Duke Energy to retire coal fleet by 2035

Spanish Market: Electricity
10/02/22

US utility Duke Energy says it will stop burning coal by 2035, 13 years earlier than previously planned, as part of an expanded clean energy action plan.

The plan also calls for cutting coal's share of Duke's energy mix to less than 5pc by 2030. Coal accounted for 22pc of Duke's net generation last year.

The utility called its exit from coal the "largest planned coal fleet retirement in the industry." And the announcement comes less than a year after Duke said it planned to stop using coal by 2048.

Duke already started to suggest, shortly after last year's announcement, that it could hasten its coal plant exit. The preferred scenarios in integrated resource plans filed with state regulators in September and December 2021 listed closing its coal fleet in North Carolina by 2030 and coal plants in Indiana by 2035. The company also had put retiring the Crystal River coal plant in Florida in 2034 and closing the East Bend generating station in Kentucky in 2035 in the preferred scenarios for integrated resource plans in those states.

"The energy sector must transform for the future in a way that also benefits our society today," Duke chief sustainability officer Katherine Neebe said yesterday. "Achieving this vision will require us to transition to low- and zero-emissions fuel sources, invest in our communities and develop and prepare a diverse workforce."

Duke also expanded its goals for having net-zero greenhouse gas emissions by 2050 to include no longer buying fossil fuel-based power from other generators. And it has added a new net-zero target for its natural gas business that includes upstream methane and carbon emissions related to purchased gas as well as downstream emissions from customers' energy use.

The company also is examining indirect emissions from its value chain and will eventually design a plan for Duke to limit those emissions in its portfolio. It said it will share more details on those initiatives during its ESG Investor Day later this year.

Duke said it is on pace to achieve its previously announced target of reducing CO2 emissions by at least 50pc by 2030 from 2005 levels, and to be carbon-neutral by 2050. Its emissions already are 44pc below 2005 levels, it said.

Duke has retired 56 coal units with a combined capacity of about 7,500MW since 2010. It has more than 16,000MW of remaining coal capacity spread across 11 facilities. Together, they consumed about 20mn short tons (st) (18mn metric tonnes) of coal from January-November 2021, according to the latest data from the US Energy Information Administration (EIA).

The coal units received about 14.7mn st of coal in the same period. Deliveries included about 7.8mn st of Illinois basin coal, 4.4mn st of Northern Appalachian coal and 2.4mn st of Central Appalachian coal, EIA fuel receipts data show. Alliance Resource Partners, American Consolidated Resource Partners, Consol Energy and Peabody Energy were among the top suppliers.

Duke would use natural gas and renewable energy to replace coal capacity in North Carolina and Indiana. In the latest integrated resource plan Duke filed in the Carolinas, its preferred roadmap for future load and generation calls for adding 9,600MW of natural gas-fired power through 2035 and nearly quadrupling its solar capacity to more than 15,500MW by that year.

The preferred scenario in Indiana modeled adding 7,325MW of renewable generation.

