Energy Transition in Motion (Week of Oct. 4, 2024)

China-headquartered Jiangsu Runergy New Energy Technology has started production at its solar module manufacturing facility in Huntsville, Alabama, the company said, lifting annual capacity in the U.S. by 2 gigawatts (GW).

The startup marked a milestone for Runergy’s expansion into North America and comes as the U.S. continued to see a surge in utility-scale solar electricity generation.

At nearly 60%, or 12 GW, solar accounted for the largest share of generating capacity additions during the first half of 2024, data from the U.S. Energy Information Administration shows.

Demand for solar energy is increasing as the renewable power source becomes more cost competitive. Companies, including Runergy, are stepping up domestic production of solar modules to meet growing demand.

“Runergy Alabama will reduce lead times, minimize reliance on overseas suppliers and provide customers with more reliable, cost-effective access to our solar technology,” said Jusong Wang, managing director of Runergy Alabama. “Runergy Alabama’s mission is to deliver its cutting-edge, high-efficiency N-type solar modules to meet the growing demand for clean energy solutions.”

Runergy isn’t the only company increasing manufacturing capacity in the U.S. Solar panel manufacturing capacity in the U.S. has surpassed 31 GW, a nearly fourfold increase since the Inflation Reduction Act (IRA) took effect in 2022, according to a September 2024 joint report by the Solar Energy Industries Association (SEIA) and Wood Mackenzie.

“In two years under the IRA, the solar industry has added 75 GW of new capacity to the grid, representing over 36% of all solar capacity built in U.S. history,” SEIA said in a news release. “Nearly 1.5 million American homes have installed solar since the IRA passed.”

Solar incentives in the IRA include an advanced manufacturing production tax credit that can be applied to the domestic production of components such as modules, photovoltaic cells and wafers and solar-grade polysilicon, among other items.

Here’s a look at other renewable energy news.

Energy storage

RWE Breaks Ground on Battery Storage Project Trio in Texas

Renewable energy developer RWE has broken ground on three battery energy storage system (BESS) projects in Texas, growing the number of storage projects it has under construction in the U.S. to 931 megawatts (MW).

The company on Oct. 2 said the Crowned Heron 1, Crowned Heron 2 and Cartwheel 1 BESS projects in Texas will have a combined power capacity of 450 MW. Once online, the projects will help stabilize the Electric Reliability Council of Texas grid, while moving RWE closer to its global battery storage growth target of 6 GW by 2030.

“These battery storage projects mark a significant step in our ongoing commitment to enhancing the energy infrastructure in Texas, while growing our energy storage portfolio,” said Hanson Wood, head of development, utility-scale renewables, for RWE Clean Energy. “When completed and operating, our Crowned Heron 1 and 2 and Cartwheel battery projects will serve as reliable energy storage solutions to enhance grid stability and support the state’s rapidly growing renewables sector.”

Located in Fort Bend County, Texas, Crowned Heron 1 is expected to be complete in the summer 2025 and followed that fall by Crowned Heron 2.

Cartwheel 1, set for commissioning in summer 2025, is located in Sulphur Springs, Texas, where the company also operates the 300-MW Bright Arrow solar farm with 100 MW of battery storage.

RWE’s other BESS projects under construction in the U.S. are located in Arizona and California.

Australia’s Alchemy Resources Signs Lithium Partnership with Japan’s JOGMEC

(Reuters) Australian miner Alchemy Resources said on Sept. 30 it signed an agreement for a Japanese government agency to earn up to 51% of its Roe Hills tenure in Western Australia by funding up to AU$6 million (US$4.15 million) of exploration costs.

Alchemy Resources would manage the project during the partnership period, and upon Japan Organization for Metals and Energy Security (JOGMEC) earning its vested interest in the tenements, the two companies will form a joint venture, the company said in a statement.

The Roe Hills tenure is part of the diversified miner’s Karonie lithium and gold project.

The agreement comes amid a global downturn in prices for electric vehicle (EV) battery materials lithium and nickel, which have been hit by slower-than-expected EV uptake.

