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Microsoft builds first datacenters with wood to slash carbon emissions

DETAILS

- Microsoft is constructing its first datacenters using superstrong ultra-lightweight wood to reduce reliance on steel and concrete, significant sources of carbon emissions. - The hybrid approach incorporates cross-laminated timber, a fire-resistant wood material that decreases embodied carbon footprint by 35 percent compared to steel and 65 percent compared to precast concrete. - These hybrid datacenters illustrate Microsoft's commitment to decarbonizing its operations, aiming to be carbon negative by 2030 and remove all emitted carbon by 2050. - Microsoft achieved a 6.3 percent reduction in direct emissions over three years, though indirect emissions rose significantly due to datacenter growth. - The company is implementing various strategies, including updating contract language for low-carbon materials and requiring suppliers to use carbon-free electricity by 2030. - Investments in low-carbon building materials are being increased to accelerate supply and to include innovations like hydrogen-powered steel production. - Microsoft launched a $1 billion Climate Innovation Fund to invest in companies developing climate solutions, having already committed $761 million to transformative technologies. - The fund seeks to enhance commercial availability of low-carbon materials across key areas like carbon-free electricity and advanced materials. - Microsoft is also investing in companies like Sweden’s Stegra and Boston Metal, which focus on new methods of steel production with significantly reduced emissions. - Investments in low-carbon concrete technologies include CarbonCure, which injects CO2 into concrete, and Prometheus Materials, which uses microalgae for zero-carbon cement. - Cross-laminated timber is being used in Microsoft's new datacenters, promoting its benefits as a strong and stable alternative to conventional materials. - The installation of prefabricated CLT can be more efficient and safer compared to traditional materials, despite its higher costs. - Microsoft is positioned uniquely to influence the adoption of green building technologies due to its scale and sustainability priorities. - Ongoing planning reflects the complexities of integrating low-carbon technologies into datacenter construction while aiming for a net-zero carbon future. - Microsoft's strategy emphasizes a comprehensive approach across the entire value chain to ensure the effectiveness and durability of new materials.

COMPANIES

Microsoft, Stegra, Boston Metal, Electric Hydrogen, CarbonCure, Prometheus Materials

TAGS

Industrial decarbonization

Microsoft builds first datacenters with wood to slash carbon emissions

DETAILS

- Microsoft is constructing its first datacenters using superstrong ultra-lightweight wood to reduce reliance on steel and concrete. - The use of cross-laminated timber, or CLT, aims to decrease the embodied carbon footprint of the datacenters by 35 percent compared to conventional steel and 65 percent compared to precast concrete. - This initiative is part of Microsoft's broader commitment to achieving carbon negativity by 2030 and removing all carbon emitted since its founding by 2050. - Microsoft reported a 6.3 percent reduction in direct emissions but faced a 30.9 percent increase in indirect emissions attributed to datacenter expansion. - The company is implementing various strategies to enhance decarbonization, including updating contracts to enforce low-carbon material requirements. - Key suppliers must adopt 100 percent carbon-free electricity by 2030, and investments in low-carbon building materials are being increased. - Microsoft perceives its datacenters as pioneering examples of engineered wood use in the U.S. hyperscale market. - Companies across industries, including Microsoft's suppliers, are aligning their sustainability goals to reduce embodied carbon in materials. - Microsoft's Climate Innovation Fund, with over $761 million committed to climate solutions, aims to foster markets for low-carbon materials and clean energy. - The fund focuses on addressing gaps in supply for carbon-free electricity, advanced materials, sustainable fuels, and carbon removal technologies. - Microsoft has invested in companies like Stegra, which is developing a green steel plant that significantly reduces carbon emissions. - Innovative approaches include producing steel using renewable hydrogen instead of coal, leading to water vapor emissions. - Microsoft's investments extend to carbon-free concrete technologies such as CarbonCure and Prometheus Materials. - The company is leveraging its significant market presence to drive the adoption of sustainable building materials more widely. - Cross-laminated timber is praised for its low carbon footprint and faster installation compared to traditional materials. - CLT is produced from sustainably harvested timber, offering significant structural advantages over traditional woods. - While CLT may add 5 to 10 percent to material costs, its efficiency in large projects may offset these costs. - Microsoft emphasizes the importance of ensuring new materials meet safety, resilience, and performance standards for datacenters. - The transition to low-carbon building materials presents multiple challenges, necessitating a comprehensive approach to supply chain management. - To achieve net-zero carbon goals, Microsoft recognizes the complexity of adopting new technologies and the necessity for systemic thinking across the value chain.

