Equinor and bp sign agreement to transform South Brooklyn Marine Terminal into central hub for offshore wind industry

Mar 5, 2022 | Business

New York, NY – WEBWIRE –



Equinor, and its partner bp, announced an agreement to turn the storied South Brooklyn Marine Terminal (SBMT) complex in Brooklyn, New York into a major regional hub for offshore wind. 


Under the agreement, the terminal will transform into a world-class offshore wind port capable of staging and assembling the largest, most sophisticated offshore wind technology components for the Empire Wind and Beacon Wind projects and for the growing U.S. offshore industry on the East Coast.


The agreement was co-signed by terminal operator Sustainable South Brooklyn Marine Terminal (SSBMT) and New York City Economic Development Corporation (NYCEDC).


The offshore wind projects on the US east coast are key building blocks to accelerate profitable growth in renewables and Equinor’s ambition to install 12-16 GW of renewables capacity by 2030.


Equinor and bp will create an operations and maintenance (O&M) hub and staging area at SBMT, with a total investment of USD 200 – USD 250 million in infrastructure upgrades, while also pursuing the development of SBMT as a low-emissions facility. The port will become a cutting-edge staging facility for Equinor and bp’s Empire Wind and Beacon Wind projects that will supply 3.3 gigawatts (GWs) of energy—enough to power nearly two million New York homes —as well as become a go-to destination for future offshore wind projects in the region.


The redevelopment will inject the Sunset Park waterfront with substantial investment from the new renewable energy economy, creating new jobs and providing an economic boost to the community. Equinor and bp’s activities at SBMT are anticipated to support over one thousand jobs annually in the region.


“This agreement marks a major step forward in our commitment to New York State to both provide renewable power and to spark fresh economic activity, while creating enduring jobs,” said Siri Espedal Kindem, President of Equinor Wind U.S.


“With the support of NYCEDC, SSBMT and our partners in the community, Equinor and bp are ready and eager to invest in the revitalization of SBMT, an historic port that will soon become a major part of New York’s energy future. New York has shown unflagging determination to become a focal point of the region’s offshore wind industry, and this agreement offers tangible evidence that this vision is quickly coming to life.”


“We are enormously proud to lay the groundwork today for our vision of making New York City a nation-leading hub for the offshore wind industry. This agreement builds on the City’s $57M commitment to reactivate SBMT as a key manufacturing and operations base and will help make New York a leader in climate resiliency as well as air quality through clean energy investments,” said NYCEDC Chief Strategy Officer and Executive Vice President Lindsay Greene.


“Working together with our partners at Equinor, bp, and SSBMT, we are also advancing economic recovery and increasing diversity in waterfront construction, by helping local minority- and women-owned business enterprises benefit from the growing offshore wind industry and take advantage of the green jobs of the future.”


Felipe Arbelaez, bp’s senior vice president for zero carbon energy, added: “Today marks the first of many positive ripple effects from this project – and we want them to reverberate far and wide. As we reinvent energy, we also want to help reinvent the communities that help deliver it by investing in the skills and capabilities needed. By creating this regional hub we are able to do just that and it brings us all one step closer to delivering this incredible offshore wind development.”


At approximately 73.1 acres, SBMT will be one of the largest dedicated offshore wind port facilities in the United States. It is the only industrial waterfront site in the New York City area with the capacity to accommodate wind turbine generator staging and assembly activities at the scale required by component manufacturers.


Equinor recently announced the opening of the New York offshore wind project office, adjacent to SBMT in Industry City, to serve as the hub for Equinor and bp’s regional offshore wind activities.  The office will also be home to an offshore wind learning center that will provide New Yorkers an opportunity to learn about this growing new industry.


###


ABOUT EMPIRE WIND AND BEACON WIND

  • Empire Wind is located 15-30 miles southeast of Long Island and spans 80,000 acres, with water depths of between approximately 75 and 135 feet. The lease was acquired in 2017. The projects two phases, Empire Wind 1 and 2, have a total installed capacity of more than 2 GW (816 + 1,260 MW).
  • Beacon Wind is located more than 60 miles east of Montauk Point and 20 miles south of Nantucket and covers 128,000 acres. The lease was acquired in 2019 and has the potential to be developed with a total capacity of more than 2 GW. This first phase, Beacon Wind 1, is currently under development; it will have an installed capacity of 1,230 MW.


