[USA] President Trump to nominate a pair of Democrat and Republican appointees to FERC

On July 27, 2020, the White House announced President Donald Trump’s intention to nominate Democrat Allison Clements and Republican Mark Christie to the Federal Energy Regulatory Commission (FERC).[1] According to the White House, Clements has over two decades of experience in federal energy regulation for the public and private sector. Christie has served as the chairman of the Virginia State Corporation Commission, a state regulatory agency whose authority includes utilities, since 2004.

The commission is composed of five commissioners who are nominated by the U.S. President and confirmed by the U.S. Senate. No more than three commissioners of one political party may serve on the commission at any given time. As of July 2020, FERC is one commissioner short and has a 3-1 Republican majority. The current members are Chairman Neil Chatterjee (R), Commissioner Bernard McNamee (R), Commissioner James Danly (R), and Commissioner Richard Glick (D). McNamee’s term ended on June 30, 2020, but he has stayed on until a replacement is confirmed. If confirmed by the Senate, Christie will take McNamee’s seat on the commission.

In March 2020, Senate Energy and Natural Resources (ENR) Chair Senator Lisa Murkowski (R-Alaska), and Ranking Member Joe Manchin (D-W. Virginia) expressed frustration with the White House's lack of movement on bringing forward a Democratic nominee along with the nomination of Danly, as is the tradition of nominations to the agency.[2]

[1] https://www.whitehouse.gov/presidential-actions/president-donald-j-trump-announces-intent-nominate-appoint-following-individuals-key-administration-posts-072720/

[2] https://www.utilitydive.com/news/senate-confirms-danly-but-manchin-pledges-to-hold-out-for-democratic-ferc/573430/

[Japan] JERA, ADEME Investment SAS, and IDEOL Agreed to Jointly Invest in the Development of Commercial Scale Floating Offshore Wind Projects

JERA (a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo)  and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture)), 100% French state-owned infrastructure investment company ADEME Investment SAS (Headquarters: Angers City, France)[1], and the leading French floating offshore wind technology company IDEOL (Headquarters: La Ciotat, France) announced on June 22, 2020, that they have agreed to establish an investment vehicle that will finance the development and construction phase of several commercial-scale floating offshore wind projects around the world. This includes two upcoming wind farms in Scotland and France, which will use IDEOL’s patented Damping Pool technology. The three parties are in discussion to determine the details of the partnership, including the investment amount.

Offshore wind power generation technologies can generally be divided into  two types: fixed structures connected to the offshore foundations called “bottom-mounted foundations” and “floating-type” structures where the foundation is floating on the sea.[2] Floating-type offshore wind turbines, which can be installed even in deep water, have significant potential to help expand the use of renewable energy in the future. The three companies are therefore trying to better understand floating-type offshore wind power and accelerate its global development through this partnership.[3] [4]

[1] https://www.ademe.fr/en/about-ademe

[2] https://www.nedo.go.jp/news/press/AA5_100970.html

[3] https://www.jera.co.jp/information/20200622_508

[4] https://www.jera.co.jp/english/information/20200622_508

[USA] FERC finalizes updates to PURPA

On July 16, 2020, the Federal Energy Regulatory Commission (FERC) issued a final order in a 3-1 vote to finalize its updates to the Public Utility Regulatory Policies Act (PURPA), a 1978 law to reduce demand and promote greater use of domestic energy and renewable energy.[1] FERC stated that the updates are an effort to preserve competition and give states more flexibility in executing PURPA. One of the biggest changes allows states to set the rates paid to qualifying facilities at a variable wholesale rate rather than a fixed cost, meaning that the price will vary with the markets. Utilities and state regulators have expressed frustrations in the past with paying fixed rates to qualifying facilities, arguing that it prevents more efficient and cost-effective renewable facilities from competing.

FERC also changed how proposed projects qualify for PURPA financing rules, reducing the upper limit for facilities from 20 MW to 5 MW. This essentially means that utilities are no longer obligated to purchase from qualifying renewable facilities above that threshold. Another modification FERC made was to change the one-mile rule to prevent facilities 10 or more miles apart from aggregating as a single project. Facilities under 10 miles apart can still choose whether to aggregate. The change to the one-mile rule is one that Commissioner Richard Glick, who dissented to the other changes, sees as reasonable.