By Nick Georgiou

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18/11/24

Q&A: If you break it down, it is tried, tested: Xlinks

London, 18 November (Argus) — Start-up developer Xlinks plans to connect 11.5GW of Moroccan wind and solar capacity, and a 5GW battery energy storage system, with the UK through two 1.8GW sub-sea cables, an ambitious project using "tried and tested" technologies. Argus spoke to chief executive James Humfrey about the project's timeline and progress. Edited highlights follow: For those who may not know, can you describe the Xlinks project? We are excited to bring clean energy from the Moroccan Sahara to north Devon. This will be a transformational surge of reliable, clean power, and we will bring it during the hours the UK needs electricity most, supporting Britain's ambitions to decarbonise, which you see in the news and most recently in Baku [at Cop 29]. The project will benefit the broader economy by displacing expensive, volatile imported gas and reducing wholesale power prices. It will also help balance the grid, feeding into the south of England, which has very high demand without significant grid upgrades. The independent Afry consultancy group calculated the project's socioeconomic benefit to be at least £17bn. It will also offer a reliable wind and solar energy supply, with nearly two times the solar radiation factor. [Moroccan] wind generation is slightly negatively correlated to UK output, helping overcome the dunkelflaute [dark lull] scenario, which is the advantage of moving electrons in time and space. This reliability complements the UK domestic renewables pipeline, primarily offshore and onshore wind, while aligning with Morocco's green export ambitions. Can you provide our subscribers with an update on the project, its timeline and any key milestones? It will be ready next decade. We are supporting the domestic supply chain through XLCC's HDVC cable expansion in Hunterston, Scotland . And we are set up to rapidly mobilise and deliver the project. We have a strong team of people who have worked on these projects before. For example, our HVDC cable team, led by Nigel Williams, built the North Sea Link between Blythe and Norway, tackling more complex problems than we face. They've built lots of interconnectors and know how to do it. I realise that Xlinks holds connection agreements for two 1.8GW connections with National Grid. Has Xlinks progressed with other national authorities, particularly those through which the cable will transit? We have worked with the Moroccan government, including [plans] around the land and conducting one of the world's longest [wind and solar] measurement campaigns. So, we've got excellent resource data regarding wind and solar energy. We have already obtained permits from [the transit countries] for route surveys and we have vessels in the water at the moment, undertaking geophys and geotech. Next year, we'll apply for the final installation permits, based on the environmental studies and other benefit data. We've taken a longer but less challenging route, with lower water depths, making it technically easier. It is, for example, less deep than the North Sea Link, which was a deliberate technical decision. The previous government marked Xlinks as a project of national significance . Do you expect any change under the new administration, and in what way has this classification affected progress ? No, it hasn't affected us. We completed the public consultations over the summer and are about to submit our DCO [development consent order] application, which is a large amount of work. We have finished that, with no changes [since the change of government]. It is probably worth saying that our land route in Devon is all underground. We don't have any pylons, which is much less intrusive. Has this improved Xlink's ability to generate capital interest? Is there any specific attempt to generate interest from sovereign wealth funds or other institutional investors? We've been fortunate that our blue-chip investors [Octopus, TotalEnergies, Taqa, GE Vernova and Africa Finance] are very keen on the project, and it matches their strategic plans. They want to go all the way through to construction. We may have further investors at the close, but they are our primary focus right now. Do you have an update on the contract for difference (CfD) process? Xlinks has published a desire to reach a £70-80/MWh strike price at 2012 prices. Yes, that remains our guidance. We are working through the CfD and Treasury Green Book process with the Department of Energy. It is quite a structured process. How do you reconcile that strike price with far lower prices reached in recent allocation rounds (AR), namely AR6, although the technologies are not directly comparable? Firstly, in the NESO report, the forecasts for offshore wind [prices] rise quite a bit as they move out to 2030, so AR6 is a reference, but there are figures in the NESO report that are above our £70-80 [strike price]. Importantly, it is not a comparison between apples and apples. Our profile is completely different from that of offshore wind. We offer firm power for 19 hours a day, optimised for peak hour demand and very high reliability, akin to nuclear. Given our flexibility, we can also provide various other services, including frequency and even black start services. The development contains ambitious plans for vast-scale battery storage of up to 5GW. Given the difficulties faced by several European battery manufacturers, do you foresee any significant supply chain challenges? We have an ongoing battery procurement process, and the invitations to tender have gone out. We've had good interest at competitive levels and are confident in it. We are not seeing any challenges, and it's going very well. And what does the flexibility and opportunity a battery offers at this scale mean for a project like Xlinks? It allows us to optimise during the diagonal shift of solar power, when the UK grid needs us most. Additionally, it gives us a sub-second response, giving us flexibility and opening the door to the frequency services we mentioned earlier. It is very valuable and allows us to provide benefit at scale and at speed. Does the UK's ambition, corroborated by NESO's latest report to become a net power exporter beyond 2030, change the project's economic viability or impact it in any way? No, the report does not change our viability or where we fit in the future system. In fact, it further emphasises the part we can play. If you look at demand, it is very likely to increase again by another 23pc in 2030-35, and considering our generation profile, producing in periods of low domestic wind production, [it fits well]. Additionally, when we compare it to other sources of clean [baseload] generation, such as nuclear, you see solar, wind and transmission projects have extremely good predictability of outcome and a shorter delivery timeline. Xlinks has stated an ambition to investigate a Morocco-German link. What might this look like? Would it involve an entirely new generation facility, too? First, the Morocco-UK power project is very much our first priority. We're focused on that and we think bringing this to a financial close will help unlock a range of projects across the industry. And demonstrate the art of the possible. We do have some early feasibility work going on. It would be entirely separate, and that would include generation as well. Do you have any closing thoughts that you would like to leave our subscribers? What is different about this is its scale. But when you break it down, these are all tried-and-tested technologies. There is nothing unusual about them, whether wind and solar in Morocco or large-scale batteries. We are not an interconnector, but long-distance transmission has a long history in the UK. When you look at the water depths, it is less complicated than North Sea Link. It has all been done before, in its parts — just the scale is different. By Daniel Craig Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Progress on actions to cut emissions uncertain

