Sustainability, Energy Transition, ESG | Weekly Thematic

Carbon Prices/Values Now High Enough To Drive A Lot of Action
August 25, 2022
Commodities Mentioned:
Carbon, CO2, Hydrogen, Ammonia, Natural Gas, Renewable Power, Hydro, Solar, Wind, LNG, RNG, Methane, Battery, Biofuels, Ethanol, Corn, Sugar Cane, Polyethylene
Companies Mentioned:
CF Industries, Mitsui & Co., Archaea Energy, Summit Carbon Solutions, Navigator, Aker Carbon Capture, Talos Energy, NRG Energy, Denbury, Rystad energy, Gevo

C-MACC Weekly “CRETER” (Climate etc.)

Carbon Prices/Values Now High Enough To Drive A Lot of Action

  • As carbon prices/costs rise globally, we anticipate a significant increase in investment to reduce emissions or capture them, especially in the US.
  • The 45Q change in the US is an incentive to capture CO2, but it is also an incentive to choose technologies that produce CO2, as long as you can capture it.
  • Blue hydrogen/ammonia are likely big winners from the 45Q change in the US, but rates of expansion are likely determined by CCS permitting rather than capital.
  • C-MACC’s foray into industrial project development is a hydro-power proposal for the Mississippi – we received our first development capital promise this week.
  • Otherwise, we look at what we think is the wrong strategy at Denbury, more renewable power bottlenecks and the definition of hydrogen hubs.

See PDF below for all charts, tables and diagrams

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