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Green energy arm of Israeli BIG Holding announces new projects in Bosnia and Romania

Article Republished By Javier Troconis

Israeli group BIG Energia Holdings won a tender for the construction of a combined wind and solar project in Bileća in Bosnia & Herzegovina and entered into a long-term lease of property in Romania for the construction of a solar power plant, BalkanGreenEnergynews.com reported.

Hungary-registered BIG Energia Holdings is part of the Israeli group BIG Shopping Centers: the owner of AFI shopping malls in Romania. It aims to invest in green energy ventures and become a leading renewable energy player in Eastern Europe and the Balkans.

CEO of the company’s European operations Yossi Edelstein said that over the past year it has acquired projects amounting to 500 MW, translating to investments of €520mn in total. It is handling a total project pipeline of 1.4 GW. Construction of some of the projects is anticipated to begin in 2023.

BIG Energia Holdings will develop the wind and solar project in Bosnia in partnership with Israel’s Mega Or Holdings and through a local company. 

The power plant is envisaged to be built on state-owned land. It will comprise an 80 MW solar park and a 40 MW wind farm. The cost of development and construction will be approximately €108mn.

It estimates that gross revenues from sales of electricity would reach €14.6mn in the first year of operation after subtracting the fees paid to the electricity grid operator (based on a sale price of €60 per MWh). Total Ebitda is estimated at approximately €13mn annually.

The new solar project in Romania is worth €26mn and it comes on top of another wind farm planned in the country (97MW, €78mn-80mn investment).

BIG Energia Holdings has entered into a long-term land lease agreement, through a Romanian company it holds, with the aim to construct a photovoltaic plant. The development and construction cost is estimated at €26mn. The contract is for 35 years with an option for an additional term of 25 years.

The company expects gross revenues of approximately €3.5mn in the first year of operation after subtracting payments to the electricity grid, based on a sales price of €60 per MWh. Total Ebitda is estimated at €3mn annually.

The solar farm near Roşiori and Troianul in Romania’s south will have an estimated installed capacity of 40 MW.

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Green energy arm of Israeli BIG Holding announces new projects in Bosnia and Romania

Article Republished By Javier Troconis

Israeli group BIG Energia Holdings won a tender for the construction of a combined wind and solar project in Bileća in Bosnia & Herzegovina and entered into a long-term lease of property in Romania for the construction of a solar power plant, BalkanGreenEnergynews.com reported.

Hungary-registered BIG Energia Holdings is part of the Israeli group BIG Shopping Centers: the owner of AFI shopping malls in Romania. It aims to invest in green energy ventures and become a leading renewable energy player in Eastern Europe and the Balkans.

CEO of the company’s European operations Yossi Edelstein said that over the past year it has acquired projects amounting to 500 MW, translating to investments of €520mn in total. It is handling a total project pipeline of 1.4 GW. Construction of some of the projects is anticipated to begin in 2023.

BIG Energia Holdings will develop the wind and solar project in Bosnia in partnership with Israel’s Mega Or Holdings and through a local company. 

The power plant is envisaged to be built on state-owned land. It will comprise an 80 MW solar park and a 40 MW wind farm. The cost of development and construction will be approximately €108mn.

It estimates that gross revenues from sales of electricity would reach €14.6mn in the first year of operation after subtracting the fees paid to the electricity grid operator (based on a sale price of €60 per MWh). Total Ebitda is estimated at approximately €13mn annually.

The new solar project in Romania is worth €26mn and it comes on top of another wind farm planned in the country (97MW, €78mn-80mn investment).

BIG Energia Holdings has entered into a long-term land lease agreement, through a Romanian company it holds, with the aim to construct a photovoltaic plant. The development and construction cost is estimated at €26mn. The contract is for 35 years with an option for an additional term of 25 years.

The company expects gross revenues of approximately €3.5mn in the first year of operation after subtracting payments to the electricity grid, based on a sales price of €60 per MWh. Total Ebitda is estimated at €3mn annually.

The solar farm near Roşiori and Troianul in Romania’s south will have an estimated installed capacity of 40 MW.

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Green energy arm of Israeli BIG Holding announces new projects in Bosnia and Romania

Article Republished By Javier Troconis

Israeli group BIG Energia Holdings won a tender for the construction of a combined wind and solar project in Bileća in Bosnia & Herzegovina and entered into a long-term lease of property in Romania for the construction of a solar power plant, BalkanGreenEnergynews.com reported.

