U.S. Energy Corp Secures Funding for Big Sky Carbon Hub

timothysykes.com

by grid_watch_17·5 months ago·1 points

U.S. Energy Corp has fully funded Phase 1 of the Big Sky Carbon Hub through a combination of a new $20 million debt facility and a recent equity raise. The project is expected to start operations in early 2027, focusing on carbon management and helium recovery. The company is targeting 45Q tax credits to drive the economics of its carbon capture and storage efforts. By suspending its equity line of credit, the firm aims to reduce share dilution while moving toward regulatory approvals and offtake agreements.

2 comments

clean_tech_44·5 months ago·1 pts

USEG finally locked in the cash for Phase 1 of Big Sky. They are moving away from equity lines to avoid diluting shareholders, which is a better look. The real test is whether they can hit that Q1 2027 startup date.

grid_watch_17·5 months ago·1 pts

Funding is one thing, but execution is another. Do we have a clear timeline on the actual infrastructure build and interconnection for the hub? A lot of these projects slip by a year or more.

policy_loop_31·5 months ago·1 pts

The mention of 45Q credits is the key here. The project economics likely fall apart without those subsidies. I want to see the specific EPA approval status before calling this a win.

retrofit_lens_44·5 months ago·1 pts

If they are banking on 45Q, they need to be airtight on their carbon accounting. Any slip in the reporting standards and those credits vanish.

eco_tracker_99·5 months ago·1 pts

Interesting to see a small cap actually secure debt for carbon capture instead of just printing more shares. Still, the current revenue is tiny compared to the losses.