Energy Transition in Motion (Week of Dec. 20, 2024)

The U.S. Department of Energy’s Loan Programs Office (LPO) continued to pump out billions of dollars in financing this week to support emissions-reducing, lower-carbon energy projects as the Biden-Harris administration nears its end.

The LPO on Dec. 19 said it closed a $1.45 billion loan guarantee to Hanwha Qcells Georgia Inc., part of South Korean business conglomerate Hanwha Group. The crystalline silicon solar manufacturer is building what is expected to become the largest ingot and wafer plant in the U.S. The Cartersville, Georgia, plant will add 3.3 gigawatts (GW) to U.S. annual solar capacity. The plant is scheduled to become fully operational in 2025.

“The factory will also be the first fully integrated silicon-based solar manufacturing facility constructed in the United States in over a decade, helping address gaps in the domestic solar manufacturing supply chain,” LPO said in a news release.

Panels produced at the Cartersville factory will be used for distributed and utility-scale projects, according to the LPO.

The announcement followed Dec. 16 news of the closing of an up to $9.63 billion direct loan to BlueOval SK LLC (BOSK), the Kentucky-based joint venture of Ford Motor Co. and SK On. BlueOval is constructing up to three manufacturing plants—one in Tennessee and two in Kentucky—to produce batteries for future Ford and Lincoln electric vehicles (EVs). Combined, the plants will enable more than 120 gigawatt hours of U.S. battery production annually, the LPO said.

Other announcements by LPO this week included:

• A conditional commitment for a loan guarantee of up to $584.5 million to subsidiaries of Convergent Energy and Power Inc. to finance one solar photovoltaic system with an integrated battery energy storage system (BESS) and three stand-alone BESS projects throughout Puerto Rico; and
• The closing of the $7.5 billion loan to StarPlus Energy, a joint venture of Stellantis subsidiary FCA US and Samsung SDI Co. Ltd., to help finance up to two lithium-ion battery cell and module manufacturing plants in Kokomo, Indiana. The cells and modules will be sold to Stellantis for use in EV models made in North America. Stellantis brands include Chrysler, Dodge and Ram among others.

The LPO also announced an up to $15 billion loan guarantee conditional commitment for Pacific Gas & Electric Company (PG&E). “If finalized, the loan guarantee for PG&E’s Project Polaris will support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring and grid enhancing technologies, and enable virtual power plants throughout PG&E’s service area,” the LPO said. “These infrastructure investments will help PG&E meet forecasted load growth, increase electric reliability, and reduce costs for its consumers across California.”

As President-elect Donald Trump prepares to return to office Jan. 20, uncertainty is growing in the clean energy community. Among the concerns is what will become of unobligated funds.

The LPO had been evaluating some of the loan applications in the news this week since 2023.

Here’s a roundup of some renewable energy news.

Bioenergy

ETFuels Taps John Cockerill, Johnson Matthey as E-methanol Partners

Ireland-based ETFuels has partnered with John Cockerill and Johnson Matthey to help develop its e-methanol project in Texas, aiming to produce 120,000 tons of e-methanol annually.

John Cockerill said Dec. 20 it will provide 210 megawatts (MW) of its advanced pressurized alkaline electrolyzer units for the facility and provide technical services related to the project’s FEED phase. Johnson Matthey will supply its eMERALD e-methanol technology.

“Johnson Matthey brings world-class technology, extensive e-methanol operating experience, and exceptional engineering expertise,” said ETFuels CEO Lara Naqushbandi. “John Cockerill provides proven technology and industrial services experience to help the long-term performance of the plant.”

ETFuels anticipates making an investment decision on the project in 2026. Construction would begin by or before 2027, according to a news release, with production starting in 2029. E-methanol, a synthetic fuel comprised of electrolytic hydrogen and CO₂, can be used as aviation, marine and road transport fuels.

E-methanol from the Texas plant could prevent an estimated 200,000 tons of CO₂ emissions per year. That is equivalent to planting a forest the size of 13,000 football fields, according to the news release.

Waga Energy Inks Deal for Third RNG Project in Pennsylvania

Waga Energy signed a 20-year contract to produce renewable natural gas (RNG) at Pennsylvania’s West Grove landfill, the company said Dec. 18.

The agreement with the Southeastern Chester County Refuse Authority (SECCRA) in southern Chester County for the WAGABOX unit marks its third deployment in the state and the second for Chester County, Waga said.

“This new agreement with Waga Energy represents the next chapter in our commitment to sustainability,” Andrew Mazzeo, chairman of the SECCRA Board of Directors, said in a news release. “By upgrading landfill gas to pipeline-quality standards for distribution, we are advancing our environmental stewardship while creating value for our community.”