Hungary-registered BIG Energia Holdings is part of the Israeli group BIG Shopping Centers: the owner of AFI shopping malls in Romania. It aims to invest in green energy ventures and become a leading renewable energy player in Eastern Europe and the Balkans.

CEO of the company’s European operations Yossi Edelstein said that over the past year it has acquired projects amounting to 500 MW, translating to investments of €520mn in total. It is handling a total project pipeline of 1.4 GW. Construction of some of the projects is anticipated to begin in 2023.

BIG Energia Holdings will develop the wind and solar project in Bosnia in partnership with Israel’s Mega Or Holdings and through a local company. 

The power plant is envisaged to be built on state-owned land. It will comprise an 80 MW solar park and a 40 MW wind farm. The cost of development and construction will be approximately €108mn.

It estimates that gross revenues from sales of electricity would reach €14.6mn in the first year of operation after subtracting the fees paid to the electricity grid operator (based on a sale price of €60 per MWh). Total Ebitda is estimated at approximately €13mn annually.

The new solar project in Romania is worth €26mn and it comes on top of another wind farm planned in the country (97MW, €78mn-80mn investment).

BIG Energia Holdings has entered into a long-term land lease agreement, through a Romanian company it holds, with the aim to construct a photovoltaic plant. The development and construction cost is estimated at €26mn. The contract is for 35 years with an option for an additional term of 25 years.

The company expects gross revenues of approximately €3.5mn in the first year of operation after subtracting payments to the electricity grid, based on a sales price of €60 per MWh. Total Ebitda is estimated at €3mn annually.

The solar farm near Roşiori and Troianul in Romania’s south will have an estimated installed capacity of 40 MW.

Categories
Uncategorized

Green energy arm of Israeli BIG Holding announces new projects in Bosnia and Romania

Article Republished By Javier Troconis

Israeli group BIG Energia Holdings won a tender for the construction of a combined wind and solar project in Bileća in Bosnia & Herzegovina and entered into a long-term lease of property in Romania for the construction of a solar power plant, BalkanGreenEnergynews.com reported.

Hungary-registered BIG Energia Holdings is part of the Israeli group BIG Shopping Centers: the owner of AFI shopping malls in Romania. It aims to invest in green energy ventures and become a leading renewable energy player in Eastern Europe and the Balkans.

CEO of the company’s European operations Yossi Edelstein said that over the past year it has acquired projects amounting to 500 MW, translating to investments of €520mn in total. It is handling a total project pipeline of 1.4 GW. Construction of some of the projects is anticipated to begin in 2023.

BIG Energia Holdings will develop the wind and solar project in Bosnia in partnership with Israel’s Mega Or Holdings and through a local company. 

The power plant is envisaged to be built on state-owned land. It will comprise an 80 MW solar park and a 40 MW wind farm. The cost of development and construction will be approximately €108mn.

It estimates that gross revenues from sales of electricity would reach €14.6mn in the first year of operation after subtracting the fees paid to the electricity grid operator (based on a sale price of €60 per MWh). Total Ebitda is estimated at approximately €13mn annually.

The new solar project in Romania is worth €26mn and it comes on top of another wind farm planned in the country (97MW, €78mn-80mn investment).

BIG Energia Holdings has entered into a long-term land lease agreement, through a Romanian company it holds, with the aim to construct a photovoltaic plant. The development and construction cost is estimated at €26mn. The contract is for 35 years with an option for an additional term of 25 years.

The company expects gross revenues of approximately €3.5mn in the first year of operation after subtracting payments to the electricity grid, based on a sales price of €60 per MWh. Total Ebitda is estimated at €3mn annually.

The solar farm near Roşiori and Troianul in Romania’s south will have an estimated installed capacity of 40 MW.

Categories
Uncategorized

U.S.-UAE Partnership to Accelerate Transition to Clean Energy

Article Republished By Javier Troconis

The White House

The United States and the United Arab Emirates signed a major new clean energy framework on November 1 in Abu Dhabi. Today President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and United Arab Emirates announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels. The U.S.-UAE Partnership for Accelerating Clean Energy (PACE) is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximize climate benefits.

PACE’s ambitious plan is built upon four pillars: 1) Clean Energy Innovation, Deployment and Supply Chains, 2) Carbon and Methane Management, 3) Nuclear Energy, and 4) Industrial and Transport Decarbonization.

