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IFM Investors’ Buckeye Partners launches energy transition company

The new company, BAES Infrastructure, will develop, construct, and operate energy transition projects, and includes hydrogen and ammonia projects under development as seed assets.

IFM Investors-backed Buckeye Partners today announced that it is launching BAES Infrastructure, a diversified energy company that will focus on the development, construction, and operation of energy transition projects, according to a news release.

BAES Infrastructure will pursue new energy transition-related opportunities, with its seed assets being Swift Current Energy (a U.S.-based renewable energy platform), OneH2 (a U.S.-based hydrogen infrastructure and fueling solutions platform), Bear Head Energy (a low carbon hydrogen and ammonia project in Nova Scotia), a low carbon hydrogen and ammonia project under development in South Texas, and other advanced-stage solar development projects.

The new company is focused on developing early-stage, technology-ready projects across a variety of end products, energy value chains, and investment structures. It will leverage the operating expertise, reputation, customer base, asset footprint and global industry network of its parent company, Buckeye Partners, and other stakeholders to develop and invest in the infrastructure solutions enabling the global energy transition.

BAES will be led by Jamie Cemm as CEO. Since 2010, Cemm has been instrumental in leading the development and expansion of IFM Investors’ strategic partnerships in global energy infrastructure, as well as the growth of IFM Global Infrastructure Fund’s midstream portfolio through leading and executing key transactions, including the privatization of Buckeye. He will be joined by a specialized global team with deep multi-disciplinary experience bringing together elements of development, finance, engineering, and investment.

“I am pleased to be leading BAES Infrastructure as we move to capture the opportunities in the energy transition space, where the scale and pace of the infrastructure build-out required to meet governmental and societal goals is unprecedented,” Cemm said in a statement. “We intend for BAES Infrastructure to play a fundamental role in facilitating the energy transition through the intersection of our team’s expertise, access to an operating platform’s resources and capabilities, and deep network of customer and strategic relationships, all of which together will set us apart from typical financial investors.”

“The launch of BAES Infrastructure represents another step in our energy transition strategy, reinforcing our commitment to investing in growth that aligns with our customers’ current and evolving needs, while facilitating the decarbonization of the broader economy,” said Buckeye CEO Todd Russo in a separate news release. “This new company will allow us to leverage existing and new relationships and focus on investment and development activity in the energy transition space without compromising our focus on safely and reliably operating our critical petroleum products infrastructure.”

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HTEC to receive B.C. funding for hydrogen trucking pilot

HTEC will buy, test and demonstrate hydrogen-powered trucks for fleet operators throughout B.C.

HTEC is set to receive $16.5m in funding from British Columbia for a pilot program that uses hydrogen to power commercial trucking.

Under the pilot, B.C.-based hydrogen-energy company HTEC will procure six different heavy-duty fuel-cell trucks and complete upgrades to a hydrogen-fuelling station in Tsawwassen and a maintenance facility in Abbotsford.

The B.C. Pilot Hydrogen Truck Project aims to start the use of hydrogen in the commercial transportation sector, according to a news release.

Colin Armstrong, president and CEO of HTEC, said: “Through the Province’s significant investment in zero-emission trucks in B.C., and the simultaneous development of robust infrastructure to enhance their operations, this pilot project symbolizes a remarkable leap toward a sustainable future. It marks the first-ever deployment of heavy-duty hydrogen fuel-cell electric trucks for a diverse range of fleet operators in the province, a historic moment for the trucking industry. We applaud the provincial government for their vision and support, and we are delighted to be the wheels on the ground and driving force behind this groundbreaking project.”

HTEC designs, builds and operates hydrogen production facilities, infrastructure and supply.

HTEC will buy, test and demonstrate the hydrogen-powered trucks for fleet operators throughout B.C. The project also brings together Canada’s world-leading hydrogen and vehicle-technology companies. The Province’s funding for the pilot is being administered by the Innovative Clean Energy (ICE) Fund.

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Data: North America blue ammonia project status

Since ammonia as an energy commodity is still a new idea with a yet-to-be-created market, there’s a general sense of uncertainty looming over the industry.

As of April 2024, there are 42 blue ammonia projects in North America, including announced, greenfield, suspended, and projects that have reached a final investment decision (FID), according to data gathered by ReSource

The vast majority of them, 34, are located in the United States. Over 60% of them are in the Gulf Coast region. Thanks to their attractive energy infrastructure and ports, from where producers could easily export the product to eager markets like Europe, Japan and South Korea, Texas and Louisiana are emerging as the undisputed North American hubs for blue ammonia. 

