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TotalEnergies powers up its largest utility-scale solar farms in Texas

ready to shine

TotalEnergies has started up two new solar farms in Texas. Photo by Red Zeppelin/Pexels

TotalEnergies has begun the commercial operations of two utility-scale solar farms with integrated battery storage located in southeast Texas.

The two farms are located in Cottonwood and Danish Fields, which is TotalEnergies’ largest solar farm in the United States.

“The start-ups of Danish Fields and Cottonwood in the fast-growing ERCOT market showcase TotalEnergies’ ability to deliver competitive renewable electricity to support our clients’ decarbonization goals, as well as our own,” Olivier Jouny, senior vice president of renewables at TotalEnergies, says in a news release.

The new projects have a combined capacity of 1.2 gigawatts. They are part of a portfolio of renewable assets totaling 4 gigawatts in operation or under construction currently in Texas. Danish Fields holds a capacity of 720 megawatts peak and 1.4 million ground-mounted photovoltaic panels.

Cottonwood, with a capacity of 455 megawatts peak featuring over 847,000 ground-mounted photovoltaic panels, will also feature 225 megawatt hours of battery storage supplied by Saft. This is scheduled for commissioning in 2025. The electricity production is contracted under long-term PPAs indexed to “merchant prices through an upside-sharing mechanism with LyondellBasell and Saint-Gobain,” per thenews release. The deal is to help support the companies’ decarbonization efforts.

Seventy percent of Danish’s solar capacity has been contracted through long-term Corporate Power Purchase Agreements signed with Saint-Gobain, which feature an upside sharing mechanism indexed on merchant price. The other 30 percent is intended to support the decarbonization of TotalEnergies’ industrial plants in the Gulf Coast region. The projects will cover the electricity consumption of TotalEnergies’ industrial sites in Port Arthur and La Porte in Texas, and Carville in Louisiana, which include Myrtle Solar that was commissioned in 2023 and the under-construction Hill 1 solar farm.

In addition to the solar farms, TotalEnergies has also added 1.5 gigawatt of flexible power production capacity with three gas-fired power plants they acquired in Texas.

“Thanks to these projects, we are delighted to take another step in delivering our strategy across the entire value chain, from power generation to customer delivery, in order to achieve our profitability target of 12 (percent return on average capital employed) in our Integrated Power business,” Jouny adds in the release.

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Texas has the most utility-scale solar capacity installed and is home to 20 percent of the overall U.S. solar fleet. Photo via Getty Images

Texas passes California on national report of top solar states

by the numbers

For the first time, Texas has passed California in the second quarter of 2024 to become the top solar state in the country.

The American Clean Power Association's quarterly market report found that, by adding 3,293 megawatts of new solar year-to-date, Texas has the most utility-scale solar capacity installed, comprising 20 percent of the overall U.S. solar fleet. The American Clean Power Association, which represents over 800 energy storage, wind, utility-scale solar, transmission, and clean hydrogen companies, found that Texas is home to 21,932 megawatts of capacity,

By utilizing clean energy initiatives, Texas included 1.6 gigawatts of new solar, 574 megawatts of storage, and 366 megawatts of onshore wind. With more than 28,000 megawatts, Texas had the highest volume of clean power development capacity in the second quarter. About 163,000 megawatts of capacity overall are in the works throughout the United States. Texas ranks No. 1 for total operating wind capacity and total operating solar capacity, and comes in second for operating storage capacity.

Texas again led in production levels with clean power construction projects nationally, which boasts more than 19,000 megawatts worth of clean power energy currently under construction. With almost 28.3 gigawatts in advanced development or under construction, Texas continues to come in at No.1, as California is next with over 16.4 gigawatts in the state’s project pipeline.

California added more than 1,900 megawatts of new clean power capacity in the second quarter, with its clean energy development behavior leaning more towards adding storage, which amounts to 60 percent of California’s year-to-date clean power installations.

According to the report from SmartAsset, the Lone Star State has the most clean energy capacity at 56,405 megawatts due to its sheer size for solar capacity, but continues to trail states with similar geographic characteristics in overall clean energy prevalence.

Another report published by the U.S. Energy Information Administration, says Texas will make up 35 percent of new utility-scale solar capacity in the U.S. this year, followed by California (10 percent) and Florida (6 percent).

While Texas’ solar efforts have shown positive trends, the state ranked No. 38 in a report by WalletHub that determined it was the thirteenth least green state.

Primergy says Gemini is the biggest solar-and-storage duo in the U.S. Photo via primergysolar.com

Houston firm's portfolio co. goes online with solar, energy storage facility in Nevada

powering on

A portfolio company of Quinbrook Infrastructure Partners, an energy-focused investment manager with U.S. offices in Houston and New York, has flipped the switch on its solar power and battery energy storage system in Nevada’s Mojave Desert.

