Energy Transition in Motion (Week of May 3, 2024)

Brookfield and tech giant Microsoft have joined forces to develop more than 10.5 gigawatts (GW) of new renewable power capacity.

That’s equivalent to more than 3,100 utility-scale wind turbines or 20,000 Corvette Z06s, based on the U.S. Department of Energy’s equivalent examples of gigawatts of power.

The five-year agreement was sealed this week as the companies work toward common goals of reducing emissions and as Microsoft seeks more renewable energy to meet growing demand for its cloud services. Financial terms of the agreement were not disclosed.

“This first of its kind agreement, which is almost eight times larger than the largest single corporate PPA ever signed, is a testament to our ability to reliably deliver clean power solutions at scale to our corporate partners and accelerate the energy transition,” said Connor Teskey, CEO of Brookfield Renewable and president of Brookfield Asset Management.

Brookfield Renewable aims to deliver the renewable capacity between 2026 and 2030 in the U.S. and Europe, but projects could expand to include Asia-Pacific, India and Latin America, the company said in a news release. The projects will include solar, wind and other carbon-free energy generation technologies.

Microsoft aims to become carbon negative by 2030.

Here’s a look at other renewable energy news this week.

Bioenergy

Biden Team Sets Out Ethanol’s Path to Aviation Fuel Subsidies

(Reuters) The Biden administration on April 30 released guidance on its sustainable aviation fuel (SAF) subsidy program that allows corn-based ethanol to qualify as a feedstock, provided it is sourced from farms that use climate-friendly growing techniques.

The plan is likely to be bittersweet for the politically-powerful U.S. ethanol industry, eager to secure the subsidies but hoping for a lower hurdle. Air travel so far accounts for about 2% of U.S. carbon pollution and is one of the fastest growing sources.

President Joe Biden hopes that creating a subsidized market for lower-emissions SAF can contain that threat, while also giving a boost to farm country, an important constituency in November’s presidential election.

“President Biden, I think, understood intuitively the important role that America agriculture and farmers would play in this new future,” Agriculture Secretary Tom Vilsack said in announcing the plan.

SAF can be made from corn, soy or other agricultural products. But to access the SAF subsidies that make it economically viable to produce, refiners must demonstrate their fuel is 50% lower in emissions than petroleum jet fuel.

Ethanol-based SAF can meet that threshold, according to the guidance, but only if the corn farmers that supply it use agricultural practices that can hold carbon in the soil, including no-till, cover cropping and efficient fertilizer application.

Soy-based biodiesel will also qualify as a feedstock if its soy comes from farms using no-till and cover cropping, according to the announcement.

The plan was based on an update to the GREET climate model that covers the lifecycle emissions of ethanol and other biofuels under a variety of circumstances and includes the climate impact of related land use changes.

The biofuel lobby had pushed hard to ensure the GREET update would make it easy for ethanol to qualify as an SAF feedstock.

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Energy storage

Anson Inks Offtake Deal with LG Energy Solution

Australia-based Anson Resources said May 1 it will supply LG Energy Solution with battery grade lithium carbonate from Anson’s project in Utah’s Paradox Basin.

As part of the offtake agreement, Anson said it will supply up to 4,000 dry tonnes per annum (tpa) of battery-grade lithium carbonate from the project. The project, which has a first-phase startup production capacity of about 10,000 tpa, is expected to start operations in 2027/

The company said it also continues to progress negotiations with other potential customers.

Geothermal

Eavor, Alberta Government Launch Geothermal Drilling Accelerator

Geothermal company Eavor Technologies said April 30 it has joined the Alberta government and other stakeholders to develop the Alberta Drilling Accelerator (ADA), a “technology-agnostic, market-driven geothermal test site.”

The first-of-its-kind site in Canada will be available for use by any geothermal company as they pursue novel drilling techniques and technology development, according to a news release.

“With cumulative geothermal investment poised to reach $1 trillion by 2050, a geothermal arms race is very much underway to commercialize novel drilling techniques that accelerate geothermal development—exhibited by testing facilities in the United States, China and Iceland,” said Eavor Technologies CEO John Redfern. “As Canada’s first geothermal test bed, the Alberta Drilling Accelerator will help bring geothermal technologies to scale, supporting companies like Eavor. We commend the Government of Alberta for this bold initiative.”

The ADA also aims to help the province keeps pace with other government-supported geothermal test sites, such as Utah FORGE in the U.S., the Continental Deep Drilling Program in Germany, the Deep Drilling Project in Iceland and China’s drilling program, the release states.

Hydrogen

CIP, Uniper Form Hydrogen Partnership

Copenhagen Infrastructure Partners Energy Transition Fund partnered with global power producer Uniper on the GW-scale HØST PtX Esbjerg project, according to a May 2 news release.

The Danish power-to-X project under development will use electrolysis technology to produce hydrogen and ammonia for use by industry and for fertilizers and fuels.

The two companies plan to develop a model to bring up to 140,000 tons of green hydrogen annually to customers in Germany.

“While CIP has a significant portfolio of power-to-gas projects, Uniper’s strong position with German energy customers is a key enabler in establishing this new market,” said Karsten Plauborg, partner at CIP.

