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Occidental and ADNOC to evaluate carbon management projects in the US and UAE

The companies will evaluate participation in DAC plants and CCS hubs in the US and UAE.

Occidental and ADNOC will evaluate investment opportunities in Direct Air Capture (DAC) facilities and carbon dioxide (CO2) sequestration hubs in the United States and the United Arab Emirates (UAE) as a pathway toward the development of carbon management platforms to accelerate the net-zero goals of both companies, according to a news release.

The strategic collaboration between global energy leaders Occidental and ADNOC demonstrates how the companies can work together on the potential deployment of carbon capture, utilization and sequestration technology at scale in the United States and the Middle East and to help hard-to-abate industries achieve their net-zero targets through the purchase of carbon dioxide removal credits alongside emissions reduction programs.

Under the terms of the Memorandum of Understanding (MOU), ADNOC may evaluate participation in DAC plants and CO2 sequestration hubs under development in the United States by Occidental subsidiary, 1PointFive. Occidental and ADNOC and may also evaluate jointly developing one or more UAE-located CO2 sequestration hubs and consider commencing feasibility and pre-front-end engineering and design studies for a 1 million tonne-per-year DAC plant, which together would provide emissions reduction solutions for carbon-intensive industrial emitters and other hard-to-abate sectors within the UAE, including aviation and maritime operations.

Through the collaboration, the companies will also consider opportunities to incorporate innovative CO2-based technologies into the UAE. This includes technologies in which Occidental has made investments, such as emissions-free power and sustainable fuels.

“We look forward to building on our longstanding partnership with ADNOC as we advance our plans to globally deploy DAC technology and engage partners who are committed to developing carbon solutions at climate-relevant scale,” said Vicki Hollub, Occidental President and CEO. “Partnerships like this one are essential to helping the world reach its climate goals and ensure it has the resources it needs to thrive through the energy transition. We look forward to working with ADNOC on our shared vision of establishing a global net-zero ecosystem.”

The agreement is enabled by the UAE-U.S. Partnership for Accelerating Clean Energy (PACE), which was launched in November 2022 and is expected to mobilize $100 billion in clean energy and carbon management projects, including CCS and DAC by 2035.

Amos Hochstein, White House Senior Advisor to the President for Energy and Investment said: “The world is going to need a host of technologies, including DAC and CCUS, to meet our global climate objectives. This important announcement is a great example of what the U.S.- UAE Partnership for Accelerating Clean Energy (PACE) can help enable. I look forward to what this agreement yields.”

In January 2023, an expert body was formed to govern PACE, co-chaired by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Amos Hochstein, White House Senior Advisor to the President for Energy and Investment.

Musabbeh Al Kaabi, Executive Director of Low Carbon Solutions and International Growth at ADNOC said: “This agreement highlights how the UAE-U.S. Partnership for Accelerating Clean Energy is driving innovative climate technologies to decarbonize the energy sector. The need to significantly reduce carbon emissions to address climate change is clear and urgent and carbon capture is an important technology that can be scaled up to decarbonize across all industries.

“ADNOC’s is a pioneer in carbon management, exemplified by our industry leading low-carbon intensity and our operation of Al Reyadah, the region’s first commercial scale carbon capture facility. As ADNOC accelerates its net zero ambition to 2045 and decarbonizes our operations, partnerships like this offer the potential to transform the systems that will be vital to provide the lower-carbon energy the world needs for the energy transition.”

1PointFive is currently constructing what is expected to be the world’s largest DAC plant, named STRATOS, in Texas. The facility, which will use technology provided by Canada-based Carbon Engineering, is designed to capture up to 500,000 tonnes of CO2 from the atmosphere each year when fully operational. The DAC plant being evaluated by the companies in the UAE, if built, would use the same technology and could be the first megaton-scale facility of its kind outside of the United States.

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Advent Technologies in maritime JDA with Siemens

The pair will develop an integrated high-temperature PEM fuel cell solution for maritime applications and then evaluate to scale down/up the system to fit with market requirements from motor and Giga Yachts to ferries and container/commercial ships.

Advent Technologies Holdings, Inc., a provider of fuel cell and hydrogen technology, through its wholly owned subsidiary, Advent Technologies A/S, has signed a Joint Development Agreement with Siemens Energy, one of the world’s leading energy technology companies.

The newly signed JDA outlines the collaboration between Advent and Siemens Energy, combining Advent’s HT-PEM fuel cell 50kW modules utilizing its innovative Ion-Pair™ membrane electrode assembly (MEA) technology with Siemens Energy’s electrification and automation solutions for hybrid and electric vessels.

The goal is to develop an integrated 500kW High-Temperature Proton Exchange Membrane (“HT-PEM”) fuel cell solution for maritime applications and then evaluate to scale down/up the system to fit with market requirements from motor and Giga Yachts to ferries and container/commercial ships.

