On July 30, 2024, the Department of Energy (DOE)’s advisory board proposed the establishment of its own AI data center to study how to lessen energy usage, according to a recent report. [1] This is relevant because the rapid growth of energy requirements from AI data centers, as well as the threat they present to climate goals, has landed on the department’s main agenda. The advisory board calls on the DOE to create a “data-center-scale AI testbed” in the agency for two reasons: it would allow scientists from academia, the DOE, and the industry, to help make these data centers more energy efficient and flexible in taxation, and it would be separate from the agency’s pre-existing computing facilities. The report focuses on hyperscale facilities that require between 300 to 1,000 megawatts of electricity or greater, which are being built with lead times of only 1-3 years. The board consulted with big technology firms, power suppliers, and other stakeholders, and concluded that there is an urgent need for a more flexible and firm electricity supply.
[USA] Archaea Energy, Waste Connections open RNG plant in Pennsylvania
On August 22, 2024, Archaea Energy, subsidiary of BP, and Texas- based Waste Connections Inc. have opened their first renewable energy gas (RNG) plant in Pennsylvania. [1] The plant is located next to the Bethlehem Landfill, which came online in July. The CEO of Archaea stated that the company has brought six plants online to date and intends to continue capturing landfill emissions. The Bethlehem Landfill plant can process almost 3,500 standard cubic feet of landfill gas per minute into RNG, which can heat up to 14,000 homes yearly. The partnership between Archaea and Waste Connections has lasted for years; Archaea also owns RNG plants next to Waste Connections landfills in Nebraska, New York, and Oklahoma. In Washington, Oregon, and Colorado, the companies have plants that convert landfill gas to electricity.
[1] https://www.bp.com/en_us/united-states/home/news/press-releases/archaea-energy-and-waste-connections-celebrate-opening-of-renewable-gas-plant-in-pennsylvania.html
[USA] Regulators say NorthWestern Energy failed to justify proposed rate hike
On August 22, 2024, regulators indicated that NorthWestern Energy, Montana’s largest electric and gas utility, failed to justify their proposed rate hike. [1] The utility says that the cost to generate power is increasing, which justifies the 8% rate hike. However, the decision is up to the regulators who found major discrepancies that undermine the company’s request. Earlier in August, the Public Service Commission emphasized that it needed more information prior to reviewing the request, but despite having done that, regulators are still dissatisfied. PSC explained that NorthWestern’s failure to explain their reasoning for a rate hike is unusual; this instance met a “higher threshold of deficiency”, so NorthWestern was granted one week to provide additional information.
[1] https://psc.mt.gov/News/Montana-Public-Service-Commission-Finds-NWE-Rate-Application-Again-Fails-to-Meet-Minimum-Filing-Standards
[USA] US wind generation hit record in April 2024, exceeding coal-fired generation
An analysis released by the Energy Information Administration (EIA) on August 13, 2024, found that wind-generated electricity established a new record in the US in April. [1] Wind generation exceeded coal-fired generation in both March and April. This was the first time that wind generation exceeded coal-fired generation for two months in a row. Usually wind power produces the most electricity during springtime. In March 2024, wind installations produced 45.9 GWh of electricity, while coal-fired plants produced 38.4 GWh. In April, coal-fired generation fell to 37.2 GWh, while wind increased to a record high of 47.7 GWh. For context, 20 years ago, coal-fired generation produced 154.3 GWh of electricity, while wind produced 1.3 GWh. Over the last 25 years, wind power generating capacity has grown significantly, from 2.4 GW in 2000 to 150.1 GW in April 2024. In contrast, a substantial number of coal plants have retired over the same period, with total capacity falling from 315.1 GW in 2000 to 177.1 GW in April 2024.
Other sources of electricity generation have also increased since then; since 2000, solar power generation increased by 99.1 GWh, and natural gas increased by 287.6 GWh. After the record wind capacity additions in 2021 and 2022, new wind facilities have declined in the last two years. 7.1 GW of wind capacity is expected to come online in 2024.
[USA] Outlook for US natural gas inventories at the end of injection season.
An analysis released by the Energy Information Administration (EIA) on August 7, 2024, forecasted that US working natural gas inventories will be 3,954 billion cubic feet (Bcf) by the end of October. [1] This is the highest amount of natural gas in US storage since November 2016. Less-than-average cumulative injections are predicted for the rest of the injection season because inventories were relatively well supplied in March, above-average natural gas consumption was anticipated, and there was relatively flat natural gas production this summer. The difference between US natural gas inventories and their previous five-year average will gradually decrease with the slower rate of inventory build. Injections into storage will be at or near the five-year minimums in every region of the US for the remainder of the season.