Canada has eight blue ammonia projects, mostly concentrated in Alberta. 

As a region with a strong oil and gas industry and already a natural ammonia hub sitting on major ammonia trade routes, North America, and the US in particular, is well positioned to dominate a future global blue ammonia market, according to a source familiar with the industry.

Overall, 20 North American projects are at a greenfield status, understood as comprising any project that has developed past a feasibility study stage, while an additional 19 have been announced, one has been suspended, and two have achieved the FID milestone. 

OCI Global started building its blue ammonia project in Beaumont, Texas, in December 2022. The plant will receive the necessary low-carbon hydrogen supply from Linde, and, once it starts operations in 2025, it is expected to produce 1.1 million tonnes of blue ammonia per year, which, according to OCI, would make it the largest blue ammonia plant in the world.  

One year later, in November 2023, Air Products received final investment approval for its $7bn clean energy complex in Louisiana, which will produce both blue hydrogen and blue ammonia. 

Both companies have a robust network of existing relationships and infrastructure to rely on to offset the risks, which facilitates securing investments and offtake agreements, according to the source. 

Another major blue ammonia project, Nutrien’s Geismar Clean Ammonia facility, which had a planned $2bn of capex, was officially suspended in August 2023 because of market uncertainty and high capital costs. 

The project’s suspension could be a sign that some fertilizer producers are hesitant to invest in blue ammonia production if major energy players like ExxonMobil are also entering the space with their vast resources, according to another source familiar with the market. At the moment, around 70% of ammonia produced globally is used as a fertilizer, with the remainder used for industrial applications such as plastics, according to the International Energy Agency. 

Since ammonia as an energy commodity is still a new idea with a yet-to-be-created market, there’s a general sense of uncertainty looming over the industry. Project developers are waiting for off-takers to move forward, while the off-takers are waiting for the project developers to take the first steps, especially as government subsidies like the 45V tax credit are still being worked out, according to the first source. 

Of the nine main companies involved in blue ammonia projects in North America, however, the majority have been operating in the fertilizer industry for years. 

With five ongoing projects, CF Industries is the most active one. As CEO Tony Will said in a recent investor call, the company expects the largest source of clean ammonia demand to come from Japan, and it has arrangements in place to develop one of its blue ammonia projects with both JERA Co. and Mitsui. 

(ReSource initially recorded CF Industries’ arrangements with JERA Co. and Mitsui as two separate projects, but condensed them into one after executives said they would seek to align them under a single project during the investor call.) 

The prediction is in line with Japan’s active role in the development of many North American clean fuels projects – around 4% of all clean fuels projects in North America have one or more Japanese firms involved as co-developers, equity investors, or off-takers. Accordingly, JERA and Mitsubishi come right after CF Industries for blue ammonia activity, being involved in four projects each. 

Two things will play an important role in the future: what the carbon intensity reduction threshold is for a project to claim to produce blue ammonia, and how the nascent industry will adapt to the disarray in gas prices caused by Russia’s war in Ukraine. 

The coming months will clarify which of the flurry of projects announced in the past couple of years are actually moving forward. 

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Aether Fuels acquires low-carbon fuels developer Sustainable Syngas

The deal merges Aether’s engineering capabilities and fuel-production technology innovations with SSG’s expertise in developing large energy projects.

Aether Fuels (Aether), an advanced climate technology company, has acquired Sustainable Syngas LLC (SSG), a US-based company committed to developing carbon-neutral sustainable aviation and marine fuels projects.

The deal merges Aether’s engineering capabilities and fuel-production technology innovations with SSG’s expertise in developing large energy projects. Aether previously engaged SSG as its dedicated project developer for projects in the U.S. The transaction enables Aether to construct its first commercial plant faster, build its project pipeline, and forge key industry partnerships.

SSG was formed in 2022 to develop large-scale biomass gasification projects in the sustainable liquid biofuels sector. The team is comprised of energy and project veterans from Summit Power Group, Enviva, and BP, as well as the USDA Forest Service and the US Department of Energy. Their expertise ranges from project development and management, procurement, and contracting, to public and government affairs, ESG and stakeholder engagement.