ABOUT EQUINOR RENEWABLES US

  • Equinor is one of the largest offshore wind developers in the United States, where it operates two lease areas, Empire Wind and Beacon Wind.
  • Equinor is actively developing three projects: Empire Wind 1, Empire Wind 2, and Beacon Wind 1. Once completed, these projects will produce enough electricity to power about 2 million New York homes, and will help generate more than $1 billion in economic output to New York State.
  • The United States is an attractive growth market for Equinor, a leader in offshore wind, with an ambition to install 12-16 GW of renewables capacity globally by 2030.


ABOUT BP IN THE US

  • bp’s ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. bp is America’s largest energy investor since 2005, investing more than $130 billion in the economy and supporting about 230,000 additional jobs through its business activities. For more information on bp in the US, visit www.bp.com/us.
  • bp’s commitment to the US dates back 150 years, its renewables portfolio includes wind, solar and, bioenergy.
  • bp has built an onshore US wind energy business over a decade and operates a 1.7 GW gross portfolio across nine wind assets in the US, generating enough electricity to power 450,000 homes annually.


​ABOUT SOUTH BROOKLYN MARINE TERMINAL

  • Equinor and bp are investing in port upgrades to help transform the South Brooklyn Marine Terminal (SBMT) into a world-class offshore wind staging and assembling facility and to become the operations and maintenance (O&M) base both for Equinor and other project developers going forward.
  • SBMT will become one of the largest dedicated offshore wind port facilities in the United States at approximately 73 acres, with the capacity to accommodate wind turbine generator staging and assembly activities at the scale required by component manufacturers.
  • SBMT is being redeveloped together with New York City Economic Development Corporation (NYCEDC) and terminal owner Sustainable South Brooklyn Marine Terminal (SSBMT). SSBMT is a joint venture of Red Hook Terminals and Industry City.


Agreement to Scale Rare Earth Magnet Sourcing and Production in the U.S.

Dec 12, 2021 | Business



General Motors (NYSE: GM) and MP Materials (NYSE: MP) today announced the formation of a strategic collaboration to develop a fully integrated U.S. supply chain for rare earth magnets. Under the long-term agreement, MP Materials will supply U.S.-sourced and manufactured rare earth materials, alloy and finished magnets for the electric motors used in the GMC HUMMER EV, Cadillac LYRIQ, Chevrolet Silverado EV and more than a dozen models using GM’s Ultium Platform, with a gradual production ramp that begins in 2023.


Neodymium-iron-boron (NdFeB) magnets are critical inputs that enable electric motors to transform electricity into motion. Although development of permanent magnets began in the U.S., there is virtually no domestic capacity to produce sintered NdFeB magnets today. This strategic collaboration seeks to accelerate the restoration of the U.S. rare earth supply chain at commercial scale with high resiliency and environmental sustainability.


MP Materials owns and operates the Mountain Pass rare earth mine and processing facility in California, the only active and scaled rare earth production site in America. Rare earth materials sourced from Mountain Pass will be transformed into metal, NdFeB alloy and magnets at a new production facility MP Materials today announced it will build in Fort Worth, Texas, delivering an end-to-end, U.S. supply chain.


“We are building a resilient and sustainable EV manufacturing value chain in North America, from raw materials to cell manufacturing to electric drive motors and beyond, further accelerating GM’s vision to support a mass market for EVs,” said Shilpan Amin, GM vice president, Global Purchasing and Supply Chain. “Our work with MP Materials is another bold step forward that will help ensure that we meet our goal to lead the EV industry in North America in more than just sales.”


“Restoring the full rare earth supply chain to the United States at scale would not be possible without U.S. manufacturers like GM recognizing the strategic consequence and acting with conviction,” said MP Materials Chairman and CEO James Litinsky. “We are proud to welcome GM as the foundational automotive customer for our new magnetics facility and join forces with a company fully aligned with our vision to reinvigorate the American manufacturing spirit.”


GM and MP Materials have signed a binding agreement on terms and expect to enter into a definitive supply agreement shortly. In addition, the two companies will look to collaboratively engage from a public policy perspective to seek policies that are supportive of the establishment of a secure, U.S. rare earth supply chain.


Integrated recycling and environmental sustainability


MP’s domestic supply chain spanning California and Texas will provide certainty of provenance, supply and sustainability. Mountain Pass is a closed-loop, zero-discharge rare earth production facility with a dry tailings process that recycles more than 1 billion liters of water per year.