Natural gas storage is mainly used to balance seasonal fluctuations in natural gas demand because consumption peaks in the winter when natural gas use for heating is greatest. As natural gas-fired generation capacity has increased due to warm summers, consumption in the electric power sector has risen to meet air-conditioning demand. This leads to a second, smaller peak in the year, typically in July or August. Much of the increased US natural gas demand since 2012 had come from the South, including Texas and Louisiana. The second peak in consumption in the summer occurs in the inventory pattern in the South-Central region as another significant withdrawal period.
[USA] 59 GW in data center load seeking to connect to Oncor’s system
On August 8, 2024, Oncor, the Dallas-based electric utility, stated that almost three-fourths of new interconnection requests are from data centers. [1] Oncor has received 80GW worth of new service requests from large industrial and commercial customers, of which three-fourths, or 59GW, come from planned data centers. The Electric Reliability Council of Texas (ERCOT) projects that the load in the region could peak at 152 GW by 2030, and Oncor anticipates providing electricity to 40% of that future load.
In late July, a transmission plan released by ERCOT outlined billions in potential transmission projects to be built by 2038, with many falling within Oncor’s service region. Oncor has experienced a 13% jump in interconnection requests since Q2 of 2023, without about 25% coming from “large load customers,” according to CEO Allen Nye. Oncor will need a few months to process the new requests before it can draft a plan to serve the new load.
[1] https://investor.sempra.com/static-files/d4d3be75-4774-471f-8538-b21196541079
[USA] IAEA Completes International Physical Protection Advisory Service Mission in Japan
On August 2, 2024, an International Atomic Energy Agency (IAEA) team concluded a two-week International Physical Protection Advisory Service (IPPAS) mission in Japan. [1] The mission, conducted at the request of the Japanese government and hosted by the Nuclear Regulation Authority of Japan (NRA), involved a review of Japan’s nuclear security regime. The ten-person team visited the Mihama Nuclear Power Station in Fukui prefecture, operated by Kansai Electric Power Company (KEPCO). The mission was the third IPPAS mission to Japan, following the previous mission in 2018, during which the team visited the Kashiwazaki-Kariwa nuclear power station (KKNPS) in Niigata Prefecture. The latest mission agenda derives from the physical protection measures taken at KKNPS since the 2018 mission.
The team held discussions with officials from the NRA, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the National Police Agency (NPA), the Japan Coast Guard (JCG), the Ministry of Foreign Affairs of Japan (MOFA), KEPCO, and TEPCO. At the conclusion of the mission, the team commended Japan for its robust nuclear security regime, and provided recommendations to help Japan further advance its nuclear security protocol.
[USA] Researchers develop a state-of-the-art device to make AI more energy-efficient
On July 26, 2024, researchers at the University of Minnesota Twin Cities demonstrated a device that could reduce energy consumption in AI applications by a factor of 1000. [1] With the increasing demand for AI, it has become imperative for the technology to become more energy efficient. Conventionally, AI processes transfer data between logic and memory, thereby consuming a large amount of power; the team of researchers demonstrated a new model where the data never leaves the memory, known as computational random-access memory (CRAM). In March of 2024, the International Energy Agency (IEA) forecasted that AI energy consumption would likely double from 460 TWh in 2022 to 1000 TWh in 2026, a number roughly equal to the electricity consumption in all of Japan.
CRAM directly performs computations within memory cells, efficiently utilizing the array's structure and eliminating the need for slow, energy-consuming data transfers. The team plans to work with semiconductor industry leaders to provide large-scale demonstrations and produce the hardware.
[USA] Energy storage projects in 18 states get $2.2B from DOE
On August 6, 2024, the US Department of Energy (DOE) announced eight selections for the next round of the Grid Resilience and Innovation Partnerships (GRIP) Program to expand the power grid’s flexibility and resilience against the threats of extreme weather and climate change. [1] The funding was specifically allocated for the Grid Innovation Program, one of three branches of GRIP. The second round will support 8 projects from 18 states, composing a total of $2.2 billion in federal investment, potentially expanding grid capacity by almost 13GW. The projects include 600 miles of new transmission, 400 miles of reconductored wiring, grid-enhancing technology, long-term energy storage, solar energy, and microgrids. Project sponsors will provide approximately $7.8 billion in additional funding.
The awards are part of the Biden Administration’s effort to advance a modernized grid, energy security, reliability, and clean, affordable energy. Some of the winning projects include the North Plains Connector Interregional Innovation project, the California Harnessing Advanced Reliable Grid Enhancing Technologies for Transmission project, Power Up New England, Maine by Form Energy, and more.
