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Carbon removal firm raises $100m

Carbon removal firm Charm Industrial has raised $100m in a Series B capital raise.

Charm Industrial has raised $100m in Series B funding in a raise led by General Catalyst.

General Catalyst’s CEO and Managing Director Hemant Taneja will join the company’s board alongside Ryan Panchadsaram from John Doerr’s office.

Lowercarbon, Exor Ventures, Kinnevik, Thrive Capital and Elad Gil also invested as part of the round, according to a blog post.

The company will use the new funding to accelerate its carbon removal deliveries. After deploying increasingly advanced pilot processes in 2021 and 2022, the company began ramping up in 2023. Its primary focus is expanding bio-oil production and transport capacity, and since the beginning of the year it has increased tons of carbon removal delivered per week 5x.

Continued acceleration requires ramping up our operations in Colorado and the broader corn belt, and expanding our lone pyrolyzer into a continent-wide fleet of tens of thousands of pyrolyzers. The future of carbon removal will be a massive investment in the heartland of America. Each Charm pyrolyzer will produce bio-oil for sequestration and improve the soil with biochar.

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CarbonQuest and Daroga Power partner on C&I fuel cell and carbon capture

The partnership is providing clients with financing for the upfront capital necessary to purchase their fuel cell and carbon capture systems.

CarbonQuest, a carbon capture technology provider supporting the onsite decarbonization of buildings, campus settings and other facilities, and Daroga Power, a ​​sustainable infrastructure and distributed generation developer, have entered a partnership to bring a low-carbon fuel cell solution to the commercial and industrial sectors in the U.S. and Canada.

Under the terms of the partnership, Daroga Power will develop, install and operate fuel cells that can power industrial facilities, buildings, and campus settings without interruptions and without the need for batteries, according to a news release.

CarbonQuest’s Distributed Carbon Capture™ system will be used in conjunction with the fuel cells to capture the systems’ generated carbon before it is emitted to the atmosphere. CarbonQuest will also sell the captured carbon to industrial users.

To hasten adoption, the partnership is providing clients with financing for the upfront capital necessary to purchase the systems. Daroga and CarbonQuest will also provide long-term maintenance support for the fuel cells and carbon capture components.

Given the power capacity limitations of the New York regional grid, along with delayed renewable interconnection, a fuel cell + carbon capture solution offers both short- and long-term benefits to many types of energy users with on-site, base-load power that is also low carbon.

CarbonQuest and Daroga aim to sign on approximately 20 projects in the next 12 months, which will generate an anticipated 100,000 metric tons per year of recycled, liquified Sustainable CO2.

After being captured by CarbonQuest’s system, the liquid CO2 will be sold to various off-takers across the Northeastern U.S. Given the severe constraint of CO2 supply in the region, CarbonQuest’s Sustainable CO2™ offers a unique solution for CO2 users while also supporting the growth of new carbon-based industries.

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EnCap and Mercuria invest in Arbor Renewable Gas

The Houston-based renewable gas developer has also entered into development and licensing agreements with SunGas Renewables and Haldor Topsoe, respectively.

Arbor Renewable Gas, the Houston, Texas-based sustainable gas developer, has taken an underlying capital commitment from EnCap Investments L.P. and Mercuria Energy Company, according to a news release.

SunGas Renewables, a subsidiary of GTI International, has entered into an exclusive Joint Development Agreement with Arbor Gas to provide its gasification systems to Arbor Gas projects and Haldor Topsoe has licensed its process and technology for methanol and gasoline synthesis.

Arbor Gas is developing industrial scale renewable gasoline and green hydrogen projects in the US. The strategy is to design, build, own, and operate facilities that efficiently convert woody biomass into renewable gasoline and green hydrogen.

Arbor Gas is led by Co-Founders, Chief Executive Officer Timothy E. Vail and John G. Kennedy III.

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NY awards $12.7m to three hydrogen projects

Governor Kathy Hochul has awarded USD 16.6m for five long duration energy storage projects, including USD 12.7m for three hydrogen plans.

Governor Kathy Hochul has awarded USD 16.6m for five long duration energy storage projects, including USD 12.7m for three hydrogen plans.

The Governor also said that an additional USD 17m in competitive funding is available for projects that advance development and demonstration of scalable innovative long duration energy storage technologies, according to a press release.