JOGMEC is tasked with securing stable resource supplies for Japan, as concerns over critical mineral shortages grow.

As resource-rich Australia seeks investment from allies for green energy projects, the agreement aligns with efforts to bolster minerals crucial for the energy transition, which are at risk of supply chain disruptions.

Geothermal

US Grants 4-Year Extension Utah FORGE Geothermal Initiative

The Utah Frontier Observatory for Research in Geothermal Energy (FORGE) initiative, known for its efforts in advancing geothermal energy technologies in the U.S., will continue through 2028 after an agreement was reached with the U.S. Department of Energy (DOE).

Utah FORGE on Oct. 1 said the agreement with the DOE includes $80 million more in funding over the next four years. The extension will enable Utah FORGE, led by the University of Utah’s Energy & Geoscience Institute with partner organizations, to add to enhanced geothermal system breakthroughs the program has made since it began.

“This next phase allows us to build on our important achievements and to further develop and de-risk the tools and technologies necessary to unlock the potential of next-generation geothermal power,” said Joseph Moore, managing principal investigator for Utah FORGE.

The initiative’s project area is near Milford in Utah’s Beaver County.

US Navy Taps Sage Geosystems for Geothermal Initiatives in Texas

Sage Geosystems is taking its collaboration with the U.S. Department of Defense to another level as the U.S. Navy explores geothermal baseload power generation.

The Houston-based geothermal and energy storage company on Oct. 3 said it was selected to conduct geothermal project development initiatives at the Naval Air Station (NAS) in Corpus Christi, Texas. By harnessing heat from belowground to generate energy, microgrids could be created for use at the base, reducing its dependence on the utility grid while providing continuous power supply on-site.

“As we advance our Geopressured Geothermal Systems, we see tremendous potential to not only provide carbon-free power, but also strengthen the operational capabilities of U.S. military installations in an increasingly digital and electric world,” Sage Geosystems CEO Cindy Taff said.

Sage’s geopressured geothermal systems collect energy from pressurized water stored underground for both short- and long-duration periods. That energy, which leverages hot dry rock, can be dispatched when needed to the grid.

The company said it plans to work in partnership with the Department of Defense Innovation Unit and the Environmental Security Technology Certification Program to assess geothermal technologies and the integration of hybrid energy solutions such as energy storage, thermal use and dispatchable power for the U.S. Navy.

The expanded collaboration with the U.S. Department of Defense follows Sage-led geothermal initiatives at Fort Bliss and the Ellington Field Joint Reserve Base where geothermal energy solutions are being analyzed.

Hydrogen

Australia’s Origin Energy Plans to Exit Hunter Valley Hydrogen Hub

(Reuters) Australia’s Origin Energy said on Oct. 3 it intends to exit its potential hydrogen development project in the AU$207.6 million (US$142.60 million) Hunter Valley Hydrogen Hub (HVHH), located in New South Wales.

The country’s second-largest power producer said it also plans to cease work on all hydrogen development opportunities while remaining open to exploring other commercial options for the HVHH.

The decision to exit the Hunter Valley Hydrogen Hub reflects uncertainty around the pace and timing of development of the hydrogen market, and the risks associated with developing capital-intensive projects of this nature, Origin said in a statement.

“The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project,” Origin CEO Frank Calabria said.

Origin had announced plans for the potential hydrogen hub on Kooragang Island in early 2022 and had entered into a joint development agreement with Orica in July 2023 to progress the hub. A final investment decision on HVHH was still pending.

The New South Wales government had given planning approval to the HVHH project in May, with first production from the site targeted for 2026.

Solar

Recurrent Energy Closes $500MM Investment from BlackRock

Canadian Solar subsidiary Recurrent Energy closed on a $500 million investment from BlackRock’s Climate Infrastructure Global Renewable Power Fund IV, the solar company said Oct. 3.

The investment will enable Recurrent to advance its development portfolio as the company looks to become a long-term owner and operator of assets in the U.S. and Europe, it said.