Aether and SSG began working together last year to develop Aether’s first commercial-scale project. The project will produce sustainable fuels made from flexible combinations of waste biomass, biogenic CO2, and clean hydrogen. Aether’s solution combines novel process flows and plant configurations, proprietary catalysts, and breakthrough facilities and equipment to dramatically reduce capital costs and the cost of input materials. The model is optimized to mass produce sustainable liquid biofuels with powerful economic advantages.

“With this strategic acquisition, Aether can scale fast with fewer obstacles and greater near-term impact,” said Co-Founder and CEO, Conor Madigan. “It brings skilled experts to our enterprise with vast industry knowledge, rich networks, and extensive experience driving complex energy projects from concept to commercialization. Now, as one cohesive team, we can execute on our project strategy with focus and speed. We are pleased to have our SSG partners become Aether colleagues.”

“We are proud to support Aether’s mission to de-carbonize the aviation and shipping industries,” said Eric Redman, formerly CEO at SSG. “Having scaled many multi-hundred-million-dollar projects over decades, we have learned that a reliable predictor for success is often the innovation engine at the heart of the model. Aether’s solution is disruptive, yet elegant and intuitive, with tremendous promise to make the conversion of sustainable biocarbon into liquid fuels radically more affordable. We are excited to help it deploy at scale.”

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Exclusive: Carbon conversion startup planning capital raise

A Halliburton Labs-backed startup is developing a pilot plant in the Pacific Northwestern US, while forming financial relationships for an industrial-scale carbon conversion facility in the same location.

OCOchem, a Washington state-based carbon conversion startup, will seek new capital partners to build its first commercial scale facility in 2026, CEO Todd Brix said in an interview.

Starting in late 2024 or early 2025, the company will likely go to market for new liquidity – including project debt and equity, Brix said. He declined to talk about capex, but said the first commercial plant in Richland, Washington will cost “multiple tens of millions of dollars.”

The company is working with two EPCs now and is represented legally by Miller Nash law firm in the Pacific Northwest, Brix said. The company does not have a formal relationship with an investment bank but will likely form one for a Series A and later rounds.

“We’ve been in touch with a number of private equity and project finance people,” Brix said of early-stage discussions.

OCOchem is considering land options in Richland for its first plant and is organizing to begin permitting, Brix said. There is opportunity to form relationships with industrial partners in need of an offtaker for their CO2 emissions and new incremental revenue streams, as well as customers for chloral hydrates and other formic acid products.

“We expect to build hundreds of these plants all around the planet,” Brix said, referring to the process of electrochemically converting emitted CO2 and water to formic acid, which can then be used to make a suite of products like hydrogen, carbon monoxide, and formate (methanoate) derivatives. “We are close to industrial size on our plants right now.”

CO2 is captured from steam methane reformers, natural gas processing and piping, and ammonia production, among other processes. The gas is then combined with water in a cellular, modular process producing formic acid, derivatives of which can be used in a range of industries like pharmaceuticals.

The company recently raised $5m in seed funding from lead investor TO VC, which joined backers LCY Lee Family Office, MIH Capital Management, and Halliburton Labs. An additional $8m has been raised in grant funding from the US departments of Energy (DOE) and Defense (DOD).

The company is also partnered with the Nutrien Corporation on a small scale facility in Kennewick, Washington, just upriver from Richland, Brix said. Financing for that project is largely arranged with the FEED completed.

Brix owns a majority of the company with his father.

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Feature: Is the U.S. Midwest still navigable terrain for CO2 pipelines?

Strained efforts to build thousands of miles of carbon dioxide pipelines in the U.S. Midwest could carry major implications for future projects – and for the region’s nascent clean fuels industry. According to one industry CEO, “Ethanol plants are sitting on a gold mine.”

“We’re just not interested.” 

That’s the sentiment that echoes through the testimonies of many landowners at an Iowa Utilities Board public hearing on November 7. The hearing is about Summit Carbon Solutions’ project to build a CO2 pipeline across five states, and the view is summarized in the words of Sue Carter, who owns a farm in the pipeline’s proposed path.

“We feel that it’s not a good idea to sequester the CO2, we feel that it would be detrimental to our farmland, to Iowa, and that we’re just not interested.” 

Summit Carbon Solutions, a private company backed by investors such as TPG Rise Climate, Tiger Infrastructure Partners, and John Deere, is planning to build around 2,000 miles of pipeline to transport CO2 captured at 34 ethanol and sustainable aviation fuel plants to geologic sequestration sites in North Dakota. The proposed network spans across Nebraska, North Dakota, South Dakota, Iowa, and Minnesota. 