The United States and the UAE will set up an expert group to identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in financing, investment, and other support and deploying globally 100 gigawatts of clean energy.

Investment in Clean Energy in Emerging Economies

In addition to investing in both countries’ clean energy futures, the two countries intend to elevate climate action by vigorously pursuing and encouraging investment in clean energy in emerging economies. The U.S. and UAE are well aware of the need to bridge the gap between developed and developing countries in the investment in and deployment of clean energy to ensure global efforts to reduce emissions do not falter. To help bridge the gap, the two countries intend to work together to prioritize commercial projects in developing and low-income countries as well as provide them technical and financial assistance.

Spurring Clean Energy Innovation, Deployment and Supply Chains

Transitioning away from fossil fuels will depend upon new and emerging technologies and the scalable development of low-emission energy sources. Safeguarding the reliability of supply chains necessary for the new energy technologies to scale up is also essential. To make this happen, PACE intends to tap available resources and public and private sector expertise in the U.S. and the UAE and expedite investment in and deployment of new technologies to drive down cost. In addition, PACE plans to help facilitate investment in mining, production, and processing of critical minerals and materials that are vital for clean energy production.

Reducing carbon dioxide and methane emissions

PACE seeks to encourage existing and new technologies and pathways to cut harmful emissions from the hydrocarbon sector. The U.S. and UAE will take leadership in stepping up investment in fossil fuel emissions abatement technologies, as decarbonized hydrocarbons will be a source for hydrogen production as well as an input for durable and consumer goods. The two countries will give momentum to deploying and further developing new technologies for carbon capture, utilization, and storage, in addition to measuring and reducing greenhouse gas emissions across the hydrocarbon value chain. PACE also seeks to make methane abatement a global “fast mitigation strategy” this decade.

Promoting advanced nuclear energy as a clean energy solution

PACE supports the full-scale implementation of the civil nuclear cooperation between the U.S. and the UAE. Safety, security, and regulatory oversight will be priority areas of engagement. Nuclear energy can drive decarbonization in the power sector as well as hard-to-abate sectors, such as heavy industry and heavy-duty transport, because it can be used to produce hydrogen, industrially process heat, and desalinate water, among other things.

Tackling Industrial and Transportation Decarbonization

Reducing emissions in the industrial, long-haul maritime and aviation sectors are not easy because clean energy applications are limited in these sectors. PACE will encourage investment and project-level collaboration, in addition to spurring demand for net-zero emissions industrial products and helping to ramp up supply of such products. The U.S. and UAE intend to work together to scale up production of clean fuels in long-distance transport sectors such as aviation and shipping.

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.

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U.S.-UAE Partnership to Accelerate Transition to Clean Energy

Article Republished By Javier Troconis

The White House

The United States and the United Arab Emirates signed a major new clean energy framework on November 1 in Abu Dhabi. Today President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and United Arab Emirates announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels. The U.S.-UAE Partnership for Accelerating Clean Energy (PACE) is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximize climate benefits.

PACE’s ambitious plan is built upon four pillars: 1) Clean Energy Innovation, Deployment and Supply Chains, 2) Carbon and Methane Management, 3) Nuclear Energy, and 4) Industrial and Transport Decarbonization.

The United States and the UAE will set up an expert group to identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in financing, investment, and other support and deploying globally 100 gigawatts of clean energy.

Investment in Clean Energy in Emerging Economies

In addition to investing in both countries’ clean energy futures, the two countries intend to elevate climate action by vigorously pursuing and encouraging investment in clean energy in emerging economies. The U.S. and UAE are well aware of the need to bridge the gap between developed and developing countries in the investment in and deployment of clean energy to ensure global efforts to reduce emissions do not falter. To help bridge the gap, the two countries intend to work together to prioritize commercial projects in developing and low-income countries as well as provide them technical and financial assistance.

Spurring Clean Energy Innovation, Deployment and Supply Chains

Transitioning away from fossil fuels will depend upon new and emerging technologies and the scalable development of low-emission energy sources. Safeguarding the reliability of supply chains necessary for the new energy technologies to scale up is also essential. To make this happen, PACE intends to tap available resources and public and private sector expertise in the U.S. and the UAE and expedite investment in and deployment of new technologies to drive down cost. In addition, PACE plans to help facilitate investment in mining, production, and processing of critical minerals and materials that are vital for clean energy production.