[1] https://www.energy.gov/gdo/grid-resilience-and-innovation-partnerships-grip-program-projects
[USA] Natural gas electricity generation in the United States spiked with the July heatwave.
On July 25, 2024, the US Energy Information Administration (EIA) released a report explaining a recent spike in natural gas electricity generation in the United States. [1] Based on a graph spanning January 1, 2019, to July 16, 2024, daily natural gas electricity generation in the Lower 48 states peaked in July with the onset of the heatwave. US power plant operators have generated the most electricity from natural gas since 2019, at 6.9 million megawatt-hours (MWh). The spike, recorded on July 9, occurred due to high temperatures across most of the country as well as low wind generation. According to the National Weather Service, most of the US experienced temperatures well above average on July 9, 2024, especially in the East Coast and West Coast. Wind generation in the Lower 48 states totaled 0.3 million MWh on July 9, which was much lower than the 1.3 million MWh daily average in June of the same year.
[USA] BSEE issued a suspension order to halt construction at Vineyard Wind farm
On July 17, 2024, the US Bureau of Safety and Environmental Enforcement (BSEE) issued a suspension order to halt construction at the Vineyard Wind farm. [1] After a Vineyard Wind turbine blade suffered damage and scattered fiberglass debris in the ocean, the BSEE was forced to shut down operations for the foreseeable future. GE Vernova, the turbine and blade manufacturer and installer, was held responsible for determining the root cause of the incident. A GE Vernova spokesperson states that the initial investigation brings light to the issue of “insufficient bonding,” which the “quality assurance program should have identified,” but thus far, “there is no indication of an engineering design flaw in the blade.”
In a 10-Q filing with the US Securities and Exchange Commission, GE Vernova stated that the company does not have any indication of when the BSEE will lift the suspension order. Furthermore, it is unclear to them what impact the event or any potential claims would have on their financial position and cash flows. The BSEE’s official statement regarding the incident mandates that “The Suspension Order suspends power production on the lease area and suspends installation of new wind turbine generator construction” and that “Those operations will remain shut down until the suspension is lifted.” Until the Vineyard Wind can determine whether the blade failure affects any other turbines, all production will cease.
[1] https://www.bsee.gov/newsroom/latest-news/statements-and-releases/press-releases/bsee-statement-on-vineyard-wind
[USA] Launch of renewable hydrogen hub in California
On July 17, 2024, the US Department of Energy (DOE) awarded up to $1.2 billion to advance clean hydrogen projects in California. [1] The Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) and the DOE announced the signing of a $12.6 billion agreement, with $1.2 billion from the DOE and $11.4 billion in public and private matching funds. The investment will directly reduce California’s reliance on fossil fuels and marks a significant step toward achieving a carbon-neutral economy by 2045. The California Hydrogen Hub is a network of clean hydrogen production sites that incorporate multiple facilities, to decarbonize public transport, heavy-duty trucking, and port operations by 2 million metric tons per year. The expansion of hydrogen fuel cell vehicles in heavy-duty transportation aims to not only drive improvements in air quality but also to facilitate greater connectivity of a West Coast freight network that connects to the Pacific Northwest Hydrogen Hub.
The ARCHES projects will cover the ports of Long Beach, Los Angeles, and Oakland, heavy-duty trucks and transit buses, clean power in power plants, and a marine research vessel known as the Scripps Marine Vessel. Over 10 sites will be used to fuel the aforementioned projects and kickstart the hydrogen ecosystem.
[1] https://www.energy.gov/oced/articles/award-wednesdays-july-17-2024
[USA] UW-Madison fusion energy research finds significant discovery of first plasma
On July 22, 2024, a fusion device designed by University of Wisconsin-Madison scientists generated plasma for the first time, a significant step towards creating a clean, reliable, and robust energy source. [1] Their achievement came four years in the making, after rigorous testing of a fusion energy device known as WHAM (Wisconsin HTS Axisymmetric Mirror) in UW’s Physical Sciences Lab. The researchers used a new kind of magnet, the rare earth barium copper oxide superconducting magnets, which enabled them to create the first plasma on July 15, the first step in a new age of fusion research. To achieve this, they made a powerful vacuum and added hydrogen, which they then superheated as it was held in place by the magnets. The result was a 50-millisecond burst of plasma. If the prototype passes the testing phase next year, the scientists will start building a device that can generate fusion energy to power homes and industries with no GHG emissions and minimal radiation within the decade.
