Energy Transition in Motion (Week of Sept. 27, 2024)

Utilities for Net Zero Alliance, comprised of nearly three dozen of the world’s largest utilities and other partners, pledged this week to jointly invest more than $116 billion annually in grids and renewables.

The announcement Sept. 24 during New York Climate Week was delivered amid efforts to advance agendas to grow clean energy power systems while expanding and modernizing grid infrastructure.

The group of about 40 partners—including EDF Renewables, RWE, Siemens, Ørsted and Octopus Energy—formed during COP28 with ambitions to scale renewables portfolios 2.6 times by 2030. It’s guided by the International Renewable Energy Agency (IRENA) and the UN Climate Change High-level Champions.

“IRENA estimates the world’s investment needs for infrastructure at USD $720 billion every year by 2030. The bulks will need to come from the private sector,” said Francesco La Camera, director-general of IRENA. “Today’s commitment to invest in renewables and in power grids is a significant step towards closing the finance gap, showcasing the central role that utilities play in transforming our energy systems and realizing net zero targets.”

By working together, global utilities and power companies aim to overcome barriers to reaching net-zero ambitions by 2050.

The committed investment includes $60 billion per year in renewables and more than $56 billion per year in grids for the coming years. The companies also encouraged original equipment manufacturers to expand production to support the effort and released a list of supply chain recommendations for policy makers. The recommendations cover power grids, wind energy, solar energy, hydropower and storage.

“There is no transition without transmission, and there is no transmission without the supply chain,” said Marcus Stewart, head of Secretariat Green Grids Initiative. “This requires a rapid expansion of the supply chain to build the infrastructure we desperately need, but the supply chain needs clear commitments from policy makers to do that.”

Here’s a look at other renewable energy news.

Energy storage

E3 Lithium Commissions Lithium Carbonate Reactors

Calgary, Alberta-based E3 Lithium on Sept. 26 said the company commissioned its demo-scale lithium carbonate conversion reactors in the lab for use in field demonstrations.

The reactors enable the company to “produce lithium carbonate using similar, yet small-scale equipment operating at the same temperature and chemical operating conditions as a commercial system,” E3 said in a news release. The reactors will eventually be used at its planned Lithium Brine Demonstration Facility, which aims to produce battery-grade lithium carbonate from brines in the Leduc reservoir in Alberta.

“By expanding our Calgary lab with advanced equipment and know-how for producing battery-grade lithium carbonate, E3 can advance its engineering initiatives with more efficiency and lower cost,” said E3 Lithium CEO Chris Doornbos. “These developments strengthen E3’s ability to establish a reliable and competitive lithium supply in Alberta that will help with the increasing demand for battery-grade lithium in North America.”

Geothermal

Sage Lands US Air Force Grant to Test Geothermal Technology

The U.S. Department of the Air Force on Sept. 24 said it awarded Sage Geosystems a $1.9 million grant to construct a scaled-down version of a geopressured geothermal power plant in Texas next year.

Sage will match the grant with an additional $1.9 million for the demonstration project, according to a news release.

The demonstration project will be located at Sage’s test well site in Starr County, Texas. If successful, the demonstration could lead to a full-scale project at Ellington Field Joint Air Reserve Base in Houston, the Air Force said.

Using fracking technology, Sage’s geopressured geothermal system collects energy from pressurized water stored underground for both short- and long-duration periods. That energy can be dispatched when needed to the grid. The technology also enables power plants to harvest heat energy from the water.

 “Next generation geothermal technologies, like Sage Geosystems’ GGS, will be critical in providing energy resiliency at U.S. military installations,” Sage Geosystems CEO Cindy Taff said.

Using the Ellington Field Joint Reserve Base in Houston as its proving ground, the Air Force is evaluating the use of smaller geothermal systems to cost-effectively generate power on the base. It has potential for a wider deployment.