“This strategic partnership positions Recurrent Energy at the forefront of the renewable energy industry, providing the financial strength necessary to continue developing key solar and energy storage projects globally, while also supporting our mission to deliver clean, reliable, and affordable power to the world, today and tomorrow,” Recurrent Energy CEO Ismael Guerrero, said in a news release.

Recurrent said it has developed, built and connected more than 11 GW of operating utility-scale solar projects and 3.7 gigawatt hours (GWh) of energy storage projects across six continents since 2009.

BlackRock’s investment represents 20% of the outstanding fully diluted shares of Recurrent on an as-converted basis, according to a release

TotalEnergies Cranks Up 1.2GW Solar Farms in Texas

TotalEnergies has started commercial operations at two utility-scale solar farms—Danish Fields and Cottonwood—in southeast Texas, the company said Sept. 30, adding 1.2 GW of solar capacity.

Located south of Houston in Brazoria County, the Danish Fields solar farm is the company’s largest solar farm in the U.S. The 720-MW Danish Fields project features 1.4 million ground-mounted photovoltaic (PV) panels along with a 225-MWh battery storage system, TotalEnergies said in a news release.

The 455-MW Cottonwood solar farm features more than 847,00 ground-mounted PV panels. The site will also have a 225-MWh battery storage system supplied by TotalEnergies’ battery subsidiary Saft. It is scheduled for commissioning in 2025.

TotalEnergies’ Danish Fields and Cottonwood solar farms are part of a portfolio of 4-GW renewable energy assets the Paris-based company is operating or constructing in Texas. The company said 70% of Danish’s electricity production has already been contracted via long-term power purchase agreements (PPA), including a 15-year PPA with materials and service company Saint-Gobain. TotalEnergies said it plans to use the rest to decarbonize its industrial plants in the U.S. Gulf Coast region. Electricity produced at Cottonwood is also contracted under long-term PPAs with chemicals company LyondellBasell and Saint-Goban.

US Sets Preliminary New Duties on Solar Imports from Southeast Asia

(Reuters) The U.S. Commerce Department on Oct. 1 announced anti-subsidy countervailing duties on solar cells imported by companies in Vietnam, Cambodia, Malaysia and Thailand that were lower than some expected for several major Chinese producers.

The announcement is the first of two preliminary decisions expected by the Commerce Department this year in a trade case brought by South Korea’s Hanwha Qcells, Arizona-based First Solar and several smaller companies seeking to protect billions of dollars in investments in U.S. solar manufacturing.

The group, called the American Alliance for Solar Manufacturing Trade Committee, accused Chinese companies with factories in the four Southeast Asian countries of flooding the U.S. market with panels priced below their cost of production and of receiving unfair subsidies that make American products uncompetitive.

Others in the solar industry say those low-priced imports are critical for both clean-energy project developers competing with fossil fuels and for domestic solar factories using overseas-made cells in panels assembled on U.S. soil.

According to a fact sheet posted on the Commerce Department’s website, the agency calculated general subsidy rates of 9.13% for imports from Malaysia, 8.25% for imports from Cambodia, 23.06% for imports from Thailand and 2.85% for imports from Vietnam.

Large manufacturers have their own separate duty rates, and several big China-based producers received far lower rates than Hanwha Qcells, a global producer that brought the trade case to protect its large investment in U.S. solar factories in Georgia.

The Commerce Department calculated a subsidy rate of 14.72% for Hanwha Qcells products produced in Malaysia, based in part on government loans and below-market land provisions to the company in that country. In comparison, a large Chinese-owned rival operating in Malaysia, Jinko Solar, received a subsidy rate of 3.47%. China’s Trina Solar received a duty rate of just 0.14% for products it makes in Thailand. In Vietnam, Chinese companies Boviet Solar and JA Solar received rates of 0.81% and 2.85%, respectively.

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Wind

BOEM Greenlights Atlantic Shores South Offshore Wind Project

Plans for the 2.8-GW Atlantic Shores South offshore wind project have been approved by the U.S. Bureau of Ocean Energy Management (BOEM), clearing the way to power about 1 million homes.