To optimize for efficiency and sustainability, waste generated during MP’s rare earth alloy and magnet manufacturing will be recycled back into the process. GM and MP Materials will also explore the potential to further optimize production efficiency and conserve natural resources through novel recycling approaches based on end-of-life, closed-loop principles.


GM EV Milestones

  • Invest $35 billion in EV and AV product development by 2025
  • Launch more than 30 EVs globally through 2025
  • Sell more than 1 million EVs globally by 2025, earning EV market leadership in North America
  • Drive first-generation Ultium cell costs 40 percent lower than those used in the Chevrolet Bolt EV; achieve twice the energy density at 60 percent lower cost in the second generation
  • Rapidly scale EV manufacturing, with more than 50 percent of North America and China plants capable of EV production by 2030
  • Double annual revenues from a five-year average of about $140 billion by the end of the decade, expand margins, and grow EV revenue from about $10 billion in 2023 to approximately $90 billion annually by 2030


General Motors (NYSE: GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.


MP Materials (NYSE: MP) is the largest producer of rare earth materials in the Western Hemisphere. The Company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility (Mountain Pass), the only rare earth mining and processing site of scale in North America. MP Materials produced approximately 15% of the rare earth content consumed in the global market in 2020. Separated rare earth elements are critical inputs for the magnets that enable the mobility of electric vehicles, drones, defense systems, wind turbines, robotics and many other high-growth, advanced technologies. More information is available at https://mpmaterials.com/.




Cautionary Note on Forward-Looking Statements: This press release may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words such as “aim,” “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual result may differ materially due to a variety of important factors, many of which are described in our Annual Report on Form 10-K, our subsequently filed Quarterly Reports on Form 10 Q, and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where we are expressly required to do so by law.

Japan – MC Reaches Agreement with Denbury on CO2 Transport and Storage Operations for Fuel Ammonia Production

Sep 22, 2021 | Business

Mitsubishi Corporation (“MC”) is pleased to announce that it has reached an agreement with the Texas-based independent energy company Denbury Inc (“Denbury”) on the key term-sheet of CO2 transport and storage operations, via Denbury’s wholly owned subsidiary Denbury Carbon Solutions LLC (“DCS”). The business is in line with MC’s aim to commence production of fuel-use ammonia (“fuel ammonia”) in the US Gulf of Mexico (“GoM”).

MC aims to produce one million tons of fuel ammonia annually in the US GoM and export to the Japanese market towards the late 2020s. The estimated CO2 volume to be captured from the ammonia facility is maximum 1.8 million metric tons per annum. Under the terms of our agreement with Denbury, the captured CO2 will be either sequestered underground via Denbury’s EOR(1) or CCS(2) which Denbury plans to develop in the future. The term sheet contemplates an initial period of 20 years, with the ability to extend further.

In the US GoM, Denbury owns unique capabilities and assets such as CO2 Green Pipeline system that ranks among the world’s largest. The company has been active in the region for more than two decades, focusing on CO2-use EOR business. With international efforts to decarbonize picking up pace in recent years, Denbury unveiled its CCS business policy in January 2020 and launched DCS to focus on these operations.

Ammonia does not emit CO2 when burned, so expectations are that switching to its use in thermal power generation will help to reduce carbon emissions. Japan’s Ministry of Economy, Trade and Industry convened a public-private council to promote the introduction of fuel ammonia, and in February 2020 the council announced the roadmap for use of ammonia to power thermal power plants. Assumption is that Japan’s annual imports of ammonia will reach 3 million tons by 2030 and 30 million tons by 2050.

One of MC’s goals is to introduce fuel ammonia in Japan. Through ammonia production and CCUS(3) businesses, we are taking steps to build the fuel ammonia supply chain. Furthermore, our efforts to balance energy supply stability and decarbonization meet to MC’s overarching aim to achieve its three-value mission(4) and sustainable growth.

(1) Enhanced Oil Recovery
(2) Carbon dioxide Capture and Storage
(3) Carbon dioxide Capture, Utilization and Storage
(4) Simultaneous generation of economic, societal and environmental value

Copyright ©2021 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Canada – New agreement lays foundation for reconciliation of Haida Nation Title and Rights 

Aug 18, 2021 | International

The Council of the Haida Nation and the federal and provincial governments have signed the GayG̱ahlda “Changing Tide” framework agreement, setting the stage for reconciliation negotiations.

