Energy Capital Advisors

06/17/2022

Lots of discussion lately about exports in light of the interruption.

Today, we put out a short piece showing some history of the LNG import/export balance in the U.S. and implications for the future given the elevated commodity price backdrop.

https://schaperintl.com/revitalized-activity-for-united-states-lng-exports/

02/23/2022

Today, we are talking about a potential solution to the current intermittency and limitations of the electric power grid. Check out more details below on the newest form of storage, the Energy Vault!

As the world pushes toward more renewable power, dozens of new grid-scale energy storage concepts have been proposed that could change the dynamic of investment in the space. Storing such large quantities of energy for later use requires incredible scale, whether in chemical or potential energies.

02/23/2022

More funding for is great, but short of the EPA being overhauled, efforts to deploy these new appropriations will fight a constant regulatory battle.

The issue is not the lack of funding for infrastructure (there is plenty of capital chasing the space); the issue is regulatory barriers and a lack of improved subsidies (45Q) that can incentivize developers to pursue the projects.

Despite the funding allocated to the EPA to advance Class VI well approvals in the infrastructure bill, all indications are that they are still moving at a snails pace.

White House seeks comment by March 18 on approaches to extract CO2 from sources and from the air, with $2B for new pipelines. Capture projects have strong critics, but DOE also funds $4M of planned Rio Tinto-Talon Metals nickel mine demo project in Minnesota.

02/22/2022

After reading this article, I couldn't help but feel that it relies on outdated information and was muddled in its message.

tech is actually trending in the direction of focusing on industrial process emissions as opposed to power generation. The major criticism of is that past projects were not commercially viable, and projects like the one highlighted at Petra Nova were mothballed.

There is a new class of development that takes advantage of existing infrastructure and high purity emissions. These projects provide the highest "bang for the buck" as far as emissions reductions are concerned.

There’s a long way to go to decarbonize heavy industry.

02/11/2022

FT reports, LNG player is looking into a large carbon sequestration hub in Australia.

The project is aiming at storing over 1.5 mmpta into an onshore depleted gas reservoir that is capable of holding 100 mm metric tonnes.

I think you’ll see more of these depleted field applications for stateside.

What are your thoughts?

Santos aims to store CO2 underground to reduce emissions but critics question its targets

02/09/2022

If the operators of the Summit and Navigator pipeline projects are already trigger discussion of the use of eminent domain, then these projects have already lost a major battle.

Voluntary easements and right-of-way are the preferred path here; I don't see these projects happening if landowners aren't on board.

A flurry of proposed carbon pipelines in the U.S. Midwest has triggered a battle over whether companies behind the projects should be allowed to seize land from unwilling property owners to secure a route.

02/08/2022

The title of this article is a bit misleading: This application is for small scale devices, not direct air capture.

University of Delaware researchers' carbon capture advance could bring environmentally friendly fuel cells closer to market. University of Delaware engineers have demonstrated a way to effectively capture 99% of carbon dioxide from air using a novel electrochemical system powered by hydrogen.

02/07/2022

The new era of should be dominated by lower-cost options characterized by co-located emissions and sequestration sites. Petra Nova is not going to be the model for moving forward. High cost capture facilities attached to coal plants are not viable today.

Large fossil-fuel companies including Exxon and Occidental Petroleum are touting carbon capture as a part of their future plans to reduce emissions—and lobbying Congress to increase a tax credit to make the projects more economically sustainable.

02/02/2022

Natural gas vs wind power

One requires a hostile superpower mining an inordinate amount of light rare earth elements using slave labor aided by coal-derived electricity and diesel fuel.

The other is natural gas.

02/01/2022

Cold weather is gripping the northeast and sending natural gas prices rocketing.

We are also seeing spillover of the major energy shortages in Europe making their way upstream to US natural gas markets.

http://ow.ly/SN1S30s94CF

At one point, late in the trading session, February futures jumped to nearly $7.35 before crashing back down and rising again to the closing price.

01/31/2022

The read through on the negotiations for more into Europe:

is going to get their way.

The is in a terrible negotiating position and big supplies are going to extract a pound of flesh in the form of long term contracts at favorable pricing.

http://ow.ly/eujA30s9bmB

Top gas producer Qatar is asking the European Union to restrict resales of gas outside the bloc if it wants Qatar and other major gas suppliers to provide emergency supply in case of a Russia-Ukraine conflict, a person briefed on the talks said.

01/31/2022

Somehow, these headlines are only getting worse for O&G companies looking to participate in Carbon Capture.

This one seems to have been picked up by everyone, but it is a wholly unserious analysis conducted by some very biased groups.

http://ow.ly/80mC30s94Cc

Shell's Quest plant in Alberta, Canada has previously been touted as a "thriving example" of how CCS is working to significantly reduce carbon emissions.