Reducing carbon dioxide and methane emissions

PACE seeks to encourage existing and new technologies and pathways to cut harmful emissions from the hydrocarbon sector. The U.S. and UAE will take leadership in stepping up investment in fossil fuel emissions abatement technologies, as decarbonized hydrocarbons will be a source for hydrogen production as well as an input for durable and consumer goods. The two countries will give momentum to deploying and further developing new technologies for carbon capture, utilization, and storage, in addition to measuring and reducing greenhouse gas emissions across the hydrocarbon value chain. PACE also seeks to make methane abatement a global “fast mitigation strategy” this decade.

Promoting advanced nuclear energy as a clean energy solution

PACE supports the full-scale implementation of the civil nuclear cooperation between the U.S. and the UAE. Safety, security, and regulatory oversight will be priority areas of engagement. Nuclear energy can drive decarbonization in the power sector as well as hard-to-abate sectors, such as heavy industry and heavy-duty transport, because it can be used to produce hydrogen, industrially process heat, and desalinate water, among other things.

Tackling Industrial and Transportation Decarbonization

Reducing emissions in the industrial, long-haul maritime and aviation sectors are not easy because clean energy applications are limited in these sectors. PACE will encourage investment and project-level collaboration, in addition to spurring demand for net-zero emissions industrial products and helping to ramp up supply of such products. The U.S. and UAE intend to work together to scale up production of clean fuels in long-distance transport sectors such as aviation and shipping.

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.

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U.S.-UAE Partnership to Accelerate Transition to Clean Energy

Article Republished By Javier Troconis

The White House

The United States and the United Arab Emirates signed a major new clean energy framework on November 1 in Abu Dhabi. Today President Biden again demonstrated his deep commitment to ensuring a global clean energy future and long-term energy security as the United States and United Arab Emirates announced a robust partnership to ensure the swift and smooth transition toward clean energy and away from unabated fossil fuels. The U.S.-UAE Partnership for Accelerating Clean Energy (PACE) is set to catalyze $100 billion in financing, investment, and other support and to deploy globally 100 gigawatts of clean energy by 2035 to advance the energy transition and maximize climate benefits.

PACE’s ambitious plan is built upon four pillars: 1) Clean Energy Innovation, Deployment and Supply Chains, 2) Carbon and Methane Management, 3) Nuclear Energy, and 4) Industrial and Transport Decarbonization.

The United States and the UAE will set up an expert group to identify priority projects, remove potential hurdles, and measure PACE’s progress in achieving its goal of catalyzing $100 billion in financing, investment, and other support and deploying globally 100 gigawatts of clean energy.

Investment in Clean Energy in Emerging Economies

In addition to investing in both countries’ clean energy futures, the two countries intend to elevate climate action by vigorously pursuing and encouraging investment in clean energy in emerging economies. The U.S. and UAE are well aware of the need to bridge the gap between developed and developing countries in the investment in and deployment of clean energy to ensure global efforts to reduce emissions do not falter. To help bridge the gap, the two countries intend to work together to prioritize commercial projects in developing and low-income countries as well as provide them technical and financial assistance.

Spurring Clean Energy Innovation, Deployment and Supply Chains

Transitioning away from fossil fuels will depend upon new and emerging technologies and the scalable development of low-emission energy sources. Safeguarding the reliability of supply chains necessary for the new energy technologies to scale up is also essential. To make this happen, PACE intends to tap available resources and public and private sector expertise in the U.S. and the UAE and expedite investment in and deployment of new technologies to drive down cost. In addition, PACE plans to help facilitate investment in mining, production, and processing of critical minerals and materials that are vital for clean energy production.

Reducing carbon dioxide and methane emissions

PACE seeks to encourage existing and new technologies and pathways to cut harmful emissions from the hydrocarbon sector. The U.S. and UAE will take leadership in stepping up investment in fossil fuel emissions abatement technologies, as decarbonized hydrocarbons will be a source for hydrogen production as well as an input for durable and consumer goods. The two countries will give momentum to deploying and further developing new technologies for carbon capture, utilization, and storage, in addition to measuring and reducing greenhouse gas emissions across the hydrocarbon value chain. PACE also seeks to make methane abatement a global “fast mitigation strategy” this decade.