[1] https://www.ferc.gov/news-events/news/ferc-modernizes-purpa-rules-ensure-compliance-reflect-todays-markets

[USA] Microsoft announces first investment from $1 billion climate fund

On July 21, 2020, Microsoft announced its first investment from a $1 billion climate fund aimed at investing in early-stage clean energy technology.[1] Microsoft announced the climate fund in January 2020 to support low-carbon technologies and achieve its goal of becoming “carbon negative”[2] by 2030.[3] The $50 million investment will go to Energy Impact Partners’ (EIP) global platform for innovation of new technologies. EIP is a New York-based investment firm that has served as a link between renewable energy startups and several of the U.S.’s largest utilities, including Southern Company and Xcel Energy. EIP manages about $1.2 billion in assets and has invested in a wide array of technologies such as smart home thermostats and software services for solar and gas pipeline projects. One of its notable investments was Greenlots, an electric vehicle charging software provider that was later sold to Royal Dutch Shell PLC. According to spokespeople for the Microsoft, the company will not take a direct stake in any startups as part of this investment, though it may take advantage of debt or equity if a startup was successful.

[1] https://www.bloomberg.com/news/articles/2020-07-21/microsoft-nike-unilever-announce-global-carbon-neutral-group

[2] “carbon negative” here means that Microsoft plans to reduce their carbon footprint to less than neutral (i.e. removing carbon from the atmosphere)

[3] https://www.microsoft.com/en-us/corporate-responsibility/sustainability/climate-innovation-fund

[USA] Enel Green Power begins construction on 146 MW PV and battery facility

Enel Green Power, an Italian multinational renewable energy corporation with roughly 100 renewable power plants in North America, announced on July 21, 2020 that it began constructing a 146 MW photovoltaic (PV) facility co-located with a 50 MW/75 MWh battery in Texas, its first utility-scale hybrid project in North America.[1] The project is scheduled to be operation by summer 2021. In the press release, CEO of Enel Green Power, Antonio Cammisecra, said, “The Lily solar plus storage project highlights the huge potential of renewable energy growth and represents the future of power generation, which will increasingly be made up by sustainable, flexible plants that provide zero-carbon electricity while boosting grid stability.”

Enel also announced that it plans to deploy an additional 1 GW of battery storage capacity across its renewable projects in the U.S. over the next two years. To achieve this, Enel plans to set up 1 GW of utility-scale wind and solar projects in the U.S. and Canada annually through 2022 and evaluate the potential for co-located storage for each project. According to the company, that storage could provide benefits like bolstering grid reliability and further monetizing energy production.

[1] https://www.enelgreenpower.com/media/press/2020/07/enel-green-power-starts-construction-of-its-first-renewables-storage-project-in-north-america

[Japan] NEDO and the Advanced Hydrogen Energy Chain Association for Technology Development Jointly Conducted the World’s First Global Hydrogen Supply Chain Demonstration Project

On June 25, 2020, New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo) and the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD, Headquarters: Yokohama City, Kanagawa Prefecture)[1] announced that they have conducted the world's first global hydrogen supply chain demonstration project, which transports hydrogen from Brunei Darussalam to Japan. NEDO is Japan’s largest public R&D funding organization specialized in innovative energy technologies. AHEAD was established in 2017 by four Japanese companies: global chemical engineering company Chiyoda (Headquarters: Yokomaha City, Kanagawa Prefecture)[2], Japanese shipping company Nippon Yusen (Headquarters: Tokyo)[3], and two Japanese trading companies, Mitsui & Co (Headquarters: Tokyo)[4] and Mitsubishi (Headquarters: Tokyo).[5] AHEAD is an association that supports hydrogen research in order to accelerate the development of hydrogen supply chains.

The project uses the "organic chemical hydride method" to build the hydrogen supply chain. Methylcyclohexane (MCH) generated in Brunei is transported by sea to Japan. The MCH is then separated into hydrogen and toluene at a dehydrogenation plant located in Kawasaki City, Kanagawa Prefecture. The toluene is then sent back to Brunei’s hydrogeneration plant and processed to re-bond with hydrogen.

The first MCH transportation process was carried out in December 2019. The dehydrogenation plant in Kawasaki City began extracting hydrogen from MCH in April 2020 and has been supplying hydrogen to the gas turbine of the Mizue power plant owned by Toa Oil (Headquarters: Kawasaki City, Kanagawa Prefecture) since May 2020.[6] In June 2020, the project began transporting the toluene processed by the Kawasaki dehydrogenation plant to Brunei. NEDO and the AHEAD will operate the demonstration test until the end of 2020 to evaluate the performance of the hydrogenation/dehydrogenation plant equipment and identify any issues.