“We would build geothermal energy power plants at every Air Force installation if we could,” said Kirk Phillips, director of the Air Force Office of Energy Assurance. “Geothermal power is renewable, it is secure, it is reliable, it is cost effective and the systems to produce power from heat are well-understood.”

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Hydrogen

EU Changes Hydrogen Project Auction Rules to Limit Chinese Presence

(Reuters) The European Union announced changes to its rules governing auctions for hydrogen grants in an effort to limit EU dependence on China in its renewable energy supply chain, the new terms published on Sept. 27 showed.

China has become a dominant force in solar and electric vehicles, and is increasingly competitive with European wind power producers. The European Commission is taking steps to limit creating a systemic reliance on Beijing with new rules, investigations and possible tariffs on Chinese EVs.

The EU’s Hydrogen Bank will run its second renewable hydrogen auction on Dec. 3 to provide up to 1.2 billion euros (US$1.34 billion) in grants to new projects.

Earlier this year, the bank allocated nearly 720 million euros (US$803.52 million) to seven renewable hydrogen projects, but Europe’s industry raised concerns that the winners were relying on cheaper Chinese-made parts.

The EU’s climate chief said earlier this month the auction rules would be changed to favor local companies.

In the upcoming round, projects cannot have parts sourced from China exceeding 25% of the plant’s production capacity.

‘Chinese production capacity is already more than 50% of global production... it is assessed that there is a significant risk of increased and irreversible dependency of the EU on imports of electrolyzers originating in China, which may threaten the EU’s security of supply,” the term sheet said.

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Solar

First Solar Adds Capacity with $1.1B Alabama Facility

Solar panel maker First Solar has grown its manufacturing capacity by 3.5 gigawatts (GW) with the addition of a $1.1 billion thin-film manufacturing plant in Alabama.

The company on Sept. 26 said it inaugurated the Lawrence County facility. The addition, along with three factories in Ohio, will lift First Solar’s U.S. manufacturing capacity to nearly 11 GW and its global capacity to more than 21 GW.

“This is the first of two fully vertically integrated solar manufacturing facilities that solidify the role of the Gulf Coast states in enabling America’s all-of-the-above energy strategy,” said First Solar CEO Mark Widmar. “This energy technology manufacturing facility produces American solar panels, with American-made components sourced from a supply chain that spans the country.”

Construction of the other facility, located in Iberia Parish, Louisiana at the Acadiana Regional Airport, is underway. The $1.1 billion facility will have a 3.5-GW manufacturing capacity. It is expected to be commissioned in the second half of 2025.

The company said its manufacturing process transforms a sheet of glass into ready-to-ship thin film solar panels in about four hours. The recently inaugurated Alabama facility produces Series 7 modules.

Octopus Energy Invests in US Solar Developer

(Reuters) Octopus Energy’s generation division said on Sept. 27 it will invest in U.S. solar developer Circal to create 600 megawatts (MW) of new solar farms as the U.K.-based company expands further in the U.S. renewables sector.

Three months ago, Octopus Energy made its first investment in the U.S. market with the acquisition of solar farms in Ohio and Pennsylvania.

Octopus’ investment in Circal will scale up their expansion. It targets the creation of 600 MW of new solar farms in the U.S. in the next five years, with a focus on Texas. This would be enough green power for 40,000 Texan homes. Financial details were not disclosed.

“The U.S. continues to break its records with the amount of clean, cheap, solar power it is building. We entered America’s renewables market just three months ago and have big ambitions to build even more green power,” said Zoisa North-Bond, CEO of Octopus Energy Generation.

On Sept. 26, Octopus said it would invest 2 billion pounds ($2.7 billion) in British clean energy projects by 2030. The company announced the plan as it finalized the acquisition of four solar projects in England with a combined capacity of 222 MW from Germany’s BayWa. Due to be operational between 2025 to 2026, the solar farms will produce enough power for 80,000 homes.