August 13, 2021 — Haida Gwaii, BC — Council of Haida Nation — Crown-Indigenous Relations and Northern Affairs Canada – BC Ministry of Indigenous Relations and Reconciliation

The Council of the Haida Nation and the federal and provincial governments have signed the GayG̱ahlda “Changing Tide” framework agreement, setting the stage for reconciliation negotiations.

This historic agreement is based on recognition of the Haida Nation’s inherent Title and Rights with respect to the Haida Gwaii terrestrial area, including the inherent right to self-government. Discussions will be founded on the understanding that Haida inherent Title exists, rather than having to be proven. The agreement also commits to negotiations in good faith to reconcile interests, including laws and management of resources, in the marine area of Haida Gwaii.

The negotiation agenda includes priority and long-term topics for reconciliation that will redefine the relationship between the Haida Nation, Canada and the Province. The agreement also commits to a series of good faith measures as a starting point, which may include forestry measures, resources for governance capacity, social and cultural measures, business opportunities and fisheries and marine matters. It also describes a path forward based on a series of agreements that build on each other over time to implement Title and Rights.

A principle for negotiations is that private land and the operation of municipal governments will remain under provincial jurisdiction. Any acquisition of private lands by the Haida Nation will be on a willing seller-willing buyer basis.

The relationship between negotiations and the legal title case filed by the Haida Nation is described in the agreement. The parties have agreed that negotiations and litigation can continue concurrently. However, the parties will not go to trial while negotiations proceed in good faith.

Both the federal and provincial governments have  passed legislation to implement the United Nations Declaration on the Rights of Indigenous Peoples, and GayG̱ahlda is a unique agreement that reflects this approach. The reconciliation negotiations will be a process of Tll Yahda making things right with the Haida Nation.

“GayG̱ahlda represents an important opportunity to begin the process of Tll Yahda  making things right between the Crown governments and the Haida Nation. By shifting away from the denial politics of the past and moving to a place of truth through acknowledgment of inherent Haida Title, a strong foundation for negotiations is established. Together we have set the k’yuu pathway to realize  peaceful co-existence between the people of Haida Gwaii and  between governments without compromise to the objectives of the Haida Nation.”

Gaagwiis Jason Alsop

President of the Haida Nation

“Today’s announcement is an historic and exciting milestone for the Haida Nation, Canada and BC. Through the recognition and affirmation of Title and Rights, we are building a foundation of trust, respect and partnership.”

The Honourable Carolyn Bennett, M.D., P.C., M.P.

Minister of Crown-Indigenous Relations

“This agreement is the starting point and guiding for negotiating a number of agreements that will lead, step-by-step, to the implementation of Haida Title and Rights in Haida Gwaii. We have always maintained that negotiation is the way forward to resolve questions of Title and Rights in British Columbia and with this agreement we are working collaboratively with the Haida Nation to create certainty and stability for everyone.”

The Honourable Murray Rankin

BC’s Minister of Indigenous Relations and Reconciliation

“This unique and ground-breaking GayG̱ahlda agreement addresses matters of First Nations Title and Rights through negotiating as equal partners. The Haida have always been at the forefront of Title and Rights and we are proud to be moving forward together with them, the federal government, and all Haida Gwaii.”

Jenifer Rice

MLA for North Coast

“The GayG̱ahlda ‘Changing Tide’ framework is a historic move forward for both the federal and provincial governments by recognizing Haida Title and Rights on Haida Gwaii. This framework is a path for the Council of the Haida Nation and all levels of government to work together in designing a future that will support a healthy environment and create a sustainable island economy.”

Dluujuu Kris Olsen

Mayor, Village of Queen Charlotte and Director, North Coast Regional District

“As a resident and entrepreneur on Haida Gwaii with several businesses in various industries, I celebrate and welcome this exciting news. The necessary recognition of Haida Title will remove uncertainties and provide a foundation that our communities and local economy can build from with confidence in balance with the environment. ”

Danny Robertson

Entrepreneur

Ani Dergalstanian

Press Secretary and Communications Advisor

Office of the Honourable Carolyn Bennett

Minister of Crown-Indigenous Relations

819-997-0002

Stephen Binder

Senior Public Affairs Officer

Ministry of Indigenous Relations and Reconciliation

778-677-2174

stephen.binder@gov.bc.ca

You can subscribe to receive our news releases and speeches via RSS feeds. For more information or to subscribe, visit www.cirnac.gc.ca/RSS.