COMPANIES

Microsoft, Stegra, Boston Metal, Electric Hydrogen, CarbonCure, Prometheus Materials

TAGS

Industrial decarbonization

Verdane closes €700 million to back companies that will create a more sustainable future

DETAILS

- Verdane Idun II has closed at its €700 million hard cap, more than doubling the size of its €300 million predecessor fund Idun I. - Idun II will invest in decarbonising the economy, specifically in the areas of energy transition and resource efficiency. - Verdane is a pioneering sustainability investor, backing 42 sustainable businesses since 2003. - This is the firm’s third successful final fund close in 12 months. - The fund invests between €20 and €100 million into sustainable businesses while passing strict sustainability criteria. - Investments from Idun II aim for a minimum carbon avoidance target of 5,000 tonnes of CO2 avoided per €1 million invested. - Verdane’s proprietary ‘2040 test’ ensures investments are in businesses positioned for success in a sustainable economy. - Earlier this year, Verdane closed its mid-market growth buyout fund Edda III at its €1.1 billion hard cap, increasing assets under management to over €8 billion. - Idun II includes commitments from notable investors such as Nysnø Climate Investments and the European Investment Fund. - The fund was fully allocated within five months and has a diverse investor base from 13 countries, with 29% of commitments coming from US investors. - Verdane has backed 16 European businesses over the past year with over €600 million in capital focused on digitalisation and decarbonisation. - Verdane provides a robust platform for growth supporting portfolio companies with a team of over 150 professionals and extensive sector expertise. - The Verdane platform includes a value-creation engine and a comprehensive sustainability assessment process for portfolio companies. - Verdane’s in-house operational experts assist portfolio companies in various domains, including strategy, technology, finance, talent, and sustainability. - Frida Einarson stated the mobilization of private capital for sustainability in 2024 is a positive development for both industry and the planet. - Bjarne Kveim Lie emphasized that Idun II aims to demonstrate the potential for generating world-class returns while contributing to decarbonisation. - The decarbonisation team at Verdane consists of 13 dedicated investment professionals, supported by extensive in-house operational resources. - Verdane Idun II was advised by Rede Partners with Andulf Advokat AB as legal counsel. - Verdane, an independent specialist growth investment firm, focuses on tech-enabled and sustainable European businesses with more than €8 billion in assets under management. - The firm is a UN PRI signatory and certified B Corporation, backing businesses that meet its sustainability standards.

COMPANIES

Verdane, NORNORM, Scanbio, Nysnø Climate Investments, Banque de Luxembourg, European Investment Fund, MN, Tesi, Carbon Equity, Rede Partners, Andulf Advokat AB

TAGS

fundraising

EQT Reports Third Quarter 2024 Results and Announces Non-Operated Asset Divestiture

DETAILS

- EQT Corporation announced third-quarter 2024 results. - Integration of Equitrans Midstream Corporation is more than 60% complete. - Actions taken are expected to yield $145 million of annualized base synergies. - Sales volume for the quarter was 581 Bcfe, exceeding guidance. - Capital expenditures totaled $558 million, below guidance due to efficiency gains. - Operating costs were reported at $1.14 per Mcfe. - The company announced the sale of non-operated natural gas assets in Northeast Pennsylvania for $1.25 billion in cash. - EQT achieved net-zero Scope 1 and 2 greenhouse gas emissions after eliminating or offsetting over 900,000 metric tons of CO2e. - The CEO highlighted operational efficiency and synergy capture as key outcomes of the Equitrans acquisition. - The company expects to achieve approximately $3.6 billion of total value from asset-level cash flows and divestitures. - As of September 30, 2024, total debt was $13.8 billion. - Total liquidity was reported at $1.6 billion, excluding certain credit facilities. - The transaction for selling non-operated assets is expected to close in Q4 2024, pending regulatory approvals. - Fourth-quarter production guidance is set at 555 to 605 Bcfe. - Liquids sales volume guidance is between 5,450 and 5,900 Mbbl.

COMPANIES

EQT Corporation, Equitrans Midstream Corporation, Equinor USA Onshore Properties Inc., Equinor Natural Gas LLC, Jefferies LLC, Kirkland & Ellis LLP.

