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€1.25 billion boost for carbon infrastructure and storage
The Low Carbon Briefing
Louisiana has granted ExxonMobil a permit for the Virgo In-Zone Monitoring and Stratigraphic test well, also referred to as Class V within the state. Drilling is set to begin, and the permit represents a significant milestone in the advancement of the Virgo project.
EU will allocate almost €1.25 billion in grants from the Connecting Europe Facility (CEF) to 41 cross-border energy infrastructure projects, which have obtained the status of ‘Projects of Common Interest’ and ‘Projects of Mutual Interest’. €250 million will support the construction of 3 projects and the financing of 9 preparatory studies for CO2 infrastructure.
The Prinos storage facility in Northern Greece will be awarded almost €120 million, thus contributing to the first carbon capture and storage value chain in the South-Eastern Mediterranean region.
A second grant, for works worth €55 million, is destined for construction works of the North Sea L10 CO2 storage facility on the Dutch continental shelf.
A third grant, for works of just below €12 million, will be awarded to the Norne CO2 facility in Denmark. CEF-funded CO2 projects are set to contribute to the 2030 target of 50 million tonnes of annual CO2 injection capacity as underlined in the Net Zero Industry Act.
Rio Tinto and technology partner Hydro are committing $45 million over the next several years to develop carbon capture solutions for aluminum smelting. The investment will focus on: testing carbon capture technologies from lab research to real-world applications, conducting pilot projects at Rio Tinto’s European facilities and Hydro’s Norwegian sites, and collaborating on research, costs, and expertise to speed up progress. The aluminum industry is particularly challenging to decarbonize due to the electrolysis process, which uses carbon anodes that release CO₂ during production. This stage alone contributes to around 75% of a smelter’s direct CO₂ emissions, equating to approximately 790 million tons annually worldwide. Additionally, the CO₂ concentration in aluminum smelting is around 1%, which is significantly lower than ethanol (99%+), natural gas power plants (4-6%), and cement production (14-33%), making the technical hurdles even more complex.
Summit Carbon Solutions has partnered with Infinium, a leader in e-Fuels, to supply up to 670,000 metric tons of CO2 annually for a proposed e-Fuels facility in North or South Dakota. Infinium will utilize Summit’s pipeline network to secure a reliable CO2 source for producing ultra-low SAF, which combine captured CO2 with green hydrogen. South Dakota and North Dakota are likely targeted as SPP is a preferred RTO to develop green hydrogen.
Plug Power Inc. has launched the first-ever spot pricing program for liquid green hydrogen, allowing buyers to purchase on-demand from its production plants without long-term contracts. This flexible pricing model is designed for industries to respond quickly to changing energy needs. Plug has already secured agreements with key players, including a major industrial gas company, signaling strong industry interest. The spot pricing will be published weekly by S&P Global Platts, with transactions based on current supply and demand.
BP has put its $600 million, 105 MW Kwinana electrolyzer project in Australia on hold as the company shifts its focus back to oil and gas production. The project was initially set to compete for a share of Australia’s $2+ billion hydrogen funding pool. This move comes shortly after Fortescue paused its hydrogen projects in Australia, citing rising costs and regulatory uncertainty.
ACWA Power, Saudi Arabia's green hydrogen producer, has partnered with Germany's SEFE (Securing Energy for Europe) to develop 200,000 tons of hydrogen for consumption in Germany and across Europe. This collaboration enhances the energy ties between Europe and Saudi Arabia, positioning the kingdom as a potential leader in clean fuel exports in the near future. However, recent economic and energy policy discussions within the EU Commission have cast uncertainty on the EU's ability to meet its 2030 target of consuming 10 million tons of hydrogen annually.
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