renewables coming soon

Houston energy co. secures $118.5M for battery energy storage project in south Texas

Tokyo Gas America has scored over $100 million in investment tax credits for project in Brazoria County that will supply power to Houstonians.

Houston-based Tokyo Gas America has received $118.5 million in investment tax credits for its battery energy storage system in Brazoria County. The system will supply power for the Houston-area territory served by the Electric Reliability Council of Texas (ERCOT).

San Francisco-based institutional fund sponsor Foss & Co. provided the tax equity for the Longbow BESS project, being developed by New York City-based Clean Capital Partners. Construction on the 174-megawatt battery energy storage system began earlier this year, and the project is expected to come online this summer.

“Longbow BESS represents a significant step forward in our commitment to providing clean and reliable energy solutions,” Ken Kiriishi, senior vice president of Tokyo Gas America, a wholly owned subsidiary of Tokyo Gas Co., says in a news release.

Earlier this year, Tokyo Gas America completed its $216 million purchase of Longbow BESS from Clean Capital Partners.

With the goal of owning and operating more than five gigawatts of renewable generation projects by 2030, Tokyo Gas America entered the U.S. renewables market in 2020 through its acquisition of the Aktina Solar Project. Tokyo Gas America bought the project from Chicago-based Hecate Energy, which develops, owns, and operates renewable energy projects in the U.S.

Aktina is the largest solar project in Texas, encompassing 1.4 million solar modules across 4,000 acres in Wharton County. The project, capable of generating as much as 500 megawatts of renewable energy, can power as many as 100,000 homes.

Aktina, which came online in 2021, supplies power to the ERCOT wholesale market. Construction of the roughly $3.2 million project recently wrapped up.

In February, Tokyo Gas America announced it had set up two subsidiaries to promote it gas marketing and trading operations in North America. As part of this venture, Tokyo Gas bought a 49 percent stake in ARM Energy Trading. Houston-based ARM Energy Holdings is the majority owner of ARM Energy Trading.

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A View From HETI

The combined technology portfolios will accelerate the introduction of promising early-stage decarbonization technology. Photo via Getty Images

SLB announced its plans to combine its carbon capture business with Norway company, Aker Carbon Capture.

Upon completion of the transaction, which is expected to close by the end of the second quarter of this year, SLB will own 80 percent of the combined business and ACC will own 20 percent.

According to a SLB news release, the combined technology portfolios will accelerate the introduction of promising early-stage decarbonization technology.

“For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades,” Olivier Le Peuch, CEO of SLB, says in the release. “Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50-70% of the total spend of a CCUS project.

The International Energy Agency estimates that over one gigaton of CO2 every year year will need to be captured by 2030 — a figure that scales up to over six gigatons by 2050.

"We are excited to create this business with ACC to accelerate the deployment of carbon capture technologies that will shift the economics of carbon capture across high-emitting industrial sectors,” Le Peuch continues.

SLB is slated to pay NOK 4.12 billion — around $379.4 million — to own 80 percent of Aker Carbon Capture Holding AS, which owns ACC, per the news release, and SLB may also pay up to NOK 1.36 billion over the next three years, depending on business performance.

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