The portfolio company, Oakland, California-based Primergy Solar, says its Gemini Solar + Storage project near Las Vegas is now fully operational.

Gemini’s 1.8 million solar panels can generate up to 690 megawatts of power, enough to meet 10 percent of Nevada’s peak power demand. The panels are paired with 380 megawatts of four-hour battery storage.

“Gemini creates a blueprint for holistic and innovative clean energy development at mega scale, and we are proud to have brought this milestone project to life and to have delivered so many positive impacts across job creation, environmental stewardship, and local community engagement,” David Scaysbrook, co-founder and managing partner of Quinbrook, says in a news release.

Primergy says Gemini is the biggest solar-and-storage duo in the U.S.

“Achieving full commercial operations marks a significant technical and financial milestone for our team. We successfully navigated challenging supply chain and inflation issues through proactive planning and collaboration to bring this project online,” Primergy CEO Ty Daul says.

Primergy develops, owns, and operates utility-scale solar power and battery storage projects across the U.S. It manages projects in several U.S. energy markets, including the one served by the Electric Reliability Council of Texas (ERCOT).

As Gemini was taking shape, Primergy and Quinbrook closed on $1.9 billion in debt and tax equity financing for construction and development.

In October 2022, APG, the largest pension asset manager in the Netherlands, acquired a 49 percent ownership stake in Gemini on behalf of pension fund client ABP.

In April 2024, the remaining 51 percent share of the project was acquired by the $600 million Quinbrook Valley of Fire Fund. Funds associated with Blackstone Strategic Partners and Ares Management Infrastructure Secondaries were the lead investors.

The GridStor project will boost the Electric Reliability Council of Texas grid. It’s GridStor’s first acquisition in ERCOT territory. Photo via gridstor.com

Oregon energy storage company plans 450-megawatt facility in Galveston County

coming soon

An Oregon startup has purchased a 450-megawatt battery energy storage project in Galveston County.

GridStor, a Portland, Oregon-based developer and operator of battery energy storage systems, bought the project from Moab, Utah-based Balanced Rock Power. The Utah company develops utility-scale solar and energy storage projects.

Financial terms of the deal weren’t disclosed.

GridStor, founded in 2022, is backed by Goldman Sachs Asset Management. The Portland Business Journal reported last November that Goldman Sachs had raised a $410 million fund to fuel its energy storage strategy.

Construction on the Evelyn Battery Energy Storage project is scheduled to get underway this summer, with the system projected to go online in the spring of 2025.

“Battery storage is a scalable and near-term solution to powering historic load growth in Texas,” Chris Taylor, CEO of GridStor, says in a news release. “Every day, batteries are consistently providing energy to stabilize the power system and meet hours of greatest demand in the state.”

The GridStor project will boost the Electric Reliability Council of Texas (ERCOT) grid. It’s GridStor’s first acquisition in ERCOT territory.

The project will be built near the Hidden Lakes substation, which is owned by Texas-New Mexico Power, which now just serves Texas. This proximity will enable batteries to quickly begin grid-connected operations.

Texas will make up 35 percent of new utility-scale solar capacity in the U.S. this year. Photo via Getty Images

Report: Texas shines as top state for new solar, battery capacity

by the numbers

On a state-by-state basis, Texas will account for the biggest share of new utility-scale solar capacity and new battery storage capacity in 2024, a new federal report predicts.

The report, published by the U.S. Energy Information Administration (EIA), says Texas will make up 35 percent of new utility-scale solar capacity in the U.S. this year, followed by California (10 percent) and Florida (six percent).

In 2024, EIA expects a record-setting addition of 36.4 gigawatts of utility-scale solar capacity across the U.S., nearly double last year’s record-setting addition of 18.4 gigawatts. One gigawatt of electric-generating capacity can power an average of 750,000 homes.

“As the effects of supply chain challenges and trade restrictions ease, solar continues to outpace capacity additions from other generating resources,” the report states.

Meanwhile, a new report from the Environment Texas Research & Policy Center and the Frontier Group found that Texas ranks third in the U.S. for residential solar power generation. Residential solar power generation in Texas grew 646 percent from 2017 through 2022, according to the report.

A February 2023 poll conducted by the University of Houston indicated that nearly two-thirds (64 percent) of Texas homeowners are somewhat or very interested in buying a solar energy system.

“Texas is already soaking up the benefits of rooftop solar,” says Luke Metzger, executive director of the Environment Texas center. “With federal tax credits in place to boost solar adoption in Texas, now is the time to lean in. Every sunny roof without solar panels is a missed opportunity.”