Promoting advanced nuclear energy as a clean energy solution

PACE supports the full-scale implementation of the civil nuclear cooperation between the U.S. and the UAE. Safety, security, and regulatory oversight will be priority areas of engagement. Nuclear energy can drive decarbonization in the power sector as well as hard-to-abate sectors, such as heavy industry and heavy-duty transport, because it can be used to produce hydrogen, industrially process heat, and desalinate water, among other things.

Tackling Industrial and Transportation Decarbonization

Reducing emissions in the industrial, long-haul maritime and aviation sectors are not easy because clean energy applications are limited in these sectors. PACE will encourage investment and project-level collaboration, in addition to spurring demand for net-zero emissions industrial products and helping to ramp up supply of such products. The U.S. and UAE intend to work together to scale up production of clean fuels in long-distance transport sectors such as aviation and shipping.

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.

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£40 million heat network could make Bradford leader in green energy

Article Republished By Javier Troconis

AN energy company plans to spend over £40m to create the UK’s largest low-to-zero carbon district heating network beneath the streets of Bradford.

And it is hoped the ambitious scheme will help Bradford become one of the leading cities for clean growth.

The plans will see a new energy centre built in the city centre, using air source heat pumps to provide green heating measures to buildings that sign up as customers.

And work to lay the pipe will begin later this month with a view to have the network up and running by 2025.

The network could heat civic buildings in the city centre, including City Hall, the Law Courts and the Alhambra Theatre.

New developments such as Bradford Live and One City Park could also be linked up.

And any building near the underground pipes will be able to become part of the heat network.

One possible site of the proposed energy plans would be the former Beehive Mills site off Thornton Road.

The plant would house huge air source heat pumps that extract heat from the air which is then used to heat water to be pumped through five kilometres of pipes under the city.

A planning application for that plant has just been submitted to Bradford Council.

The group set up to deliver the scheme – Bradford Energy Limited, spoke to the Telegraph & Argus about its plans.

The company said the work will be timed to coincide with road works around Transforming Cities Fund schemes, including the pedestrianisation of Hall Ings, which are due to begin in the coming months.

The company is a subsidiary of 1Energy – a company that has created 45 heat networks across the country over the past 15 years.

Andrew Wettern, CEO, said the network would help slash carbon emissions generated by city centre buildings – most of which use gas heating.

Although the heating provided by the network would initially cost more than gas heating, he said it would be a much more stable energy source – not subject to the fluctuations seen in the gas market recently.

It would also help organisations and businesses with their aims of achieving “net zero.”

Mr Wettern said: “It will help make Bradford a clean growth city. There aren’t many low carbon heat networks – most use gas.

“It will be the largest heat network in the UK by the time it is built. This is the first city centre network delivered by the private sector.”

He pointed out that with it being a privately delivered scheme, any risks would not fall on the taxpayer.

Once up and running, carbon dioxide equivalent emissions will be reduced by approximately 8,000 tonnes per year – roughly equal to 36 million miles of the average UK internal combustion engine car.

Mr Wettern said: “It will have a big impact on air quality. It is very supportive of the Clean Air Zone. That is removing pollution from vehicles, and this will remove carbon from buildings.”

The network will be built in two phases – the first initially offering connections to around 30 major buildings focusing on an east-west alignment running roughly between the University of Bradford in the west to the Crown Court in the east. A second, planned phase will see the pipe network expanded to cover areas to the north and south of phase one, potentially connecting as far north as Foster Square retail park and south as far as Park Road.

Mr Wettern added: “Our plans for the Bradford Energy Network will offer businesses, organisations and new developments the cheapest method available to decarbonise their heating systems.

“Our system will offer secure, locally sourced and reliably priced heating that allows customers to plan ahead to comply with the UK legal requirement for the country to be carbon neutral by 2050, and to meet the Council’s aspiration for the district to reach this milestone by 2038.

“With the decarbonisation of heating being one of the most difficult areas to address, many businesses and organisations are wondering how they can cost-effectively, quickly and simply achieve decarbonisation.

“We believe the Bradford Energy Network can help to speed up decarbonisation, can reduce the cost of the transition to low carbon for heat users, and deliver a range of benefits to the wider city.”

A heat network that would have been developed by Bradford Council was proposed for the city centre several years ago – but never progressed.

On the news of the new plans, Bradford Council spokesman said: “As a privately funded project, this scheme is a sign of the growing confidence in Bradford’s future. By enhancing our ability to grow the economy sustainably, Bradford will have an advantage over many other places and so we warmly welcome the investment and the opportunities it will bring.”

