Company Kicks Off Biomass to Hydrogen Project in Partnership with SMUD
August 12, 2023
by Paul Ciampoli
APPA News Director
August 12, 2023
Mote Inc. on Aug. 10 said it has received $1.2 million in grant funding to establish its second biomass to hydrogen and carbon sequestration plant in partnership with the Sacramento Municipal Utility District, a California public power utility.
As Mote’s hydrogen offtake partner for the second facility in Sacramento, SMUD and Mote have been collaborating on the project development.
The grant funding is from the U.S. Forest Service, the California Department of Conservation and the California Department of Forestry.
Upon completion, the facility would produce approximately 21,000 metric tons per year of carbon-negative hydrogen for use in thermal power generation and transportation.
The plant would also sequester over 450,000 metric tons of carbon dioxide annually. The project is supported by forestry stakeholders due to Mote’s capacity to create value from large amounts of wood waste, Mote said.
The project can utilize up to 300,000 metric tons per year of forest residues and wood waste from regional forest management programs. This waste would otherwise be open-air burned, left to decompose, or sent to a landfill.
Similar to its first project near Bakersfield, Calif., this second plant will integrate with carbon capture and geological sequestration methods to produce carbon-negative hydrogen.
Using gasification and a proprietary integration of proven technology, Mote can process woody waste from farms, forestry, and urban sources. The remaining carbon dioxide from the process is captured and permanently placed underground in saline aquifers for ecologically safe storage.
Mote said it has received a formal invitation to submit a Part II application to the Department of Energy Loan Programs Office Title 17 Clean Energy Financing program, which can offer loan guarantees up to 80 percent of eligible project costs for innovative energy projects like Mote’s facilities.
Bakersfield construction is expected to begin in 2025 and target full operational capacity by 2027.
Additionally, Mote is a member of the ARCHES community and their application for the DOE’s Regional Clean Hydrogen Hub grant.
DOE’s invitation to submit a Part II application is not an assurance that DOE will invite the applicant into the due diligence and term sheet negotiation process, that DOE will offer a term sheet to the applicant, or that the terms and conditions of a term sheet will be consistent with the terms proposed by the applicant, Mote said.
“The foregoing matters are wholly dependent on the results of the DOE review and evaluation of a Part II Application and DOE’s determination of whether to proceed,” Mote said.
The American Public Power Association has issued a report that is available for free to members that provides a perspective on where the emerging hydrogen market is in the U.S. and globally, what is driving the growing interest in hydrogen and what obstacles are preventing hydrogen technology from being able to scale-up.
Lower Colorado River Authority Picks Fagen as Contractor for Peaker Plant
August 9, 2023
by Paul Ciampoli
APPA News Director
August 9, 2023
The Lower Colorado River Authority has selected Minnesota-based Fagen Inc. as the engineering, procurement and construction contractor for LCRA’s new peaker power plant being built in Texas.
As the EPC contractor, Fagen now will begin detailed engineering work for the natural gas-fired plant, which will provide about 190 megawatts of dispatchable power to the Texas power grid.
Construction is expected to begin late this summer. The plant is expected to be operational in 2025.
LCRA chose Fagen after an extensive selection process largely because of its expertise with EPC projects, including power plants with reciprocating engines such as the 10 high-efficiency Wärtsilä reciprocating engines that will power the new peaker plant.
The new plant will be LCRA’s second peaker plant. The first is a 184-megawatt natural gas-fired facility in Fayette County that was built in 2010.
Chelan County Public Utility District Enters New Contract to Supply Power to Utility
July 13, 2023
by Paul Ciampoli
APPA News Director
July 13, 2023
Washington State’s Chelan County Public Utility District and Puget Sound Energy recently announced a new contract for renewable hydropower from two PUD hydro projects on the Columbia River.
The five-year “slice” contract supplies PSE with 5% of the output from the PUD’s Rock Island and Rocky Reach hydropower projects from 2024 through 2028. The contract complements an existing contract between the two utilities, while generating revenue for the PUD to provide continued rate stability for its customers.
“This contract is part of an overall strategy designed to provide several benefits to customer-owners,” said Chelan PUD General Manager Kirk Hudson. “Ultimately, surplus energy sales keep Chelan County electric rates well below state and national averages, while also protecting customer rates from the risk of volatile markets and variable streamflow.”
The PUD said it ensures a competitive market price for its customers-owners with the public auction process. Bids are submitted and the PUD selects the highest qualified bidder.
The competitive market pricing also allows the PUD to lock in a margin above production costs for the benefit of its customer-owners.
