New Jersey approves new offshore wind farms
New Jersey regulators today approved more than 2,600MW of new offshore wind capacity, marking a major step forward for the nascent US offshore wind sector.
The New Jersey Board of Public Utilities (BPU) unanimously approved the 1,510 MW Atlantic Shores project, a partnership between Shell and developer EDF Renewables, and Danish developer Orsted's 1,148MW Ocean Wind II project as the winners of its latest offshore wind solicitation, bringing the state's planned capacity nearly halfway to its goal of 7,500MW of offshore generation by 2035.
"Today's award, which is the nation's largest combined award to date, further solidifies New Jersey as an offshore wind supply chain hub and leader in the offshore wind industry" in the US, governor Phil Murphy (D) said.
BPU projects the installations will be able to supply the equivalent of 1.15mn homes, and that the new generation will lead to a 5mn short ton/yr reduction in the state's greenhouse gas emissions, equal to about a quarter of New Jersey's current electric sector emissions.
This is Orsted's second wining bid in New Jersey. Its 1,100MW Ocean Wind project won the state's first solicitation in 2019. Ocean Wind II will get a 20-year Offshore Renewable Energy Certificate (OREC) contract that starts at $84.03/MWh. BPU said that will translate into a levelized net cost of $42.30/MWh once the OREC revenue is returned to ratepayers. The project is expected to be commissioned in 2029, Orsted said.
"We are thrilled to grow this global industry alongside the state of New Jersey, as well as help all communities in the state benefit from the offshore wind industry," Orsted Offshore North America chief executive David Hardy said.
The Atlantic Shores project will get an initial OREC price of $86.2/MWh, which BPU said means a levelized net price of $58.51/MWh when the revenue is returned to ratepayers. The project is expected to begin construction in 2024.
"We are thrilled to be moving forward with our project and cementing our commitment to deliver clean, renewable power and well-paid jobs to the Garden State for years to come," said Joris Veldhoven, commercial and finance director at Atlantic Shores.
New Jersey requires its electric suppliers to buy ORECs from approved offshore wind projects, which would then be retired to show compliance with the state's offshore wind generation mandates. The wind farms would be required to return the revenue they earn from operating in the PJM grid, such as from sale of power or capacity, back to New Jersey utility customers. Ratepayers would have a monthly surcharge added to their bills to help fund monthly OREC purchases.
New Jersey and other northeast states are leading the country in the push to build out the offshore wind industry.
To date, the US only has two small pilot projects in operation, off the coasts of Rhode Island and Virginia, but a number of utility-scale wind farms have been proposed along the Atlantic coast, largely in response to state mandates, with a pipeline already close to the 30GW by 2030 goal called for by President Joe Biden's administration, according to industry data.
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Indonesia aims to launch 15 CCUS projects by 2030
Indonesia aims to launch 15 CCUS projects by 2030
Singapore, 5 July (Argus) — Indonesia aims to bring 15 potential carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) projects onstream between 2026-30. Indonesia has carbon storage potential in 20 basins, comprising 573bn t of saline aquifer storage and 4.8bn t of depleted oil and gas reservoirs across Sumatra, Java, Kalimantan, Sulawesi and Papua, according to the country's ministry of energy and mineral resources (ESDM). The government is pushing for the Sunda and Asri basins as well as the Bintuni basin to become CCS hubs, said the ESDM's director of upstream oil and gas business development, Ariana Soemanto. Indonesia in January issued a presidential regulation on the implementation of CCS activities, which sets out the framework for the country's CCS development. CCS development in Indonesia can be undertaken via two pathways under the regulation, said Ariana. The first is the implementation of co-operation contracts in existing oil and gas areas by upstream contractors. The second pathway allows parties to establish a separate CCS business through target injection zone exploration permits and carbon storage operation permits. The regulation also allows CCS operators to set aside 30pc of the storage capacity from international sources. Singapore was the first country to sign an agreement with Indonesia after the regulation was issued, to co-operate on cross-border CCS. Countries such as Malaysia and Indonesia have the storage space to sequester captured CO2, but not the funds to develop the infrastructure. Direct government investment is necessary to develop and install CCS infrastructure such as pipelines, and carbon pricing could be a solution . Indonesia also launched its carbon exchange in September last year. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
French power sector braces for change ahead of election
French power sector braces for change ahead of election