NEDO has contributed to the development of hydrogen technology since FY2015. Through this project, NEDO intends to establish a large-scale hydrogen utilization system that can transport hydrogen from overseas and use it for Japan’s hydrogen power generation.[7]

[1] https://www.ahead.or.jp/jp/organization.html

[2] https://www.chiyodacorp.com/jp/about/profile/

[3] https://www.nyk.com/profile/profile/

[4] https://www.mitsui.com/jp/ja/company/outline/profile/index.html

[5] https://www.mitsubishicorp.com/jp/ja/about/profile/

[6] https://www.toaoil.co.jp/company/location.html

[7] https://www.nedo.go.jp/news/press/AA5_101322.html

[USA] D.C. Circuit upholds FERC energy storage order

On July 10, 2020, the U.S. Court of Appeals for the District of Columbia Circuit upheld a 2018 Federal Energy Regulatory Commission (FERC) order, Order No. 841, promoting the participation of energy storage technologies like batteries on the electric grid.[1] The court ruled that the order does not infringe upon states’ authority over distribution systems. Order No. 841 is intended to reduce barriers for energy storage resources (ESR) to access the federal wholesale electricity market. While the order is broadly seen by the storage and clean energy advocates as key to furthering the deployment of energy storage, groups like the National Association of Regulatory Utility Commissioners (NARUC), a national association representing State Public Service Commissioners, argued that the order is an attempt to curtail state authority over the distribution system. Specifically, NARUC argued that certain parts of the order, such as blocking states from making rules to “broadly prohibit” energy storage from participating in federally regulated wholesale markets, are violating states’ authority. The three-judge panel of the court found that FERC is within its legal authority under the Federal Power Act (FPA) to ensure storage rules and practices involving wholesale rates are just and reasonable because the order only regulates matters concerning federal transactions.

[1] https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/dc-circuit-upholds-landmark-ferc-order-aimed-at-boosting-energy-storage-59391742

[USA] Biden outlines $2 trillion climate plan

In a speech on July 14, 2020, presidential candidate Joe Biden outlined his climate plan which seeks to invest nearly $2 trillion to boost renewable energy and rebuild infrastructure with the goal of achieving net-zero carbon emissions by 2050.[1] [2] The plan is the second piece of Biden’s new economic agenda (called "Build Back Better") which he first detailed on July 9, 2020.[3] Biden has described the plan as a “one-time” opportunity to reestablish the U.S. as an economic and political leader.

The plan calls for major investments in infrastructure, the auto-industry, transit, buildings, the power sector, housing, innovation, agriculture and conservation, and environmental justice. These investments would include electrifying government-owned vehicle fleets, creating a nationwide network of 500,000 electric vehicle (EV) charging stations, building 1.5 million energy efficient homes, retrofitting 4 million buildings, and decarbonizing electrical generation. Biden’s plan also emphasizes the importance keeping existing carbon-free energy provided by nuclear and hydropower while investing in new technologies like renewable hydrogen and advanced nuclear. According to Biden, the sweeping investments proposed in his plan would spur millions of jobs and would end carbon-based electrical generation by 2035.

[1] https://joebiden.com/clean-energy/

[2] https://www.npr.org/2020/07/14/890814007/biden-outlines-2-trillion-climate-plan

[3] https://joebiden.com/build-back-better/

[USA] 15 states and D.C. announce joint MOU to accelerate bus and truck electrification

In a press release on July 14, 2020 by the Northeast States for Coordinated Air Use Management (NESCAUM), a nonprofit association of air quality agencies in the Northeast, governors from 15 states and the mayor of Washington, D.C.[1] announced a memorandum of understanding (MOU) committing to zero-emissions vehicles (ZEV) in 100% of medium- and heavy-duty sales by 2050 and interim target of 30% electric vehicle (EV) sales by 2030.[2][3] Collectively, these states account for nearly 50% of the U.S. economy and about 40% of goods moved by truck (by value).[4] To meet the targets of the MOU, key policies, including the Advanced Clean Truck Rule (California’s  zero-emission commercial truck requirement) and investments in electric vehicle charging infrastructure, are identified in the MOU.

