EXTRACTED: Daily News Clips 10/13/23
PIPELINE NEWS
Minneapolis Star Tribune: A tale of two CO2 pipelines: Navigator presses pause, Summit presses on
Iowa Capital Dispatch: Some landowners were confused by Summit eminent domain process
AgWeek: Farmers and ranchers taking their property rights into their own hands as South Dakotans First
Bloomberg: Top Ethanol Maker Says States Should Embrace Carbon Pipelines
WGEM: Farmers say they’ll continue their fight if CO2 company reapplies
AgWeek: South Dakota county presses pause on another pipeline ordinance
WZFG: Bismarck city commissioners look into whether they can intervene in CO2 pipeline project
Pipeline Fighters Hub: [VIDEO] Explaining Federal Pipeline Safety Agency PHMSA’s Letter Re: Local Authority Over CO2 Pipelines
KBOI: Officials evacuate Idaho town of around 10K people after gas line explodes at rural intersection
Canadian Press: RCMP respond to photojournalist’s account of arrest while covering B.C. pipeline protest
KETK: Whitehouse veteran fights energy company over plans to build pipeline on his property
Navajo Times: Benefits of hydrogen pipeline on Navajo Nation marketed during Northern Navajo Fair
Dominion Post: Hope Gas seeks PSC protective order to withhold financial information from public documents in its Morgantown pipeline project
WASHINGTON UPDATES
Common Dreams: New IEA Warning on Methane Is All Biden Needs to Know to Declare Climate Emergency, Says Group
New York Times: Biden Administration Awards $7 Billion for 7 Hydrogen Hubs Across the U.S.
E&E News: White House names first U.S. hydrogen hubs
Law360: Enviros Ask 5th Circ. To Restore Lease Sale Whale Protections
STATE UPDATES
KALB: Cleco’s open discussion raises concerns over carbon capture sequestration
Reuters: Exclusive: Hydrogen hubs located in Pennsylvania among winners of $7 billion in US grants
KUSA: Arapahoe County approves new oil and gas regulations
EXTRACTION
Bloomberg: Will Hydrogen Fuel a Clean-Energy Future, or Fizzle?
Clean Air Task Force: Ready to deploy: How Saudi Arabia and the United Arab Emirates can scale up carbon capture and storage in the Gulf
Guardian: How criminalisation is being used to silence climate activists across the world
MIT Technology Review: Think that your plastic is being recycled? Think again.
Canadian Press: 'Stronger for longer': Exxon's mega-bet on fossil fuels bodes well for Canadian oilpatch: experts
Reuters: Exxon buying Pioneer will trigger $71 million in executive windfalls
CLIMATE FINANCE
NPR: Climate rules are coming for corporate America
OPINION
Freeman Journal: Eminent domain should not be used for carbon pipelines
Longview News-Journal: Hall: Carbon capture, storage next energy frontier for East Texas
Meaford Independent: TC Energy Responds to Recent Letter to the Editor
Common Dreams: To Stop LNG and CP2, Start with MVP
Earthjustice: The Great Lakes Under Threat
Fortune: Exxon’s $59.5 billion deal to buy a giant shale driller is telling us something about climate change and how fast the green transition will be
PIPELINE NEWS
Minneapolis Star Tribune: A tale of two CO2 pipelines: Navigator presses pause, Summit presses on
Christopher Vondracek, 10/11/23
“Two pipelines hoping to capture, transport and store a greenhouse gas produced by ethanol plants are facing vastly different futures following regulatory defeats,” the Minneapolis Star Tribune reports. “Omaha-based Navigator C02 Ventures, an entity that had been hoping to construct a carbon dioxide pipeline across five Midwest states, including Minnesota, said Tuesday it is withdrawing its application in Illinois and putting all its permit applications on hold… “While Navigator C02 had planned to run the pipeline into southern Minnesota's Martin County, the company had not yet filed an application to build any pipeline with the Minnesota Public Utilities Commission… “In September, South Dakota regulators rejected Summit Carbon Solutions' application for a pipeline permit, citing newly crafted county ordinances. A month earlier, regulators in North Dakota — where the company plans to store CO2 underground from dozens of ethanol facilities — also sent Summit back to the drawing board… “But the campaign has faced pushback both from some farmers and landowners, who have decried potentially hazardous and privately owned pipelines — funded primarily by federal tax credits — from intruding upon their backyards. Many environmentalists have also expressed doubt about the purported climate benefits of carbon pipelines, which they say may compel farmers to convert more acres to cornfields… “In an email, Sarah Mooradian, government and policy director with Montevideo-based CURE, which is a community group opposed to the pipelines, told the Star Tribune the companies had once projected the systems would be operational by 2024. "Without any permits approved [or even pending now]," Mooradian told the Star Tribune, "that seems impossible to accomplish at this point."
Iowa Capital Dispatch: Some landowners were confused by Summit eminent domain process
JARED STRONG, 10/12/23
“Landowners who are subject to eminent domain requests by a carbon dioxide pipeline company have had trouble navigating the state process that allows them to testify against the requests, according to Iowa Utilities Board filings,” the Iowa Capital Dispatch reports. “Several people who requested to “intervene” in Summit Carbon Solutions’ permit process recently discovered that their intervenor status subjected them to different requirements and meant they weren’t scheduled to testify during a weekslong evidentiary hearing for the permit. “We did not understand the Iowa Utility Board process and thought we had to sign up as intervening landowners to be able to testify,” wrote Nancy and Brad Miller, of rural Hartley… “The Millers requested in late September — about a month into the evidentiary hearing — to withdraw their intervenor status and to testify. “We understand we have the right to present our objection to the use of eminent domain on our … property and protect our livelihood,” the Millers wrote… “The board had intended to conclude in September but has repeatedly said it missed that goal because of the latitude it has given to pipeline opponents during cross-examinations… “Jess Mazour, of the Sierra Club of Iowa, believes that was directed at her organization and was meant to deflect criticism that the board hasn’t done enough to ensure landowner participation. The Sierra Club has been heavily involved in the permit process and has worked to help landowners participate, she told the Dispatch, and it didn’t advise landowners like the Millers to request to be intervenors… “Mazour estimates that landowners of more than 200 parcels that are subject to eminent domain are not scheduled to testify, and she blames a lack of communication by the IUB… “A Woodbury County landowner told the Iowa Capital Dispatch that she mistakenly requested to be an intervenor because she was misdirected by IUB staff. “I’ve never seen anything so confusing,” Carole Hennings, of rural Moville, told the Dispatch. “I originally registered as an intervenor because I walked into the IUB office, and they said, ‘Oh, here, just sign this, and we’ll get you set up to be an intervenor.’ I asked them, ‘Does that mean I can testify?’ And they said ‘yes.’ Well, that wasn’t true.” Hennings asked this week to withdraw her intervenor status and hopes to testify at the hearing next month.”
