RNG lowers Carbon Intensity, European Industrial Renaissance?

• Archaea, BP’s RNG development subsidiary, is currently drilling a stratigraphic well in Lackawanna County, Pennsylvania. Depending on the test outcomes, the proposed sequestration project will capture and store CO2 from the Keystone Sanitary Landfill, the largest landfill in Pennsylvania by RNG production and waste-in-place, and the 24th largest in the U.S. After removing methane for Renewable Natural Gas production, the CO2 from landfills is of high purity. Landfills have recently become a key focus for both carbon utilization and storage companies seeking to monetize biogenic CO2.

• As noted in a previous newsletter, President Trump’s EPA granted West Virginia primacy to issue Class VI permits. CCUS developers are awaiting signals regarding the administration's stance on 45Q policy. The decision to grant West Virginia primacy could serve as a potential indicator of policy support.

• Venture Global (NYSE:VG) announced this week that its Calcasieu Pass facility will begin commercial operations on April 15, 2025. The facility will reach its commercial operation date (COD) in less than 68 months from its final investment decision in August 2019, overcoming challenges such as two hurricanes and unexpected manufacturing setbacks.

  Despite the high-profile IPO, its trading at a 34% discount since its January debut. Meanwhile, the Louisiana Department of Natural Resources (DNR) started a Class VI technical review in June 2024 for the sequestration of CO2 from the LNG terminal’s natural gas processing. In addition, Venture Global leased 18,000 acres for carbon storage from the Louisiana DNR in September 2022, adjacent to the terminal.

• Yinson Production, a leading independent owner and operator of floating storage, production and offloading (FPSO) vessels worldwide, has completed the acquisition of 100% of Stella Maris CCS (full CCS value chain developer) from Altera Infrastructure. It holds a 40% stake in the Havstjerne Reservoir on the Norwegian Continental Shelf, where it partners with Harbour Energy on the 369,759 leased acre carbon storage project. Additionally, The EU has awarded the project a grant of up to EUR 225 million, marking the largest EU grant for a CCS project.

• Wood has been selected to provide operations and maintenance solutions for MTR Carbon Capture at the world’s largest membrane-based carbon capture plant in Gillette, Wyoming.

  • The facility, which is based at the Wyoming Integrated Test Center (ITC) and managed by the University of Wyoming, is part of the U.S. Department of Energy’s large-scale pilot carbon capture program.

  • The plant captures up to 150 tons of CO2 per day from Basin Electric’s Dry Fork Station coal fired power plant, with a 90% capture rate.

  • Under an 18-month contract, Wood will deliver full asset management services, including operations, preventative maintenance, data capture and inventory management to support sequestration of CO2.

• Upstream offshore oil and gas received promising news to decarbonize this week.

  • China has completed the world’s first floating production, storage, and offloading (FPSO) vessel equipped with a carbon capture system, aiming to reduce emissions in offshore oil production. The 330-meter FPSO, built in Shanghai by the state-owned Cosco Ocean Shipping Heavy Industry Company, has a daily oil production capacity of up to 120,000 barrels while capturing and storing carbon dioxide generated during its operations.

  • SBM Offshore has signed a study agreement with PETROBRAS to explore the application of Carbon Capture Modules on FPSOs. The module design, developed in collaboration with Mitsubishi Heavy Industries (MHI) and qualified by DNV, combines MHI’s CO2 capture technology with SBM Offshore’s Fast4ward principles. This compact solution aims to significantly reduce emissions from oil and gas production on FPSOs.

• The European Commission will propose a set of measures next week to support EU industries in reducing their carbon footprint and maintaining competitiveness partly in response to recent U.S. administration’s comments and the IRA 45Q and 45V policies

  • Trade and CO2 Costs:

    • Increased use of anti-dumping or anti-subsidy duties to counter cheap imports from China (Electrolyzers, EVs)

    • Revamp of carbon border levy before it begins in 2026, with simplified rules and reduced administrative burden.

    • Proposed funding scheme for industrial CO2-cutting projects using EU carbon market revenues.

  • Energy Costs

    • Energy costs in Europe are up to 3 times higher than in the U.S.

    • Fast-tracked permits for clean industrial projects.

    • A European Investment Bank (EIB) scheme will help small companies lock in renewable energy prices.

    • Support for manufacturers to upgrade energy grid components.

    • Proposal to lower taxes on electricity and soften gas storage targets.

  • State Aid and Public Purchasing:

    • Easier access to state aid for projects reducing carbon emissions.

    • Tax breaks and incentives for clean industrial investments (accelerated depreciation)

    • Simpler state aid rules coming by July.

    • A revamp of EU public procurement rules in 2026, emphasizing locally made products.

• Wood has been awarded the front-end engineering design (FEED) scope for the Zeevonk hydrogen facility in Rotterdam, Netherlands. The plant will be powered by offshore wind and floating solar from Zeevonk’s offshore developments. This project is a joint venture between Vattenfall and Copenhagen Infrastructure Partners (CIP) and supports Vattenfall's net-zero goals while contributing to Europe's 2050 net-zero emissions target. The hydrogen produced will be transported via pipeline to the Hydrogen Network Rotterdam, part of the new Dutch hydrogen infrastructure in the Port of Rotterdam.

• Electrolyzer OEMs are downsizing due to slow pace of hydrogen development and policy uncertainty in U.S., Europe, and Australia

  • French electrolyser maker McPhy has said that without projects being finalised and further public funding, it only has enough cash to finance its operations until “the course of Q3 2025.”

  • Fortescue has said it is adjusting timelines of its renewable H2 projects and reducing spending in its green energy division by 20%. The development timelines are being reconsidered for its under-construction 80MW Phoenix Hydrogen Hub project in Arizona and 50MW PEM50 project in Queensland, Australia.

  • Nikola filed for Chapter 11 bankruptcy protection to sell off its assets and wind down operations. Nikola plans to maintain limited services, including supporting trucks in the field and HYLA fueling operations until March 2025, after which it will seek partners for continued support.

• Users can now view Stratigraphic wells. We split up Planned Storage Projects into: Lease acreage, Announcements, and Stratigraphic wells

• Activity log to view project additions

• View landfills with gas collection systems in place for carbon capture opportunities

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.