The participating locations will work through NESCAUM’s Multi-State ZEV Task Force to develop a roadmap to increase electric vehicle supply, encourage zero-emission vehicle purchases, and establish a supportive ecosystem comprised of a trained workforce, charging infrastructure, and financing tools. The Multi-State ZEV Task Force’s 2018 action plan focused on light-duty vehicles. Under the MOU, the task force will focus on developing a plan for heavy duty vehicles like trucks and buses in the next six months.

[1] Participating locations: California, Colorado, Connecticut, Washington D.C., Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington, and Vermont

[2] https://www.nescaum.org/about-us/newsroom/#

[3]http://d31hzlhk6di2h5.cloudfront.net/20200714/dc/3a/2b/58/794e750e808dd4a82ae402dd/MHDV_ZEV_MOU_7-14-20.pdf

[4] https://www.nrdc.org/experts/patricio-portillo/15-states-take-historic-action-transportation-pollution

[Japan] Hokuriku Electric Power and JFE Engineering Seeks to Expand the Use of AI-based WinmuSe System to Optimize Dam Operation

On June 12, 2020, Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Prefecture) and JFE Engineering, an engineering company headquartered in Tokyo, announced that they had jointly developed an optimal operating system for dams using AI (Artificial Intelligence) technology, which will help increase hydroelectricity power plants’ generation. The system mainly utilizes the WinmuSe, an AI-based water inflow forecasting application developed by JFE Engineering.

The two companies have jointly demonstrated WinmuSe at Rikuden’s Asaida Dam, located in Takayama City, Gifu Prefecture, since FY 2017. Its forecasting function was successfully improved through advanced analysis of large amounts of data related to Asaida Dam’s amount of rainfall and water inflow in past years. The results of the demonstration project showed excellent performance, with a high level of accuracy in forecasting water inflow. The project also confirmed that the system could be expected to increase the generation of hydroelectricity power plants by approximately 5 GWh per year.

Based on the results, Rikuden and JFE Engineering plan to apply the AI-based optimal operating system to other dams in the entire Jinzu River Water System, aiming to maximize their power generation.[1]

[1] http://www.rikuden.co.jp/press/attach/20061201.pdf

[USA] Department of Homeland Security announces plan for securing critical infrastructure against cyberattacks

On July 7, 2020, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), the federal civilian agency responsible for advising critical infrastructure (CI) partners on how to manage industrial control systems (ICS) risk, revealed a five-year plan titled Securing Industrial Control Systems: A Unified Initiative FY 2019–2023 to address the challenges posed by protecting critical infrastructure networks from hackers.[1] ICS is a term used to describe different types of control systems which include the devices, systems, networks, and controls used to operate or automate industrial processes. ICS underpin everything from power grids to oil and gas pipelines. According to CISA, cyberattacks on ICS can "result in significant physical consequences, including loss of life, property damage, and disruption of the essential services and critical functions upon which society relies.” CISA’s plan lays out a four-part initiative to secure ICS against cyber threats. The four parts are: (1) deepen existing partnerships while expanding the scope of activities with the broader ICS community; (2) develop and use technology to mature ICS cyber defense; (3) build “deep data” capabilities to analyze and deliver information the can be used to disrupt cyberattacks; and (4) enable informed and proactive security investments by understanding and anticipating ICS risk.

[1] https://www.cisa.gov/publication/securing-industrial-control-systems

[USA] Sunrun strikes deal to acquire Vivint Solar for $1.46 billion

Sunrun, the largest residential solar company in the U.S., announced on July 6, 2020 that it has struck a deal to acquire residential energy competitor Vivint Solar, the second largest residential solar company in the U.S., for about $1.46 billion in an all-stock deal, a type acquisition where shareholders of the acquired company receive shares in the acquiring company as payment rather than cash.[1] Sunrun offers energy storage and grid services, working directly with utilities and grid operators. Vivint targets customers through direct-to-home sales which eases customer access to services and drives product purchases. Sunrun shareholders will hold about 64% of the combined company. The deal is expected to deliver about $90 million in annual cost savings between the companies. Based on Sunrun’s stock price on July 6, 2020, the combined entity will be valued at approximately $9.2 billion. In a statement regarding the acquisition, Sunrun said, "We expect to benefit from efficiencies in large scale project finance capital raising activities and are excited about the opportunity to build an even stronger and more recognizable consumer brand in residential energy services.”