Waga said its unit will inject 229,000 MMBtu of RNG per year into the local natural gas network when the unit is commissioned in 2026. “This production will avoid the emission of 15,000 tons of CO₂ equivalent per year, thus actively contributing to the fight against climate change,” the company said.

Galp Plans to Start Producing Biofuels in 2026

Portugal’s Galp Energia expects to start producing biodiesel and biojet fuel from waste in an industrial-scale unit it is building at its Sines refinery in 2026, the company said Dec. 19.

Galp is primarily an oil producer and refiner.

In 2023, Galp entered a 75%-25% joint venture with Japan’s Mitsui to invest 400 million euros ($415 million) in the hydrogenated vegetable oil (HVO) plant, which will have a production capacity of 270,000 metric tons per year.

It will transform waste materials, such as used cooking oils, into renewable biodiesel and biojet fuel, also known as sustainable aviation fuel (SAF), using green hydrogen produced by an electrolyzer powered by wind or solar energy.

Galp said in a statement it received three reactors to process biofuels, which will allow the HVO unit to "produce SAF and biodiesel in 2026... placing Galp at the forefront of developing low-carbon solutions essential for the energy transition".

Galp is also investing 250 million euros in a 100-MW electrolyzer unit to produce green hydrogen to power the refinery in Sines.

Energy storage

Standard Lithium, Equinor Crank Up Direct Lithium Extraction Pilot Plant

Standard Lithium and Equinor’s joint venture company SWA Lithium has started operations at its direct lithium extraction (DLE) pilot plant, advancing efforts toward its first commercial lithium facility in southwestern Arkansas.

The pilot DLE plant at the South West Arkansas Project is processing brine to confirm engineering design parameters and to provide samples of battery-quality lithium carbonate for use in the qualification process for potential offtakers, Standard Lithium said in a Dec. 19 news release. As part of the process, the JV is using Koch Technology Solutions’ Li-Pro Lithium Selective Sorption technology.

“This field-based pilot DLE plant is the final step in ensuring that we have exactly the right data to confirm our design and be sure that we know how our commercial plant will operate once constructed,” said Andy Robinson, director and president for Standard Lithium.

The work is underway as the U.S. takes steps to increase domestic supplies of lithium, a key ingredient in batteries used for electric vehicles and energy storage projects. There is currently only one lithium mine in the U.S.; however, several companies are pursuing projects that involve directly extracting lithium from brine.

Compared to traditional extraction techniques such as using solar evaporation of brine in large evaporation ponds or mining lithium-bearing rocks, DLE is considered more efficient and environmentally friendly.

“This pilot DLE plant is using real brine, collected in real-time from one of our project wells (the IPC well), and we are using the same flowsheet as our commercial lithium facility to produce an intermediate lithium chloride solution, the same as what we do every day in our demonstration plant,” Robinson said. “We’ll then ship this solution to several selected vendor partners so that they can convert the lithium chloride solution to a battery-quality lithium carbonate product.”

Standard said the brine supply and operation of the pilot plant is expected to continue until late January 2025. By that time, the company expects to have produced about 1,000 gallons of concentrated and purified lithium chloride solution to be sent to three potential carbonate equipment vendors. Those vendors, the company said, will together produce about 30 kg of battery-quality lithium carbonate to be used for the first phase of qualification with potential offtake partners.

Saudi Arabia Extracts Lithium From Oilfield Runoffs, Vice Minister Says

Saudi Arabia has successfully extracted lithium from brine samples from national giant Aramco’s oil fields and plans to launch a commercial pilot program for direct extraction soon, the Saudi vice minister of mining affairs said Dec. 18.

Lithium Infinity, also known as Lihytech, a start-up launched out of King Abdullah University for Science and Technology, will lead the extraction project with cooperation from Saudi mining company Ma’aden and Aramco, Khalid al-Mudaifer told Reuters.

“They are extracting lithium through their new technology they have developed in King Abdullah University for Science and Technology and they are in accelerated development in this regard,” he said.

“They’re building a commercial pilot at the oil fields. So, the brines that come out of the field will feed into this commercial pilot on a continuous basis,” added Al-Mudaifer.

Other oil companies, including Exxon Mobil and Occidental Petroleum plan to take advantage of emerging technologies to filter lithium from brine, as the world seeks to move away from fossil fuels.

The vice minister said that while the cost of extracting lithium from the brine runoffs from oil fields remained higher than the traditional method of extraction from salt flats, he expected that if lithium prices grew the project would soon be commercially viable.