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Geothermal could become workhorse of energy transition

Article Republished By Javier Troconis

Science Communications

CAMBRIDGE, MA–Geothermal energy—the heat deep below our feet—has the potential to become the workhorse of the energy transition as it grows from supplying just 0.4 percent of the world’s energy today to upward of 20, 30, and even 50 percent by 2050. That’s according to the co-founder and CEO of a company working to tap the mother lode of that energy who presented at the SOSV Climate Tech Summit 2022 held October 25-26. SOSV is a global venture capital firm.

Carlos Araque of Quaise Energy made those remarks during a panel discussion titled, “Is this geothermal’s moment?” Quaise is developing a unique drilling technique to reach the hot rock some two to 12 miles beneath the Earth’s surface. Araque was joined by Kathy Hannun, co-founder and president of Dandelion Energy, a firm working on a different “flavor” of geothermal, or using it to heat and cool residential homes today. The Dandelion process uses established technology that doesn’t require such deep drilling.

“I didn’t know much about geothermal until I started diving into [it] for this panel,” said Moderator Candice Ammori, founder of The Climate Vine, which advises climate tech startups. “I’m excited to say now that I’m a believer in geothermal. I think there’s a fair amount of hype…but I actually think that there probably should be more hype.”

Araque and Hannun went on to not only describe the biggest barriers to scaling up their businesses for the world, but also what other geothermal problems they are “itching for people to solve,” according to Ammori.

First, however, the two described why geothermal could be so important. In addition to being clean and global, geothermal provides a baseload energy source that’s available 24/7, even if it’s cloudy out or there’s no wind. It’s also “the most powerful and abundant renewable on Earth,” said Araque, “much more so than wind, solar, nuclear, and all fossil fuels combined.”

In addition, Araque said, it’s important to weigh an energy source by its impact on externalities like the environment, land use, and mineral use. “When you look at the [problem] from this lens—how much land use per unit of energy you produce, the amount of materials necessary per unit of energy, and how much carbon dioxide you produce per unit of energy—you start realizing that geothermal comes out way, way ahead of anything else.”

Barriers and Solutions

To fully tap the resource, however, will be very capital intensive and time intensive. “It’s very hard to achieve anything in our space with a million dollars or even $10 million,” Araque said. “You have to start playing at the $100 million level or even $1 billion level. This is what it costs to get [deep geothermal] developed and deployed at portfolio levels.”

Further, the Quaise technology involved in deep drilling has been demonstrated in the lab, but not yet in the field. And that will take time.

However, Araque said that by the end of the decade Quaise aims to create power from a coal- or gas-fired power plant that has been converted to geothermal. “You feed in geothermal steam instead of steam from a fossil-fuel boiler. That in a brushstroke decarbonizes the power plant, and you can repeat that 10,000 times over with other plants.”

The key to making deep geothermal a reality? “You leverage the oil and gas industry,” said Araque, who himself comes from that industry. “I think of them as a ready-made workforce, supply chain, and regulatory framework that can push this into the world at the scale that’s required.”

Hannun noted that for Dandelion, simplifying complexity will be key to bringing down the costs associated with using geothermal for heating and cooling of residential homes. “It’s hard to advance our building stock and change all of the buildings that already exist [to geothermal because] they’re all slightly different and there’s a lot of complexity to manage. So a lot of our focus is on making geothermal [heat pumps] as simple to get into homes as it is to install a furnace or air conditioner.”

Room for Entrepreneurs!

Ammori ended the session by asking Hannun and Araque about remaining geothermal challenges that other entrepreneurs could tackle. Both agreed that better imaging systems to see underground are important. For deep geothermal, Araque said that there’s a need for electronics that can withstand the high temperatures associated with the resource. Hannun noted that anything related to weatherizing homes will help the geothermal heating and cooling industry.

She also stressed that for both her and Araque’s industries, “I would encourage entrepreneurs not to just look at the central core technology, but also the enabling technologies, products, or businesses around permitting, licensing, and transmission. There are [many] things in the ecosystem that need to happen to enable scale.”

Araque concluded by noting that the energy transition itself is an unsolved problem. “Don’t for a second think that it’s just a matter of scaling what we have. There’s plenty of space for innovation. This is the greatest challenge of many generations, not just ours, and we need all human capital on the problem.”

