Energy Transition in Motion (Week of Jan. 31, 2025)

Lightsource BP has added to its operating solar portfolio as it flipped on switches for two solar projects in Texas, lifting its operational fleet in the state to more than 1 gigawatt (GW).

The company on Jan. 31 said the 163-megawatt (MW) Starr Solar farm in Starr County and the 125-MW Second Division Solar farm in Brazoria County have begun commercial operations. The projects together are capable of generating enough electricity to power more than 50,000 homes, the company said.

“Our solar projects are a testament to the power of private investment in strengthening energy security and supporting economic growth,” said Helen Brauner, interim COO for Lightsource BP USA. “By delivering reliable, homegrown energy, we’re helping Texas build a more resilient grid while creating opportunities for American manufacturing and local communities.”

The Second Division project has a virtual power purchase agreement in place with H&M Group, which has set out to source its operations with 100% renewable electricity no later than 2030.

Lightsouce BP said Second Division will reduce emissions of CO₂ by an estimated 155,000 metric tons each year, while Starr will lower CO₂ emissions by 227,000 metric tons each year. Both utility-scale solar projects benefited from a $348 million financing package, which included transferability facilities made possible by the Inflation Reduction Act.

Earlier this week, the company announced the completion of its 187-MW Peacock Solar project in San Patricio County. The solar farm powers Gulf Coast Growth Ventures’ manufacturing facility. The Exxon Mobil and Saudi Basic Industries Corp. joint venture (JV) produces materials used to manufacture goods including agricultural film and construction materials.

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

Energy storage

Standard Lithium, Equinor Unveil New Name for JV

Standard Lithium and Equinor have named their JV targeting lithium as Smackover Lithium, according to a news release.

The JV company is developing direct lithium extraction (DLE) projects in Arkansas and East Texas. Its Southwest Arkansas project is expected to become one of the world’s first commercial-scale DLE facilities, Standard said in the release.

“Smackover Lithium is a natural fit for the joint venture given the Smackover formation’s prolific resource and our joint venture’s commitment to adding to the incredible legacy of American energy production from this region,” Standard Lithium CEO David Park said.

DLE involves extracting lithium directly from brine using technologies and processes such as adsorption, resin or membranes. The method is considered more environmentally friendly compared with other methods such as hard rock mining and solar evaporation brine extraction with ponds, as it requires less land, is faster and consumes less water. Lithium is a primary component in electric vehicle batteries and other energy storage systems.

Equinor and Standard formed the Smackover basin-focused JV in May 2024.

“We are excited to be a part of Smackover Lithium, developing critical mineral projects in the Smackover basin and building the next generation of lithium development,” said Allie Kennedy Thurmond, vice president of U.S. lithium at Equinor.

Enfinity Global Adds Storage Projects in Texas

Florida-headquartered Enfinity Global added two battery energy storage systems (BESS) in Texas, adding 425 MW of capacity, the company said Jan. 29.

The two projects are located in the Electric Reliability Council of Texas’ Houston and Dallas zones, which Enfinity pointed out is experiencing “unprecedented load growth.” Combined, the projects will have a storage capacity of 850 megawatt hours and a two-hour duration. Plans are to begin construction in the second and fourth quarters of 2025, the company said.

The projects will lift Enfinity Global’s BESS pipeline in the U.S. to 6.6 GW.

Geothermal

SLB, DEEP Earth Energy Team Up to Boost Geothermal in Canada

DEEP Earth Energy Production Corp. (DEEP) has brought in SLB as a partner to help advance a next-generation geothermal development project in Canada, according to a Jan. 29 news release.

Looking to unleash Canada’s immense geothermal potential, DEEP aims to initially produce up to about 30 MW of power with its project located in southeastern Saskatchewan. The company will use oil and gas techniques such as horizontal drilling and production enhancement technologies, leaning on SLB’s geothermal, integrated well construction and drilling technology expertise.

“We are thrilled to welcome SLB as a key partner in this transformative project, which also includes Ormat as part of an integrated geothermal asset development model,” said Kirsten Marcia, president and CEO for DEEP. “By joining forces, we are developing our asset in a streamlined fashion, combining the best of subsurface and surface technologies, while maximizing efficiencies, operations and ultimately, power output.”

SLB will provide engineering design and integrated well construction services for phases one and two of the project. The work includes the development of two production and two injection wells in phase one and up to 18 wells in phase two, the release stated.

“This collaboration with DEEP reflects our commitment to broadening the adoption of geothermal by reducing project risk and accelerating the time to first power,” said Irlan Amir, vice president of renewables and energy efficiency, at SLB. “The project’s innovative engineering design and integrated asset development model brings together developers, technology providers and infrastructure partners to open new frontiers for geothermal power generation in Canada and beyond.”

DEEP is targeting full commissioning of the project’s first phase by 2026.

Hydrogen

Puget Sound Energy, Modern Hydrogen Form Partnership

Washington utility Puget Sound Energy (PSE) has teamed up with Modern Hydrogen to advance adoption of decarbonization technologies such as Modern’s distributed methane pyrolysis technology, according to a Jan. 29 news release.

The two companies signed a memorandum of understanding to collaborate on “supporting commercial and industrial customer decarbonization objectives, market analysis, and the technical and economic evaluation of Modern Hydrogen’s technology as a decarbonized energy solution in customer-specific applications,” PSE said in a news release.

Modern Hydrogen’s technologies remove carbon from natural gas at the meter for commercial and industrial operations, enabling utilities to decarbonize, the company said. The agreement took shape as Washington takes steps to meet clean energy targets.

