
