18/11/24

Cop: Progress on actions to cut emissions uncertain

Baku, 18 November (Argus) — Progress on mitigation — actions to cut greenhouse gas emissions — is uncertain at the UN Cop 29 climate summit, as talks on a specific text related to the issue are at risk to be pushed back to 2025, losing any progress made in the past year. Some countries had proposed using the mitigation work programme — a work stream focused on reducing emissions — to progress the commitment made at Cop 28 in 2023 to "transition away" from fossil fuels. But talks have stalled and could end without a conclusion at the summit. Developed countries as well as developing nations including some small island states and countries in Latin America — such as Brazil, Colombia, Peru, Mexico — have expressed disappointment about how mitigation talks were going. New Zealand called on countries to follow up on last year's decision on mitigation at Cop 28 and Norway added that these issues deserved "more than silence on mitigation". Switzerland complained that mitigation was "held up by a select few", and said that the discussion was critical for increased commitments for next year's 2035 Nationally Determined Contributions (NDCs). NDCs are countries' climate plans that include emissions reduction targets. Cop parties are due to submit new versions by February 2025. The US also said that Cop 29 needed to "reaffirm the historical Global Stocktake decision" taken last year. And developed nations, led by the EU, called for the discussion to continue this week — the second week of Cop 29. But countries including Bolivia, Iran and Saudi Arabia, for the Arab Group, pushed back on this. The mitigation work programme is "not… open to reinterpretation", Saudi Arabia's representative said today. The country said earlier that it did not want new targets to be imposed, complaining about the "top-down approach" taken by developed countries. India reminded developed countries that they have yet to deliver on their new finance commitment — a crucial step for more ambitious NDCs in developing nations. But "Cop 29 cannot and will not be silent on mitigation", the summit's president, Mukhtar Babayev said today. "On mitigation we have been clear that we must make progress, "he said, adding that he has asked ministers from Norway and South Africa to consult on what an outcome on mitigation could look like. EU climate commissioner Wopke Hoekstra today said that it is "imperative that we send a strong signal this week for the next round of NDCs", he said. Points related to mitigation — including transitioning away from fossil fuels and phasing out inefficient fossil fuels subsidies — are currently mentioned in the draft text for the new finance goal, known as the new collective quantified goal (NCQG). It is the key issue at Cop 29. Developed countries agreed to deliver $100bn/yr in climate finance to developing nations over 2020-25, and Cop parties must decide on the next stage — including the amount. Developed countries are likely push for the fossil fuel language to stay in the finance goal text, especially if mitigation talks stall elsewhere. But countries such as Saudi Arabia have long opposed this, while developed countries have received some criticism for still not having given an amount for the new finance target. By Georgia Gratton, Prethika Nair and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: G20 momentum key to Cop climate finance outcome

18/11/24

Cop: G20 momentum key to Cop climate finance outcome

Baku, 18 November (Argus) — The outcome of the G20 leaders' summit in Brazil taking place on Monday and Tuesday on climate financing will be key to the success of the UN Cop 29 climate conference in Baku, Azerbaijan, summit president Mukhtar Babayev said today. "We cannot succeed without [the G20], and the world is waiting to hear from them," Babayev said. The leaders' summit takes place at the beginning of the second week of the Cop 29 conference. Progress at Cop 29 last week towards agreeing a new climate finance target for developing countries — the so-called NCQG — was not sufficient, Babayev said. He is concerned that parties are not moving towards each other fast enough. Little progress was made in the first week on three main areas of disagreement: the amount of climate finance which should be provided, how it should be structured, and which countries should contribute. Babayev urged G20 leaders, including US president Joe Biden who will be present in Brazil, to send a "positive signal of commitment to solving the climate crisis," and deliver clear mandates for Cop 29. The talks in Baku move from the technical to the political phase this week. Ministers typically have more authority to move red lines. But parties should focus on wrapping up less contentious issues early in the week so as to leave time for major political decisions, according to Simon Stiell, executive secretary of UN climate body the UNFCCC. Babayev expects talks on the amount of climate financing which will be on the table to continue until the last day of the summit at the end of this week, he said. The Cop presidency has invited former and upcoming Cop hosts the UK and Brazil to advise and "ensure an ambitious and balanced package of negotiated outcomes." Both countries have in the past week communicated more ambitious emissions reduction targets, which have been broadly welcomed. The EU today called for the Cop presidency to step up its role in the process. "We do need a presidency to lead, to steer us in the direction of a safe landing ground," European commissioner for climate action Wopke Hoekstra said. Hoekstra declined to be drawn on the amount of climate financing that the EU would like to see. Developing countries have pushed for a high goal of $1.3 trillion/yr, well above the previous target of $100bn/yr. The EU today reiterated instead its desire for the base of contributor countries to be enlarged beyond the current roster of countries defined as developed under the UNFCCC, and for as much private finance to be mobilised as possible to add to public finance. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Enshu Forest starts 7MW biomass power plant