Uniper intends to include hydrogen from HØST in its green gas portfolio, the release states.

“We see great potential in this collaboration. HØST fits our strategic target of achieving at least 1 GW installed electrolyzer capacity by 2030 and our other electrolyser developments in Germany such as Green Wilhelmshaven,” said Uniper COO Holger Kreetz. “Uniper’s diversified hydrogen portfolio consists of various supply sources to guarantee competitive and secure supplies in line with customer needs.”

Solar

Southern Power Expands Miller Branch Solar Facility in Texas

Southern Co. subsidiary Southern Power will add a 180-megawatt (MW) second phase to its 200-MW Miller Branch Solar facility in Texas, the company said May 1.

Construction is about to start for the project’s first phase. The project, which Southern said has the potential to expand approximately another 500 MW, is located in Haskell County, Texas.

The expansion will increase Southern Power's portfolio of solar generation, operating or under construction, to more than 2,920 MW, the company said.

The second phase of the Miller Branch Solar facility is expected to begin commercial operations in second-quarter 2026.

Chaberton Energy, Pivot Energy Starts up Maryland Solar Project

Solar developer Chaberton Energy and Pivot Energy said May 1 they started generating power from the 4.3-MW Project Catherine solar facility.

Located in Cooksville, Maryland, the project sits on a 19-acre site and provides energy to Loyola University Maryland, St. Mary Coptic Orthodox Church and the surrounding community, according to a news release.

“Project Catherine helps leading institutions within the community gain access to clean, affordable, local energy,” said Pivot Energy COO Brit Gibson. “Our partnership with Chaberton and the willingness of St. Mary Church and Loyola University of Maryland to think outside the box made it possible to build this unique solar project.”

The project was originally developed by Chaberton and recently acquired by Pivot, a renewable energy provider and independent power producer.

Birch Creek, MN8 Energy Taps First Solar Modules

MN8 Energy, a New York-based renewable energy producer, has placed an order for 457 MW of advanced thin film solar modules from First Solar, the manufacturer said May 1.

The order, which comprises 170 MW of Series 6 Plus bifacial modules and 287 MW of Series 7 modules, will power projects in the northeastern and southern U.S.

Founded as Goldman Sachs Renewable Power in 2017, MN8 has a 3.2-gigawatt renewable energy portfolio delivering energy to corporations, government entities and utilities.

In a separate news release April 30, First Solar said it will supply St. Louis, Missouri-headquartered Birch Creek Energy with 547 MW of advanced Series 6 Plus Bifacial thin film photovoltaics (PV) modules for projects across the U.S.

Wind

Australia Grants Feasibility Licenses for Offshore Wind Projects

The Australian government has given six companies permission to explore the feasibility of developing offshore wind projects offshore Gippsland, Victoria.

Six additional licenses for projects could be granted to companies after completing consultations with First Nations, or indigenous groups, according to Australia’s Department of Climate Change, Energy, the Environment and Water.

Combined, the 12 projects could generate 25 GW of electricity, the department said in a May 1 news release.

The licenses allow developers to carry out environmental assessments.

Denmark-based Copenhagen Infrastructure Partners (CIP) and Ørsted were among the six companies that secured licenses.

In a separate news release, CIP said its areas—one 586 sq km and the other 689 sq km, could deliver enough electricity to power about 2.4 million homes. Together, the areas have a capacity of 4.4 gigawatts. The licenses were granted to CIP’s Flagship Funds for the planned Star of the South and Kut-Wut Brataualung wind farms.

Ørsted intends to have an offshore wind project operating off Gippsland in the 2030s, the company said. The company was granted one feasibility license, and it intends to secure a second. The planned cluster could generate a combined 4.8 GW of renewable energy, powering the equivalent of 4 million Australian homes.

Others granted licenses were High Sea Wind Pty Ltd., Gippsland Skies Pty Ltd. and Blue Mackerel North Pty Ltd.

In related news, CIP also announced the launch of platform company Southerly Ten to develop wind projects offshore Australia and New Zealand. Southerly Ten, which will receive capital from CIP’s Flagship Funds, will be led by Star of the South CEO Charles Rattray. The newly formed platform company will lead development of the Star of the South and Kut-Wut Brataualung offshore wind projects, CIP said in the release.

James Fisher Lands Contract for Services at Wind Farm Offshore Taiwan

James Fisher and Sons Plc said April 30 it was awarded a commissioning contract to provide high-voltage specialist personnel and safety management services at the Zhong Neng wind farm offshore Taiwan.

The 300-MW wind farm, which will feature 31 turbines, is being developed by China Steel Corp. and CIP. James Fisher said its renewables team will manage the high voltage network and electrical safety throughout the construction and commissioning phases of the onshore substation and wind turbine generators. Those phases are expected to last about 10 months.

“Taiwan has ambitious plans to achieve 20% renewable energy generation by 2025, and the growth in its offshore wind industry will play a significant role in this,” said Maida Zahirovic, head of renewables at James Fisher. “As with any ambitious growth plan, the journey won’t be without its challenges—but with collaboration across the entire supply chain and experienced industry players, Taiwan will soon enjoy a thriving renewables sector.”

Hart Energy Staff and Reuters contributed to this report.