[1] https://investors.sunrun.com/news-events/press-releases/detail/207/sunrun-announces-definitive-agreement-to-acquire-vivint

[USA] Duke and Dominion cancel Atlantic Coast Pipeline amid ongoing legal battles

On July 5, 2020, Duke Energy and Dominion Energy announced that they are cancelling the Atlantic Coast Pipeline—originally slated to run 600 miles from West Virginia to eastern North Carolina to provide additional natural gas capacity in the region—due to ongoing delays and cost uncertainty.[1][2] The Atlantic Coast Pipeline project has run into several legal challenges which has increased cost estimates from $4.5 billion to $8 billion. In June 2020, the Supreme Court ruled 7-2 overturning a lower court’s decision to block the pipeline from crossing beneath the Appalachian Trail, a protected national scenic trail overseen by the U.S. Forest Service. Despite this win, Duke and Dominion pointed to other legal battles as barriers to the project. In particular, the U.S. District Court for the District of Montana decision to overturn federal permit authority for waterbody and wetland crossings and a Ninth Circuit ruling on May 28, 2020 are stated as major concerns.

In addition to the announcement regarding the Atlantic Coast Pipeline, Dominion announced the sale of its natural gas transmission and storage assets to a Berkshire Hathaway affiliate for $9.7 billion.[3] However, this sale does not include Dominion's interest in the Atlantic Coast Pipeline.

[1] https://news.duke-energy.com/releases/dominion-energy-and-duke-energy-cancel-the-atlantic-coast-pipeline

[2] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-and-Duke-Energy-Cancel-the-Atlantic-Coast-Pipeline

[3] https://news.dominionenergy.com/2020-07-05-Dominion-Energy-Agrees-to-Sell-Gas-Transmission-Storage-Assets-to-Berkshire-Hathaway-Energy-Strategic-Repositioning-Toward-Pure-Play-State-Regulated-Sustainability-Focused-Utility-Operations

[Japan] Japan Business Federation Launched the Challenge Zero Project

Amid concerns about climate change, the Japan Business Federation, also known as Keidanren, announced on June 8, 2020 that it had launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Keidanren is an economic organization that represents a membership comprised of 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).

The Challenge Zero Project has been endorsed by over 130 participating companies and groups, ranging from energy companies and utilities to manufacturers, financial institutions, and retailers. Among them, some Japanese utilities and energy producers are part of the project: Tokyo Electric Power Company Holdings (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Prefecture), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Prefecture), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Prefecture), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Prefecture), and Electric Power Development Company (J-POWER, Headquarters: Tokyo).[1]

Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges. Challenges are different for each member, such as developing CO2 utilization technology, improving the efficiency of reusing Electric Vehicles’ (EV) batteries, etc.[2] Keidaren and participating entities aim to contribute to CO2 emission reductions by addressing these challenges.[3] [4]

[1] https://www.challenge-zero.jp/jp/member/

[2] https://www.challenge-zero.jp/jp/casestudy/

[3] https://www.keidanren.or.jp/policy/2020/052.html

[4] https://www.challenge-zero.jp/jp/about/

[Japan] The Japanese Cabinet Approved the FY 2019 Annual Report on Energy (Japan’s Energy White Paper 2020)

On June 5, 2020, the Japanese Cabinet approved the Fiscal Year 2019 Annual Report on Energy, known as “Japan’s Energy White Paper 2020”, which was created by the Agency for Natural Resources and Energy (ANRE) under the Ministry of Economy, Trade and Industry (METI). In accordance with Article 11 of the Basic Act on Energy Policy (Act No. 71 of 2002), ANRE publishes and submits the white paper to the National Diet on an annual basis. It highlights the current energy trends in domestic and global markets, and provides a general overview of the major initiatives that were implemented in the previous fiscal year.