PSE secured the contract as the highest bidder in an auction in early 2023.
New APPA Report Details Surge in Planned Solar Capacity Additions in the U.S.
July 12, 2023
by Paul Ciampoli
APPA News Director
July 12, 2023
More than 27,000 megawatts of solar capacity are under construction and projected to come online in 2023, a 32% increase from the current U.S. solar capacity and a 147% increase since the beginning of 2020, a new report from the American Public Power Association shows.
And for the second year in a row, solar was the leading source of new utility-scale capacity, the report, “America’s Electricity Generating Capacity: 2023 Update,” said.
With respect to wind capacity, the net gain of wind capacity since the beginning of 2020 is over 39,000 MW, which is a 37% increase over the past three years, the report noted.
Solar and wind are also the top resources in all four future capacity addition categories. Over 227,000 MW of solar capacity is proposed, pending application, permitted, or currently under construction, and there is nearly 158,000 MW of wind capacity in the pipeline.
The annual report covers current and imminent electricity generation capacity in the United States by types of fuel, location, and ownership type.
Generation capacity refers to the maximum potential power output of an electricity generation source, i.e., the amount of power a plant can produce if it were running at full power. Capacity is measured in megawatts.
The report covers generation capacity only. All capacity figures in the report only represent utility-scale capacity and do not include distributed and other small-scale generating capacity.
This year’s report also includes American Samoa, Puerto Rico, Guam, and the Virgin Islands in APPA’s analysis.
Currently, the U.S. has nearly 1.3 million megawatts generation capacity. The largest fuel source is natural gas, accounting for just under 44% of all generation capacity.
Coal, with a share of 17%, represents the second largest source of generation capacity. Wind, nuclear, hydro, and solar together account for more than one-third of capacity.
Under Development
The report analyzes prospective generation capacity in four categories: under construction, permitted, application pending, and proposed.
Over 466,000 MW of new generation capacity is under development in the United States — a 13% increase over 2022, and the second year in a row with an increase in capacity over 10%.
Of this capacity, 129,742 MW is under construction or permitted, and 338,373 MW is proposed or pending application.
A 49% plurality of all new generation capacity under development is for solar energy, followed by wind (34%) and natural gas (9%). However, three quarters of the wind capacity is in the “proposed” stage, which is the earliest and most uncertain stage of development and includes units that are least likely to be built.
Sixty-one percent of the generation capacity most likely to come online, permitted plants and plants that are under construction, are in solar A large majority of all future capacity is owned by non-utility generators.
Retirements and Cancellations
The report also provides information on retirements and planned retirements and cancellations over the past several years.
More than 30,000 MW of planned capacity developments were canceled in 2022. Wind and natural gas projects account for more than half of the cancellations from 2015-2022.
Capacity additions (27,755 MW) outpace the total capacity retired (16,121 MW) in 2022. A majority (78%) of the capacity retired in 2022 was from coal-fired facilities, with nearly 13,000 MW retired. Coal retirements in 2022 are double the capacity of coal plants retired in 2021. More than 41,000 MW in coal capacity is planned to be retired through 2027, which represents nearly a fifth of the current generating capacity of all coal-fired facilities.
Data analyzed for this report was taken from the Hitachi Energy Velocity Suite database, accessed January and February 2023.
Virgin Islands Water and Power Authority Generation Unit Successfully Energized
July 12, 2023
by Paul Ciampoli
APPA News Director
July 12, 2023
A Virgin Islands Water and Power Authority generation unit was successfully energized in June for the first time as part of the Authority’s ongoing St. Thomas Randolph Harley Power Plant New Generation Project.
Unit 5 is one of four new Wärtsilä generators being placed into service at the St. Thomas Randolph Harley Power Plant.
The project, which will see the introduction of four additional energy efficient Wärtsilä generators and a battery energy storage system to the St. Thomas Randolph Harley Power Plant, is slated for completion in August 2023 operating initially on diesel, with operation on propane to follow shortly thereafter.
Completely funded through a grant from the U.S. Department of Housing and Urban Development, the generators will enhance the Territory’s fuel resilience as the generators can operate on either propane or diesel.
In addition, they will deliver high energy efficiency, given that the generators are approximately 30% more efficient than the Authority’s older generators. This will reduce fuel consumption and fuel costs.
Additionally, the new generators can rapidly respond to changes in the Authority’s power generation and maintain grid reliability, allowing for optimal performance, even during times when energy demand is high throughout the territory.
This is further assisted by the BESS “because the BESS acts like a large shock absorber on the electric system helping to buffer disruptions on the system,” the Authority said.