“Our partnership with Modern Hydrogen is a significant step towards achieving this vision, as their technology has the potential to help our largest gas customers accelerate their decarbonization programs and reduce their greenhouse gas emissions,” said Josh Jacobs, PSE Vice President of Energy Strategy and Planning.

Washington’s clean energy goals include having an electricity supply free of greenhouse-gas emissions by 2045.

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Solar

Greenbacker Lands Nearly $1B in Financing for NY Solar Project

Independent power producer Greenbacker Renewable Energy Co. on Jan. 27 said it has secured $950 million in financing to acquire and develop a 674-MW utility-scale solar farm in New York from Hecate Energy.

The Cider solar farm is expected to be the largest of its kind in the state. It will utilize about 2,500 acres of land in Genesee County and generate enough electricity to power about 120,000 average New York households, Greenbacker said in a news release.

“Greenbacker has called New York home for 14 years, and we’re proud to be both the owner of the largest solar energy project in the state’s history and a driving force in accelerating its ambitious clean energy goals,” Greenbacker CEO Charles Wheeler said.

The acquisition marked the company’s third with Hecate.

Greenbacker said it closed on $869 million in financing after acquiring Cider. The financing was comprised of a construction-to-term loan, a tax equity bridge loan and letters of credit following the acquisition. Financing was led by MUFG, KeyBanc Capital Markets, ING Capital LLC. Intesa Sanpaolo S.p.A., New York Branch, Societe Generale and Wells Fargo, Greenbacker said in the release.

The producer also closed on an $81 million development loan with Voya Investment Management. The funds will support late-stage development, preliminary construction activities and equipment procurement, Greenbacker said.

Wind

Ørsted, PGE Greenlight Baltica 2 Wind Project Offshore Poland

Wind producer Ørsted and Poland’s largest energy company have taken a final investment decision on the 1.5-GW wind project called Baltica 2 off the country’s northern coast, the companies said Jan. 29.

Working with 50:50 partner PGE Polska Grupa Energetyczna (PGE), Ørsted said a 25-year inflation-protected contract for difference is in place for the project with the Polish state. All permits for the wind farm, which will include 107 Siemens Gamesa turbines, are in hand, grid connection contract secured and major component and vessel contracts signed.

“With today’s announcement, we’re ready to build Baltica 2, a flagship project for offshore wind in Poland,” said Rasmus Errboe, deputy CEO and chief commercial officer at Ørsted. “We’re satisfied with the value creation of the project, which has an attractive risk-reward profile.”

The wind farm is the largest renewable energy project being developed in the Baltic Sea, PGE CEO Dariusz Marzec said.

“This investment represents a significant step in Poland’s energy transition and serves as a major boost to economic development, attracting new investments to the entire Polish economy and helping to create new jobs,” Marzec said.

Baltica 2 is expected to be fully commissioned in 2027, according to Ørsted.

The project is part of the Baltica Offshore Wind Farm, which also includes the 1-GW Baltica 3 that is expected to go online by 2030.

Ørsted Replaces CEO as Offshore Wind Industry Struggles

(Reuters) Ørsted CEO Mads Nipper will step down and be replaced by company insider Rasmus Errboe, the world’s biggest offshore wind developer said Jan. 31, as it seeks to arrest an 83% slump in its share price since its 2021 peak.

The Danish renewables firm has been crucial to establishing a European industry for wind at sea, but the industry has struggled in recent years with rising costs, supply chain bottlenecks, higher interest rates and regulatory changes.

Its push into the nascent U.S. market has also proved challenging, resulting in delays and impairment charges, and has been complicated by U.S. President Donald Trump’s outspoken opposition to wind power. Trump has suspended federal offshore wind leasing pending an environmental and economic review.

Nipper, who took the helm in January 2021, faced questions over his stewardship as losses mounted and the share price fell.

“The impacts on our business of the increasingly challenging situation in the offshore wind industry ... mean that our focus has shifted,” Ørsted Chair Lene Skole said in a statement, without elaborating.

“Therefore, the board has today agreed with Mads Nipper that it's the right time for him to step down.”

The former oil and gas company’s woes reflect the changing fortunes of wind power globally as soaring costs, delays and limited supply chain investment prompt investors to reassess the speed of the energy transition.

Once a green investor favorite, Ørsted’s market value stood at $15.1 billion at close Jan. 30, a far cry from its peak of $93.9 billion in January 2021, LSEG data shows.

Atlantic Shores Reaffirms Commitment to NJ Offshore Wind Despite Shell’s Write-off

(Reuters) Atlantic Shores, a JV between Shell and France’s EDF, reiterated its commitment to delivering New Jersey’s first offshore wind project on Jan. 30, despite Shell's recent $1 billion write-off related to the venture.

Shell’s fourth-quarter earnings included $2.2 billion in impairments, part of which was a $1 billion write-off for Atlantic Shores, with CFO Sinead Gorman stating that the project did not align with the company’s capabilities or return goals. Shell is now looking to monetize its stake.

Atlantic Shores had submitted a proposal in July 2024 to supply offshore wind energy to New Jersey as part of the state’s Fourth Offshore Wind Solicitation.

In response to Shell’s write-off, Atlantic Shores affirmed its dedication to progressing with the project, emphasizing its compliance with obligations to local, state and federal partners under existing leases and permits, the company said in a statement.

“Business plans, projects, portfolio projections and scopes evolve over time—and as expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that contemplate multiple scenarios that enable Atlantic Shores to reach its full potential,” the company stated.

The Atlantic Shores South wind project is expected to generate up to 2,800 MW of electricity, enough to power close to 1 million homes, according to the U.S. Interior Department.

However, the broader offshore wind sector has faced significant economic challenges, including soaring materials costs, high interest rates and supply-chain delays.

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Hart Energy Staff and Reuters contributed to this report.