The FY 2019 Japan’s Energy White Paper emphasizes the following areas:

· The progress of the recovery and reconstruction in Fukushima Prefecture, such as supporting the victims of the nuclear accident, cleaning up contaminated water, and decommissioning of the Fukushima Daiichi Nuclear Power Plant

· Japan’s measures to strengthen the resilience of the energy infrastructure to the potential risks of damage by natural disasters, such as improving regional power networks

· Japan’s implementation of global warming countermeasures in accordance with the Paris Agreement

The White Paper also discusses the impact of COVID-19 on the global oil market and highlights the importance of ensuring a stable international crude oil market. In addition, it compares the current progress and situation of Japan’s CO2 emission reduction efforts to meet greenhouse gas reduction targets with the progress made by the European Union (EU) and other major countries, including the United Kingdom, the United States, France, and Germany. It notes that Japan ranked No. 1 in the G7 reduction rate of demand-based CO2 emissions from 2013 to 2015.[1] [2] [3] [4]

[1] https://www.meti.go.jp/press/2020/06/20200605002/20200605002-2.pdf

[2] https://www.oecd.org/sti/ind/carbondioxideemissionsembodiedininternationaltrade.htm

[3] https://www.meti.go.jp/press/2020/06/20200605002/20200605002.html

[4] https://www.meti.go.jp/english/press/2020/0605_001.html

[USA] House Democrats release new proposal to address climate crisis

On June 20, 2020, Democrats in the House Select Committee on the Climate Crisis released a comprehensive proposal called the Climate Crisis Action Plan which establishes a goal of reaching net-zero greenhouse gas (GHG) emissions in the United States by 2050; directs the president to set ambitious interim targets to meet or exceed that goal; and calls for achieving net-negative GHG emissions after 2050.[1] The report recommends investments in infrastructure; investments in clean energy and decarbonization technologies; and decarbonization of the transportation and electricity sectors. The report does not directly recommend an end to natural gas fracking or coal-fired power. It also leaves the door open for carbon capture technology and nuclear power to play a role in a net zero-carbon grid.

The majority staff for the Select Committee previewed its draft policy recommendations with Energy Innovation: Policy and Technology LLC (Energy Innovation), a nonpartisan think tank. Energy Innovation modelled the emissions reductions and co-benefits from implementing a subset of the Select Committee’s recommendations. According to Energy Innovation, the Select Committee majority staff’s policy recommendations will set the country on a path to achieving net-zero greenhouse gas emissions by 2050.

[1] https://climatecrisis.house.gov/sites/climatecrisis.house.gov/files/Climate%20Crisis%20Action%20Plan.pdf

[USA] U.S. Department of Commerce recommends tariffs on wind tower imports from four countries

On June 30, 2020, the U.S. Department of Commerce announced the results of its antidumping duty and countervailing duty investigations into importers of wind towers from Canada, Indonesia, South Korea (antidumping only), and Vietnam.[1] According to the Department of Commerce, importers of wind towers from these countries sold their products at less than fair value in the United States. Antidumping duties prevent products manufactured overseas from being sold by foreign firms in the U.S. at "less than fair value.” Countervailing duties attempt to offset the subsidies that foreign governments provide for some exporting firms by imposing duties on the goods exported to the U.S. According to the Department of Commerce, the four countries combined accounted for about 76% of all imported utility-scale wind towers in 2019, or about $350 million worth. The Department of Commerce recommended tariffs ranging from roughly 5% (Korean imports) to 66% (Vietnamese imports) of the value of the imports. Those fees would go into effect if the U.S. International Trade Commission decides to support the recommendation in August 2020.

The Department of Commerce investigation stems from a request made in July 2019 by the Wind Tower Trade Coalition (WTTC), which argued that imports were undercutting U.S. producers. However, a majority of the wind industry oppose the request. The American Wind Energy Association (AWEA) has warned that the request would raise the average cost of wind turbines by 10% to 18%.[2]

[1] https://www.trade.gov/press-release/us-department-commerce-finds-dumping-and-countervailable-subsidization-imports-0

[2] https://www.awea.org/Awea/media/Resources/Fact%20Sheets/AWEA_Tariffs-Put-Jobs-at-Risk-FINAL.pdf

[USA] Dominion announces successful installation of 2nd offshore wind farm in United States

Dominion Energy announced on June 29, 2020 that it has successfully installed its two turbine, 12-megawatt Coastal Virginia Offshore Wind (CVOW) pilot project 27 miles off Virginia Beach.[1] The CVOW pilot project is the first offshore wind farm to be installed in federal waters and is the second offshore wind farm in the United States. The CVOW pilot project—engineered and constructed by the world's largest offshore wind developer, Ørsted A/S—is currently undergoing testing and is anticipated to come online by the end of summer 2020. According to Dominion, the pilot will provide enough power at peak capacity to power 3,000 homes. The pilot project lays the groundwork for a separate Dominion 2,600-MW proposal which will be built in multiple phases about 30 miles from Virginia Beach starting in 2024 and generate enough power for 650,000 homes. In a statement, Dominion Energy Chairman, President and CEO Thomas F. Farrell, II said, "The construction of these two turbines is a major milestone not only for offshore wind in Virginia but also for offshore wind in the United States.” He also emphasized the importance of the pilot for bringing new clean energy jobs to Virginia, which Virginia Governor Ralph Northam echoed in his own statement.