[1] https://news.wisc.edu/first-plasma-marks-major-milestone-in-uw-madison-fusion-energy-research/
[USA] US Senators introduce bill to speed approvals of energy projects
On July 22, 2024, Senators Joe Manchin (I-WV) and John Barrasso (R-WY) on the Senate Energy Committee introduced long overdue legislation to speed up the process of permitting power transmission, mining, and liquefied natural gas exports. [1] They suggest that this bill would not only strengthen the power grid but also keep power prices low. Building transmission capacity would help cities access electricity that originates from renewable power projects that have received financial support from Biden’s 2022 Inflation Reduction Act. Almost 2,000 MW of clean energy is ready for grid connection. The bill would speed up the process to reach the Biden administration’s goal of decarbonizing the US power sector by 2035. It also creates more opportunities for companies to bid on oil and gas leasing after 2025. Furthermore, the legislation allows a 90-day period for a secretary of energy to approve or reject liquefied natural gas export applications and ends Biden’s pause on their approvals. It would help unlock mining for minerals such as copper, that are used in transmission, renewable energy, and energy storage. Despite these factors, the bill’s future is not guaranteed due to election-year uncertainty and potential opposition to measures that support fossil fuel.
Manchin referred to the bill as a “commonsense, bipartisan piece of legislation that will speed up permitting” and provide certainty for energy projects “without bypassing important protections for our environment and impacted communities.” Barrasso stated, "For far too long, Washington’s disastrous permitting system has shackled American energy production and punished families in Wyoming and across our country" and “Congress must step in and fix this process."
[USA] Biden endorsed Kamala Harris as the next president of the U.S.
On July 21, 2024, Biden nominated Vice President Kamala Harris as the next president of the United States. [1] According to news sources, Harris is expected to continue Biden’s climate achievements if she wins the election. Harris’ governing style as vice president was that of a pragmatic moderate. However, her climate policy leans more leftist than centrist. For example, if elected, she intends to ban fossil fuel leases on public lands and initiate a climate pollution fee for greenhouse gas emitters. She also asserted that a Harris administration would strengthen the prosecution of fossil fuel companies, as evidenced by her history as California attorney general. In her role, she investigated Exxon Mobil for misleading the public about the threat climate change posed to its business based on false financial disclosures.
As vice president, she incorporated climate change into foreign relations by holding a round table in Bangkok to connect environmental activists with clean energy experts. In addition, she has stated that although China needs to be held accountable for intellectual property theft and other issues, it should be an ally in climate action. In terms of legislation, Harris also co-sponsored the Green New Deal, which aimed to transition to 100% clean energy within a decade. Furthermore, she also favored a ban on hydraulic fracking, a technique that environmentalists say pollutes the air as well as groundwater.
[USA] Biden-Harris administration invests additional $10 Million to build domestic supply chain for critical minerals and materials
On July 16, 2024, The Biden-Harris administration announced investments in two projects at the California Institute of Technology and the University of Utah, that will help mitigate the costs and impacts of producing rare earth elements and critical minerals and materials, from coal and coal by-products. [1] The Biden administration’s Investing in America agenda intends to use these projects as a means to develop more affordable and sustainable production processes while creating good-paying jobs in the energy industry. The initiative will help meet growing demand for critical minerals and materials in the US and also reduce domestic reliance on foreign supply chains. Currently the US imports 80% of rare earth elements despite having 250 billion tons of coal reserves originating from coal by-products and coal waste, and the DOE believes that they can be harnessed to establish a sustainable supply chain that supports the economy, clean energy, and national security.
Managed by the DOE’s National Energy Technology Laboratory, the separation technology will refine rare earth elements in order to extract minerals from unconventional sources, such as coal. As part of the President’s Justice40 Initiative, these projects will also ensure that 40% of the overall benefits of certain federal investments in climate, clean energy, and other areas flow to disadvantaged communities who are disproportionately impacted by pollution and underinvestment. This effort is part of a broader strategy by the DOE’s Office of Fossil Energy and Carbon Management, which has committed $151 million to minimizing the environmental impacts of fossil fuels while working to achieve net-zero emissions across the US.
[USA] DTE Energy to build region’s largest battery energy storage center at site of retired Trenton Channel coal plant
DTE Energy, Michigan’s largest renewable energy producer, announced on June 10, 2024, plans to transform part of its retired Trenton Channel coal power plant into a 220-megawatt battery energy storage center. [1] Scheduled for completion in 2026, this will be the largest standalone battery storage project in the Great Lakes region, supporting DTE’s CleanVision Integrated Resource Plan and Michigan’s energy storage goals. The facility will store and distribute excess electricity, enhancing grid reliability and supporting renewable energy use.