AgWeek: Farmers and ranchers taking their property rights into their own hands as South Dakotans First
Caleb Barber, 10/12/23
“Farmers and ranchers in South Dakota are coming together to advocate for their right to private property under a new coalition: South Dakotans First,” AgWeek reports. “The organization cited a survey they conducted of 1,037 South Dakota voters, and found that over 80% of that sample oppose eminent domain being used for use by private companies like Summit Carbon Solutions. South Dakota Farmers Union is one of the main backers of the organization, and its president, Doug Sombke, told AgWeek the effort represented by South Dakotans First tracks with those of his organization. "I think the most important thing is that we have to find a way to get the legislators to agree, both in the Senate and the House, that we want to make personal property rights a thing that is best for the property owner, not necessarily a private company that wants to become rich from the tax dollar," Sombke told AgWeek. Dakota Rural Action and Landowners for Eminent Domain Reform are the two other organizations besides SDFU behind the coalition, its stated goal being “no private company should be able to rob South Dakota landowners of their property rights.” An organic farmer, a former Lake County commissioner and a member of Dakota Rural Action, Aaron Johnson told AgWeek he was fortunate enough that the landowner he leases from has denied a request by a pipeline company to plant a pipeline on the land he and his family farm and live on. The goal of the organization isn't just to push state lawmakers, but also local governments. Johnson told AgWeek he has faced resistance from the Lake County Commission to establishing an ordinance to restrict the placement of hazardous transmission pipelines on private property in the county… “Minnehaha and Moody counties established ordinances that would limit the ability for private companies to place pipelines transmitting hazardous chemicals through county land… “I mean, when are they going to get it that farmers and ranchers and these communities that they’re affecting don’t give a d--- about the money?” Sombke told AgWeek. “That’s not the point. The point is we want them to listen to us and respect us, period.”
Bloomberg: Top Ethanol Maker Says States Should Embrace Carbon Pipelines
Kim Chipman, 10/12/23
“The world’s biggest maker of corn ethanol says US states that don’t embrace efforts to capture and store greenhouse gases risk being “left behind,” Bloomberg reports. “Poet LLC said in a statement Thursday it remains committed to the technology even after a 1,300-mile pipeline project it’s backing to ship carbon dioxide across the Midwest suffered a major setback this week amid public resistance. “States that are slow to adopt these technologies risk being left behind,” South Dakota-based Poet said in the statement… “Yet efforts to build pipelines to ship the carbon dioxide are running aground in the face of opposition from a broad coalition of environmentalists, farmers and landowners. The developer building the pipeline Poet is backing, Navigator CO2, withdrew its application Tuesday for a permit in Illinois, saying it needs to rethink the route for the project that would ship emissions from factories across five Midwest states. South Dakota regulators rejected Navigator’s request for a permit last month. An even bigger carbon dioxide pipeline proposed by Iowa-based Summit Carbon Solutions was denied a permit by North Dakota in August. Summit is asking officials to reconsider the decision.”
WGEM: Farmers say they’ll continue their fight if CO2 company reapplies
Dylan Smith, 10/12/23
"Navigator CO2 Ventures announced Tuesday that it is putting on hold one of the two biggest proposed carbon dioxide pipeline projects in the Midwest so it can reassess the project,” WGEM reports. “...The pipeline is facing mass opposition in McDonough County, where anti-CO2 pipeline signs line several country roads. Bushnell-area farmer Steve Hess told WGEM the pipeline would cross through a portion of land that he farms, and less than one mile from his son’s house. “We’re really opposed to the fact that if they’re approved by the ICC (Illinois Commerce Commission) today, they could use eminent domain on 85% of this project,” Hess told WGEM. Hess told WGEM when the time comes, he and other farmers will again voice their opposition. “There’s 110 tracks that Navigator needs to go through to get their right of way,” Hess told WGEM. “The last I checked there have been seven tracks that have signed easements and those were all for out-of-state, either farm managers or out-of-state landowners.” Last fall, the McDonough County Board unanimously approved a two-year moratorium that halted all progress on the pipeline, and it will remain in effect throughout the duration of Navigator’s latest withdrawal. “The local people do not want this project,” Hess told WGEM. Rick Ferguson, who operates farms near the McDonough/Fulton County border, believes the pipeline is unnecessary.”
AgWeek: South Dakota county presses pause on another pipeline ordinance
Hunter Dunteman, 10/11/23
“The Lincoln County Commission has pressed pause on yet another CO2 pipeline ordinance as a majority of commissioners say they need more time to consider the multiple proposals circulating throughout the county,” AgWeek reports. “The proposal comes from Commissioner Joel Arends, who spent roughly six weeks speaking with county staff and pipeline officials. Arends said that during those conversations, Summit Carbon Solutions made a series of concessions that he believes are beneficial to residents. “We’ve settled on a 500-foot setback from habitative props as well as a … one mile setback from any municipalities, regardless of size,” Arends said. “[Additionally,] they have agreed here in Lincoln County to move their pipeline route back south by two miles.” The shift to the south, Arends explained, was a result of his push for giving municipalities near the pipeline more room to grow, and called it a “major” concession… “Commissioner Arends, I’ll commend you for your activity and your digging into this. I don’t understand why we want to rush to judgment on this thing,” Schmidt said. “As our chair has said, there’s probably three competing ordinances that have been considered out there.” Those other proposals, most of which are citizen-driven, call for larger setbacks of 1,300 or 1,800 feet, Schmidt said, advocating for more time to review and publicly discuss all options. “I don’t have any heartburn if we waited until the first of the year — until we’ve had time to publicly discuss this thing in an open forum where people can put their input,” Schmidt said… “During a period of public comment, roughly a dozen members of the public spoke on the agenda item, most of whom thanked the commission for considering a table of the ordinance. Ultimately, the commission voted 4-0, including Arends, to table the pipeline ordinance for a period of 60 days. Commissioner Michael Poppens recused himself from discussion as well as the vote.”
WZFG: Bismarck city commissioners look into whether they can intervene in CO2 pipeline project
Tom Tucker, 10/11/23
“Bismarck leaders are trying to figure out if they can intervene in a controversial pipeline project,” WZFG reports. “The Bismarck Tribune reports that city commissioners recently agreed to pay for an attorney to look into whether they can prevent Summit Carbon Solutions from getting a North Dakota state permit for the development… “Summit's initial request was denied by the Public Service Commission, but has since reopened. The commission will make a final decision once they learn more from their legal counsel.”
