Shell & EKI Energy to Invest $1.6 Billion in Carbon Credits

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Royal Dutch Shell has partnered up with EKI Energy from India to develop nature-based solutions for carbon capture. The JV is expected to invest $1.6 Billion over a 5-year period to develop 155 million Carbon Credits. EKI Energy, is the largest carbon credit developer and supplier from the developing world. They currently serve over 2,500 […]

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Royal Dutch Shell has partnered up with EKI Energy from India to develop nature-based solutions for carbon capture.

The JV is expected to invest $1.6 Billion over a 5-year period to develop 155 million Carbon Credits.

EKI Energy, is the largest carbon credit developer and supplier from the developing world. They currently serve over 2,500 corporate customers with ~70% based in India.

The JV will work on conserving, enhancing, and restoring natural ecosystems such as grasslands, wetlands, forests, agriculture, and blue carbon.

Shell has set a target to become a net-zero emission energy business by 2050.

The carbon credits generated from these projects can be used either by Shell for its internal consumption or to sell in the open market.

A carbon credit is a certificate signifying that one tonne of carbon dioxide emission has been reduced from the atmosphere.

This can be done through nature solutions, such as planting trees, or through industrial applications such as using carbon-reducing agents at emission points.

These carbon credits can be traded to help more polluting entities meet increasingly stringent carbon-emission norms.

Shell and EKI have signed on the exclusivity clause in contract to form the JV.

The carbon credits generated from the projects the JV undertakes will be shared in proportion to the investment Shell or EKI makes.

If Shell invests 75% of the capital in a project, it will get 75% of the carbon credits generated from it.

Positive sentiment driving this share is due to the growth of net-zero commitments being made as the world focuses on lowering the carbon footprint.

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Honeywell Carbon Capture Partnership with University of Texas

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Honeywell and the University of Texas at Austin have partnered together to drive down the cost of carbon capture from power plants and heavy industry. The UT Austin team has created a system that will improve carbon capture performance. This makes the process more efficient for industries such as steel, cement, chemical plants, coal, natural […]

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Honeywell and the University of Texas at Austin have partnered together to drive down the cost of carbon capture from power plants and heavy industry.

The UT Austin team has created a system that will improve carbon capture performance.

This makes the process more efficient for industries such as steel, cement, chemical plants, coal, natural gas, and bio-energy power plants.

The licensing agreement with Honeywell enables UT Austin to commercially scale & make major contributions toward zero emissions.

The difference between UT Austin’s system and others is that they utilize an advanced solvent. This technology can be used within existing plants or included within new systems.

This can make carbon capture less expensive and more efficient.

Honeywell is capturing, storing, and utilizing approximately 15 million tons of carbon per year – with the potential to capture 40 million tons annually.

They are committed to reaching carbon-neutral operations and facilities by 2035.

Like carbon offset projects, Carbon Capture and Storage projects (CCS) are growing in popularity.

In 2020 alone, CCS projects captured and stored 40 million metric tons of carbon. However, to meet new emissions goals, CCS must increase to 840 million metric tons by 2030.

While increasing CCS project capacity 20x seems like a challenge, partnerships such as Honeywell and UT Austin can help get us there.

UT Austin has been a leader in carbon capture research for more than 20 years.

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Elysian Carbon Management Secures $350M

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Earlier this month, Elysian Carbon Management secured a $350 million investment from EnCap Flatrock Midstream (EFM). Elysian provides integrated, full-service carbon capture and storage solutions across industries and power facilities. The funds will allow Elysian to focus on developing integrated carbon capture and storage solutions. The overall goal is to reduce carbon emissions by at […]

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Earlier this month, Elysian Carbon Management secured a $350 million investment from EnCap Flatrock Midstream (EFM).

Elysian provides integrated, full-service carbon capture and storage solutions across industries and power facilities.

The funds will allow Elysian to focus on developing integrated carbon capture and storage solutions. The overall goal is to reduce carbon emissions by at least 10 million metric tons per year.

EnCap Flatrock Midstream was formed in 2008 and manages nearly $9 billion in assets. They are based in San Antonio, with Oklahoma City and Houston offices.

As more companies seek ways to offset their carbon emissions – the carbon capture and storage industry is expected to increase – just like the carbon credit industry.

EFM Managing Partner David J. Kurtz, a member of the Elysian board of directors, said, “Elysian is at the forefront of developing projects necessary to support carbon reduction goals across North America. Few independent teams in this nascent sector have a comparable depth and breadth of the technical, financial, and operational experience needed to bring CCS projects to fruition.”

As the climate crisis continues, carbon capture, carbon storage, and carbon offsets will be needed to help mitigate environmental risk. Continued partnerships, such as Elysian and EFM, will help make environmental, social, and governance goals attainable.

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Energy CEO Skeptical of Carbon Capture

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Francesco Starace, CEO of Enel, a multinational Italian energy firm, isn’t so sure about carbon capture and storage. He suggests that it is not a solution to the climate change crisis. Carbon capture aims to stop CO2 from reaching the atmosphere by keeping it underground in geological formations, but Starace sees it differently. “We have […]

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Francesco Starace, CEO of Enel, a multinational Italian energy firm, isn’t so sure about carbon capture and storage.

He suggests that it is not a solution to the climate change crisis.

Carbon capture aims to stop CO2 from reaching the atmosphere by keeping it underground in geological formations, but Starace sees it differently.

“We have tried and tried — and when I say ‘we,’ I mean the electricity industry,” Starace told CNBC.

“You can imagine, we tried hard in the past 10 years — maybe more, 15 years — because if we had a reliable and economically interesting solution, why would we go and shut down all these coal plants [when] we could decarbonize the system?”

“The fact is, it doesn’t work; it hasn’t worked for us so far,” he said. “And there is a rule of thumb here: If a technology doesn’t really pick up in five years — and here we’re talking about more than five, we’re talking about 15, at least — you better drop it.”

Starace went on to say that there is one solution.

“Basically, stop emitting carbon.”

Though Starace has not seen much success with carbon capture and storage within his own industry, that doesn’t mean that it doesn’t have a role to play.

Like carbon offsets – carbon capture and storage should be used alongside new technologies that reduce carbon emissions, not just neutralize, or capture them.

The carbon offset industry continues to grow – and with COP26 leaders setting a global standard, experts believe it will be integral in helping companies meet increasing regulations.

Alongside Starace’s announcement, Enel has moved its net-zero target date from 2050 to 2040. They expressed a desire to exit coal generation by 2027 and gas by 2040.

Per Starace, “We’re saying we’re going to be zero carbon, which means we’re not going to emit carbon.”

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