Resource logo with tagline

Denmark issues first full-scale CO2 storage permits in the Danish North Sea

The Danish Energy Agency awarded licenses to TotalEnergies and a consortium consisting of INEOS E&P and Wintershall DEA.

The Danish Energy Agency (DEA) has recommended the Minister of Climate, Energy and Utilities to award the first three exclusive licenses for exploration of full-scale CO2 storage in the Danish North Sea to TotalEnergies and a consortium consisting of INEOS E&P and Wintershall DEA.

The licenses are an important step towards realizing Denmark’s CCS (Carbon Capture and Storage) strategy and will kick start the plan for the development of full-scale CO2 storage in Denmark, according to a news release.

The Danish Energy Agency received two applications in the first round of licenses for CO2 storage in the Danish North Sea. The two applications came from TotalEnergies EP Danmark A/S and a consortium consisting of INEOS E&P and Wintershall Dea International. The two applications met the requirements, and two licenses were granted to TotalEnergies and one to the INEOS & Wintershall consortium

Nordsøfonden will represent the interest of the state and participate with a share of 20% in each of the coming new licenses.

The Geological Survey of Denmark and Greenland (GEUS) has previously demonstrated that the Danish subsurface is particularly suitable for CO2 storage, both offshore and onshore, thus enabling the opportunity for Denmark to serve as a commercial hub for COstorage from all of Europe.

TotalEnergies EP Danmark A/S is awarded two licenses and the partnership between INEOS E&P and Wintershall Dea International is awarded one license. The licenses cover areas in depleted oil and gas fields and previously unexplored saline aquifers. All the licenses contain the necessary geological structures that are suited to serve as permanent COstorage locations in the future. The timing and design of the final CO2 storage facilities will depend on the upcoming exploration and research work.

The specific storage projects must be approved by the DEA before establishment. The captured CO2 will likely be transported either via specially designed ships or through existing or new pipeline infrastructure. Finally, the CO2 will be stored in depleted oil and gas fields or saline aquifers 1-2 km below the seabed, by pumping the CO2 into small pockets in sandstone or limestone layers and thus buried under thick layers of impermeable claystone.

Unlock this article

The content you are trying to view is exclusive to our subscribers.
To unlock this article:

You might also like...

Suburban Propane Partners purchases RNG assets from Equilibrium

The acquisition provides opportunity for synergies between the acquired assets and Suburban’s existing investments in rDME, hydrogen and RNG.

Suburban Propane Partners will acquire a platform of two operational renewable natural gas assets from Equilibrium Capital Group for $190m, according to a press release.

The acquisition provides opportunity for synergies between the acquired assets and Suburban’s existing investments in rDME, hydrogen and RNG, the release states.

The transaction will be funded with borrowings of approximately $120m under Suburban’s revolving credit facility, and the assumption of approximately $80m of outstanding green bonds.

A large-scale RNG facility in Stanfield, Arizona is currently operating and includes seven anaerobic digesters, manure rights from approximately 55,000 dairy cattle and an interconnect with an interstate pipeline. An additional operating facility in Columbus, Ohio is currently receiving tipping fees from several large food and beverage providers for processing food waste into fertilizer and biogas, and has an active development project to upgrade the biogas into RNG for use in the transportation sector.

There are option rights for a third RNG facility in the Midwest currently being developed by Equilibrium.

In addition to the purchase of two operational biogas facilities, the parties have formed a partnership to serve as a long-term growth platform for the identification, development and operation of additional RNG projects; including an existing pipeline of identified RNG projects that are in various stages of development.

The development company will invest in and develop approximately $155m of future RNG projects, of which Suburban Renewables will own approximately 70% and Equilibrium will own approximately 30% once such projects are fully funded.

Wells Fargo Securities, LLC served as exclusive financial advisor to Suburban. Evercore served as the exclusive financial advisor to Equilibrium Capital Group.

It is expected to be accretive to Suburban’s distributable cash flow in fiscal 2024 as earnings benefit from ongoing expansion and production efficiency efforts

“We look forward to building upon and advancing this opportunity as we seek to leverage Equilibrium’s seasoned management team with a well-established network of operators, engineering and construction providers and off-takers, and a strong commitment to sustainable investments,” Michael Stivala, President and Chief Executive Officer of Suburban Propane, said in the release. “The scalable platform complements our existing portfolio of renewable energy assets, either as a stand-alone RNG distributor, or as a pathway to rDME and hydrogen production.”