Pipeline Fighters Hub: [VIDEO] Explaining Federal Pipeline Safety Agency PHMSA’s Letter Re: Local Authority Over CO2 Pipelines
10/13/23
“The U.S. Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) on Sept. 15, 2023 sent a letter to Summit Carbon Solutions and Navigator CO2 Ventures, in response to numerous inquiries it received about the companies’ proposed carbon dioxide (CO2) pipeline projects that would criss-cross the U.S. Midwest,” according to the Pipeline Fighters Hub. “PHMSA said it sent the letter in response to specific inquiries “regarding the ability of federal, state, and local governments to affect the siting, design, construction, operation, and maintenance of carbon dioxide pipelines,” going on to say that, “as was the case in 2014, PHMSA continues to support and encourage all three levels of government—federal, state, and local working collaboratively to ensure the nation’s pipeline systems are constructed and operated in a manner that protects public safety and the environment.” Crucially, PHMSA’s letter reiterates the fact that “the responsibility for siting new carbon dioxide pipelines rests largely with the individual states and counties through which the pipelines will operate and is governed by state and local law.” Despite PHMSA’s clear statement, CO2 pipeline companies continue to challenge county ordinances that were passed by elected officials in multiple states, in an effort to protect their communities and lives from these proposed hazardous pipeline projects. Our webinar panel provided a detailed explanation of what is contained in the Sept. 15 letter from PHMSA to companies proposing to build and operate CO2 pipelines, and the implications the letter has for ongoing organizing in counties to enact similar ordinances — as well as the pending federal lawsuits where counties have been sued by the companies. SPEAKERS: Paul Blackburn, Attorney, Bold Alliance; Bill Caram, Executive Director, Pipeline Safety Trust.”
KBOI: Officials evacuate Idaho town of around 10K people after gas line explodes at rural intersection
10/12/23
“Officials in an Idaho town of around 10,000 people evacuated residents Thursday after a gas line exploded at a rural intersection,” KBOI reports. “The gas line has been successfully turned off and the evacuation notice has been lifted. Anyone within a 4-mile radius of Purple Sage and Duff Lane is being asked to shelter in place at this time. Middleton Schools reports that students at heights and Mill Creek elementary are staying in their buildings in response to the gas line explosion. The schools report that students are safe and will continue with lunch and classes.”
Canadian Press: RCMP respond to photojournalist’s account of arrest while covering B.C. pipeline protest
10/12/23
“The RCMP say a photojournalist who is suing the force was not exempt from complying with a court injunction while reporting on protests over the Coastal GasLink pipeline that’s nearing completion in northern B.C.,” the Canadian Press reports. “In a response to a lawsuit filed by Amber Bracken and news organization The Narwhal, the Mounties say Bracken’s status as a journalist would not place her outside the scope of the injunction that prohibits interference with the pipeline… “The response, filed Oct. 5, alleges Bracken was “not engaged in apparent good faith newsgathering activities” and was instead “aiding or abetting” protesters ahead of her arrest during an injunction enforcement operationin November 2021. It says Bracken “knew or ought to have known” that she was breaching the terms of the injunction by remaining inside a “tiny house” alongside members of the Gidimt’en Clan — part of the Wet’suwet’en Nation — who oppose the pipeline. Bracken has said she was already behind the boundary of a police “exclusion zone” and she had chosen the tiny house as the best vantage point for taking photos. “I knew that if I stepped outside I would almost certainly be removed from the area by RCMP and unable to document the impending arrests,” she told a news conference after the lawsuit against the RCMP was filed last February. Officers arrived by helicopter and emerged from the woods to surround the structure, breaking down the door with an axe and then a chainsaw, she said then. Bracken’s lawsuit says she was wrongfully detained after identifying herself as a journalist with media credentials that were visibly attached to her camera gear.”
KETK: Whitehouse veteran fights energy company over plans to build pipeline on his property
Tori Bean, 10/12/23
“A disabled veteran in Whitehouse is fighting for his property after an energy company said they plan to build a pipeline on his land,” KETK reports. “It’s going to be within 100 feet of my house,” Anthony Voss, property owner, told KETK. Anthony, who has a traumatic brain injury which causes double vision, migraines and light sensitivity, moved to Whitehouse two years ago with his wife Pamela specifically for a dome-style home surrounded by trees. “I’m a disabled vet and I have a light sensitivity, so these trees are essential to my livelihood,” Anthony told KETK. One day they received a letter in the mail informing them that Atmos Energy was looking to build a pipeline through their land, which would remove most of the nature around the house. “These trees are like my wheelchair, I mean, they are a part of my life, and they’re just coming in here and taking my trees and basically my wheelchair and my way of life away,” Anthony told KETK. Anthony and his wife refused the first compensation offer given to them and attended a special session where he says no one really listened to them. “We decided to go ahead and hire a lawyer and we’re going to fight the basis of the overall damages, you know, to not only my property but my livelihood,” Anthony told KETK. On Sept. 29, a representative from Atmos was supposed to come by and make sure everything was placed correctly, but they reportedly canceled… “So as of today, no one from Atmos has actually physically been here to understand what our concerns are,” Anthony told KETK… “I’m not going to roll over,” he told KETK. “I mean, you’re basically almost killing me and torturing me in my own house when you’re going to take these trees away.”
Navajo Times: Benefits of hydrogen pipeline on Navajo Nation marketed during Northern Navajo Fair
Rick Abasta, 10/12/23
“A hydrogen pipeline could snake through northern and western Navajo.During the 110th Northern Navajo Nation Fair, GreenView, a subsidiary of Tall Grass Energy based in the western suburbs of Denver and Lakewood, Colorado, splashed around money and sponsored the free barbecue for the fair to gain support for a hydrogen pipeline that would run through 13 northern and western Navajo chapters,” the Navajo Times reports. “The GreenView hydrogen project is allegedly a green energy initiative being marketed as the answer to the energy crisis and the cessation of annual funding to Navajo Nation coffers from the closures of coal-fired power plants at Navajo Generating Station and the Four Corners Power Plant… “However, this effort will require water, a resource that the Navajo Nation cannot afford to squander in the shadow of previous energy-producing operations on tribal homelands… “We’re here to earn the trust and respect of the Navajo Nation, and we really look forward to collaborating with the Navajo Nation on what I really think is a transformational clean energy project,” said Adam Shiche, vice president of GreenView… “Rachel Carmichael, the senior director of public affairs for GreenView, said they have visited 13 chapters across the Navajo Nation to “help them understand what we want to do with the hydrogen project.” “...We’re not just doing one-time payments for just laying a normal pipeline project. We’re asking for partnership with the Nation,” Carmichael said. “This is about growing equity over many years.”
