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Gevo acquires ethanol plant with CCS from Red Trail Energy in ND for $210mm
DOE makes $1.6bn commitment to Wabash Valley to produce low-carbon fertilizer
Apollo acquires RNG fueling infrastructure company, Freedom CNG
Total joins first Japanese fund dedicated to the development of low-carbon hydrogen
Doral Renewables closes $400 million equity investment from APG
Apollo partners with bp in Trans Adriatic Pipeline for $1 bn
The almost headlines
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Gevo has announced its agreement to acquire the ethanol production and carbon capture assets of Red Trail Energy for $210 million.
Gevo aims to market carbon abatement along with advanced liquid fuels to enhance shareholder value.
The acquisition complements Gevo’s Net-Zero 1 SAF project and offers access to a privately owned CCS site.
The existing CCS assets have a sequestration capacity of 1 million metric tons annually, with 160,000 metric tons currently utilized.
The Red Trail Energy facility includes a low-carbon ethanol plant with a capacity of 65 million gallons per year.
The CCS site has been operational since 2022 and generates monetizable tax credits.
The Department of Energy's Loan Programs Office announced a conditional commitment of a $1.559 billion loan for the Wabash Valley Resources project, which totals a $2.4 billion investment.
This investment aims to enhance domestic fertilizer production and decrease reliance on imported ammonia in the Eastern Corn Belt.
Wabash Valley Resources plans to produce carbon-negative ammonia using industrial waste and carbon capture technology.
By increasing domestic ammonia production, the project intends to alleviate supply chain issues for local farmers and promote low-carbon agricultural practices.
The initiative has garnered support from various organizations, including Climate Investment, Baker Hughes, Honeywell, and Samsung E&A America.
1PointFive, a subsidiary of Occidental, has received up to $500 million in funding from the U.S. Department of Energy for the South Texas Direct Air Capture Hub.
The funding will be delivered in multiple phases, starting with an initial $50 million to enhance ongoing work at the hub.
Future activities include engineering, permitting, and community engagement to support local benefits.
The total funding could reach $650 million for expanding a regional carbon network in South Texas.
The South Texas DAC Hub will initially remove 500,000 metric tons of CO2 annually, with plans to expand capacity to over 1 million metric tons per year.
The site can potentially remove up to 30 million metric tons of CO2 annually and store 3 billion metric tons in saline formations.
Apollo-managed funds have acquired a majority interest in Freedom CNG, a provider of compressed natural gas and renewable natural gas fueling infrastructure in Texas.
Freedom CNG operates a network of high-capacity fueling stations in the Houston Metro area, catering to various customers including logistics companies, municipalities, and school districts.
Apollo Partner Scott Browning highlighted Freedom's growth potential, emphasizing established relationships with customers and new development opportunities.
Over the past five years, Apollo has invested approximately $40 billion in energy transition and sustainability initiatives, reflecting its commitment to clean energy.
TotalEnergies has announced its investment in the Japan Hydrogen Fund at its first close.
The fund is aimed at developing the low-carbon hydrogen value chain.
The initial funding exceeds $400 million, contributed by major Japanese companies such as Toyota Motor Corporation, Iwatani Corporation, Sumitomo Mitsui Banking Corporation, MUFG Bank, Tokyo Century Corporation, Japan Green Investment Corp. for Carbon Neutrality, and the Bank of Fukuoka.
Advantage Partners will manage the fund, which was launched by the Japan Hydrogen Association.
TotalEnergies is the only non-Japanese investor to participate in this fund.
This commitment complements TotalEnergies' earlier involvement in the Hy24 clean hydrogen infrastructure fund launched in 2021.
Doral Renewables LLC announced the closing of a $400 million minority equity investment by Dutch pension APG on behalf of the largest Dutch pension fund ABP.
The investment aims to accelerate the development and construction of Doral's energy pipeline.
APG will additionally provide corporate credit support and funding for Doral’s business up to an extra $185 million over time.
Doral Renewables specializes in partnerships with farming communities to build large-scale, greenfield renewable energy projects.
The company is a leader in agrivoltaics, integrating traditional farming with solar farms to maximize land use and enhance biodiversity.
Doral’s project pipeline totals over 13 GW, with 1.35 GW currently under construction and an additional 2 GW of mature projects expected to start construction soon.
Doral’s projects include the Mammoth Solar complex in Indiana and additional projects in various U.S. electricity markets.
The remaining 10 GW of Doral’s portfolio consists of solar and storage projects across multiple regions.
Apollo Funds will acquire a non-controlling interest in bp Pipelines TAP Limited, which holds a 20% stake in Trans Adriatic Pipeline AG.
The transaction is valued at approximately $1 billion.
Apollo's involvement provides exposure to a key energy asset while allowing bp to unlock near-term value.
bp will retain its controlling interest in bp Pipelines TAP Limited.
The Trans Adriatic Pipeline is critical for European energy supply, connecting natural gas from Azerbaijan to markets in Europe.
bp and Apollo intend to collaborate on additional investment opportunities, particularly in gas and low carbon energy assets.
The proceeds from this deal will support bp's target of $2-3 billion in divestments for 2024.
BKV Corporation has launched its initial public offering of 15,000,000 shares of common stock.
The expected initial public offering price is between $19.00 and $21.00 per share.
The shares are approved for listing on the New York Stock Exchange under the ticker symbol BKV.
Citigroup and Barclays are the lead book-running managers for the offering.
Evercore ISI, Jefferies, and Mizuho are acting as joint book-running managers.
BKV is the largest natural gas producer by gross operated volume in the Barnett Shale.
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.