The innovative clean energy solution resulting from this multi-year collaboration is expected to initially address the power needs of large yachts, according to a press release. Subsequently, plans are underway to broaden its application to include ferries and commercial/container vessels.

The initial prototype testing for the HT-PEM fuel cell module is expected to take place at Siemens Energy’s testing facility in Erlangen, Germany, in 2025, with the testing of the first fuel cell module scheduled for completion in 2026. Advent is currently engaging with world-leading customers in the maritime industry and anticipates signing commercial term sheets in the near term to pursue upcoming Requests for Proposals (RFPs).

This agreement builds upon the strong collaboration between Advent and Siemens Energy, which began in February 2022 with the Sanlorenzo Life Ocean pilot project. In this project, the companies jointly developed a marine HT-PEM fuel cell solution to provide clean power for hotel functions aboard a 50-meter Sanlorenzo superyacht. Additionally, in March 2024, Advent and Siemens Energy deepened their collaboration by joining as consortium partners in the RiverCell 3 research and development project, which is partially funded by the German Federal Ministry for Digital and Transport as part of the National Innovation Programme Hydrogen and Fuel Cell Technology.

Advent Technologies’ HT-PEM fuel cells utilizing the innovative Ion Pair™ MEA technology, offer high-temperature operation between 80°C and 240°C. This advancement extends their lifespan by at least threefold and doubles the power density compared to earlier Advent systems. Additionally, Advent’s HT-PEM fuel cell technology enables the use of liquid green fuels like eMethanol, enhancing efficiency by utilizing both heat and electricity, resulting in high resilience. These fuel cells can function with impure hydrogen, impure air intake, and in extreme ambient temperature and humidity conditions, making them an ideal choice for widespread adoption in the maritime industry.

As the world advances towards extensive green hydrogen production, eMethanol emerges as a leading choice for marine fuel in the maritime industry, promising a potential 100% reduction in CO2 emissions. Methanol and its derivatives function as versatile energy carriers and storage solutions, efficiently releasing hydrogen catalytically through fuel reformers. With its efficient storage capabilities, ease of handling, and utilization of existing infrastructure for transportation, methanol stands as a secure and economically viable alternative to fossil fuels.

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OCI Global supplying low-carbon ammonia for German fertilizer

OCI will supply COMPO EXPERT with ammonia that guarantees a 60% lower carbon footprint than the industry standard from its facilities in Texas.

OCI Global, a producer of nitrogen, methanol, and hydrogen products is supplying COMPO EXPERT, a producer of high-quality specialty fertilizers and biostimulants, with lower carbon ammonia for use in the production of COMPO EXPERT’s NPK fertilizers, with the first delivery having taken place this week, according to a news release.

COMPO EXPERT will initially replace 25% of the ammonia it uses at its facility in Krefeld, Germany, with OCI’s lower carbon product this year and has plans in place to further increase the ratio of OCI supplied lower carbon ammonia in its production over the next two years.

OCI will supply COMPO EXPERT with ammonia that guarantees a 60% lower carbon footprint 60% than the industry standard from its facilities in Texas, USA via OCI’s proprietary ammonia terminal and distribution hub at the Port Of Rotterdam.

OCI has supplied COMPO EXPERT with ammonia for fertilizer production for over a decade and the switch to lower carbon ammonia is testament to both companies’ commitment to sustainability and the decarbonization of their products.

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Trafigura renews call for carbon levy to support clean fuels for shipping

The global trading firm had previously proposed a carbon price of $250 – $300 per tonne for carbon fuel oils for shipping.

Global commodity trader Trafigura Group renewed its call for a tax on carbon fuel oils used for shipping in an effort to speed decarbonization of the maritime industry.

The trader, which previously proposed a carbon levy of $250 – $300 per tonne, called on the UN’s International Maritime Organization, a shipping regulator, to revise its GHG policy and implement a carbon levy in a review of the organization’s carbon policy this year.

“By agreeing and implementing ambitious science-based decarbonization targets in its revised GHG Strategy, the IMO can accelerate the development of low- and zero-emission fuels and attract the investment needed to overhaul the infrastructure of the global shipping industry and retrofit or build a fleet of ships,” Trafigura said in the white paper.

Trafigura calls on the IMO to introduce an agreed-upon carbon price by 2025.

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Exclusive: National RNG developer in equity sale process

A large US developer and operator of renewable natural gas projects has tapped an advisor and is in the early stages of a sale process.

DTE Vantage, a developer of renewable energy projects with a national footprint in the US, is in the first round of a process to sell its RNG business, according to two sources familiar with the matter.

Lazard is running the process, the sources said. First round bids were recently received.

The company’s RNG portfolio includes 13 projects, four of which are landfill-to-gas while the remainder are on dairy farms, with more under construction, according to company materials. One of the largest RNG producers in the Midwest, the company also has projects in North Carolina, California, New York, and Wisconsin.

