The Carbon Corner - Issue #73


Welcome to our 73rd edition of The Carbon Corner, where we delve into innovative solutions and significant developments in the realm of environmental sustainability and energy transition.

Today, we explore diverse initiatives aimed at tackling carbon emissions across various sectors. From advancements in carbon capture technology onboard ships to large-scale mergers in the oil and gas industry, and pioneering efforts to pull carbon dioxide from the atmosphere using novel methods, these stories highlight the ongoing efforts to shape a greener future. Let's dive in!

Vanadium Breakthrough: Oregon Researchers Unveil Promising Carbon Capture Method

Researchers at Oregon State University have discovered that vanadium peroxide molecules can effectively bind with carbon dioxide, presenting a promising avenue for advanced carbon dioxide removal technology. This breakthrough, part of a $24 million federal initiative for direct air capture (DAC) of carbon dioxide, is crucial in combating climate change induced by fossil fuel emissions.

While DAC facilities are still emerging globally, advancements in carbon mitigation technologies, particularly in power plants, highlight the importance of both DAC and existing carbon capture methods. Led by May Nyman, the study investigates how transition metal complexes interact with air to convert carbon dioxide into metal carbonates.

Vanadium, known for its color-changing properties, forms a key component of this process, requiring alkali cations for charge balancing. Additionally, the study explores replacing vanadium with other metals and altering alkali components to optimize the carbon capture process. The research demonstrates vanadium peroxide's efficiency in releasing absorbed oxygen at lower temperatures, facilitating potential reuse of carbon capture materials. Overall, this study represents a significant step forward in developing efficient and cost-effective carbon removal technologies, with promising implications for combating climate change.

California Resources Corporation (CRC) Announces $2.1 Billion Merger with Aera Energy: Accelerating Energy Transition and Carbon Management Initiatives

California Resources Corporation (CRC) is set to merge with Aera Energy, LLC in a $2.1 billion all-stock deal, including Aera's net debt and obligations. Upon closing, Aera's owners will receive 21.2 million shares of CRC's common stock, constituting about 22.9% of CRC's fully diluted shares. The combined entity will possess interests in five major California oil fields, offering opportunities for enhanced oil recovery.

CRC will also refinance Aera's outstanding debt, facilitated by a $500 million bridge loan facility. Expected to finalize in the second half of 2024, the merger awaits regulatory approvals and CRC shareholder consent. Post-merger, CRC anticipates a substantial increase in oil production and reserves, with estimated production of around 150,000 barrels of oil equivalent per day (boepd) and proven reserves of approximately 680 million barrels of oil equivalent (MMboe).

The merger aims to bolster CRC's carbon management business by expanding surface acreage and acquiring significant new carbon dioxide (CO2) pore space for future carbon capture and sequestration (CCS) initiatives. With a focus on advancing energy transition technologies, the merger will enable the development of Direct Air Capture (DAC), geothermal, solar, and water treatment solutions. Additionally, CRC plans to sequester 5 million metric tons of CO2 annually in its underground storage vaults, aligning with its commitment to emission reduction and sustainability goals.

Seabound's Breakthrough: Capturing Carbon Emissions from Ships with Innovative Technology

Seabound, in collaboration with Lomar and its corporate venture lab, conducted a successful pilot showcasing their innovative carbon capture system for ships. Approved by ABS, the system utilizes calcium looping technology and has the potential to capture up to 95% of CO2 emissions, converting them into solid calcium carbonate pebbles for reuse.

The project, partly funded by a UK Government grant, utilized a 240-meter containership chartered by Hapag-Lloyd, demonstrating real-world applicability. Over two months, the pilot captured approximately 1 tonne of CO2 per day, achieving a carbon capture efficiency of 78% and sulfur capture efficiency of over 90%. This breakthrough aligns with the global shipping industry's commitment to decarbonization, as emphasized in a joint declaration at COP28 in December 2023.

Bridging the Gap: JustCarbon's Mission to Fund Gigaton-Scale Carbon Removal Projects

The carbon removal industry is facing a crucial challenge: bridging the gap between funding and the pressing need for large-scale projects. With the goal of removing up to 10 GtCO2 annually by 2050, funding is essential to address the climate crisis effectively. JustCarbon CEO Gavin Anderson emphasizes the urgency, highlighting their readiness to scale projects capable of removing 2GT carbon yearly. However, the industry grapples with a $700 Billion funding gap, hindering the realization of growth possibilities.

JustCarbon aims to address this gap by partnering with innovative environmental startups and diversifying revenue streams to ensure sustainable returns. Their focus on supporting projects approved by leading carbon crediting platforms like Puro.Earth, Verra.org, and Gold Standard underscores their commitment to impactful and credible initiatives. Furthermore, JustCarbon's upcoming Roadshow, "Carbon Removal as Business," promises to showcase pioneering projects with significant potential for impact and return on investment, featuring keynote speaker Alan Boyd, offering a unique opportunity for investors to contribute to planet-saving solutions while securing profitable ventures.

Indiana Takes a Bold Step: Carbon Sequestration and the Path to Cleaner Energy

The U.S. Environmental Protection Agency (EPA) recently granted class VI permits to Indiana's Wabash Carbon Services, marking a significant step towards the state's first carbon dioxide storage wells. This initiative, forming part of a larger carbon capture and sequestration program, aims to mitigate greenhouse gas emissions and combat climate change effects.

Schaper Energy Consulting is a professional engineering firm offering carbon strategy services to CCS site developers. Check out some examples of our projects here: https://schaperintl.com/carbon-strategies/

If you have questions or comments, please contact us at info@schaperintl.com.

We hope you enjoyed reading this week and hope to see you back next week for more!

Schaper Energy Consulting

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