The project, partially funded by $140 million in federal tax incentives from the 2022 Inflation Reduction Act, aligns with DTE’s net zero carbon reduction goals. CEO Jerry Norcia emphasized the company’s commitment to clean energy, noting that one-third of DTE’s electricity already comes from carbon-free sources. The new center will store enough power for nearly 40,000 homes, contributing to Michigan’s MI Healthy Climate Plan.
Governor Gretchen Whitmer praised the project for its potential to strengthen the grid, reduce energy costs, create jobs, and protect the environment. Trenton Mayor Steven Rzeppa highlighted the project’s benefits for the local community, including increased tax revenue for public projects. This initiative is a significant step towards doubling DTE’s energy storage capacity by 2042.
[USA] U.S. summer natural gas consumption forecast for electric power matches 2023 record
On May 30, 2024, the U.S. Energy Information Administration's May 2024 Short-Term Energy Outlook forecasts that natural gas consumption for electricity generation will average 44.7 billion cubic feet per day (Bcf/d) during the peak summer months of June through August, matching the record set in summer 2023. [1] Despite a 3% increase in overall electricity generation, natural gas consumption is not expected to grow due to increased renewable energy production.
The shift towards more renewables and natural gas, and less coal, continues. Since 2014, natural gas-fired generation has become more competitive with coal, and its capacity has increased by 19%, or 79 gigawatts, with a 60% growth in generation. The efficiency and relatively low prices of combined-cycle gas turbine (CCGT) power plants have boosted natural gas use.
Simple-cycle gas turbine (SCGT) plants, used more frequently during high-demand summer months, have also seen increased utilization, with capacity factors rising from 8% in 2014 to over 20% in recent summers. The share of summer electricity generation from natural gas grew from 29% in 2014 to 46% in 2023 but is expected to decline slightly to 44% in 2024, as renewable sources, particularly solar, continue to grow.
[USA] EEI Joins Litigation for EPA’s New Clean Air Act Section 111 Rules
On May 24, 2024, EEI President and CEO Dan Brouillette announced EEI's decision to file a petition for review of the EPA’s final Clean Air Act Section 111 rules and a motion to intervene. [1] While supporting the EPA’s authority to regulate greenhouse gas emissions, EEI challenges the reliance on carbon capture and storage (CCS) technology as a compliance basis, arguing that CCS is not yet adequately demonstrated for broad industry deployment. Brouillette emphasized that no existing coal or natural gas power plants meet the EPA’s CCS requirements and that the implementation timelines are unrealistic. He stressed that EEI’s member companies are committed to reducing carbon emissions and investing in clean energy technologies, but regulations should be practical and achievable to avoid jeopardizing customer affordability and reliability. EEI seeks to ensure that the clean energy transition continues responsibly without relying on unproven technologies and unrealistic deadlines.
[1] https://www.eei.org/News/news/All/eei-joins-litigation-for-epa-clean-air-act-111-rules
[USA] The United States was the world’s largest liquefied natural gas exporter in 2023
On April 1, 2024, EIA announced that in 2023, the United States solidified its position as the top liquefied natural gas (LNG) exporter globally, with exports averaging 11.9 billion cubic feet per day (Bcf/d), marking a 12% increase from 2022. [1] This surpasses LNG export levels from other major exporters such as Australia and Qatar. Russia and Malaysia trailed behind as the fourth and fifth-highest exporters, with LNG exports averaging 4.2 Bcf/d and 3.5 Bcf/d, respectively.
The surge in U.S. LNG exports in 2023 was driven by several factors, including the return to full production at Freeport LNG and robust demand from Europe amid high international natural gas prices. Monthly export records were set in November and December, reaching 12.9 Bcf/d and 13.6 Bcf/d, respectively. The utilization of U.S. LNG export capacity averaged 104% of nominal capacity and 86% of peak capacity across seven operating terminals.
Europe remained the primary destination for U.S. LNG exports in 2023, accounting for 66% of exports, followed by Asia at 26%, and Latin America and the Middle East at 8%. The Netherlands, France, and the UK were the top importers of U.S. LNG, collectively receiving 35% of all U.S. exports. LNG imports in Asia, particularly in Japan and South Korea, saw significant volumes, while Brazil's LNG imports declined due to a reliance on hydropower for electricity generation. Looking ahead, Europe's LNG import capacity is expected to expand further by more than one-third between 2021 and 2024.