Paris, 4 July (Argus) — The outcome of the French parliamentary election on Sunday could bring reforms that will impact the country's power industry, causing mixed reactions among market participants. The far-right National Rally (RN) and its allies gathered 33pc of votes in the first round of the French legislative election on 30 June, placing it ahead of the coalition of left-wing parties, the New Popular Front (NFP), and the current government's Ensemble coalition. But energy agendas strongly differ across the three political groups, creating a climate of uncertainty in the French power sector, especially as those programmes were put together in a rush after Emmanuel Macron called a surprise snap election, and they will probably need some fine-tuning. Divide over the renewable line On the topic of wind farms, the RN has reiterated its proposal to halt the construction of new wind projects, which could put at risk the achievement of French renewable targets. Despite the halt of new projects, RN leader Jordan Bardella in the party's last press conference said he does not plan to "stop all variable sources of energy", adding that wind farms currently in operation would not be dismantled. He also mentioned an ambition to "recreate a French solar PV [photovoltaic] industry" and to protect it by raising tariffs on the European level. But the party did not respond to Argus on the specifics of its programme. The NFP intends to develop both offshore wind and tidal energy, and has called for a vote on an "energy and climate law". And the current government has raised solar PV targets in its updated national energy and climate plan (NECP), in addition to raising the offshore wind goal to 45GW by 2050. "The pressure on public support mechanisms for renewable development would depend on the next majority in parliament," director of power and PPA advisory at consultancy firm Greensolver, Alexandre Soroko, told Argus . "It could change the way in which renewable energy projects under development generate their revenues and finance their development. If the pressure is increased, it would probably have a bigger impact on wind projects than on solar PV ones." Other market participants told Argus they expect delays in permitting processes if RN wins the election. Parliament last year passed the "renewable acceleration law", to speed up permitting processes that are longer in France than in neighbouring countries. A boost to nuclear energy The RN plans to strengthen the French nuclear fleet with a massive investment programme, making it the pillar of the French energy mix, while NFP's position is not clear on the matter. RN aims to increase French nuclear capacity through the construction of European pressurised reactors (EPRs) paired with small modular reactors (SMRs) and fast-neutron reactors. This plan echoes Emmanuel Macron's recent pledge to build 14 EPRs of type 2 reactors by 2050, with three pairs already planned . In contrast, the topic of nuclear reactor construction has been absent from the NFP's programme as views on it diverge among participants in the union, mostly between green party Les Ecologistes, which has been traditionally against nuclear energy, and the communist faction. An exit of the European power market? Criticising the rules of the European power market has been a recurring discourse on the French political scene. Bardella said he wanted a "French power price, that corresponds to the costs of nuclear production", while far left La France Insoumise (LFI), which is part of the NFP group, opposed the EU power market design reform in April. During the Europ'Energies conference this week, energy consumers association CLEEE's president Frank Roubanovitch said he was "favourable to the idea supported by RN and LFI of ending the marginal pricing mechanism while maintaining physical interconnections". But an exit of the European market would mean a "not optimal use of transmission infrastructure", according to European Commission team leader on the internal energy market, Mathilde Lallemand. Points of convergence Nuclear power, a protection of current hydropower concessions and the conversion of coal-fired plants to biomass are topics that are found in both the RN and Ensemble agendas. Although the RN plans to invest into hydropower plants to increase their production capacity, it is strongly opposed to the introduction of competition to the hydropower concessions system. The latter was mentioned in the draft energy sovereignty proposal unveiled by the government in February, but was never introduced to parliament. The RN party also wants to phase out coal and convert coal-fired plants to biomass — an ambition announced by Emmanuel Macron for 2027 at the end of 2023 . The second round of the elections is planned for 7 July. By Tatiana Serova Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU’s centre-right EPP mulls Green Deal tweaks
EU’s centre-right EPP mulls Green Deal tweaks
Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Fire-hit biomass plant in Japan to start up in 2025
Fire-hit biomass plant in Japan to start up in 2025
Tokyo, 3 July (Argus) — Japan's 75MW Sodegaura biomass-fired power plant, operated by Osaka Gas, will begin commercial operations around April-September 2025, following delays caused by a silo fire in January 2023. The fire at the Sodegaura plant in Chiba prefecture happened during test runs, and Osaka Gas said on 3 July that the cause was the combustion of wood pellets stored for more than six months in two silos. The company has now put in place measures to reduce the risk of fires, including a nitrogen injection system that can prevent temperature increases. Other measures include bringing pellets out of silos to lower their temperature every three months or so, with the exact duration depending on the season and other conditions. The plant was initially supposed to begin commercial operations by the end of February 2023, but start-up was delayed by the fire. Osaka Gas only managed to put the fire out completely in May 2023. The company finished removing all remaining pellets from the silos in April this year — the pellets had absorbed sprayed water and swelled. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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