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Geothermal

Fervo Energy Adds $255 Million in Funding for Geothermal Projects

Fervo Energy has secured $255 million in new funding, including $135 million from Capricorn Investment’s Technology Impact Fund II, as it seeks to meet skyrocketing demand for clean, firm power, the geothermal developer said Dec. 19.

Fervo also secured a $120 million letter of credit and term loan facility from Mercuria, an independent energy and commodity group. The facility will provide additional liquidity for Fervo to accelerate the deployment of the company’s enhanced geothermal systems projects across the U.S.

“The demand for 24/7 carbon-free energy is at an all-time high, and Fervo is one of the only companies building large projects that will come online before the end of the decade,” said Tim Latimer, Fervo CEO and co-founder. “Investors recognize that Fervo’s ability to get to scale quickly is vital in an evolving market that is seeing unprecedented energy demand from AI and other sources.”

Fervo is backed by a variety of investors including Breakthrough Energy Ventures, CalSTRS, Congruent Ventures, CPP Investments, DCVC, Devon Energy, Galvanize Climate Solutions, Liberty Mutual Investments and Sabanci Climate Ventures.

“In surveying power markets across the U.S. today, the need for next-generation geothermal is undeniable,” said Brian Falik, group chief investment officer of Mercuria. “We believe in Fervo not just because their EGS approach is cost-effective, commercially viable, and already being deployed at scale, but because they set ambitious targets and consistently deliver.”

Fervo’s first greenfield development, Cape Station in Utah, is now fully permitted for up to 2 gigawatts and will begin generating electricity in 2026.

Hydrogen

Exxon Mobil Lands $11MM for Carbon Reduction Project Using Hydrogen

The U.S. Department of Energy’s Office of Clean Energy Demonstrations on Dec. 18 announced it awarded the Exxon Mobil-led Baytown Olefins Plant Carbon Reduction Project in Texas with more than $11 million to start activities.

The project involves using hydrogen, instead of natural gas, for high heat-fired equipment using new burner technologies for ethylene production in Baytown, Texas.

“These equipment modifications would enable the use of up to 95% clean hydrogen fuel,” OCED said in the release. “At full implementation, the modifications would be expected to enable avoidance of an estimated 2.7 million metric tons of carbon emissions per year—equal to more than 50% of the olefin plant’s total emissions—and an estimated 200 tons per year of nitrogen oxide (NOx) emissions.”

The funding, which goes toward the project’s first two phases, is part of the total project federal cost share of up to $331.9 million. Development activities that include engineering and design along with community engagement will be carried out during Phase 1 and Phase 2 as the company provides information needed to complete the National Environmental Policy Act requirements.

MHI Hydrogen Infrastructure, PNWH2 Hub Formalize Hydrogen Agreement

Mitsubishi Power Americas has signed a subrecipient agreement, through its subsidiary MHI Hydrogen Infrastructure (MHI HI), with the Pacific Northwest Hydrogen Association to develop the Pacific Northwest Hydrogen Hub (PNWH2).

PNWH2 is one of seven regional hydrogen hubs in the U.S. Department of Energy’s H2Hubs Program funded in part by the Bipartisan Infrastructure Law. Aiming to lower emissions in hard-to-abate sectors, the hub includes about eight project groups—called nodes—spread across Washington, Oregon and Montana.

“The Pacific Northwest is poised to serve as a national benchmark for successful low-carbon intensity and economically viable green hydrogen production,” said Scott Neumeister, director of regional business development for MHI HI. “The development of hydrogen infrastructure at scale in the U.S. is critical, as is developing robust commercial frameworks for long-term services and support. While the challenges ahead are significant, they also present opportunities to innovate and collaborate across the industry.”

The MHI HI-led Node 6 aims to develop hydrogen for clean dispatchable electricity generation and provide hydrogen to Node 3 for liquefaction and supply into the heavy-duty transportation market, Mitsubishi said in a Dec. 18 news release. MHI is working in partnership Portland General Electric and Williams on the project.

Solar

Nexamp, Walmart Partner on 31 Community Solar Projects

Nexamp has partnered with Walmart on 31 community solar projects across the U.S. to generate more than 120 MW of renewable energy for the grid, the solar developer said Dec. 16.

The solar farms will be located in Maine, Massachusetts, New York, Illinois, and Minnesota. The community solar program gives residents access to the benefits of clean energy without rooftop installations, Nexamp said.

“Together, we are working to deliver benefits for thousands of households across the country,” said Nexamp CEO Zaid Ashai. “This collaboration demonstrates the power of partnerships in advancing the clean energy transition.”

Nexamp and Walmart also partnered in 2021 on community solar projects in New York.