Of note, the Riverview Energy landfill gas asset in Riverview, Michigan produces 8.6 mmcfd of pipeline natural gas and includes 6.6 MW of solar. Pinnacle Gas in Moraine, Ohio, produces 4.5 mmcfd, while Seabreeze Energy in Angleton, Texas produces 5.8 mmcfd.

DTE Vantage is a non-utility subsidiary of DTE Energy. Founded in the 1990s, it has about 600 employees and operates 64 projects in 16 US states, with one asset in Canada. The company serves industrial, agricultural, and institutional clients across three core groups: Renewable Energy, Custom Energy Solutions, and Emerging Ventures.

DTE declined to comment. Lazard did not respond to a request for comment.

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Exclusive: California IPP considering hydrogen options for gas generation portfolio

A California-based IPP is considering burning hydrogen in the thermal plants it acquires, as well as in a portfolio of gas peaking assets it is developing in Texas and the western US.

Nightpeak Energy, the Oakland-based IPP backed by Energy Spectrum Capital, is planning to have wide optionality to burn hydrogen in the gas plants it acquires, as well as in quick-start peaking natural gas assets it is developing in Texas and the western US, CEO Paris Hays said in an interview.

“There’s just not a lot of places in this country where you can procure enough hydrogen at a reasonable price to actually serve wholesale electricity customers,” Hays said of the existing hydrogen landscape.

Still, OEMs are figuring out in real time which of their deployed fleet can burn hydrogen, he said. Studies on blending seem to be yielding positive results.

“That’s great news for a business like ours, because we can have optionality,” Hays said. When interacting with equipment providers, conversion to hydrogen is an important, if expensive, discussion point.

“We want to be in a position to be able to do that for our customers,” Hays said. “We can offer a premium product, which is kind of rare in our business.”

Nightpeak recently purchased Saguaro Power Co., which owns a 90 MW combined cycle power plant in Nevada. That facility is a candidate for hydrogen repowering, Hays said, though that’s just one option for an asset that is currently cash-flowing well.

The Nevada facility is close to California, which notably is a market with a demonstrated appetite for paying green premiums, Hays said.

“We wouldn’t manufacture hydrogen ourselves, we would be a buyer,” he said. “This is one path that any plants we own or develop could take in the future.”

Nightpeak has yet to announce any greenfield projects. But Hays said the company is developing a portfolio of “quick-start” natural gas generation projects in ERCOT and WECC. Those assets, 100 MW or more, are to be developed with the concept of hydrogen conversion or blending in mind.

Proposition 7, which recently passed in Texas, could present an opportunity for Nightpeak as the legislation’s significant provisions for natural gas development has pundits and some lawmakers calling for the assets to be hydrogen-ready.

Investor interest in being able to convert gas assets to burn hydrogen reflect an important decision-making process for Nightpeak, Hays said.

“Does it makes sense to just buy a turbine that only burns natural gas and may be a stranded asset at some point, or would we rather pay and select a turbine that already has the optionality?” Hays said. “Putting price aside, you’re always going to go for optionality.”

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Exclusive: Midwest renewables developer launches capital raise

A Midwest renewables developer has launched a $340m capital raise for a wind-to-hydrogen operation in the US heartland.

Zero6, the Minneapolis-based renewables developer, owner and operator, recently launched a process to raise $340m in project capital for its portion of the Lake Preston Biofuels Project in South Dakota, senior managing director Howard Stern said in an interview.The company, previously known as Juhl Energy, is partnered with Colorado-based Gevo, which plans to produce SAF on 240 acres at Lake Preston in a project dubbed Net-Zero 1.Zero6 will develop 20 MW of green hydrogen production adjacent to Net-Zero 1 powered by a 99 MW wind farm located 10 miles from the SAF site, Stern said.Plans call for FID late this year, he said.Zero6 met with several financial advisors for the raise, but decided to try and conduct it in-house, Stern said. The company has not ruled out help from an advisor for this raise and could need those services in the future.The goal is to have an anchor investor in place by May, Stern said. The company is open to strategic or financial investors.Zero6’s strategy is akin to a traditional private equity play, holding a project for five to ten years of operation, Stern said. That could change depending on new investors’ outlook.According to the ReSource database, Gevo has additional projects in Illinois, Iowa and Nebraska.Stern said Zero6 sees opportunities to replicate the Lake Preston strategy in other parts of the country.The Lake Preston project has been tied to the development of carbon capture pipelines through South Dakota, namely the Summit Carbon Solutions CO2 pipeline. Gevo officials have made public comments noting that if the Summit pipeline does not get built, it would disadvantage the Lake Preston project on the basis of its carbon intensity score, and the company may seek options elsewhere.
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