18/11/24

Japan’s Enshu Forest starts 7MW biomass power plant

Tokyo, 18 November (Argus) — Japan's Enshu Forest Energy started commercial operations at its 7.1MW biomass-fired power plant in Fukuroi city of Shizuoka prefecture on 16 November. The Enshu plant will burn 90,000t/yr of wood chips made from unused forest materials and gathered mainly from Shizuoka prefecture. It can generate around 53GWh/yr of electricity, which will be sold under the country's feed-in tariff (FiT) scheme for 20 years. The plant was initially scheduled to come on line in December, but started two weeks earlier as Enshu Forest Energy, the operating company, completed its safety check and test runs earlier than expected. Enshu Forest Energy is a joint venture between renewable power developer Forest Energy, Shizuoka Gas and Power and Japanese utility Chubu Electric Power, with each holding 70pc, 25pc and 5pc shares, respectively. Shizuoka Gasa and Power is a subsidiary of gas provider Shizuoka Gas. Forest Energy runs several biomass generation projects, including the 480kW Tsuwano plant in Shimane prefecture and the 1.8MW Shingu plant in Wakayama prefecture, mainly burning wood chips that are secured domestically. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil looks beyond forests to reduce CO2

15/11/24

Brazil looks beyond forests to reduce CO2

Sao Paulo, 15 November (Argus) — Brazil will target energy and transportation emissions as part of its nationally determined contribution (NDC) it outlined ahead of schedule, as the country prepares to host the Cop 30 conference in Belem, Para state next year. The government's goal with the new NDC is to "lead by example" by committing to the more aggressive emissions-reduction targets. The new NDC, which was released ahead of the UN Cop 29 climate change conference in Baku, Azerbaijan, aims to go beyond deforestation — which causes roughly half of the country's emissions — to include other sectors of the economy, including industry, transport, energy and agriculture. Under the new proposal, Brazil will aim to reduce greenhouse gas emissions by 59-67pc from 2005 levels by 2035, equivalent to emissions levels of 850mn-1.05bn metric tons of CO2 equivalent (tCO2e). The government promised to finalize the targets for each sector of the economy during the first half of next year. On the energy and transport fronts, Brazil is seeking to further expand the use of renewables, which currently stand at 89pc of electricity and 49pc of total energy consumption. To reduce emissions from this sector, the government plans to gradually reduce the use of fossil fuels and to replace them with electric motors and biofuels. Additionally, the government cited policies that have been approved this year, including the low-carbon hydrogen law and the fuels of the future law, which will reduce emissions from the industrial and transport sectors. The government also underscored the expanded use of advanced biofuels and the production of conventional biofuels in conjunction with carbon capture to reduce energy emissions. The plan singled out the waste-management sector for its potential to contribute to methane emissions reductions while generating renewable energy from CH4 capture. It cited the expansion of biomethane use, to reduce the use of LPG and natural gas in cooking. For the agriculture sector, the government is targeting large-scale conversion of degraded pastures into crop land, as well as the expanded use of new farming techniques, such as crop-livestock and crop-livestock-forest integration. Additionally, the government promised to expand its efforts to combat deforestation beyond the Amazon basin into new biomes, including the Atlantic rainforest, Pantanal, pampa and cerrado tropical savanna biomes. The government has also launched a plan to reforest roughly 12mn hectares of forests by 2030, which would contribute to the country's net GHG removals. Some Brazilian NGOs commended the government for issuing the new NDC ahead of schedule, and for citing concrete measures that will be adopted to reduce GHG emissions. But they warned that the new NDC is not in line with the goal of limiting global warming to 1.5°C above pre-industrial levels. Climate NGO Greenpeace classified the new target as "unambitious" and "clearly insufficient," while Brazilian climate think tank Observatorio do Clima criticized the government's failure to increase its targets for 2030. Observatorio do Clima, along with roughly 100 other NGOs, issued a report earlier this year calling on Brazil to adopt a much more aggressive target to slash CO2 emissions by 92pc from 2005 levels by 2035, equivalent to 200mn tCO2e/y. While the NDC did cite policies aimed at reducing dependence on fossil fuels, Observatorio do Clima criticized the government's failure to announce a plan to end the expansion of fossil-fuel use. This sentiment was echoed by Oil Change International, which said that Brazil's goal of being on the "forefront of the global energy transition" is incompatible with its plans to increase oil production over the next decade. Observatorio do Clima also criticized the lack of clarity regarding its plans to double renewable energy capacity and triple energy efficiency. It also questioned the government's deforestation goals, arguing that all deforestation, not just illegal deforestation, needed to be eliminated. 2023 Brazil emissions sources Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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