Dominion Post: Hope Gas seeks PSC protective order to withhold financial information from public documents in its Morgantown pipeline project
David Beard, 10/12/23
“Hope Gas in a Thursday filing with the Public Service Commission explained why it doesn’t want to disclose the projected costs and revenues associated with its Morgantown pipeline project,” the Dominion Post reports. “It boils down to potentially lower revenues and potentially higher costs for the company and its customers, Hope said in its motion for a protective order concerning the dollar figures, along with maps and drawings of the pipeline route… “All the dollar figures in the public copy of the Sept. 22 filing are redacted and referred to as confidential. But Hope said it is not seeking to change any rates or impose any surcharges. It would recover costs in future base-rate and purchased gas adjustment proceedings… “First, one of the project application’s exhibits contains certain highly detailed maps and drawings “that provide precise locations of facilities that should not be disclosed for security reasons.” Second, another exhibit contains project costs that should remain confidential because certain project work remains subject to a bidding procurement process. And third, testimony by Craig C. Colombo, Hope’s vice president of gas supply, should be confidential where he discusses estimated revenue from certain services Hope might provide where the pricing for such services is subject to commercial negotiation with customers.”
WASHINGTON UPDATES
Common Dreams: New IEA Warning on Methane Is All Biden Needs to Know to Declare Climate Emergency, Says Group
BRETT WILKINS, 10/11/23
“As the International Energy Agency released a report warning that immediate cuts to methane gas pollution caused by fossil fuel production are critical for averting climate catastrophe, an environmental advocacy group on Wednesday said the IEA publication gives U.S. President Joe Biden "sufficient justification to declare a climate emergency," Common Dreams reports. “The IEA report states that "immediate reductions in methane emissions are needed to limit warming to 1.5°C," the more ambitious objective of the Paris agreement… “Responding to the report, Lauren Pagel, policy director at Earthworks, a Washington, D.C.-based environmental nonprofit, said in a statement that "the IEA says what Earthworks has long known: Preventing climate catastrophe requires the world to stop fossil fuel expansion and to do everything we can right now to cut methane gas pollution." "In order to right historical injustices for those who have disproportionately experienced the harms of extraction—Indigenous and Black and Latino and poorer white communities in the U.S., specifically—we must aggressively and immediately cut pollution and manage the decline of the fossil fuel industry," she continued… “On Wednesday, climate activists confronted U.S. Transportation Secretary Pete Buttigieg over his department's approval of the Sea Port and GulfLink oil terminals along the Texas Gulf Coast.
New York Times: Biden Administration Awards $7 Billion for 7 Hydrogen Hubs Across the U.S.
Brad Plumer, 10/13/23
“The Biden administration announced plans on Friday to award up to $7 billion to create seven regional hubs around the country that will make and use hydrogen, a clean-burning fuel with the potential to power ships or factories without producing any planet-warming emissions,” the New York Times reports. “Hydrogen is widely seen as a promising tool to fight climate change, as long as it can be produced without creating any greenhouse gases. But very little of this so-called clean hydrogen is used today. By awarding the grants, the Biden administration is trying to stand up an entire industry from scratch. Dozens of regions competed for the money, which will be awarded to proposed hydrogen projects on the Gulf Coast (Texas and Louisiana) and in the Mid-Atlantic (Pennsylvania, Delaware and New Jersey), Appalachia (Pennsylvania, West Virginia and Ohio), the Midwest (Illinois, Indiana and Michigan), the Upper Midwest (Minnesota, North Dakota and South Dakota) and the Pacific Northwest (Washington, Oregon and Montana). A proposed hub in California will also receive funding… “The challenge, however, is figuring out how to manufacture that hydrogen cleanly. Today, companies usually extract hydrogen from natural gas in a process that emits large amounts of carbon dioxide. But it is also possible to produce hydrogen without any emissions — by, for instance, using wind turbines or solar panels to power electrolyzers that can split water into hydrogen and oxygen. The catch is that making hydrogen this way is still two to three times as expensive as making it with natural gas… “By contrast, the Appalachian hub, which will span parts of Pennsylvania, West Virginia and Ohio, is expected to continue to use natural gas to produce hydrogen, but companies will seek to capture carbon dioxide emissions from the process and bury it underground. That proposal was backed by Senator Joe Manchin, Democrat of West Virginia. Some environmentalists and researchers have criticized that method, known as “blue hydrogen,” and warned that it could still lead to high emissions if methane leaks from the process… “I do worry that with all this money, there’s going to be an effort to force feed hydrogen into applications where it’s not all that effective at cutting emissions,” Sean O’Leary, a researcher at the Ohio Valley River Institute who has criticized the Appalachian hub proposal, told the Times. Many hydrogen producers are also still waiting for the Internal Revenue Service to release the rules regarding a lucrative tax credit for low-emissions hydrogen that could ultimately be worth hundreds of billions of dollars. That guidance has been the subject of intense lobbying: Environmental groups have argued that strict safeguards are needed around the tax credit so that hydrogen production doesn’t inadvertently lead to more carbon emissions, while some industry groups have warned that too-strict rules could throttle the industry altogether.”
E&E News: White House names first U.S. hydrogen hubs
Brian Dabbs, 10/13/23
“The Department of Energy on Friday announced seven projects that will receive $7 billion to build landmark hydrogen hubs, delivering a major boost to a nascent U.S. industry,” E&E News reports. “The long-awaited move is a key piece of the Biden administration’s climate agenda… “On top of the $7 billion for the hubs, DOE is planning a $1 billion program to incentivize hydrogen demand… “It also expects the seven hubs to generate more than $40 billion in private sector funds. That money isn’t yet secure, however. “It would be an exaggeration to say that, that any of the seven hubs have absolutely firm commitments,” said another senior administration official on the call. “But right now, I would say that that number represents them telling us how much they’re expecting to invest in the project. And their financing plans will be developed over time.” “...But industry is also waiting on the Treasury Department to unveil a much-anticipated — and significantly delayed — guidance on the hydrogen tax credit, known as 45V for its place in the tax code. The Inflation Reduction Act enacted the tax credit, which will award up to $3 per kilogram of hydrogen produced, with low- and no-carbon production receiving the biggest incentives… “Environmentalists are digging in for a fight. “DOE should be directing funding to hub proposals that demonstrate the highest possible GHG reductions in ways that are sustainable in the long term and benefit the community,” Sarah Lutz, climate campaigner at Friends of the Earth U.S., told E&E. “This should clearly deprioritize funding towards ‘blue hydrogen,’ which we know to be even more polluting than bog standard gray hydrogen,” she told E&E, referring to production using fossil fuels without capture. “Unfortunately, DOE has taken steps in the wrong direction.” “...A lot of oil companies and energy companies are involved,” Alan Krupnick, a senior fellow at the think tank Resources for the Future, told E&E. “And the lowest-hanging fruit is to take your existing hydrogen plant that’s producing gray hydrogen from natural gas and capture the CO2 and put it on your ground or use it for enhanced oil recovery.”
