The Carbon Corner - Issue #20


Happy Friday! This is the 20th week of The Carbon Corner!! Can you believe all the news we have covered in this space over the past few months?!

Talos Energy Acquires EnVen Energy

Earlier this week, Talos Energy (Talos) announced that it completed its acquisition of EnVn Energy Corporation (EnVn) late last week. According to last Friday's closing share price, Talos has approximately 126,370,000 shares of common stock outstanding and a market capitalization of roughly $2.5 billion. The company plans to share 2022 earnings with the public later this month.

Talos President and Chief Executive Officer Timothy S. Duncan commented: "We are excited to close the EnVen transaction, which adds significant scale and diversity to our business and integrate these high-margin, oil-weighted assets, operated infrastructure, and overlapping acreage into our portfolio, strengthening our position as a safe, reliable, responsible operator in the Gulf of Mexico. The added scale and greater free cash flow generation ability also allows us to be even more competitive in our Carbon Capture & Sequestration business. I'm extremely proud of the Talos team for their strong focus and hard work and appreciate the continued support of the EnVen employees as we work together to ensure successful integration and realize the valuable synergies this transaction provides. We look forward to sharing our plans for the future in our upcoming earnings call."

Climate Vault Launched its First Request for Proposal to Stimulate CO2 Removal Technology

Climate Vault is a non-profit that focuses on reducing and removing carbon emissions. The company has officially launched its first request for proposal of 2023, which will focus on identifying, assessing, and awarding funds to emerging carbon dioxide removal (CDR) technologies.

Climate Vault's RFP is open to a variety of solutions, including:

  • "Terrestrial processes that include ecological, agricultural, biological, plant cultivar, and soil carbon ecosystems.
  • Technological innovations, such as bioenergy with carbon capture and storage (BECCS), direct air capture (DAC), ex situ and in situ mineralization, and soil additions.
  • Oceanic-based processes, including ocean alkalinity enhancement (OAE) and abiotic, electrolytic, biotic, blue carbon, and macroalgae systems."

A recent study by the State of CDR found that while the majority of CDR deployment is expected for the second half of the century, it will only be possible if there is substantial development within the next ten years.

The deadline to apply for the grant funding is March 29, 2023.

Washington State Department of Natural Resources Pushes for Right to Sell Carbon Credits

The Washington State Department of Natural Resources has voiced its opinion that the state's climate policy is lacking. Due to recent law changes, the state cannot sell carbon credits.

Hilary Franz, the state commissioner of public lands, is pushing for change with legislation that would allow the state to freely sell credits and create carbon offset projects. She is backed by Senator Joe Nguyen, D-West Seattle, who is co-sponsoring the bill.

The team argues that the change would generate millions to go toward public schools, counties, and fire departments. Counter-parties raised concerns at last week's public hearing, saying the bill could reduce revenue for rural communities.

A final decision will be made today at an executive session with no public comment.

Navigator's Offers Money in Exchange for Support of 1,300 Mile Pipeline

You may recall our ongoing updates regarding the Navigator CO2 Ventures (Navigator) 1,300 pipeline. There has been a great deal of push-back, which Navigator has now addressed. The company recently offered $630,000 per year for the next 30 years in exchange for the county's support.

Last week the Navigator representatives, landowners, pipefitters, and farmers gathered for a committee meeting to discuss the offer and project plans. They also planned for a meeting that occurred earlier this week. Although lots of conversation is happening around the matter, a vote is not expected to happen soon.

ExxonMobil to Deploy Honeywell Carbon Capture Technology in Texas

You may recall our ongoing updates regarding Navigator CO2 Ventures' plans to deploy Honeywell's CO2 Fractionation and Hydrogen Purification System in Baytown, Texas. This technology can capture about 7 million tonnes of CO2 annually, equivalent to the emissions of 1.5 million automobiles each year.

The Baytown facility is expected to produce around one billion cubic feet of low-carbon hydrogen daily, making it the world's largest carbon hydrogen project.

"ExxonMobil's investment in carbon capture technology shows our commitment to supporting customers in their decarbonization efforts and to reducing emissions at our own operations. The scale of this project is expected to enable up to 30% of Scope 1 and 2 emissions from our Baytown facility by switching from natural gas as a fuel source to low-carbon hydrogen," said Dan Ammann, president of ExxonMobil Low Carbon Solutions.

That is all the news we have for this week! We hope you enjoyed reading it!

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 get in touch with us at info@schaperintl.com.

Schaper Energy Consulting

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