NAB Announces Agreement to Acquire Citigroup’s Australian Consumer Business

Aug 10, 2021 | Business

National Australia Bank Limited (NAB) today announced it has entered into a Sale and Purchase Agreement with Citigroup Pty Limited (Citigroup) to purchase Citigroup’s Australian consumer business (Citigroup Consumer Business) (the Proposed Acquisition).

The Proposed Acquisition, which remains subject to regulatory approvals, is structured primarily as an asset and liability transfer, with NAB to pay Citigroup cash for the net assets of the Citigroup Consumer Business plus a premium of $250 million.

NAB CEO, Ross McEwan, said the proposed acquisition supported NAB’s strategic growth ambition for its Personal Banking business.

“The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows,” he said.

“The cards and payments sector is rapidly evolving and access to a greater share of payments and transaction data will help drive product and service innovation across our Personal Banking business and deliver market leading customer experiences.

“Citigroup’s management team has also built strong white label partnerships with household names in the airline, retail and financial services sectors over many years. This expertise, together with our commitment to deliver market leading products and services, provides an opportunity to grow with existing partners and add new partners.”

Scope of the Proposed Acquisition

The Proposed Acquisition includes a home lending portfolio, unsecured lending business (operating under the Citigroup brand as well as white label partner brands)[1], retail deposits business, and private wealth management business[2].

As at 30 June 2021, the Citigroup Consumer Business had lending assets of approximately $12.2 billion (comprising residential mortgages of approximately $7.9 billion and unsecured lending of approximately $4.3 billion), and deposits of approximately $9.0 billion.

NAB will not be acquiring all of the technology systems or platforms that currently service these portfolios. NAB will enter into a Transitional Services Agreement (TSA) with Citigroup to assist with the integration of the Citigroup business into NAB. The TSA is expected to be in place for approximately 30 months. During this period, NAB will invest in a new technology platform to support the combined unsecured lending business.

As part of the Proposed Acquisition, senior management and approximately 800 Citigroup employees in total are expected to join NAB.

Citigroup’s institutional business in Australia is not included in the Proposed Acquisition.

Financial impact of the Proposed Acquisition

Based on the anticipated increase in risk-weighted assets of $8.9 billion[3] plus the premium to net assets to be paid on completion, the required equity is approximately $1.2 billion. This implies a multiple of 8x the Citigroup Consumer Business pro forma NPAT of $145 million for the 12 months to June 2021.

The Proposed Acquisition is expected to be marginally accretive to cash earnings and cash return on equity from completion. Pre-tax cost synergies of approximately $130 million per annum are expected to be realised over three years, with the majority achieved in the first two years.

The Proposed Acquisition will be fully funded by NAB’s existing balance sheet resources. Based on NAB’s capital position as at 31 March 2021, the impact of the incremental risk-weighted assets plus the premium to net assets on NAB’s CET1 capital ratio is 32bps. NAB remains well capitalised with a pro forma CET1 ratio as at March 2021 of 11.83%[4], above our target CET1 of 10.75% – 11.25%.

Approximately $220 million of capital (~5bps of CET1)[5] is expected to be released approximately three years post completion following migration of the Citigroup Consumer Business to NAB and achievement of advanced accreditation status. NAB’s future capital ratios will also be impacted by the expected acquisition and integration costs of $375 million anticipated to be largely incurred over two years following completion.

Proposed Acquisition timing

Completion of the Proposed Acquisition is subject to certain conditions, including approvals from the Commonwealth Treasurer, APRA and the ACCC.

Subject to the timing of these approvals, completion is expected to occur by March 2022.

Citigroup will continue to operate its consumer banking businesses until the Proposed Acquisition is finalised, with no immediate changes in the way it serves its customers.

[1] NAB has also agreed to acquire the shares in Diners Club Pty Limited as part of the Proposed Acquisition, subject to certain additional conditions.

[2] NAB has recently completed the sale of its MLC Wealth Business to IOOF with its retained wealth businesses focused on servicing the High Net Worth and Self Directed segments, through its Private Wealth division.  NAB will review opportunities to extend its Private Wealth offer to Citigroup’s clients and potentially utilise relevant services offered by Citigroup to enhance its current product and service offering.

[3] Estimated credit risk-weighted assets based on mortgage and unsecured portfolio balances as at 30 June 2021 plus estimated impacts on other risk-weighted assets

[4] Based on the pro forma CET1 of 12.15% provided with the announcement of the $2.5 billion on-market buy-back on 30 July 2021 less the impact of the Proposed Acquisition (-0.32%)

[5] Estimated impact based on NAB capital position as at 31 March 2021