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Carbon removal and storage developer sells carbon removal credits

Summit Carbon Solutions has signed a multi-year agreement to sell carbon dioxide removal credits to the NextGen CDR Facility.

Summit Carbon Solutions, developer of the world’s largest carbon removal project, has signed a multi-year agreement to sell Carbon Dioxide Removal credits (CDRs) to the NextGen CDR Facility (NextGen), according to a news release.

In total, NextGen announced the purchase of 193,000 tons of CDRs from three projects, including a leading U.S. direct air capture project and a Finnish biochar manufacturer, making this one of the largest CDR transactions to date.

NextGen is a joint venture between South Pole and the Mitsubishi Corporation, and backed by founding buyers Boston Consulting Group, LGT, Mitsui O.S.K. Lines, Swiss Re, and UBS. NextGen is creating one of the world’s largest diversified portfolios of CDRs, with plans to purchase over one million tons of CDRs by 2025.  The CDRs must be from large-scale technical carbon removal projects and certified under standards endorsed by the International Carbon Reduction and Offset Alliance (ICROA).

Even with multi-megaton-scale projects like Summit Carbon Solutions, demand for ICROA certified technical CDRs will exceed the available supply for years into the future,” said Jim Pirolli, chief commercial officer at Summit Carbon Solutions.

To meet these stringent requirements, Summit Carbon Solutions has developed a methodology for Biomass Carbon Removal and Storage (BiCRS), currently under review with Gold Standard for the Global Goals.  Gold Standard is the leading global registry through which CDRs are verified and generated to ensure project quality and sustainable development goals are met under ICROA standards.

“Our continuing work with Gold Standard on the BiCRS methodology will accelerate the adoption of additional CCS methodologies across the global carbon registries,” said Ben Nelson, Director of Carbon Programs at Summit Carbon Solutions. “This first CDR sale to NextGen will catalyze our project as well as others that can meet these standards, and we look forward to working with climate leaders throughout the global carbon removal marketplace.”

“NextGen’s ambition to scale the CDR market has taken a major step forward following the initial purchase commitments from three projects, which puts us on a clear pathway to realize our target of 1M durably stored tons of CO2 by 2030. Each project has had to satisfy our requirements to realize significant climate impact in the near term, and quality requirements to meet independent certification standards,” says Philip Moss, global director of Tech Carbon Removals at South Pole, and chairman of the board, NextGen CDR. “Summit Carbon Solutions, the world’s largest technological CDR project, is providing critical infrastructure at scale needed to support the build out of the carbon removal industry in the USA, and we look forward to seeing the successful implementation to reduce historic emissions and help limit the growing impacts of climate change.”

“At Summit Carbon Solutions, we believe in the positive impact sustainable growth will have on people, communities, and climate security for future generations,” said Lee Blank, CEO of Summit Carbon Solutions. “People notice when you do the right things the right way for the right reasons. For instance, we were introduced to The Gold Standard and NextGen because we are building a large CCS project, but the partnerships solidified because of our commitment to hold ourselves to the highest standards now and into the future.  Similar to how we take extra care to build and operate according to the sustainable development goals, this is more than a CDR sales transaction; it is a long-term commitment by all parties to leave the planet better than we found it.”

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BlackRock’s Larry Fink underscores ‘enormous’ capital demands for infrastructure

In acquiring GIP, BlackRock believes that, over the next 10 years, infrastructure and energy investments will become a major component of the private market ecosystem.

The growth of private markets in infrastructure underpins the industrial logic of BlackRock’s $12.5bn deal for infrastructure asset manager Global Infrastructure Partners, BlackRock CEO Larry Fink said today.

In a Friday morning call with analysts, Fink emphasized the expected growth of private capital in infrastructure and energy markets over the next 10 years as a major factor in its acquisition of GIP.

“Growing public deficits, a modernizing digital world, advancing energy independence, and the energy transition are driving the mobilization of private capital to fund critical infrastructure,” Fink said.

“I believe that the amount of capital that is to be needed as we digitize everything, the need to upgrade our power grids worldwide is a must,” he said. “The capital associated with that is going to be enormous.”

BlackRock is acquiring GIP for $3bn of cash and approximately 12 million shares of BlackRock common stock. The combination creates the second-largest global infrastructure private markets business, with over $150m in client assets, according to a presentation.

Fink expects BlackRock to continue to partner with corporations in acquiring asset carve-outs or co-investing in infrastructure projects, such as its deals with Occidental Petroleum (direct air capture) and AT&T (5G buildout).

GIP Founding Partner, Chairman, and CEO Bayo Ogunlesi, who is slated to become a member of BlackRocks’ board following the transaction, highlighted the complementary aspects of the business combination.

“BlackRock has built a terrific infrastructure business,” he said. “But they make mid-market or mid-cap investments. We make large-cap investments.”

He added, “[BlackRock has] a terrific infrastructure debt business that is mostly investment grade, ours is mostly below investment grade. They have a capital solutions business that we don’t have. So if you put these two businesses together, we can go to clients, large cap clients, mid cap clients, offer them a complete array of solutions.”

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Viking testing first hydrogen-powered cruise ship

Viking is using the small H2 system to test how hydrogen fuel could be used at a larger scale.

The Viking cruise line has received its first ship testing the use of hydrogen power, according to a press release.

The ship, the Viking Neptune, is equipped with a small hydrogen fuel system for on board operations. Viking is using the small system as a test to determine how hydrogen fuel could be used at a larger scale in future newbuilds.

Delivery took place when the ship was presented at Fincantieri’s shipyard in Ancona, Italy.

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German IPP secures €500m financing facility from EIG

The facility is expected to support ILOS’s plans to generate more than 2 GW of power through solar and battery projects by 2026, but also contemplates the deployment of capital to co-located battery storage and hydrogen.

