Energy Transition in Motion (Week of Jan. 10, 2025)

Clean energy companies looking for clarity on technology-neutral clean electricity credits in the U.S. got some long-awaited guidance this week.

The U.S. Treasury Department and Internal Revenue Service unveiled final rules for the clean electricity production and investment credits established by the Inflation Reduction Act (IRA). The move came as the Biden administration continued efforts to combat climate change by reducing emissions via use of lower-carbon technologies.

The rules provide clarity on how clean electricity technologies qualify for the credits. The technologies include geothermal, hydropower, marine and hydrokinetic, nuclear, solar, wind and certain waste energy recovery property. It also clarifies how combustion and gasification technologies can qualify for future credits, the Treasury Department said.

The technology neutral clean energy program offers as much as 30% tax credits for production and investments, Reuters reported, citing U.S. officials who announced the guidance.

“America’s clean energy boom is no coincidence, it’s President Biden’s industrial strategy in action: utilizing a range of incentives to accelerate innovative carbon cutting technologies and make the nation more energy resilient,” U.S. Secretary of Energy Jennifer M. Granholm said.

Analysis from the U.S. Department of Energy shows the credits alongside other incentives in the IRA and Bipartisan Infrastructure Law provisions could save American families up to $38 billion on electricity bills through 2030.

Qualifying projects placed in service after Dec. 31, 2024, are eligible for the new credits.

“This is truly a game-changing policy, and we’re looking forward to the affordable, reliable, clean electricity that it will help enable,” Ray Long, president and CEO of the American Council on Renewable Energy (ACORE), said in a statement.

Research released by Aurora Energy Research indicate there would be $336 billion less investment, 237 gigawatts (GW) less clean energy generation capacity and at least 97,000 net fewer American jobs by 2040 if the incentives were not in place.

Here’s a roundup of some other renewable energy news.

Energy storage

Copenhagen Infrastructure Partners Tap Canadian Solar for 2 GWh of Energy Storage

Canadian Solar’s e-STORAGE has inked contracts with Copenhagen Infrastructure Partners for 2 gigawatt hours (GWh) of battery energy storage systems for two projects in the U.K., according to a Jan. 8 news release.

The contracts were awarded to e-STORAGE, a subsidiary of the Canadian Solar’s CSI Solar Co. Ltd., for the 1-GWh Coalburn 2 project in Scotland and the 1-GWh Devilla project in Fife. Construction on the two projects is scheduled to begin in 2027, according to the news release.

“The Coalburn 2 and Devilla batteries represent a transformative energy milestone for Scotland and the U.K.,” said Colin Parkin, president of e-STORAGE. “e-STORAGE will be delivering 2 GWh of energy storage capacity, which will enhance grid stability, reduce network constraints and unlock the potential of offshore wind energy.”

The company will supply and integrate about 450 SolBank 3.0 battery containers for the projects. The 2 GWh capacity is expected to provide enough energy to power about 250,000 homes for a full day, according to the release.

MVP Lithium Produces Lithium at DLE Plant in Montney

Canada-based lithium extractor Midas Vantage Projects (MVP) Lithium Ltd. has produced battery-grade lithium from brine at its direct lithium extraction (DLE) pilot plant in the Montney Formation, the company said Jan. 7.

MVP said it produced 99.9% pure battery-grade lithium hydroxide.

“These results demonstrate that the pilot is operating optimally and as expected,” said MVP Lithium CEO Max Iyer. “This milestone not only validates our technological capabilities but also positions MVP Lithium to play a pivotal role in meeting the rapidly growing global demand for lithium.”

DLE involves extracting lithium, a key component in electric vehicle batteries and other energy storage systems, directly from brine using technologies and processes such as adsorption, resin or membranes. The method is considered better for the environment than hard rock mining. It also requires less land and processing time when compared to solar evaporation brine extraction using evaporation ponds.

“Driven by the surging demand for electric vehicles (EVs) and their essential components, the global lithium market is poised for unprecedented growth,” MVP said. “Valued at $27 billion in 2024, the market is expected to soar to $134 billion by 2032, marking a compound annual growth rate (CAGR) of 22%. This rapid expansion underscores lithium’s critical role in the transition to renewable energy and clean transportation.”

Zijin Targets 1Q 2026 Startup for DRC Lithium Project

China-based Zijin Mining Group’s first lithium exploration project in the Democratic Republic of Congo (DRC) is expected to begin production in the first quarter of 2026, Chinese finance outlet Cailianshe reported Jan 7.