Atlantic Shores South is being developed as two projects off New Jersey by Shell New Energies and EDF Renewables North America’s Atlantic Shores Offshore Wind joint venture.

“Atlantic Shores is thrilled to receive approval to build our first two projects and deliver sufficient clean power to serve one third of New Jersey households,” said Atlantic Shores Offshore Wind CEO Joris Veldhoven. “Securing these critical approvals enables New Jersey’s first offshore wind project to start construction next year and represents meaningful progress in New Jersey achieving 100% clean energy by 2035.”

The construction and operations plan includes up to 197 total locations for wind turbine generators, offshore substations and a meteorological tower, with subsea transmission cables potentially making landfall in Atlantic City and Sea Girt, BOEM said in a news release.

The approval pushes the U.S. closer to its goal of deploying 30 GW of offshore wind energy capacity. So far, the Biden-Harris administration has approved more than 15 GW of clean energy from 10 offshore wind projects.

US Postpones Planned Wind Auction Offshore Oregon

The U.S. Bureau of Ocean Energy Management (BOEM) has delayed the wind energy auction for two lease areas offshore Oregon, it said Sept. 27.

The postponement was announced after BOEM said it received bidding interest from only one of the five companies that qualified to participate in the Oct. 15 lease auction.

“In determining a future opportunity for a potential lease sale, BOEM will continue to collaborate with representatives from federal, state and local agencies and Tribal governments to coordinate on potential leasing and support ongoing stakeholder engagement processes on broader offshore wind considerations, such as the state-led development of a strategic roadmap for offshore wind,” BOEM said in a news release.

The two lease areas—one in Coos Bay and the other offshore Brookings—have the potential to power about 1 million homes, according to BOEM.

UK’s SSE Pushes Back Dogger Bank Wind Project, Keeps Earnings Forecast

(Reuters) U.K. power generator and network operator SSE’s Dogger Bank A offshore wind project is not expected to be completed until the second half of 2025, but that would not impact its annual earnings guidance it said Oct. 3.

The project, originally expected to be completed in the first half of 2025, will have a total capacity of 1.2 GW, capable of powering around 2 million homes.

It is part of the wider Dogger Bank Wind Farm being developed in three phases, A, B and C – located between 130 km and 190 km from the North East coast of England. Collectively they will become the world’s largest offshore wind farm, the project’s website says.

The Perth, U.K.-based company forecast first-half adjusted earnings per share of more than 45 pence, and said that renewables performance for the six months ended Sept. 30 was higher than previous years, but in line with expectations, reflecting weather conditions during the period.

Macquarie Weighs Sale of Offshore Wind Developer, Sources Say

(Reuters) Australia’s Macquarie has engaged advisors for a potential sale of its subsidiary Corio Generation, one of the world’s largest offshore wind developers, two sources with knowledge of the matter said Oct. 1

Corio oversees a 30-GW pipeline of offshore wind projects spanning Europe, Asia-Pacific and the Americas. It includes 5 GW of projects across the U.K. such as West of Orkney in Scotland and Outer Dowsing off the east coast of England.

Macquarie plans to gauge interest from a handful of strategic and financial investors later this year for a full or minority stake sale, said the people, who spoke on condition of anonymity because they were not authorized to speak publicly.

Spokespeople at the Australian asset manager and Corio declined to comment.

The shift away from fossil fuels has triggered increased investment in offshore wind farms, which yield higher power output than onshore installations.

However, escalating material costs, significant infrastructure requirements, supply chain disruptions and design flaws are adding to costs of building the projects.

The valuation of Corio will hinge on how potential investors perceive the company's projects, which require billions of dollars in investment to become operational, according to one of the sources.

The potential sale follows Macquarie’s 2022 agreement with the Ontario Teachers’ Pension Plan to facilitate the development of some of Corio’s pipeline.

The Australian investment firm will continue deploying capital in the offshore wind sector via its managed funds, one of the sources said. In July, its funds took full control of the 194-MW Lynn and Inner Dowsing projects in the U.K.

Reuters and Hart Energy Staff contributed to this report.