The project, which would build one of the largest CO2 pipelines in the world, promises to capture and store up to 18 million tons of CO2 per year, offering the Midwest’s ethanol industry a path to net zero. 

But building is far from easy. 

In September, public service commissions in both North and South Dakota denied key permits to build the pipeline across those states. In Iowa, Summit is encountering staunch opposition from some landowners, who are worried about issues like safety and land preservation, and it is requesting the right of eminent domain over approximately 900 parcels of land. 

Commercial operations, which were initially expected for 2024, have been pushed back to 2026, and the project cost has risen from $4.5bn to around $5.5bn. 

In a country that, according to some estimates, needs to expand its carbon pipeline network more than ten times in 30 years to reach the ambitious goal of net zero emissions by 2050, Summit’s struggle to advance its Midwest project is emblematic of what might soon happen elsewhere. Navigator CO2 Ventures, for instance, has recently canceled a pipeline project in the area after encountering similar problems. 

And the uncertainty around pipeline development might hinder the region’s nascent clean fuels industry, which relies heavily on ethanol production and carbon capture technologies. 

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Courtesy of Summit Carbon Solutions.

A potential cost increase was something that Summit took into consideration from the start, “whether that was because of factors related to inflation, supply chain shortages, or a longer-than-expected regulatory process,” according to Sabrina Ahmed Zenor, director of stakeholder engagement and corporate communications at Summit. He pointed out that Summit also increased the project’s expected capacity from 12 million to 18 million tons of CO2 since it was first announced. 

Regardless, the way Summit goes about securing success for its project and the extra costs and delays it faces are bound to set an example for developers across the country. 

“We need to see one or many of these projects be successful to develop a model as to how to deploy them,” said Matt Fry, senior policy manager at the Great Plains Institute, a non-profit organization dedicated to supporting carbon management technologies to achieve climate objectives. “We already have some infrastructure to transport CO2, but we just haven’t seen 1,000 to 2,000 miles transporting 10 plus million tons of CO2 a year yet.”

Already, Navigator has canceled its 1,300-mile Heartland Greenway pipeline, which was supposed to carry CO2 across Illinois, Iowa, Minnesota, Nebraska, and South Dakota. The company announced the decision on October 20, citing “the unpredictable nature of the regulatory and government processes involved, particularly in South Dakota and Iowa.”

Permitting regulations regarding carbon pipelines change from state to state. 

“Some states have deadlines or timelines associated with when an application is submitted to when a decision must be granted, which provides certainty. Some places not so much,” said Elizabeth Burns-Thompson, vice president of government and public affairs at Navigator. “Ultimately, the board did not see a pathway forward that was commercially viable.” 

According to Burns-Thompson, Summit’s challenges contributed to the decision as well. Navigator will now focus on a sequestration site in Illinois.  

Asked about Navigator’s cancellation, Summit said it “welcomes and is well positioned to add additional plants and communities to our project footprint.”

On a smaller scale, Wolf Carbon Solutions is also planning a 280-mile CO2 pipeline in Iowa and Illinois, where it filed permit applications in February and June respectively. And in May 2022 Tallgrass Energy announced its intention to convert 392 miles of natural gas pipeline into a CO2 pipeline connecting Nebraska, Colorado, and Wyoming.

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Pipelines have been carrying CO2 in the U.S. for over 50 years, with the first large-scale carrier built in the 1970s. At the moment, there are around 5,000 miles of active CO2 pipelines in the U.S., mostly carrying the gas to oilfields, where it’s used for enhanced oil recovery. For comparison, the country has around two million miles of natural gas distribution mains and pipelines. 

“There’s a very high likelihood, almost a certainty, that if the US is to reach net zero by 2050, it’s going to need many hundreds of millions of tons of CCS, maybe a billion,” said Chris Greig a senior research scientist at Princeton University, and one of the lead authors of Net Zero America, a study that presents various pathways for the U.S. to achieve the net-zero emissions goal. 

If we capture carbon, we also need to transport it. According to the Net Zero America report, the U.S. would need to develop over 60,000 miles of new CO2 pipelines over the next 30 years, which would come at a capital cost ranging from $170 billion to $230 billion, depending on the overall reliance on carbon capture. 

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The United States is the largest producer of ethanol in the world, and it mostly produces it in the Midwest, with Iowa leading the charge. 