Law360: Enviros Ask 5th Circ. To Restore Lease Sale Whale Protections
Madeline Lyskawa, 10/10/23
“Environmental groups have called on the Fifth Circuit to overturn a Louisiana federal judge’s ruling stripping protections for the critically endangered Rice’s whale from the effects of a massive offshore oil and gas drilling lease sale in the Gulf of Mexico, saying it violated fundamental principles under the Administrative Procedure Act,” Law360 reports. “U.S. District Judge James D. Cain’s Sept. 21 preliminary injunction order — which requires the U.S. Bureau of Ocean Energy Management to offer the Rice’s whale’s proposed critical habitat for lease as part of Lease Sale 261, and remove a stipulation that provided protective measures for the species — improperly placed the court in the shoes of the agency, the Sierra Club, Center for Biological Diversity, Friends of the Earth and Turtle Island Restoration Network said in an opening brief Friday. ‘Such a prescriptive remedy is not relief that appellees are entitled to under the APA … The injunction also improperly encroaches on the authority that Congress specifically gave to the Bureau to conduct offshore leasing under [the Outer Continental Shelf Lands Act],’ the groups said.”
STATE UPDATES
KALB: Cleco’s open discussion raises concerns over carbon capture sequestration
Colin Vedros, 10/12/23
“On October 11, Cleco hosted an open discussion at Northwood High School on the specifics of carbon capture sequestration,” KALB reports. “...Cleco’s Project Diamond Vault aims to retrofit Brame Energy Center’s Madison 3 Unit with carbon capture technology. Cleco said it would capture 95 percent of emissions from fossil fuel-burning facilities and store them underground in saline formations… “However, there were concerns. “Would we be having this conversation right now if the federal government wasn’t subsidizing this carbon sequestration?” an audience member said… “I just don’t see that this is being safe down the line. I mean right now maybe, but we’re talking about millions of years of this stuff being in the ground. That’s my grandkids and great great grandkids that I’m thinking about,” said another audience member. Dr. Mark Zappi is the director of the Energy Institute of Louisiana and gave a presentation on the pros and cons of carbon capture sequestration. He said while the project is very controversial, he claims carbon capture sequestration will benefit Central Louisiana.”
Reuters: Exclusive: Hydrogen hubs located in Pennsylvania among winners of $7 billion in US grants
Jarrett Renshaw and Valerie Volcovici, 10/11/23
“Two hydrogen hubs projects partially located in Pennsylvania- one in the mid-Atlanic region and one in the Appalachian region - will receive part of $7 billion in U.S. federal grants that will be announced on Friday, sources familiar with the plan told Reuters on Wednesday. President Joe Biden's administration plans to announce the winners of up to $7 billion in federal dollars from the Department of Energy that would to set the U.S. on a path to produce 50 million metric tons of clean hydrogen fuel by 2050, a key part of its plan to decarbonize the U.S. economy by mid-century… “The Mid-Atlantic Clean Hydrogen Hub that involves parts of Pennsylvania, Delaware and New Jersey will receive a $750 million grant, according to the sources familiar with the forthcoming announcement. Biden will celebrate the announcement on Friday during a visit to Philadelphia, the sources said. The Appalachian Regional Clean Hydrogen Hub (ARCH2) that includes western Pennsylvania, Ohio and West Virginia will also receive one of the grants, according to two sources. The hub was backed by Democratic Senator Joe Manchin. The announcement on Friday will cap months of intense political jockeying among states from California to Pennsylvania for their share of the $7 billion.”
KUSA: Arapahoe County approves new oil and gas regulations
Jennifer Meckles, 10/11/23
“How close is too close for an oil and gas facility near the Aurora Reservoir? Tuesday night, in front of a packed crowd, Arapahoe County leaders worked through that decision,” KUSA reports. “State law allows individual counties to go beyond state regulations regarding oil and gas, and pass even stricter local regulations. Following several hours of public comment Tuesday night, the Arapahoe County Board of Commissioners voted to approve several amendments to that county’s Land Development Code. In a unanimous 5-0 vote, county leaders approved requiring all oil and gas operations to: Be located at least one mile (5,280 feet) from existing or planned reservoirs… “The push for new regulations comes ahead of one company’s plans to drill near the Aurora Reservoir. Civitas Resources has proposed a project called the Lowry Ranch CAP, on land east of the reservoir. Many neighbors living nearby have pushed back on those plans. An organization called Save the Aurora Reservoir organized local residents to lobby county leaders for stricter regulations.”
EXTRACTION
Bloomberg: Will Hydrogen Fuel a Clean-Energy Future, or Fizzle?
David R Baker, 10/11/23
“A basic problem plagues the clean-energy transition: Some things can’t easily be powered by electricity. Think steel mills, cement plants and long-distance passenger jets — they need a clean fuel that can be stored and burned, sometimes at high temperatures. This is where hydrogen comes in,” Bloomberg reports. “Depending on whom you ask, this controversial corner of green technology is either a crucial piece of the puzzle to reduce greenhouse gases or an over-priced, over-hyped distraction. For now, though, the industry is awaiting detailed guidance on government tax breaks and subsidies, which have the potential to make hydrogen viable for the first time… “Switching will require new equipment – a big upfront expense. Transporting hydrogen in pipelines meant for gas is tricky, because hydrogen can leak through seals designed to hold larger methane molecules. And hydrogen leaked into the atmosphere acts as an indirect greenhouse gas, triggering chemical reactions that can trap heat. Some other ways to move hydrogen, like super-cooling it to compress it, are energy-intensive and expensive. There are many obstacles to building a hydrogen-based economy from scratch, and skeptics question whether it can — or should — happen at all. The hurdles are significant enough that the founder of UK hedge fund Argonaut Capital Partners has called it “a complete waste of time.” Some environmentalists, meanwhile, label hydrogen a “false solution” to climate change, saying gray and blue hydrogen would just extend the use of natural gas, while green hydrogen would strain water supplies. A previous wave of hydrogen enthusiasm in the late 2000s and early 2010s — focused on using the fuel for cars and pushed largely by Toyota Motor Corp. — fizzled as consumers ignored the vehicles.”