Earlier this week, Octopus Energy Generation said it acquired solar and battery storage developer Exagen Group to expand its renewable energy pipeline. Exagen, which develops utility-scale renewable energy and storage projects, said on Sept. 24 it has generation capacity of more than 2.4 GW in development in England.

Origis, TVA Sign 200-MW Solar, Storage PPA in Mississippi

Origis Energy agreed to provide solar power from the 200-MW Hope Solar+Storage project it is developing in Mississippi to the Tennessee Valley Authority as part of a power purchase agreement, the solar producer said Sept. 24.

Located in Clay County, Mississippi, the project will have an 800 megawatt-hour storage facility. The solar and storage project is expected to begin commercial operations at the end of 2028.

“This partnership connects us to those we serve and is good news for multiple stakeholders,” Johan Vanhee, chief commercial and procurement officer for Origis Energy, said in a news release. “Industrial customers benefit by meeting their decarbonization goals. Residential customers benefit from clean energy that contributes to reliable, affordable, predictable rates. Communities near these projects benefit through the economic activity of construction and job growth from industries these projects attract.”

TVA said its region’s population is growing three times faster than the national average. The Sept. 24 announcement followed three other solar projects on which Origis and TVA have partnered. They are the 150-MW Golden Triangle II, which began operations in Lowndes County earlier this year; the 200-MW Golden Triangle I, slated to start commercial operations in 2025 in Lowndes; and the 200-MW Optimist, expected to start operations in early 2026 in Clay County, according to the release.

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Wind

RWE Awards Contracts for Wind Projects Offshore UK

Renewable energy developer RWE on Sept. 26 said it awarded two contracts to Lamprell Energy to supply transition pieces for the Norfolk Vanguard West and Norfolk Vanguard East being developed off the U.K. East Coast.

Transition pieces connect turbine towers to monopile foundations.

Combined, the offshore wind projects—acquired by RWE in March 2024—will have a total installed capacity of 2.8 GW. The projects are part of a trio of wind projects, off the coast of Norfolk in East Anglia, that comprise the Norfolk Offshore Wind Zone. The other wind project is Norfolk Boreas.

Lamprell’s work scope includes the manufacture and supply of transition pieces for both wind farms, and the transportation of the structures to RWE’s official marshaling port, once this has been decided, RWE said in a news release. Lampress will fabricate the transition pieces with the serial production line the company completed earlier this year.

Luxcara Taps Havfram for Wind Project in German North Sea

Havfram, a transport and installation services provider for offshore wind projects, has signed a contract to provide such services for the 270-MW Waterkant offshore wind farm in the German North Sea, it said Sept. 25.

The company signed a contract with Luxcara, a German asset manager, to carry out the work.

According to a news release, the contract covers the vessel charter for the transport and installation of 16 turbines. Havfram plans to do the work in spring 2028 using one of its advanced wind turbine installation vessels, currently under construction.

“This agreement not only expands our growing client portfolio, but also strengthens our contract backlog,” said Havfram Wind CEO Even Larsen. “With our two state-of-the-art wind turbine installation vessels that are due to be delivered second half of 2025, Havfram is perfectly equipped to meet the challenges of the offshore wind industry.”

French Bank Credit Agricole Buys Stakes in 11 Wind Farms

(Reuters) French bank Credit Agricole said on Sept. 27 that its Credit Agricole Transitions & Energies unit had bought stakes of up to 32% in 11 wind farms in France.

France hopes to have 45 GW of offshore wind in operation by 2050 to achieve carbon neutrality. The country lags others in offshore wind due to complex permit procedures and multiple appeals lodged against projects.

Furthermore, the EU wants more wind power in the region, having struck a deal in July with Deutsche Bank to finance more investments in this sector.

The EU wants banks to support increasing the roll-out of renewable energy to help meet climate policies and improve energy security in the wake of Russia’s invasion of Ukraine.

A report earlier this month by the International Renewable Energy Agency showed that new renewable power capacity last year reached a record 473 GW.

Reuters and Hart Energy Staff contributed to this report.