Zijin launched the project through a joint venture with the state-owned DRC company Cominiere in 2022.

The Katamba Mining joint venture has secured rights to two greenfield exploration and mining projects at the periphery of the Manono lithium mine in the DRC.

Hydrogen

Advanced Ionics Raises $6.7MM, Names CEO

JERA, Lummus Venture Capital and the Argosy Foundation have joined BP Ventures and Clean Energy Venture Group in backing electrolyzer startup Advanced Ionics, which on Jan. 8 said it raised an additional $6.7 million in funding.

The Wisconsin-based company said it will use the capital to accelerate development of its water-vapor electrolyzer technology and build out its manufacturing and research and development facility. 

Advanced Ionics also announced the appointment of Ignacio Bincaz as its CEO. Bincaz previously served as the company’s chief commercial officer. The company’s founder, Chad Mason, will serve as CTO.

“We believe our technology has the potential to revolutionize this market at a time when new technology is most critical,” Mason said, “and we’re building a world-class company to make that a reality.”

Advanced Ionics has developed a new class of electrolyzers that uses process or waste heat already present at industrial facilities. The water vapor electrolyzer, called Symbion, is made using materials and steel that are widely available. The electrolyzers can be scaled and use off-the-shelf components such as stainless steel and nickel instead of expensive catalysts such as platinum or iridium.

Solar

Swift Air Solar Project Powering Oxy’s Stratos Secures Funding

Origis Energy has closed a $415 million funding package for the Swift Air Solar project, the company said on Jan. 9.

The funding package includes $290 million in construction and term debt arranged by Natixis Corporate & Investment Banking (CIB) and $125 million in tax equity from Advantage Capital, according to the release.

Located in Ector County, Texas, the project will provide solar power for Occidental Petroleum and subsidiary 1PointFive’s Stratos direct air capture facility. The solar project is under construction and scheduled to go online in mid-2025.

“This is an exciting project, helping to power the world’s first large-scale direct air capture plant. This directly aligns with our mission to supply decarbonization solutions,” Origis Energy CEO Vikas Anand said.

Origis is the builder, owner and operator of Swift Air Solar.

Enbridge, EDF Renewables Bring Fox Squirrel 3 Solar Project Online

All three phases of the 577- MW Amazon Solar Farm Ohio-Fox Squirrel Solar project are operational, according to developer EDF Renewables.

The renewable energy company, which owns the solar farm with partner Enbridge, said Jan. 6 that Fox Squirrel 3 reached full operational status in December 2024. The 150-MW Fox Squirrel 1 went online in December 2023. It was followed in July 2024 by the 250-MW Fox Squirrel 2. All power generated at the solar farm will be delivered to Amazon, which has power purchase agreements in place, according to a news release.

“This project is a shining example of the power of partnerships between landowners, the local community and our project partners all working together towards a sustainable future,” said Kate O’Hair, senior vice president for onshore development at EDF Renewables North America. “Our development partner, Geenex Solar, has been instrumental in making this project a reality.”

Located in Madison County, Ohio, the solar farm has 1.4 million solar panels and nearly 160 inverters. It is considered one of the largest utility-scale solar developments east of the Mississippi River.

Trina Solar Sets World Record for Solar Technology

China’s Trina Solar has set a new world record for the conversion efficiency of a certain type of solar module, the company said in a statement Jan. 6.

In laboratory tests, Trina’s large surface area n-type fully passivated heterojunction (HJT) modules demonstrated an efficiency of 25.44%, according to the results certified by the Fraunhofer CalLab in Germany, a solar research body.

Passivation is a technology covering defects on the surface of a solar cell, while cell efficiency refers to the percentage of solar energy hitting a device that is converted into usable electricity. Increasing cell efficiency can help reduce the size needed for solar installations and cut costs.

Professor Martin Green at the University of New South Wales in Sydney, whose lab held the solar cell efficiency record for decades, said the result demonstrated the potential of HJT solar technology, one of several contending to become the predominant next-generation technology for the sector.

HJT remains a relatively small percentage of the market, estimated by solar consultancy InfoLink to make up 7% of high-efficiency solar cell capacity in 2024, 8% in 2025 and 9% in 2026. Cells of TopCON, or tunnel activated passive contact, are expected to make up the bulk of the market over the next five years.

Hart Energy Staff and Reuters contributed to this report.