Clean Air Task Force: Ready to deploy: How Saudi Arabia and the United Arab Emirates can scale up carbon capture and storage in the Gulf
Toby Lockwood, Olivia Azadegan, 10/12/23
“This week the MENA (Middle East North Africa) region is hosting its second ever Climate Week, which is an important opportunity for the region to convene and discuss its climate priorities and actions,” according to the Clean Air Task Force. “...Saudi Arabia and the UAE, in particular, have set goals of achieving net zero CO2 emissions by 2060 and 2050 respectively… “Carbon capture and storage (CCS) must also play a key role in reaching these climate targets on schedule, particularly as a means of addressing hard-to-abate emissions from industries such as petrochemicals, cement, and steel. CCS can also contribute to accelerating decarbonisation of the power sector and the conversion of hydrocarbon fuels to low-carbon alternatives… “The Gulf region offers an attractive environment for rapid scale up of CCS, due to the extensive suitable geology for CO2 storage and the presence of National Oil Companies (NOCs) which possess the requisite economic resources and expertise to meet this challenge. Both Saudi Arabia and the UAE have a clear opportunity to become world leaders in demonstrating and deploying carbon capture and storage, not only for the attainment of domestic decarbonisation goals, but to help drive down technology costs, demonstrate new technologies, and progress CCS for faster adoption globally… “Political will is a requisite ingredient to advance climate technologies and build the political, business, and regulatory system that can facilitate bringing to solutions to scale. A first step for creating a new industry for managing and storing flows of CO2 should be the creation of a dedicated political strategy which can provide clarity to stakeholders and promote investment.”
Guardian: How criminalisation is being used to silence climate activists across the world
Nina Lakhani, Damien Gayle and Matthew Taylor, 10/12/23
“As wildfires and extreme temperatures rage across the planet, sea temperature records tumble and polar glaciers disappear, the scale and speed of the climate crisis is impossible to ignore…According to climate experts, senior figures at the UN and grassroots advocates contacted by the Guardian, some political leaders and law enforcement agencies around the world are instead launching a fierce crackdown on people trying to peacefully raise the alarm,” the Guardian reports. “These defenders are basically trying to save the planet, and in doing so save humanity,” Mary Lawlor, the UN special rapporteur on human rights defenders, told the Guardian. “These are people we should be protecting, but are seen by governments and corporations as a threat to be neutralised. In the end it’s about power and economics.” Climate and environmental justice groups report a significant increase in draconian, and often arbitrary, charges for peaceful protesters as part of what they claim is a playbook of tactics to vilify, discredit, intimidate and silence activists. The Guardian has also found striking similarities in the way governments from Canada and the US to Guatemala and Chile, from India and Tanzania to the UK, Europe and Australia, are cracking down on activists trying to protect the planet. The legal contexts vary, but the charges – such as subversion, illicit association, terrorism and tax evasion – are often vague and time-consuming to disprove, while a growing number of countries, including the US and UK, have passed controversial anti-protest laws ostensibly intended to protect national security or so-called critical infrastructure such as fossil fuel pipelines. The systematic criminalisation of environmental defenders is not new. Natural resources on Indigenous land have long been exploited, driving big profits for some but also fuelling violence and inequality… “According to Lawlor, this criminalisation of environmental protestors has since become a global phenomenon, and is now the most common tactic used to silence and discredit defenders. “At its core it’s about maintaining the power structures in place. This is true regardless of whether it’s a dictatorship, democracy or a corrupt narco state, and regardless of the state’s professed commitment to human rights, protecting the environment and combating climate change,” she told the Guardian. “Smearing defenders as lawbreakers or anti-development distracts from the cause and changes the narrative … What’s clear is that states learn from each other.”
MIT Technology Review: Think that your plastic is being recycled? Think again.
Douglas Main, 10/12/23
“On a Saturday last summer, I kayaked up a Connecticut river from the coast, buoyed by the rising tide, to pick up trash with a group of locals,” MIT Technology Review reports. “...From our distance, the wetlands looked wild and pristine. Further inland, we left the main river channel and paddled into the muddy heart of the marsh—and began to notice all manner of plastic waste. Big things appeared first: empty bags of chips tangled in the reeds, grocery bags just beneath the surface, Styrofoam trays covered in mud, plastic bottles mixed in with other debris. As we traveled through the marsh, we kept seeing more, and increasingly tiny, bits of plastic. Not just straws, lighters, combs, and fishing line, but unidentifiable and seemingly never-ending small pieces, ranging in size from as big as my hand to as small as grains of sand. You could stay in the hinterlands plucking trash and never leave. Even in one of the less-polluted parts of the East Coast, outside a city with organized waste management and a recycling system, the land and water are awash in plastic waste. Plastic, and the profusion of waste it creates, can hide in plain sight, a ubiquitous part of our lives we rarely question. But a closer examination of the situation can be shocking… “Currently, about 430 million tons of plastic is produced yearly, according to the United Nations Environment Programme (UNEP)—significantly more than the weight of all human beings combined. One-third of this total takes the form of single-use plastics, which humans interact with for seconds or minutes before discarding. A total of 95% of the plastic used in packaging is disposed of after one use, a loss to the economy of up to $120 billion annually, concludes a report by McKinsey. (Just over a quarter of all plastics are used for packaging.) One-third of this packaging is not collected, becoming pollution that generates “significant economic costs by reducing the productivity of vital natural systems such as the ocean.” This causes at least $40 billion in damages, the report states, which exceeds the “profit pool” of the packaging industry… “Notably, what doesn’t get reused or recycled does not chemically degrade but rather becomes a fixture of our world; it breaks apart to form microplastics, pieces smaller than five millimeters in diameter. In the past few years, scientists have found significant quantities of microplastics in the further reaches of the ocean; in snow and rainfall in seemingly pristine places worldwide; in the air we breathe; and in human blood, colons, lungs, veins, breast milk, placentas, and fetuses. One paper estimated that the average person consumes five grams of plastic every week—mostly from water. About 95% of the tap water in the United States is contaminated. Microplastics are also widely found in beer, salt, shellfish, and other human foods. Significant quantities of these plastic bits have turned up in common fruits and vegetables, as one recent study in Italy found.”
Canadian Press: 'Stronger for longer': Exxon's mega-bet on fossil fuels bodes well for Canadian oilpatch: experts
Amanda Stephenson, 10/12/23
“Exxon Mobil Corp.‘s acquisition of Pioneer Natural Resources Co. in a US$59.5-billion mega-deal is being seen by some as a major vote of confidence in fossil fuels that also bodes well for the Canadian oilpatch,” the Canadian Press reports. “...Observers have framed the deal as Exxon doubling down on fossil fuels at a time when the world is seeking to transition to lower-carbon energy sources in order to slow the pace of climate change. Dan Tsubouchi, Calgary-based principal and chief market strategist at SAF Group, told CP Exxon is clearly confident that global demand for oil will remain strong in at least the immediate future. “They’re spending US$60 billion today,” he told CP. “They wouldn’t do that if they didn’t see at least a 10-to-15-year window for oil.” That “stronger for longer” outlook is due to a variety of factors, Tsubouchi told CP, including that many of the technologies necessary for the energy transition — including hydrogen development, sustainable aviation fuel and more — have been slower to roll out than advocates may have hoped… “Demand for oil is not going away as quickly as people assumed,” Tsubouchi told CP, adding that in the wake of the Exxon-Pioneer merger, he wouldn’t be surprised to see an uptick in merger and acquisition activity north of the border.”