In addition to a spike in utility-scale solar, the EIA report forecasts Texas will lead the way this year in the addition of battery storage capacity, with the expected addition of 6.4 gigawatts. In second place is California, with an expected 5.2 gigawatts of new battery storage capacity. The two states will make up 82 percent of new U.S. battery storage capacity in 2024, says the report.

The federal agency predicts 14.3 gigawatts of U.S. battery storage capacity will be tacked on this year to the existing 15.5 gigawatts.

Overall, EIA anticipates solar will make up 58 percent of all new utility-scale electric-generating capacity this year in the U.S., followed by battery storage at 23 percent.

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Houston-based co. closes acquisition of 50 percent stake in Texas cogeneration facility

M&A Moves

Fengate Asset Management announced the financial close on the acquisition of a 50 percent interest in Freeport Power Limited, which owns a 440-megawatt cogeneration facility in Freeport, Texas.

FPL is located near the Freeport Energy Center, which is a 260-megawatt cogeneration facility that is currently owned and managed by Fengate. The two facilities work to provide cost-effective power and steam to Dow’s Freeport site, which is the largest integrated chemical manufacturing complex in the Western Hemisphere.

“We are thrilled to have closed this acquisition, which aligns with our strategy of acquiring behind-the-meter cogeneration projects with strong industrial partners like Dow,” Greg Calhoun, managing director of Infrastructure Investments at Fengate, says in a news release.

Fengate was able to acquire interest in FPL under a strategic operating partnership with asset manager Ironclad Energy. The partnership with Ironclad was established in 2022 to acquire and operate cogeneration, district energy and other power generation projects throughout North America.

“This is our second acquisition with Fengate, and we look forward to continuing our partnership to optimize and expand the portfolio,” Christopher Fanella, president and CFO of Ironclad Energy, says in the release.

Fengate opened its first U.S. office in 2017 in Houston.

“Combined heat and power projects like FPL will continue to play an important role in the U.S. power industry – especially for hard-to-abate industrial sectors – to ensure reliability, efficiency and affordability,” adds in the release.

Houston energy leader on why the future of fuels is more than electric vehicles

guest column

Gasoline, diesel, bunker fuel, and jet fuel. Four liquid hydrocarbons that have been powering transportation for the last 100-plus years.

Gas stations, truck stops, ports, and airport fuel terminals have been built up over the last century to make transportation easy and reliable.

These conventional fuels release Greenhouse Gases (GHG) when they are used, and governments all over the world are working on plans to shift towards cleaner fuels in an effort to lower emissions and minimize the effects of climate change.

For passenger cars, it’s clear that electricity will be the cleaner fuel type, with most countries adopting electric vehicles (EVs), and in some cases, providing their citizens with incentives to make the switch.

While many articles have been written about EVs and the benefits that come along with them, they fail to look at the transportation system as a whole.

Trucks, cargo ships, and airplanes are modes of transportation that are used every day, but they don’t often get the spotlight like EVs do.

For governments to be effective in curbing transportation-related greenhouse emissions, they must consider all forms of transportation and cleaner fuel options for them as well.

43 percent of GHG emissions comes from these modes of transportation. Therefore, using electricity to reduce GHG emissions in light duty vehicles only accounts for part of the total transportation emissions equation.

The path to cleaner fuels for these transportation modes has its challenges.

According to Ed Emmett, Fellow in Energy and Transportation Policy at the Baker Institute Center for Energy Studies (CES);

  • "Airplanes cannot be realistically powered by electricity, at least not currently, and handle the same requisite freight and passenger loads"
  • "The long-haul trucking industry [...] pushed back against electrification as being impractical due to the size and weight of batteries, their limited range, and the cost of adoption"
  • "Shipowners have expressed reluctance to scrap existing bunker fueled ships for newer, more expensive ships, especially when other fueling options, e.g. biofuels and hydrocarbon derivatives-for fleets can be made available"

Finding low-cost, reliable, and environmentally sound fuels for the various segments of transportation is complex. As Emmett suggests in his latest article;

"Hovering over the transition to other fuels for almost every transportation mode is the question of dependability of supply. For the trucking industry, the truck stop industry must be able to adapt to new fuel requirements. For ocean shipping, ports must be able to meet the fuel needs of new ships. Airlines, air cargo carriers and airports need to be on the same page when it comes to aviation fuels. In other words, the adoption equation in transitions in transportation is not only a function of the availability and cost of the new technology but also a function of the cost of the full supply chain needed to support fuel production and delivery to the point of use. Going forward, the transportation industry is facing a dilemma: How are environmental concerns addressed while simultaneously maintaining operational efficiency and avoiding unnecessary upward cost shifts for moving goods and people? In answering that question, for the first time in history, modes of transportation may end up going in multiple different directions when it comes to the fuels each mode ultimately chooses."