Ethanol can be used to make sustainable aviation fuel, and its fermentation process emits a CO2 that is almost pure, making it a very good candidate for carbon capture. The CO2 captured at ethanol plants, in turn, can be used to produce clean fuels such as e-fuels, sustainable aviation fuel, or green methanol. 

That means the Midwest is well situated to become a major clean fuel hub, but some say that depends on the successful development of pipelines that can move CO2 at scale.  

Pipelines are not the only way to move CO2, which can be trucked or shipped. But Summit’s project is expected to transport around 18 million tons of carbon dioxide annually, and that would require an army of railcars and trucks, and cost much more. 

Navigator, whose canceled project was supposed to have the capacity to transport 10 million tonnes of CO2 per year, expandable to 15 million tonnes in the future, estimated that it would have had to employ nearly half a million trucks to move the same amount. 

Biofuel maker Gevo has recently vented the possibility of relocating its $1bn Lake Preston Net-Zero-1 sustainable aviation fuel plant if the Summit pipeline doesn’t go through. The Lake Preston project is anticipated to start operations in South Dakota in 2025 

“Failure for the Summit pipeline to be built in South Dakota puts our Lake Preston project at severe risk of being relocated to a more advantageous location that has the availability of CCS,” said Kent Hartwig, Gevo’s director of state and local affairs, at a Brown County, South Dakota, commission meeting on October 3. 

Because of the cancellation of Navigator’s pipeline, a memorandum of understanding between Infinium and Navigator to produce e-fuels was scrapped. Navigator was supposed to provide Infinium with 600,000 tons of CO2 per year for use as feedstock for e-fuels, an amount of CO2 that would require multiple ethanol emission sources tied together to be delivered. Infinium did not respond to a request for comment. 

An alternative could be to produce the fuels in the same place where the CO2 is captured. That’s the business model of CapCO2 Solutions, a company that develops green methanol-producing technology that fits in a shipping crate. 

“Ethanol plants are sitting on a gold mine,” said Jeffrey Bonar, CapCO2’s CEO. And that’s regardless of whether large CO2 pipelines get built. 

CapCO2 is currently raising money to place its first shipping crate at an ethanol plant in Illinois. Eight to ten shipping crates would be able to process all the carbon captured at an average ethanol plant, making green methanol as a result.

According to experts, though, the scale of carbon capture that pipelines can provide is still needed. 

“While it is possible to produce synthetic fuels with CO2, the current scale of these production activities and the markets are not yet able to utilize millions of tons of CO2 per year, so associated CO2 storage would be necessary,” said Fry at the Great Plains Institute. “If we are, as a nation, serious about meeting climate objectives, we’re going to have to figure out how to make this work.”

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Summit says it has secured voluntary easements for 75%, or around 1,300 miles of the pipeline’s route, and it’s still working to secure rights over all the land it needs. More landowners “are signing every day,” according to Ahmed Zenor, of Summit.

In 2020, a pipeline carrying both CO2 and hydrogen sulfide ruptured in Satartia, Mississippi, sending 45 people to the hospital. The episode was the first major accident involving a CO2 pipeline in at least 20 years — according to the Pipeline and Hazardous Materials Safety Administration’s data, there have been 105 incidents since 2003, and no fatalities — and it spurred an ongoing update of PHMSA safety regulations. 

Among the landowners who don’t want to give Summit access to their land, the incident exemplifies their safety concerns. 

“Pipelines such as the one Summit Carbon Solutions has proposed are highly regulated to ensure public safety,” said Ahmed Zenor in an emailed statement. “In addition to being regulated by the PHMSA, the project is also subject to federal environmental regulations and state oversight.” 

Transporting materials via pipeline, she added, is safer than transporting them via truck or rail. 

The safety concerns mix with a list of worries, including construction spoiling the land, potential leaks contaminating water sources, misuse of public money, and what some landowners describe as generally aggressive behavior from Summit’s agents trying to convince them to sign voluntary easements.  

“They went to nursing homes with donuts to try to convince vulnerable senior landowners,” said Jess Mazour, program coordinator of the Iowa Chapter of the Sierra Club, an environmental organization that’s been active in fighting the pipeline.

Overall, Summit is facing the opposition any linear infrastructure always faces — a Maine transmission line linking hydroelectric dams in Canada to the Northeast, for example, has been slowed down by permitting delays — complicated by a lack of uniform regulations. 