Reuters: Exxon buying Pioneer will trigger $71 million in executive windfalls
David French, 10/11/23
“Senior management at Pioneer Natural Resources (PXD.N) will likely be out of a job once the company's $60 billion sale to Exxon Mobil (XOM.N) is completed, but the top brass will walk away with bumper payouts which were sweetened further earlier this year,” Reuters reports. “The top five executives at the U.S. shale operator are set to share $71 million in severance payouts, with Chief Executive Scott Sheffield on track to receive around $29 million, a review of regulatory filings and Reuters calculations show. The award to Sheffield, who helped found the shale producer over two decades ago and was slated to retire at the end of 2023, represents a sum worth three times his base salary as well as all his pending equity awards for performance. Those will come due when the sale closes, expected next year… “Known as golden parachutes, such payments are commonplace in corporate America and are intended to incentivize management to sell a company even if it means ending their own employment. However, the size of the awards often stir controversy, especially if they are considered superior to benefits given to regular staff who face similar job uncertainty. Changes to pay packages that make executive compensation more lucrative in proximity to a sale announcement can also raise eyebrows.”
CLIMATE FINANCE
NPR: Climate rules are coming for corporate America
Michael Copley, 10/12/23
“The cost of climate change is growing for companies as extreme weather disrupts manufacturing and supply chains and inflicts billions in economic losses,” NPR reports. “For the agriculture industry, the threat from rising temperatures "may be one of the greatest that we face in this lifetime," according to Corteva, an Indiana company that makes seeds and chemicals… “However, that hasn't stopped Corteva from working alongside other American companies and lobbyists to limit upcoming regulations from the U.S. Securities and Exchange Commission (SEC) that would make businesses disclose their emissions and the risks they face from climate change. Businesses and climate activists have been pushing to shape the SEC rules for months, because the stakes are high. The economy is awash in climate disclosures that companies tout, but there are few ways for customers and investors to gauge the validity of the claims. The SEC's goal is to ensure that publicly-traded corporations are reporting comparable information, and also to make sure they aren't misleading investors about their environmental activities — a practice known as greenwashing, Gary Gensler, chair of the SEC, told the House Financial Services Committee in September… “Yet even as companies in the United States begin adjusting to that new reality, groups on both sides of the regulatory fight are trying to influence the looming SEC rules. In part, that's because they think the agency's requirements could determine how regulations evolve globally. How the rules are written will dictate the kind of information that companies have to give to investors and could shape the ways that businesses respond to climate change.”
OPINION
Freeman Journal: Eminent domain should not be used for carbon pipelines
Bob Van Diest, Webster City, 10/10/23
“A Des Moines Register/Mediacom Iowa poll in March showed that nearly 80% of Iowans oppose the use of eminent domain for a carbon pipeline. I hope the Iowa Utility Board follows the wishes of nearly 80% of the Iowans and votes against eminent domain,” Bob Van Diest writes for the Freeman Journal. “In my opinion the laws pertaining to eminent domain were not written for a few investors to enter personal property against the owner’s will for their own personal financial gain. The use of eminent domain by a carbon pipeline company is not the American way. What Summit Pipeline proposes to do is an invasion of the owner’s property rights. Our country was founded on respect for property rights and following the will of the majority of the people. The almost 80% who oppose eminent domain have been kept in the dark. The Summit Pipeline people have the potential to receive about $18.4 billion dollars of federal taxpayer dollars over 12 years. The farmers whose land will be damaged and their tile lines busted up “receive peanuts” compared to the 18.4 billion the owners of the pipeline have the potential to receive. There are newer and better ways to get rid of carbon than putting it in a hazardous pipeline. We certainly do not want another carbon pipeline break like they had in Mississippi. Any carbon pipeline in the near future will be obsolete before it is completed. New technology is being introduced that is better and safer than a carbon pipeline… “The risks and damages caused by the pipeline exceed the benefits of the pipeline in my opinion. This is why I oppose the pipeline.”
Longview News-Journal: Hall: Carbon capture, storage next energy frontier for East Texas
Kelly Hall is the president/CEO of the Longview Chamber of Commerce, 10/12/23
“East Texas has always thrived by embracing innovation and welcoming new technology, especially when it comes to energy and manufacturing,” Kelly Hall writes for the Longview News-Journal. “...As consumers today look for lower-carbon energy and products, our region has a historic opportunity to embrace emerging technologies like carbon capture and storage and lead the way into a new energy frontier… “For East Texans, CCS technology has a number of important advantages that will help cities like Longview continue to grow, create good-paying jobs, and provide the essential products that people around the world rely on. Capturing carbon at its source and storing it permanently underground can be a pragmatic bridge that allows existing industries to reduce unwanted carbon emissions without radically undermining demand for the natural gas and petrochemicals that sustain life in the Piney Woods… “Although Texas also has abundant renewable energy sources, carbon capture and storage is one of the best ways to ensure our state and nation maintain energy security into the future… “Our unique geology, existing concentration of industrial facilities and deep roots in energy and manufacturing make Texas an ideal location for expanding CCS. Action from federal and state legislators can provide the final ingredient needed to kickstart this technology that could pump almost $60 billion of private investment into our state economy… “Texas also has applied to the Environmental Protection Agency to grant the Texas Railroad Commission primary authority to permit and regulate carbon storage wells, a process known as primacy… “A lack of support from our federal and state representatives would be especially devastating to East Texas because of our proximity to Louisiana, where legislators in Baton Rouge are pulling out all the stops to embrace carbon capture and storage and become just the third state to gain its primacy designation from the EPA. Unless Texas follows Louisiana’s efforts, new and existing industrial facilities could easily cross state lines to take advantage of Louisiana’s support for the technology.”
Meaford Independent: TC Energy Responds to Recent Letter to the Editor
John Mikkelsen, TC Energy, 10/12/23
“I would like to clarify some misconceptions that were stated in Caryn Colman’s recent letter to the editor on October 5, 2023. TC Energy has not been sued by B.C.’s provincial government,” John Mikkelsen writes for the Meaford Independent. “On September 21, 2023, the B.C. Environmental Assessment Office (EAO) announced two administrative actions on the Coastal GasLink Project – the first relating to erosion and sediment control events that occurred in mid-2022, with the second relating to an unintentional reporting error. Shortly after these took place, we entered into a Compliance Agreement with B.C.’s Minister of Environment and Climate Change Strategy… “Further, we can provide assurance that Georgian Bay and local residents’ sources for drinking water, will not be impacted… “Ms. Colman’s comment regarding air quality and climate change are a shared concern. The Ontario Pumped Storage Project will contribute considerably to helping clean the province of greenhouse gas emissions as it will produce 1,000 megawatts of clean, emission-free power and will help reduce our reliance on natural gas generation. The Project will enable Ontario to transition to a zero-emissions energy grid and will also help Canada meet its climate change goals… “We continue to hold weekly coffee chat sessions at our office on Sykes Street… “In the coming months, when the assessment processes are expected to begin, we look forward to sharing further information about the project, and most importantly, to listen to feedback from the residents of Meaford.”