DOE Plans to Invest Up to $1 Billion to Support Clean Hydrogen Hubs
July 7, 2023
by Peter Maloney
APPA News
July 7, 2023
The Department of Energy recently released a Notice of Intent to invest up to $1 billion in a demand-side initiative to support its regional clean hydrogen hub program.
The Regional Clean Hydrogen Hubs initiative is funded by the Bipartisan Infrastructure Law and aims to support the establishment of a national clean hydrogen network to help reduce emissions from energy-intensive sectors, such as industrial and chemical processes and heavy-duty transportation.
The Notice of Intent includes a Request for Information on the program’s design that the DOE said it intends to use to refine and validate its approach to providing demand-side support for the hubs to enter the clean hydrogen market.
A demand-side initiative is critical to ensuring the early commercial viability of a clean hydrogen hub because demand formation for a new energy source typically lags creation of reliable supply, the DOE said.
The demand-side initiative aims to support the growth and sustainability of clean hydrogen hubs by providing revenue certainty that hydrogen producers require to attract private sector investment, the DOE said. It said that the program also aims to help meet the needs of end-users who often prefer the flexibility to purchase hydrogen on shorter-term contracts and require confidence in the long-term availability of clean hydrogen before making critical, long-term investments.
Potential demand-side mechanisms could include one or more design factors such as pay-for-delivery contracts, offtake backstops, feasibility funding to support analysis by offtakers, or other measures that strengthen demand for clean hydrogen and increase revenue certainty for regional clean hydrogen hubs, the DOE said in the NOI.
The demand-side support mechanism should provide multi-year support for clean hydrogen produced by competitively selected projects affiliated with regional clean hydrogen hubs and help diverse entities take advantage of the potential of clean hydrogen, including non-profits, local government, and Tribes, the DOE said.
The White House, later this year, plans to announce the selection of six to 10 regional clean hydrogen hubs that will receive a total of up to $7 billion in federal funding.
Stakeholders all across the country have formed consortiums to bid for the clean hydrogen hub funding, including the Northeast, Southeast, Southwest, and Midwest.
Florida Municipal Power Agency Enters Agreements to Purchase Three Power Plants
June 29, 2023
by Paul Ciampoli
APPA News Director
June 29, 2023
The Florida Municipal Power Agency has entered into agreements to acquire three power plants, comprising approximately 339 megawatts of natural gas-fired combined cycle generation in central Florida, FMPA said on June 29.
The acquisitions include Orlando Cogeneration (120 MW), Orlando Mulberry (115 MW) and Orange Cogeneration (104 MW).
FMPA is a wholesale power agency owned by municipal electric utilities in Florida.
The acquisitions are expected to close in 2024 and 2025, following the expiration of each facility’s current long-term power purchase contracts.
“We are extremely pleased to announce the entry into purchase agreements for these facilities that will help FMPA further its mission of providing low-cost, reliable, and clean power,” said Jacob Williams, FMPA’s General Manager and CEO.
“Completing the acquisition of these high performing plants will represent a significant step toward meeting our growing power needs for the next 15 years. We are looking forward to working with teams at these three facilities, that have operated so well for over 25 years each,” he said.
Howard McKinnon, FMPA Executive Committee Chairman added: “We are very excited that we have reached agreement for the facilities and the many benefits they will bring to our members. These plants are the most economical alternative for adding low-cost power resources as FMPA’s Stanton coal unit resources ramp down in 2025.”
FMPA is acquiring the generation facilities from organizations whose owners include Northern Star Generation LLC, as well as Atlantic Power & Utilities, LP.
In 2026, following the expected completion of the three acquisitions, FMPA will control 2,100 MW of generation resources to support the All-Requirements Project participating utilities’ needs.
The All-Requirements Project serves all the power needs of 13 cities from a variety of power generating units.
Increased Renewable Energy, Natural Gas Generation Likely to Cut Summer Coal Demand: EIA
June 15, 2023
by Paul Ciampoli
APPA News Director
June 15, 2023
The U.S. Energy Information Administration is forecasting that the largest increases in U.S. electricity generation this summer will come from solar, wind, and natural gas-fired power plants because of new generating capacity coming online. The rising generation from these sources will likely be offset by reduced generation from coal-fired power plants.
Natural gas remains the primary source of generation in the electric power sector, “and we expect U.S. natural gas-fired generation will grow by 3%, or 16.7 terawatt-hours, this summer compared with last year,” it said.
Additional natural gas-fired generating capacity and favorable fuel costs are the primary drivers of the forecast increase in generation from natural gas this summer.