In early 2022 Suburban made a 25% stake sale in Independence Hydrogen for $30m. Independence Hydrogen, of Ashburn, Virginia, was advised by Energy & Industrial Advisory Partners. Suburban was assisted by Proskauer Rose.

Read More »

Hydrogen tech start-up commissions onsite H2 production unit

Calgary-based Azolla Hydrogen has commissioned technology that produces fuel-cell spec hydrogen onsite.

Azolla Hydrogen has commissioned technology that produces fuel-cell spec hydrogen onsite.

The AZ225 Biodrome unit will be capable of producing 225kg of hydrogen per day utilizing a footprint of 424sq.ft, according to a news release.

The unit combines Azolla Hydrogen’s Biodrome technology with a 400 Bar Neuman & Esser compressor creating a seamless and efficient system, the release says.

“This is in alignment with our 2023 commercialization plan to offer additional production capacity and pressures to meet customer demand,” said Jared Sayers, CEO of Azolla Hydrogen. “The AZ225 Biodrome unit represents a major step forward in producing and delivering low-carbon hydrogen fuel. We look forward to working with our customers to bring this innovative solution to their businesses.”

Read More »

Tree Energy Solutions and EWE building electrolyzer in Wilhelmshaven

The electrolzser, to be installed and operated starting in 2028, has a planned total capacity of 1 GW at the hub on the North Sea coast.

Tree Energy Solutions and German utility EWE are signing an MoU to build an electrolyzer in TES’ Green Energy Hub in Wilhelmshaven, Germany, according to a press release.

The electrolzser, to be installed and operated starting in 2028, has a planned total capacity of 1 GW.

The hub in Wilhelmshaven is on the North Sea coast and can accommodate up to 2 GW capacity electrolyzers with renewable energy sources such as offshore wind.

In October Tree Energy Solutions agreed to terms for Fortescue Future industries to make an equity investment of EUR 30m to become a strategic shareholder in TES, and to invest EUR 100m for a stake in the construction of the import terminal in Wilhelmshaven. Before that the Belgium-based company concluded its second fundraising round at EUR 65m.

Read More »

Exclusive: Banker enlisted for CO2-to-SAF capital raise

BofA Securities is running a capital raise for a US-based CO2-to-SAF technology provider and project developer with a global pipeline of projects.

eFuels developer Infinium has launched a Series C capital raise along with efforts to advance unannounced projects in its development pipeline, Ayesha Choudhury, head of capital markets, said in an interview.

Bank of America has been engaged to advise on the capital raise.

Infinium recently announced the existence of Project Roadrunner, located in West Texas, which will convert an existing brownfield gas-to-liquids project into an eFuels facility delivering products to both US and international markets. Breakthrough Energy Catalyst has contributed $75m in project equity.

Infinium, which launched in 2020, closed a $69m Series B in 2021, with Amazon, NextEra and Mitsubishi Heavy Industries participating. Its Project Pathfinder in Corpus Christi is fully capitalized.

About a dozen projects, split roughly 50/50 between North America and the rest of the world, are in development now, Choudhury said. The company is always scouting new projects and is looking for partners to provide CO2, develop power generation and offtake end products.

A CO2 feedstock agreement for a US Midwest project with BlackRock-backed Navigator CO2 Ventures was recently scrapped after the latter developer cancelled its CO2 pipeline project.

Read More »

EXCLUSIVE: 8 Rivers co-founder departs firm

A co-founder and executive has departed the North Carolina-based firm, which recently announced an ammonia project in Texas.

Bill Brown, a co-founder of the technology commercialization firm and clean fuels developer 8 Rivers Capital, has retired from the company, a spokesperson confirmed via email.
According to Brown’s LinkedIn profile, he is serving now as CEO of New Waters Capital. He co-founded 8 Rivers and also served as CEO and CTO in this nearly 16 years there.
Brown did not respond to a request for comment.
According to 8 Rivers’ website, Dharmesh Patel is serving as interim CEO. The company recently announced development of the Cormorant Clean Energy ammonia production facility in Port Arthur, Texas
Read More »
exclusive

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.

Read More »

Welcome Back

Get Started

Sign up for a free 15-day trial and get the latest clean fuels news in your inbox.