Common Dreams: To Stop LNG and CP2, Start with MVP
Bill Kitchen is an activist living in upstate New York, 10/12/23
“Cutting to the chase—on January 12, 2018, Robert Cooper, senior vice president of engineering and construction for the Mountain Valley Pipeline, testified in U.S. District Court for the Western District of Virginia,” Bill Kitchen writes for Common Dreams. “...There are a lot of reasons, legal and otherwise, to fight MVP. Bill McKibben recently wrote an important article in The New Yorker titled “The Biden Administration’s Next Big Climate Decision,” subtitled, “The liquefied-natural-gas buildout—and fossil-fuel exports—challenge progress on global warming.” It explains why the proposed large scale buildout of U.S. liquefied natural gas (LNG) export terminals will be a monumental mistake regarding climate change and also lead to increased costs for American consumers. McKibben reports that the Biden administration may be deciding the fate of the largest of these terminals, CP2, or Calcasieu Pass 2, this fall. Right now there’s an LNG export terminal in Maryland, another one in Georgia, three in Louisiana, and two in Texas. According to the most current (July 2022) map shown on the Department of Energy’s website, there are plans to build at least 23 more, 14 of which have already been approved—six in both Louisiana and Texas, along with one in Florida and another in Mississippi. Seven more in LA and two more in Texas have been proposed but not yet approved. That’s a total of 30 LNG export terminals up and down the Eastern Seaboard, from Maryland to Florida and across the Gulf Coast to Texas, all of which, according to Robert Cooper’s testimony, MVP will be able to help feed. Perhaps that is why such an extra large (42-inch diameter), extra expensive pipeline was proposed in the first place… “The debt deal was a dirty deal, but it didn’t make MVP a done deal. They may be arresting protesters, but it is MVP that’s burying illegal pipe. There are a lot of reasons, legal and otherwise, to fight MVP. Bill McKibben’s article coupled with Robert Cooper’s testimony just gave us one more.”
Earthjustice: The Great Lakes Under Threat
ALISON CAGLE, 10/12/23
“A battle is raging over the largest surface freshwater system in the world,” Alison Cagle writes for Earthjustice. “...Despite the lakes’ immense significance, the Canadian oil giant Enbridge has been shuttling toxic fossil fuels through the Great Lakes since the 1950s. The Line 5 pipeline transports up to 23 million gallons of crude oil and gas each day from Wisconsin to Ontario. It runs through hundreds of interconnected waters and the treaty-reserved territory of tribal nations, including the Bay Mills Indian Community in Michigan and the Bad River Band of Lake Superior Chippewa in Wisconsin. None of the Tribes were consulted during Line 5’s construction, yet they have lived with its catastrophic risk for decades. Line 5 has a terrible environmental track record. The pipeline has leaked over 1.1 million gallons of oil over its lifespan, polluting important watersheds and surrounding communities… “Line 5 poses an unacceptable risk of an oil spill in some of the earth’s most sensitive and treasured ecosystems… “As this year’s erosion showed, building a pipeline through the Bad River wetlands is a disaster waiting to happen. The watershed around the Bad River Band’s reservation feeds into Lake Superior, so any pollution from the pipeline would flow downstream to the Great Lakes and through the Kakagon-Bad River Sloughs, a wetland of international importance that harbors the region’s largest bed of wild rice, a cultural staple for Anishinaabe people. There is also a risk that pollution from the pipeline’s construction would contaminate groundwater, which would impact the Band’s drinking water… “Extending Line 5’s operation needlessly extends our use of, and reliance upon, fossil fuels, which would exacerbate the effects of climate change at a time when the United States must transition to clean energy. Both of Enbridge’s proposals — a tunnel through the Straits and a rerouted section of pipeline around the Bad River Band’s reservation — have drawn local, national, and international opposition. Earthjustice is challenging both proposals.”
Fortune: Exxon’s $59.5 billion deal to buy a giant shale driller is telling us something about climate change and how fast the green transition will be
WILL DANIEL, 10/11/23
“Exxon Mobil has agreed to pay $59.5 billion for rival Pioneer Natural Resources in a deal that will secure the energy giant’s status as the fracking leader in the all-important Permian Basin—a region that stretches across West Texas and New Mexico and produces nearly 40% of all U.S. oil and 15% of all U.S. natural gas,” Will Daniel writes for Fortune. “...And some industry insiders argue the big move into West Texas shale is indicative of a changing outlook toward the green energy transition. “It signifies that there’s a little bit more rationality coming into the energy transition. The fantasy world of having just renewables as electricity within 50 years or so is now clearly not going to happen,” Jay Hatfield, CEO of Infrastructure Capital Advisors, an investment firm that focuses on energy and infrastructure investments, told Fortune. “It’s a recognition that these forms of energy are not going away anytime soon.” If Hatfield’s take is correct, Exxon’s new view on the energy transition would contrast with the green goals of most western nations as they try to combat climate change… “Environmentalists were quick to rebuke Exxon’s acquisition of Pioneer on Wednesday. “This deal shows that Exxon is doubling down on fossil fuels and has no intention of moving towards clean energy,” Jamie Henn, director of Fossil Free Media, told the progressive non-profit outlet Common Dreams… “But Infrastructure Capital’s Hatfield believes that Europe’s recent experience with surging natural gas prices after the war in Ukraine has helped convince U.S. energy giants—often called majors—that investing in fossil fuels is still worth doing in order to ensure American energy security, even if the world will eventually transition toward greener pastures… “The other major reason Exxon invested in Pioneer, according to Hatfield, is because the deal may help “de-risk” the company’s portfolio of oil producing assets. He noted that the offshore oil rigs that Exxon and other energy giants have historically relied on for a huge chunk of their crude production are expensive to build and operate, which means it takes a long time to generate a return on the initial investment… “The lowest risk way to get carbon to get hydrocarbons in the world is onshore in the U.S., because of political issues and because shale produces returns very rapidly,” Hatfield explained. “You drill a well and you get most of your money back in the first five years, if not faster. And so the majors are trying to de-risk their businesses by doing more onshore [in the] U.S.”