“Our collaboration with Nexamp is intended to help communities save money on energy bills, strengthen local grid infrastructure, and drive local job creation,” said Frank Palladino, vice president of Renewable Energy Strategy for Walmart.

With community solar programs, customers—including renters or home owners whose rooftops or electric systems are not fit for solar equipment— typically benefit from energy generated at an offsite solar array.

Meta, DESRI Sign PPA for Solar Power in Texas, Missouri

D.E. Shaw Renewable Investments (DESRI) and Meta have signed two long-term renewable energy off-take agreements, expanding their partnership, according to a Dec. 17 news release.

Tech companies including Meta have been lining up power purchase agreements to help power data centers and meet operational needs.

"These projects help support our goal to continue matching our electricity usage with 100% clean and renewable energy,” said Urvi Parekh, global head of energy at Meta.

Meta’s recent agreement with DESRI is for solar energy from a 250-MW facility in Missouri and a 150-MW solar facility in Texas. Located in the Midcontinent Independent System Operator (MISO) territory, both facilities are expected to reach commercial operation before year-end 2027.

“Our renewable energy partnership with Meta has expanded to span five states, encompassing more than 1,200 MWac of clean energy nationwide,” said Hy Martin, chief development officer of DESRI.

DESRI and Meta also have solar power agreements in Arkansas, Utah and Virginia.

NuVision Solar Forms, Plans to Build 2.5-GW Plant

U.S.-based solar manufacturer NuVision Solar on Dec. 16 announced its formation with plans to build a heterojunction solar cell and module manufacturing facility with a 2.5-GW capacity.

The company said it aims to start making the modules in fourth-quarter 2025.

“Heterojunction technology enables us to achieve exceptional cell efficiencies and consistently high performance across a wide range of conditions,” said Tom Mueller, CTO at NuVision Solar. “By integrating these advanced cells into our modules, we are improving overall system performance, delivering more energy over the lifetime of the installation, and ultimately enhancing the value proposition for our customers.”

Modules produced at the plant are intended to help meet growing demand in the utility, large-scale commercial and residential sectors, the company said in a news release.

Qcells: Technology Breakthrough Could Reduce Space Needed for Solar Panels

Hanwha Corp.’s Qcells said on Dec. 18 it had made a breakthrough in an emerging solar technology that has the potential to reduce the amount of space required by panels that generate power from the sun’s rays.

Space is among the most pressing issues for the rapidly growing solar power industry. In some parts of the U.S., the industry has encountered growing opposition to large-scale projects that take up big swathes of land.

Qcells said it had set a world record for the efficiency of a large-area silicon solar cell with a top layer of perovskite, the name for materials with a crystal structure that absorbs large amounts of light and is cheap to produce.

The technology’s potential could dramatically shrink the size of projects and slash costs.

“If you have 100 solar panels in the field, but you can get the same power output for only 60 or 80 of them, now you’re digging less holes, you’re using less rails, you have less labor to install it,” Danielle Merfeld, Qcells’ CTO, said in an interview.

Qcells is among several large solar manufacturers developing perovskite technology because of this opportunity.

“It’s a little bit of an arms race,” Joseph Berry, who leads perovskite research at the U.S. Department of Energy’s National Renewable Energy Laboratory, said in an interview.

Qcells said it achieved cell efficiency of 28.6% on a large commercial-sized cell known as an M10 using the technology—setting the stage for future mass production.

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Wind

Google Taps Apex Clean Energy for Onshore Wind

Virginia-based Apex Clean Energy inked a power purchase agreement with Google for energy from the nearly 80-MW Rocky Forge Wind facility, the state’s first onshore wind farm, to help power data centers.

The wind farm, being constructed in Botetourt County, Virginia, will feature up to 22 wind turbines and is expected to generate enough electricity to power up to 21,000 homes, Apex said in a Dec. 18 news release. It is expected to come online in 2026.

“Rocky Forge represents a new chapter in Virginia’s energy transition, delivering lasting economic and environmental benefits to Apex’s home state while advancing Google’s sustainability goals,” Eamon Perrel, Apex executive vice president of business development, said. “Google—alongside many key stakeholders over the years—enabled this milestone, demonstrating the power of partnership in accelerating the shift to clean energy.”

The agreement marks the second between Apex and Google. The two signed a PPA in August 2023 for power from the 189-MW Timbermill Wind farm in North Carolina.

“As we continue to progress towards our goal to operate every Google campus on clean electricity every hour of every day by 2030, we are always looking for opportunities to accelerate the delivery of new clean power to the grid,” said Amanda Peterson Corio, Google’s head of data center energy.

Hart Energy Staff and Reuters contributed to this report.