Watch “Is this geothermal’s moment?” | SOSV Climate Tech Summit 2022

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.

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How Record U.S. Gas Exports Could Fuel The Energy Transition

Article Republished By Javier Troconis

How Record U.S. Gas Exports Could Fuel The Energy Transition | OilPrice.com

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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Premium Content

  • Climbing domestic natural gas prices could accelerate the energy transition in the United States.
  • It is Europe that is changing the price environment for natural gas on a global scale.
  • Rystad Energy: on an LCOE base, solar is now 10 times cheaper to build in Europe than new natural gas generation capacity.

The United States has been exporting natural gas at record levels this year, with exporters making big profits on it and expected to continue making big profits because of Europe’s continued demand for the commodity. Yet prices at home have begun to climb higher, too, because natural gas production is growing at a much lower rate than exports. One team of analysts warned as early as the beginning of this year that eventually, U.S. gas prices and global gas prices will converge. For some, this would be good news.

Right now, the gas supply and demand situation looks more or less under control. Prices at home are down significantly, and exports are not rising as fast as they were in early 2022 because Europe’s storage facilities are full.

Meanwhile, over the first ten months of the year, U.S. LNG exporters shipped 11 percent more of the commodity abroad, with exports to Europe soaring by 150 percent, according to data from Kpler cited by Reuters.

It is Europe that is changing the price environment for natural gas on a global scale because Russian pipeline gas is not coming back anytime soon, while Europe has a long way to go to wean itself off natural gas as a whole. This means it will need even more U.S. LNG next year—this year, it had Russian gas until June. And this means that prices for gas at home will go higher because production will continue lagging behind demand.

According to Reuters’s Gavin Maguire, this could stimulate the transition to alternative energy sources based on their economics. On a levelized cost of electricity basis, he wrote, some forms of low-carbon energy, such as solar and onshore wind, are already much cheaper than natural gas power plants.

Related: Deep OPEC Output Cuts Upend Biden’s Attempt To Lower Oil Prices

Indeed, Norwegian energy consultancy Rystad Energy also estimated that solar in particular, is now 10 times cheaper to build in Europe than new natural gas generation capacity. Again, on a levelized cost of electricity basis.

The concept of LCOE is the basis normally used as a basis for the promotion of wind and solar as opposed to fossil fuel generation capacity. However, many critics oppose the use of this metric because it can be quite misleading.

First, the LCOE overlooks certain costs that are present in reality. Second, it assumes a certain level of electricity production that may or may not materialize because, ultimately, the output of wind and solar depends on the weather, and the weather is not exactly a reliable, immutable factor. Thirdly and perhaps most importantly, LCOE does not account for the backup baseload capacity necessary for every MW of wind or solar.

In other words, building more wind and solar capacity might actually end up necessitating the construction of more gas-powered plants to be used as a backup during the night for solar, or on windless days, for wind.

This is where federal subsidies for renewable energy come in. These could go a long way towards making wind and solar more economical than gas and coal generation. Yet the need for backup capacity will remain, meaning the demand for gas will remain. And this would make the situation with gas prices and electricity affordability even more complicated in the United States.

“Asian and European natural gas prices stand at $35 per mmbtu, versus $8.20 per mmbtu here in the United States. Given the underlying fundamentals that have now developed in US gas markets, we believe prices are about to surge and converge with international prices within the next six months,” investment firm Goehring & Rozencwajg said in May this year.

So far, prices haven’t surged that high for various reasons, notably the pipeline shortage in Texas that pushed gas prices to zero earlier this month. A glut of LNG tankers in Europe also affected short-term prices, as did warmer-than-usual October weather across Europe. Yet demand for gas remains robust and will only increase as winter begins—and it is about to begin, for real.

Interestingly, investment banks seem to expect prices to remain relatively low next year, with Goldman forecasting an average of $5 per million British thermal units and Bank of America seeing it at $4.50 per mmBtu. This year’s price jumped because of record exports. Next year, this record will be broken if Europe continues to rely on U.S. LNG, which it will, for lack of alternatives.

Yet even if the banks turn out to be right and U.S. gas prices remain below this year’s average, which so far has been $6.60 per mmBtu, it would be a significant increase on gas prices from the past few years. On its own, this may not be enough to motivate a lot more wind or solar capacity. Federal subsidies, however, are another matter. They would certainly help the energy transition in the U.S., whatever the price of gas.

By Irina Slav for Oilprice.com

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