The projects will support the current Climate Leadership and Community Protection Act goal to install 3,000 MW of energy storage by 2030 while facilitating further development to 6,000 MW.

The USD 12.7m in awards will support the following hydrogen projects:

  • Nine Mile Point Nuclear Station, LLC- USD 12.5m – To demonstrate nuclear-hydrogen fueled peak power generation paired with a long duration hydrogen energy storage unit to help reduce emissions from the New York Independent System Operator electric grid.
  • Power to Hydrogen – USD 100,000 – To develop a Reversible Fuel Cell System for Hydrogen Production and Energy Storage called the Clean Energy Bridge and to help facilitate the system’s readiness for demonstration and commercial adoption.
  • ROCCERA, LLC – USD 100,000 – To evaluate and demonstrate a novel commercially viable Solid Oxide Electrolyzer Cell prototype for clean hydrogen production together with a corresponding scalable, more efficient manufacturing process, the release states.

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Air Products CEO discusses mega-scale green hydrogen project with AES

Air Products CEO Seifi Ghasemi further discussed its JV with AES Corporation to develop a $4bn green hydrogen project in Texas, noting that roughly half the price tag would come from developing 1.4 GW of renewables to feed the electrolyzers.

Air Products and AES Corporation will form a JV to develop a $4bn integrated green hydrogen facility in Texas, with roughly half of the cost coming from development of 900 MW of wind and 500 MW of solar generation, and the other half for the hydrogen build-out, Air Products CEO Seifi Ghasemi said on an investor call today.

Similar to his company’s JV in Saudi Arabia, the 50/50 JV will develop, build, own and operate a facility in Wilbarger County, at the site of a decommissioned coal-fired plant, Ghasemi said on the call.

Air Products has an exclusive global agreement with thyssenkrupp for electrolyzers, and could include battery storage at the Texas site to help power the electrolyzers, he added.

A separate entity owned 100% by Air Products will be the sole offtaker from the facility, Ghasemi said, which will produce more than 100 mtpd for use in transportation and industrial markets.

The relationship between AES and Air Products is not exclusive, he said.

Air Products expects a minimum internal rate of return of 10%, Ghasemi said. The company is hoping the tax benefits of the project will result in a lower hydrogen price from the JV.

The amount of capital invested by Air Products will be determined by downstream uses, Ghasemi said. The company has yet to decide if it will build a liquefaction plant, transport gaseous hydrogen by pipeline, or convert the hydrogen to ammonia and ship it by rail.

When it was noted that there is not an existing pipeline connecting Wilbarger County to Air Product’s Gulf Coast pipeline, Ghasemi said he was being pressured to get more deeply in the topic than he wanted, but that the company was confident emerging industry in the area would provide the necessary offtake.

“We don’t have to send it all the way down 250 miles to our existing pipeline,” Ghasemi said. “There’s a lot of different options.”

Air Products will not issue new stock to dilute shareholders or jeopardize its A-rating, Ghasemi said.

The labor cost is “very low on these projects,” Ghasemi said. And customers are attracted to getting 30-year contracts not associated with the price of oil, natural gas or geopolitics.

Air Products is investing approximately $500m for a 35 metric ton per day facility to produce green liquid hydrogen at a greenfield site in Massena, New York, as well as liquid hydrogen distribution and dispensing operations.

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Exclusive: Northeastern offshore wind sale kicks off

A major European energy firm has retained a banker and launched a process to sell a large portfolio of offshore wind developments in the northeastern US.

Ocean Wind I & II, Orsted’s offshore wind developments in New Jersey amounting to 2.5 GW of capacity, are for sale via an auction, according to two sources familiar with the matter.

Jefferies is the exclusive financial advisor on the sale, which is codenamed Project Hummer, the sources said. The process launched this month.

Denmark-based Orsted had previously halted development of Ocean Wind I and II as impairments on the projects climbed above $5bn. And the sale process comes amid the firm’s broader pullback from the offshore wind sector.

In an earnings call this month, Orsted CEO Mads Nipper said the company had plans to sell up to DKK 115bn (USD 16.6bn) in assets by 2030 as it accelerates divestments to boost its balance sheet.