“Siting and construction are dealt with on a state-by-state basis for CO2 pipelines,” said Danny Broberg, associate director for the Bipartisan Policy Center’s energy program. “This is not the case for gas pipelines, for which interstate siting and construction authorities exist through FERC, the Federal Energy Regulatory Commission. One challenge at play for CO2 pipelines is that there is no federal jurisdiction for interstate siting and construction.” 

Stakeholders and legislators have started discussing how to overcome the challenge — if, for example, siting and construction for CO2 pipelines should be through FERC or not — and in May, the Biden Administration urged Congress to consider providing federal siting authority for CO2 pipelines as a priority for facilitating clean energy development. No official proposal is on the table yet. 

Despite the permitting setbacks, Summit says it believes “the regulatory process around pipeline projects works well.” 

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Eminent domain is, to use the Great Plains Institute’s Fry words, “one of the most contentious things on the planet,” and as activists and opposing landowners have pointed out during the Iowa Utilities Board public hearing, it’s not clear it would apply to CO2 pipelines, at least in Iowa. 

“In Iowa, you can only use eminent domain if it’s a public use and convenience,” said Mazour of the Sierra Club. “And that’s one of our biggest arguments. This is not a public benefit.”

Carbon capture, according to Mazour, is extending the life of a harmful industry. “We don’t believe that ethanol is the best solution to take care of our soils and our water and our rural communities and our farmers,” she said. “And then if we have healthy soils and if we treat the land differently and farm differently, we can actually sequester a lot of carbon in our ground.” 

A better solution, according to Mazour and the Sierra Club, would be to expand deployment of wind and solar. 

Whether Summit is entitled to use eminent domain in Iowa or not is something that will be settled once the Iowa Utilities Board issues its final decision — the public hearing wrapped up on November 8, and there is no deadline they have to meet. 

Additionally, Summit has to refile a permit application in South Dakota, and still gain all the necessary permits in North Dakota, Nebraska, and Minnesota. 

The debate over eminent domain ties to a more general discussion over the benefits and effectiveness of carbon capture technology. Recently, a Bloomberg investigation found that last year Occidental sold its Century carbon capture facility for way less than it spent building it, after the plant never reached its full capacity in over ten years. The Petra Nova carbon capture facility in Texas has also struggled to meet capacity and financial objectives, and it just recently came back online after suspending operations for over two years. 

“Innovation includes risks and some tolerance for failure,” said Broberg at the Bipartisan Policy Center. “It’s going to take the entire toolkit of resources to meet net zero, both from the government and the private sector.” 

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As the Midwest becomes an incubator for plans and strategies to build CO2 pipelines, and conversations are starting over how to make regulations more uniform, developers are probably going to take a few lessons from Summit and Navigator. 

The most important of these, according to experts, is how to better engage with communities and spearhead education about carbon capture technologies. 

“Everyone’s in a rush to take advantage of subsidies through the IRA,” said  Greig at Princeton University. “But you can’t rush communities, right? I’m not convinced that all the developers have the level of sensitive, forward-looking stakeholder engagement and community engagement and discussion that is going to be necessary.” 

If government entities are serious about developing carbon capture technologies, however, it can’t just be private companies explaining why we need them, according to Navigator’s Burns-Thompson. “It needs to come from the trusted voice of the regulators themselves. And that’s not just state entities. That’s our federal entities as well.”

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IPP retains banker for California plant sale

An independent power producer has retained a banker for a sale of a decades-old gas plant in California. Aging gas plants have been in the sights of clean fuels developers looking to retrofit or use facilities for clean fuel production and combustion.

GenOn, an independent power producer, has hired Solomon Partners to sell a 54 MW gas plant in California, according to sources familiar with the matter.

The plant, Ellwood, is located in Goleta, in Santa Barbara County, and was shuttered and retired by GenOn as of 2019. It reached COD in 1973 and ran two Pratt & Whitney FT4C-1 gas turbine engines.

Ellwood previously interconnected via Southern California Edison, a utility that is pursuing multiple natural gas decarbonization projects, including a hydrogen-blending initiative with Bloom Energy.

A teaser for the sale of Ellwood, which was issued last week, notes there is an opportunity to install a battery energy storage system at the site, one of the sources added.

Elsewhere in California, investment firm Climate Adaptive Infrastructure and developer Meridian Clean Energy are seeking to demonstrate decarbonization in peaker plants at the much newer gas-fired Sentinel Energy Center. Their plans include hydrogen blending.

GenOn declined to comment. Solomon Partners did not respond to requests for comment.

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