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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:
Oxy’s 1PointFive has signed a deal to sell 500,000 metric tons of carbon dioxide removal (CDR) credits to Microsoft over six years.
The agreement, facilitated by 1PointFive's STRATOS Direct Air Capture (DAC) facility in Texas, marks the largest purchase of DAC-enabled CDR credits to date.
Microsoft, aiming to achieve carbon negativity by 2030, will use the captured CO2 for subsurface saline sequestration, excluding its use in oil and gas production.
Direct Air Capture is seen as pivotal in addressing emissions from hard-to-abate industries, aligning with Microsoft's strategy to integrate scalable carbon removal technologies.
Brian Marrs, Senior Director at Microsoft, emphasizes the significance of projects like STRATOS in scaling DAC technology to meet substantial carbon removal targets.
Google has ceased claiming carbon neutrality by discontinuing the purchase of cheap carbon offsets for its operations, aiming instead to achieve net-zero carbon emissions by 2030.
Previously, Google offset its emissions through purchases that matched its operational emissions from buildings, data centers, and business travel.
The decision reflects Google's adaptation to stricter sustainability standards and a more robust carbon removal ecosystem.
Google's emissions rose by 48% from 2019 to 2023, largely due to increased energy consumption driven by artificial intelligence (AI) initiatives.
Moving forward, Google will focus on absolute emissions reductions and intends to purchase carbon-removal credits for residual emissions, which are more expensive but verifiably draw down carbon dioxide from the air.
In 2022, Google pledged $200 million to support the carbon-removal market, contracting credits from companies like Charm Industrial, Lithos Carbon, and CarbonCapture.
The company remains committed to Science-Based Targets initiative (SBTi), emphasizing emissions reduction as a primary goal over offsetting.
Pennybacker Capital Management, LLC (Pennybacker) has agreed to acquire the Miami Facility, a small-scale LNG business in Miami, Florida, from New Fortress Energy Inc. (Nasdaq: NFE).
The transaction, expected to close in Q3 2024, involves a facility capable of producing 8,300 MMBtu of LNG daily, with onsite storage of approximately 1,000 cubic meters.
The facility can load LNG onto trucks and railcars and is permitted to export LNG to both Free Trade Agreement (FTA) and non-FTA countries.
Pennybacker aims to expand the platform to provide cost-effective and sustainable LNG solutions to new U.S. and Caribbean customers.
BASF and ENGIE signed a 7-year Biomethane Purchase Agreement (BPA).
ENGIE will supply BASF with 2.7 to 3.0 terawatt hours of biomethane throughout the agreement.
BASF uses certified biomethane at Ludwigshafen and Antwerp sites to replace fossil raw materials.
BASF expands its product portfolio with lower or zero Product Carbon Footprints (PCF).
Products span industries like automotive, packaging, and detergents.
ENGIE aims to achieve significant growth in biomethane sales by 2030, supporting Europe's renewable energy goals.
Nuveen, a $1.2tn global asset manager, announces the first close of its second global climate inclusion private equity strategy with approximately $200 million from investors including Danish pension fund Velliv.
The strategy aims to address climate change and inequality by investing in global growth markets, focusing on climate inclusion and financial services accessibility for low-income consumers.
The first iteration of Nuveen’s private equity impact series invested in 8 global businesses since 2021, including Perch Energy, a clean energy technology platform.
Sakuu and SK On have entered a joint development agreement (JDA) to advance EV battery manufacturing using Sakuu’s Kavian® printing platform.
The partnership aims to industrialize Sakuu’s dry process innovation for electrode manufacturing, eliminating solvents and enhancing battery performance.
SK On, a major global EV battery supplier, is among the first to collaborate on scaling the Kavian platform, focusing on innovation and addressing industry challenges.
SK On operates EV battery plants in Georgia and is expanding in the southern U.S. through joint ventures with Ford and Hyundai.
Canadian Solar's e-STORAGE, part of CSI Solar Co., Ltd., will supply a 498 MWh DC standalone battery energy storage system for Aypa Power's Bypass Project in Fort Bend County, Texas.
Scheduled for completion by Q3 2025, the project aims to meet growing energy demands in the greater Houston area.
Utilizing 106 units of SolBank 3.0 batteries, each providing 5 MWh capacity, the system includes high-density lithium-iron-phosphate (LFP) chemistry cells and liquid cooling thermal management for efficiency and reliability.
e-STORAGE will support the project through integration, commissioning, and ongoing operational services under a Long-Term Service Agreement (LTSA).
Devon Energy has agreed to acquire Grayson Mill Energy's Williston Basin business for $5 billion, comprising $3.25 billion in cash and $1.75 billion in stock.
Devon anticipates significant operational scale and efficiency gains, estimating average production to reach 375,000 barrels per day of oil and 765,000 oil-equivalent barrels per day post-transaction.
The acquisition adds 307,000 net acres and enhances Devon's position in the Williston Basin with 100,000 Boe per day production capacity.
Ownership of midstream infrastructure is expected to boost margins with approximately $125 million in annual EBITDAX uplift.
Hell of a couple years for EnCap…
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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.