Orsted also said it would withdraw from offshore wind markets in Norway, Spain and Portugal and cut its target for 2030 installed renewable capacity from 50 GW to 35 – 38 GW.

The company has a preference for a new owner acquiring 100% of both Ocean Wind leases and all associated development assets, the sources said.

Targeted COD for the two developments is 2029 and 2031, while estimated capex for each is USD 7.1bn (98 turbines) and USD 7.7bn (82 turbines), respectively.

New Jersey has accelerated offshore wind solicitation schedules and has recently awarded two contracts for 2.4 GW at $112.50/MWh and 1.3 GW at $131.00/MWh compared to the $98.10/MWh for Ocean Wind I and $84.03/MWh for Ocean Wind II awarded back in 2019 and 2021.

Orsted and Jefferies did not respond to requests for comment.

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Biomass-to-hydrogen developer in talks for development capital, series A

A California developer that uses woody biomass to make green hydrogen is in discussions to raise capital for project development and a series A funding round.

Yosemite Clean Energy, a California-based biomass-to-hydrogen start-up, is in discussions with potential investors to raise development capital for projects and a series A round.

The company is currently seeking around $20m of development capital that would help advance woody biomass-to-hydrogen projects to FID, CEO Tom Hobby said in an interview.

Hobby said he is also in discussions with strategic capital partners about a series A funding round. The company is not using an advisor for the capital raise, Hobby said, but is working with the law firm Kilpatrick Townsend & Stockton.

The company has so far raised less than $2m at the corporate level from friends and family and an additional $5m – including grants – for projects, Hobby added. The development capital as well as the series A raise would be conducted at the project level.

Yosemite has signed a letter of intent and term sheet for offtake from its first project in Oroville, California, which will produce approximately 24,000 kg per day (2,760 MMBtu) of green hydrogen from woody biomass, and is set for FID later this year. Hobby declined to name the offtaker but described it as a “global trading house.”

Hobby, whose family has lived in the Sierra Nevada for generations, emphasizes the company’s role as a partner with local communities to help manage forest waste, which has served as fuel for explosive wildfires in recent years.

“It’s de-risking their communities from catastrophic wildfires,” he said.

Design incentives

Under the original design for the Oroville facility, the company had planned to produce 31,000 kg per day of RNG and 12,200 kg per day of green hydrogen. But due to incentives for green hydrogen in the Inflation Reduction Act, the company has pivoted to a hydrogen-only design, Hobby said.

The $3/kg incentive for green hydrogen in the IRA created “additional value for no real capital cost differential,” he said.

Yosemite’s second project is in Toulumne County, California and will follow a design substantially similar to the Oroville facility.

The company employs dual-bed gasification technology licensed from Austrian firm Repotec, while Primoris is doing detailed design and engineering.

The technology takes wood and creates a medium-strength BTU gas that can be used to make different products, Hobby said. “Once it’s in a gaseous form, we can use it for a lot of purposes: we can take it to make power, we can produce hydrogen, we can use the Fischer-Tropsch process to make second-generation biofuels like aviation fuel, and we have a patent that can do hydrogen and RNG.”

Project ownership

Meanwhile, Yosemite has hired a Texas-based firm to help raise capital for projects, which are estimated to cost $250m at the outset, but could decline once efficiencies are achieved, Hobby said.

The company’s project ownership model is unique in that it seeks to bring in local wood businesses – in logging, land clearing, and orchard removal – as providers of biomass and also equity investors in the projects.

“To have their investment and their wood at the same time is huge,” Hobby said.

In raising capital for the projects, in addition to equity and debt investors, Yosemite is evaluating a mix of sources in the tax-exempt bond market as well as lower-interest loans from within California and export finance solutions. The company recently received two $500,000 Forest Biomass to Carbon-Negative Biofuels grants from the California Department of Conservation.

Hobby would like to build 50 woody biomass plants in California, which would utilize approximately 5 million tons of the 35 million tons of waste woody biomass available annually in the state.

“Our goal is not to have to truck and ship wood more than 50 miles,” he said. “If you put circles around every place in California that’s a decent wood basket […] I think we could sign about 50 facilities across the state.”

The company is also planning to expand beyond California to other states with a low-carbon fuel standard, Hobby said.

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