[1] https://news.dominionenergy.com/2020-06-29-Dominion-Energy-Completes-Construction-of-First-Offshore-Wind-Project-in-U-S-Federal-Waters

[Japan] Tokyo Gas Invested in Floating Wind Power Company Principle Power

Tokyo Gas (Headquarters: Tokyo[1]) announced on May 27, 2020, that it has invested more than 2 billion yen (approximately $18 million)[2] in Principle Power (Headquarters: Emeryville, California, U.S.), a wind power technology developer that owns the WindFloat technology. With its investment, Tokyo Gas has become one of Principle Power’s major shareholders.

WindFloat is a patented technology owned by Principle Power. It is a floating foundation for offshore wind turbines. The technology has achieved high stability in various aquatic environments and is expected to be widely adopted by floating offshore wind projects around the world in the future. It has already been used in some large wind turbine projects in Europe. The introduction of WindFloat technology is expected to drive the implementation of floating offshore wind turbines in Japan, where the availability of shallow seabeds is limited.

Tokyo Gas has been investing in renewable energy sources in Japan and overseas to achieve net-zero CO2 emissions. According to its management vision, Compass 2030, it aims to reach 5GW of renewable power generation capacity by 2030. Investment in Principle Power’s technology is expected to further accelerate this effort.

Takeshi Uchida, President of Tokyo Gas, said, “Our company is working to build up renewable energy sources inside and outside of Japan in order to achieve net-zero CO2 emissions as set forth in our Group Management Vision, “Compass 2030.” Principle Power, with its advanced technology and proven track record in the field of floating offshore wind, which is expected to grow in Europe and in Asia, is an ideal partner for Tokyo Gas, and this investment will give us a good start in promoting floating-type wind power generation projects in Japan and in other parts of the world.” [3] [4]

[1] https://www.tokyo-gas.co.jp/en/aboutus/profile.html

[2] ¥ 1 = $ 0.0092 USD. Based on the exchange rate as of June 4, 2020.

[3] https://www.tokyo-gas.co.jp/Press/20200527-01.html

[4] https://www.tokyo-gas.co.jp/Press_e/20200527-01e.pdf

[Japan] Kyushu Electric Power Group Acquired Geothermal Company Thermochem and PT. Thermochem Indonesia

Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture[1]) announced on June 1, 2020, that Kyuden International Corporation[2] and West Japan Engineering Consultants[3], which are both subsidiaries of Kyuden, have concluded a share purchase agreement for the acquisition of Thermochem and PT. Thermochem Indonesia (Collectively “Thermochem”). The two companies, based in the U.S. and Indonesia respectively, offer geothermal technical and consulting services.[4]

Thermochem has contributed to the implementation of flow measurement and testing services during the well-drilling work at the Sarulla Geothermal Independent Power Producer (IPP) project in Indonesia. Kyuden has participated in this project, which is one of the largest geothermal IPP projects in the world. Thermochem has a strong reputation among geothermal developers and operators worldwide for its advanced technical capabilities and knowledge.

This is the first time that Kyuden Group has independently acquired an overseas business. Leveraging Termochem’s knowledge and experience, Kyuden will continue to expand its geothermal power generation business. Based on the Kyuden Group Management Vision 2030, the Kyuden Group plans to contribute to the development of renewable energy and a sustainable society by acquiring equity ownership of 5 GW of overseas electricity generation businesses. [5] [6]

[1] https://www.kyuden.co.jp/english_company_outline_index.html

[2] https://www.kyuden-intl.co.jp/en/company/

[3] https://www.wjec.co.jp/company/location.html

[4] https://www.kyuden.co.jp/var/rev0/0243/8936/12fkcd49.pdf

[5] http://www.kyuden.co.jp/press_h200601b-1.html

[6] https://www.kyuden.co.jp/var/rev0/0243/8935/bj2rx941.pdf