A large share of the new generating capacity built in the United States over the past few years is powered by solar or wind. The U.S. electric power sector added an estimated 14.5 gigawatts of solar generating capacity and about 8.0 GW of wind capacity during the 12 months ending May 31, 2023.
EIA forecasts that U.S. wind-powered generation this summer will be 7% (5.8 TWh) higher than last summer.
EIA expects that new solar capacity will lead to a 24% (10.8 TWh) increase in solar generation this summer compared with last summer.
Many solar projects are also being built with associated battery storage systems to help provide power when solar and wind resources are low. The electric power sector has added an estimated 5.3 GW of battery capacity in the past 12 months, a nearly 90% increase, EIA said.
“In addition to the continuing growth in generation from renewable energy sources, we forecast 4.5 TWh more nuclear generation this summer than in summer 2022 as result of the planned opening of a new reactor at the Vogtle nuclear power plant.”
Georgia Power announced on May 29 that Vogtle Unit 3 has safely reached 100 percent power, marking a major milestone towards commercial operation. This milestone marks the maximum energy the unit is licensed to produce in the reactor core and is the first time the unit has reached its expected output of approximately 1,100 electric MW.
Southern Nuclear will operate Vogtle 3 and a second new unit, Vogtle 4, on behalf of the co-owners: Georgia Power, Oglethorpe Power and public power utilities MEAG Power and Dalton Utilities. MEAG Power is a 22.7% co-owner of Plant Vogtle, including the new units, while Dalton Utilities is a 1.6% co-owner of the plant.
EIA expects the increase in summer generation from solar, wind, and nuclear power to contribute to reduced generation from coal-fired power plants.
Between June 2022 and May 2023, about 11 GW of U.S. coal capacity retired, and EIA expects 15% (36.0 TWh) less U.S. coal-fired generation this summer compared with last summer.
New Georgia Nuclear Unit Reaches 100 Percent Energy Output for First Time
May 30, 2023
by Paul Ciampoli
APPA News Director
May 30, 2023
Georgia Power announced on May 29 that Vogtle Unit 3 has safely reached 100 percent power, marking a major milestone towards commercial operation.
This milestone marks the maximum energy the unit is licensed to produce in the reactor core and is the first time the unit has reached its expected output of approximately 1,100 electric MW.
Southern Nuclear will operate Vogtle 3 and a second new unit, Vogtle 4, on behalf of the co-owners: Georgia Power, Oglethorpe Power and public power utilities MEAG Power and Dalton Utilities. MEAG Power is a 22.7% co-owner of Plant Vogtle, including the new units, while Dalton Utilities is a 1.6% co-owner of the plant.
Testing at the 100 percent power level is focused on the operation of the reactor, plant control systems for the reactor and support systems, and integrated plant operations. Plant performance is monitored at various conditions and data is gathered and evaluated by site engineers.
With the unit reaching full power for the first time, other tests must be performed at this power level before the unit is available for reliable dispatch in accordance with its combined operating license.
Once all startup testing is successfully completed and the unit is available for reliable dispatch, Vogtle Unit 3 will enter commercial operation.
Unit 3 is projected to be placed in service during June 2023.
Vogtle Unit 4 began receiving nuclear fuel this month. Since the first fuel delivery on May 3, 157 fuel assemblies necessary for the safe and reliable startup of Unit 4 have arrived by truck in shipping cannisters designed to transport non-irradiated uranium fuel assemblies. Hot functional testing for Unit 4 was completed on May 1.
Clarksville, Arkansas, Signs Agreement with Company to Design, Construct Hydrogen Power Plant
May 17, 2023
by Paul Ciampoli
APPA News Director
May 17, 2023
The City of Clarksville, Arkansas, has signed an agreement with Syntex Industries to design and construct a hydrogen power plant.
The facility will generate over 500 MW and support Clarksville’s economic development by providing low-cost and renewable electricity to energy-intensive businesses, the city said.
The power plant, which will be the first “hydrogen hub” in Arkansas, will create over 100 full-time positions and is expected to break ground by the end of 2023, with limited power production ramping up in 2025. The new facility will employ over 100 full-time positions when completed in 2026.
“Syntex has been working with Clarksville to develop methods to store excess renewable energy and regenerate it on demand. Recent technical developments and federal tax incentives have opened the door at last,” said Clarksville Mayor David Rieder. “This project offers the infrastructure to support our growing economy and bring new high paying ‘ecodustrial’ jobs to the area.”
To help public power utilities understand the potential — and the limitations — of hydrogen, and why they should get involved, the American Public Power Association developed Understanding Hydrogen: Trends and Use Cases.