ILOS Projects, a Pan-European Independent Power Producer (IPP) sponsored by Omnes, today announced the signing of a €500m structured credit facility with EIG, an institutional investor in the global energy and infrastructure sectors.

The facility is expected to support ILOS’s plans to generate more than 2 GW of power through solar and battery projects by 2026. The facility comprises an initial tranche of €250m and includes an accordion that would increase the loan amount by an additional €250m. Additional financing terms were not disclosed.

The facility is intended to accelerate ILOS’s growth toward becoming a leading Pan-European IPP, with loan proceeds available to provide construction equity and acquisition capital for ready-to-build assets. Initially, ILOS intends to focus on projects in Ireland, the UK, the Netherlands, Greece and Italy, but the facility also contemplates the deployment of capital in other OECD jurisdictions as well as in co-located battery storage and hydrogen.

Akereos Capital acted as sole bookrunner, structurer and exclusive debt advisor to ILOS. Allen & Overy served as legal advisor to ILOS and Milbank served as EIG’s legal advisor.

Rob Johnson, managing director and global head of direct lending at EIG, said, “We’re thrilled to support ILOS in these exciting growth initiatives as they work to expand their footprint across Europe. This transaction is a testament to our confidence in the management team, their strategy and ILOS’s sponsors, and it underscores EIG’s commitment to investing in high-quality assets and energy infrastructure that support a low-carbon future.”

Michael Pollan, partner at Omnes, said, “ILOS has seen tremendous growth over the last two years. We are proud to continue supporting the company as it works toward this ambitious IPP project. We also look forward to partnering with EIG, a leader in the energy infrastructure sector that shares our common values and strategic view.”

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Siemens Energy planning new US electrolyzer capacity

The company is targeting expansion in the U.S. given the favorable policy environment following passage of the Inflation Reduction Act (IRA).

Siemens Energy North America is laying the groundwork for new electrolyzer manufacturing capacity in the United States, President Richard Voorberg said during a panel discussion recently.

Siemens Energy, a global energy technology company, makes an 18 MW PEM electrolyzer, one of the largest in the world, and is targeting expansion in the U.S. given the favorable policy environment following passage of the Inflation Reduction Act (IRA), Voorberg said.

The company is building its first gigawatt factory in Berlin, Germany via a joint venture with France’s Air Liquide. The Berlin factory is expected to produce 1 GW of PEM electrolyzers per year starting in mid-2023.

“As soon as we get that first one up and running… I’ve got a plan already to put a 1,000 MW line in the US,” Voorberg said, speaking during an event at the Delegation of German Industry and Commerce in Washington D.C. last month.

Siemens’ existing manufacturing capacity in the US could expand to accommodate that new line, or the company could look to build an entirely new facility, Voorberg said. He added that the recently passed IRA helps makes the business case to do so.

Following the IRA, customers went from asking for fractions of a megawatt to seeking 2 GW in a single order, Voorberg said. His 18 MW line is now insufficient.

“We’ve got to scale up,” he said. “Scale is everything.”

Voorberg said his company sees hydrogen being used in electricity production around 2035, but mobility can use it now.

The planned move by Siemens underscores the extent to which the IRA legislation has trained the hydrogen industry’s focus on the U.S. Norway-based electrolyzer producer Nel is speeding efforts to expand electrolyzer capacity in the U.S. And Cummins announced last month that it would add electrolyzer production space at its existing facility in Fridley, Minnesota.

Siemens Energy is independent of Siemens AG, having spun off in 2020. The company has about 10,000 employees in the US and roughly 2,000 in Canada.

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Hydrogen technology firm hires advisor for capital raise

A firm with a technology to produce green hydrogen from sunlight without electrolysis is prepping a capital raise.

BoMax Hydrogen, a Florida-based hydrogen technology firm, is preparing to launch a capital raise later this month, according to two sources familiar with the matter.

Boutique advisory firm Taylor DeJongh has been retained to run the process, the sources said. Teasers will likely go out in two weeks.

BoMax is seeking to raise around $15m in a Series A round, the sources added.

The company touts e a novel technology making hydrogen from visible light without the need for solar electrolysis, according to a pre-teaser marketing document seen by ReSource. An alpha prototype has been awarded by the US Department of Energy.

The technology, which does not require rare earth minerals, produces hydrogen at point of need and has been reviewed by scientists at Utah State University.

To date the company has raised about $5m, one of the sources said. That came mostly from friends and family and one Japanese investor.

Funds from the Series A will be used to make a beta prototype, scale operations at the company’s labs in Orlando and prepare for commercial production.

BoMax and Taylor DeJonghe did not respond to requests for comment.

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Electrolysis start-up seeking seed money

A two-man hydrogen electrolysis and storage startup based in the southeastern US is seeking an equity investment from a strategic or venture capital investor.

Green Fuel, an early-stage hydrogen technology start-up, is seeking USD 2m in seed money from a strategic or venture capital investor to get its technology off the ground, CFO William Green said in an interview.

The Alabama LLC is comprised of the two founders: Green and inventor Gordon Marsh. Green is based in Missouri.

A patented electrolysis and storage tank system (200 psi) is currently being used for grilling on site of storage, Green said. That prototype application could be scaled up, but the company is interested in pursuing licensing applications in HVAC, fuel cell vehicles, and methanol production.

Green Fuel said in a news release that the atmospheric pressuring system can reduce the cost of hydrogen by 60% by eliminating the need for transportation and compression.

The technology can be scaled to on-site production and tank storage of between 5,000 psi and 10,000 psi, Green said. Proving out that use case is part of the investment need.

“This is a real world solution,” Green said of the invention, which addresses problems in hydrogen transportation and storage. The company is also presenting its technology to the military.

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