TAGS

In the third quarter of 2024, EQT Corporation reported significant financial updates and operational metrics following the acquisition of Equitrans Midstream Corporation. Here are the key highlights from their report: ### Financial Highlights: 1. **Sales Volume**: EQT achieved a sales volume of **581 billion cubic feet equivalent (Bcfe)**, which exceeded the high-end of guidance despite facing net curtailments. 2. **Capital Expenditures**: The company reported capital expenditures of **$558 million**, which was below the low-end of guidance, contributing to improved operational efficiency. 3. **Differential Pricing**: The differential remained favorable, reported at **$0.10** per thousand cubic feet (Mcf), achieving pricing strategies that aligned supply with demand effectively. 4. **Operating Costs**: Total per unit operating costs were reported at **$1.14** per Mcfe, lower than previous expectations due to reduced lease operating expenses (LOE) and general & administrative expenses. 5. **Net Income**: EQT reported a net loss attributable to EQT Corporation of **$300.8 million**, a sharp change from the prior year's profit, primarily driven by losses on asset sales and derivative positions. ### Operational Highlights: 1. **Integration Progress**: The integration of Equitrans is more than **60% complete**, with synergy capture efforts projected to deliver around **$145 million** in annualized base synergies. 2. **Divestiture Announcement**: EQT entered into an agreement to sell its remaining non-operated natural gas assets in Northeast Pennsylvania for **$1.25 billion** in cash. 3. **Sustainability Achievement**: The company announced it has become the first traditional energy producer to achieve **net zero Scope 1 and 2 greenhouse gas emissions**. ### Future Outlook: 1. **Sales and Production Guidance**: For the fourth quarter of 2024, EQT estimates total sales volume will range from **555 to 605 Bcfe**, and it expects to maintain operational efficiency while reducing costs. 2. **Hedging Strategy**: EQT currently has about **60% of its 2025 production hedged** at an average floor price of **$3.25** per Mcf, aimed at stabilizing revenue amidst market volatility. Overall, despite a significant reported loss, EQT Corporation's strategic initiatives and operational efficiencies position it for potential recovery and growth in the upcoming quarters .

EDPR NA Distributed Generation Announces Completion of Morgan East and West Community Solar Projects Near Syracuse, New York

DETAILS

- EDPR NA Distributed Generation LLC announced the completion of the Morgan East and West community solar projects in Clay, New York. - The projects will collectively provide 9.5 MWac of energy to corporate offtakers and local residential and small business customers. - Morgan East Solar Park generates 4.5 MWac primarily for PaperWorks Industries. - Morgan West Solar Park generates 5 MWac primarily for QubicaAMF Worldwide, LLC and Sabin Metal Corporation. - Approximately 60% of the total generation will benefit residential and small business subscribers in the area. - Community solar projects contribute to lower household electricity costs, reduce carbon emissions, and enhance energy resilience. - These projects enhance the local energy grid by diversifying the energy portfolio and increasing access to affordable solar energy. - The projects have fostered partnerships with key organizations like PowerMarket and NRG Energy's Renewables Advisory. - Joao Barreto, CEO of EDPR NA DG, emphasized the importance of these projects in advancing New York State's decarbonization goals. - The projects are expected to create economic benefits for the communities in Clay and Syracuse by providing reliable energy to local manufacturing facilities and households. - During construction, the projects created 75 jobs and contributed $6.8 million to local businesses. - Morgan East and West projects are anticipated to provide $12 million in payments to local governments. - Investments in renewable energy development have increased in New York due to favorable community solar policies. - Policy-enabled community solar offers a low-risk, buyer-friendly approach to renewable energy savings. - EDPR NA DG made history in 2021 by launching a community solar and storage facility in New York for low-to-moderate income housing. - With these new projects, EDPR NA DG's total operational capacity in community solar projects will reach 58 MWac. - EDPR NA DG remains a top leader in distributed generation in the US, owning and operating over 274 MWac of solar and storage assets across 539 sites in 24 states. - Over 251 thousand tons of CO2 have been avoided through the production of clean distributed energy by EDPR NA DG.

COMPANIES

EDPR NA Distributed Generation LLC, EDP Renewables North America LLC, PaperWorks Industries, QubicaAMF Worldwide, LLC, Sabin Metal Corporation, PowerMarket, NRG Energy, CBRE Renewables

TAGS

Solar

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