This is why many forecasts predict that hydrocarbon demand will continue through 2050, despite ambitious aspirations of achieving net zero emissions by that year. The McKinsey "slow evolution" scenario has global liquid hydrocarbon demand in 2050 at 92mmb/d versus 103 mmb/d in 2023. With their "continued momentum" scenario, oil demand is 75 mmb/d. Proportionally, global oil demand related to GHG emissions from transportation would decline 11-27 percent. The global uptake of EVs is the primary driver of uncertainty around future oil demand. In all the McKinsey scenarios, the share of EVs in passenger cars sales is expected to be above 90 percent by 2050.

The Good News

Despite the relatively slow progress expected for reducing GHG emissions in the global transportation sector, there are solutions emerging that lower the carbon footprint tied to traditional petroleum-based fuels. Emmett highlights some of the methods under study, noting that "sustainable biofuels sourced from cooking oils, animal fats, and agriculture products, as well as hydrogen, methanol, ammonia, and various e-fuels are among the options being tested. Some ocean carriers are already ordering ships powered by liquified natural gas, bio-e-methanol, bio/e-methane, ammonia, and hydrogen. Airlines are already using sustainable aviation fuel as a supplement to basic aviation fuel. Railroads are testing hydrogen locomotives. The trucking industry is decarbonizing local delivery by using vehicles powered by electricity, compressed natural gas, and sustainable diesel. Long-haul trucking companies are considering sustainable diesel as a drop-in fuel for existing equipment, and fuel suppliers are researching new engines fueled by hydrogen and other alternative fuels."

Most of these options will require a combination of increased government incentives, along with advancements in technology and cost reductions.

McKinsey's "sustainable transformation" scenario, which considers potential shifts in government regulations as well as advancements in technology and cost, suggests there is moderate growth in alternative fuels alongside growth in EVs. Mckinsey projects;

  • EV demand could grow to over 90 percent of total passenger car sales by 2050
  • EVs to make up around 80 percent of commercial truck sales by 2050
  • In aviation, low carbon fuels such as biofuels, synfuels, hydrogen and electricity are projected to grow to 49 percent by 2050.

According to McKinsey, the combination of these alternatives along with demand changes in power and chemicals could reduce global oil demand to 60 mmb/d in 2050. The shift to cleaner fuels, for modes of transportation other than EVs, is underway but the progress and adoption will take decades to achieve according to McKinsey’s forecasts.

Looking more closely at EVs, the story may not be as dire globally as it seems to be in the West. While the U.S. appears to be losing momentum on electric vehicle adoption, China is roaring ahead. New electric car registrations in China reached 8.1 million in 2023, increasing by 35 percent relative to 2022. McKinsey’s forecasts have underestimated global EV sales in the past, with China surpassing their estimates, while the U.S. lags behind. It’s clear that China is the winner in EV adoption; could they also lead the way to adopt cleaner fuels for other modes of transport? That is something governments and the transportation industry will be watching in the years ahead.

Conclusion

While we are not on a trajectory to meet the aspirations to reduce global GHG emissions in the transportation sector, there are emerging solutions that could be adopted should governments around the world decide to put in place the incentives to get there. Moving forward, the future of transportation fuels will be shaped by a mix of innovation, government policies, and what consumers want. The focus will be on ensuring that the transportation sector remains reliable, secure, and economically robust, while also reducing GHG emissions. But, decarbonizing the transportation sector is much more than just EV's – it's a broader effort that will require continued global progress in each of the multiple transportation segments.

------------

Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn on October 9, 2024.

Houston company secures $10M contract to deliver subsea well decommissioning solution

big deal

Houston energy services provider Expro was awarded a contract valued at over $10 million for the provision of a well decommissioning solution.

The solution will combine subsea safety systems and surface processing design that can enable safe entry to the well and management of well fluids.

“The contract reinforces our reputation as the leading provider of subsea safety systems and surface well test equipment, including within the P&A sector,” Iain Farley, Expro’s regional vice president for Europe and Sub-Saharan Africa, says in a news release. "It demonstrates our commitment to delivering best-in-class equipment, allied with the highest standards of safety and service quality that Expro is renowned for.”

Expro will provide from its global support hub in Aberdeen, a surface fluid management package and a market-leading 7-3/8 inch large-bore subsea test tree assembly (SSTTA). This will include surface tree and controls that can provide dual barrier and disconnect capability to facilitate re-entry into the subsea wells.

Expro has been supplying its subsea safety systems and well test equipment to the construction of many of the 52 wells now being plugged and abandoned.

“Having been involved in the development phase for many of these fields, we have gained a life of well experience that will be invaluable for this P&A campaign,” Farley adds. “Our expertise and know-how will help deliver key technical and commercial benefits for the client across the project.”

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