OX2 has ordered 18 Vestas turbines for the 115MW Anglarna onshore wind project in Sweden.
Vestas is scheduled to start delivering the turbines in the second quarter of 2026, with commissioning due by the end of 2026. It has also secured a 35-year agreement to ensure the turbines perform optimally.
The US Department of Energy has announced seven winners in its tender to be regional hydrogen hubs that are set to be worth a combined $50bn when completed.
The department has backed the seven projects with a total of $7bn, which will be used to leverage further private and public investment. The winners are:
The department picked the winning projects from around 80 bidders.
The world's five largest BESS integrators have been revealed - now the battle for market share will intensify, with supply chain challenges, perceptions of fire risk, and records on safety all set to influence future success
New data published by S&P Global has revealed the five largest battery energy storage system (BESS) integrators in the world. Together, the top five have installed more than a quarter of the energy storage currently in operation globally. The top five in terms of installed projects (that is, projects completed as of July 2023) are, in descending order: Sungrow, Fluence, Tesla, Wärtsilä and Hyperstrong. However, there are indications that Fluence will take over as the global leader, while Wärtsilä will also significantly increase its market share, largely at the expense of Tesla. When measured in terms of global pipeline (that is, installed and contracted projects), the top five integrators, according to S&P, are (in descending order): Fluence, Sungrow, Wärtsilä, Tesla and Hyperstrong.
In a nutshell, the key role of a BESS integrator is to maximise profits, while ensuring reliable and safe delivery and operation. The leading integrators are characterised by having strong supply chain networks and effective strategies for implementing clients’ immediate and future plans for their assets. They also have the financial clout to provide support for their clients over the long-term, according to the Energy Storage World Forum.
The emergence of Sungrow and Hyperstrong are seen as evidence of the rise to prominence of Chinese system integrators. The mainland China battery market grew by 400 per cent in 2022, and is exclusively supplied by local players, but now Chinese players are turning their attentions to overseas expansion and the indications are that this push will be successful given the competitively priced products they offer.
So, what’s next for the ‘Big Five’?
With regard to the outlook for the big five integrators, Fluence is expected to establish itself as the clear market leader, in large part due to its safety record and reputation for deploying storage assets quickly. Meanwhile, Wärtsilä is viewed as having weathered the storm of supply chain challenges better than many competitors and is therefore well positioned to grow market share. There is, however, a view that Tesla may lose ground to its main rivals, with storage-related revenues having contracted in recent times. Here, Tamarindo’s Energy Storage Report looks at the short term outlook for the big five integrators:
Fluence
Fluence has a track record of being the integrator of choice for ground-breaking energy storage projects. Last month, it was revealed that the US-headquartered integrator had been selected by Tilt Renewables to deliver the 100 MW / 200 MWh Latrobe Valley battery energy storage system (BESS) located south of Morwell in Victoria. It was a clear indication of Fluence’s strong position in the market given that it was selected by Tilt for what will be the first “privately funded storage project in Australia to be incorporated into an exclusively renewable generation fleet”. Indeed, the Tilt project is pioneering in many ways, being Tilt’s first energy storage system in Australia and the first of Fluence’s assets to use the “full Fluence product ecosystem,” which includes the ‘Gridstack’ grid-scale energy storage product, the ‘Mosaic’ AI-powered bidding software, and the asset performance management software, ‘Nispera’, a company statement said. Also last month, Fluence was chosen by Statkraft to deliver Statkraft’s first battery-based energy storage project connected directly to the transmission network in Renfrewshire Scotland. Fluence is set to consolidate its position as a market leader having gained a hard-won reputation for its safety standards, market experience and speed of its deployments. With regard to the issue of safety, last month Fluence received a TM-2 Certificate of Approval in New York City for its 6th generation energy storage product, becoming one of the few storage system providers to meet strict safety requirements set by the Fire Department of New York. This is no mean feat considering the close attention the New York authorities are paying to energy storage fire safety – in August this year, New York state governor Kathy Hochul announced the creation of an ‘Inter-Agency Fire Safety Working Group’, which will aim to ensure the safety and security of energy storage systems across the state, following fire incidents at facilities in Jefferson, Orange, and Suffolk Counties this summer. Fluence anticipates rapid global expansion and with this in mind, the company recently announced the opening of a new global operations centre in Bangalore. The Fluence India Innovation Centre will serve as a “centre of excellence to support Fluence’s rapid projected growth”, the company said. The outlook is bright and the company recently increased its fiscal year 2023 total revenue guidance range to $2.0 billion-$2.1 billion.
Sungrow
In August this year, Sungrow signed a deal with EDF Renewables Israel to deliver liquid-cooling storage systems for six energy storage projects with a capacity of 127 MWh. In the same month, Sungrow entered into a partnership with Australian energy trader Clean Energy Transfer Fund to become the key tolling partner for Hive battery developments, the first of which will span ten sites in New South Wales, which will combine to deliver up to 49.9MW/200MWh of distributed energy storage. Sungrow has developed a reputation as an integrator that provides clients with significant support during the project development process. In July this year, it was announced that Sungrow would supply its liquid cooled energy storage system to Penso Power and BW ESS for the fully 100 MW / 260 MWh project in Bramley, Hampshire in the UK. The company’s liquid-cooled storage system is considered to be one of the most innovative technologies of its kind. Sungrow's revenue for the 2022 fiscal year was $5.98 billion, a 66.8% increase from the previous year. With regard to the outlook for the coming years, the company has said it anticipates continued growth in the renewable energy market, “driven by global efforts to reduce carbon emissions and transition to clean energy sources”. The company believes it is “well-positioned to capitalise on these trends and deliver innovative solutions to customers worldwide”.
Wärtsilä
Last month, Wärtsilä signed a “large multi-year” supply agreement with battery cell supplier EVE Energy. The agreement will support Wärtsilä’s “strong pipeline of energy storage & optimisation orders across key markets”, a company statement said. Wärtsilä currently has more than 3.5GW / 7GWh of energy storage capacity awarded, contracted, or in deployment across six continents. Key to the company’s success has been its ability to successfully navigate the supply chain obstacles that are affecting the entire energy storage industry. Wärtsilä claims it has maintained a “successful on-time delivery record across complex geographical locations”. In April this year, the company was selected by Origin Energy as the preferred contractor to deliver the 460MW / 920MWh first phase of what it said would be “one of Australia’s largest energy storage projects”, which will be located at Origin’s Eraring Power Station. The €300 million deal also represented Wärtsilä’s "largest single energy storage deal to-date". In 2022, the company’s order intake increased by 6 per cent to €6 billion, while net sales increased by 22 per cent to €5.8 billion. The fact that the company was able to post an increase in orders and sales – despite what the company’s CEO Håkan Agnevall described as “challenging market conditions” – shows Wärtsilä is well-placed to consolidate its position as one of the market leaders.
Tesla
As the S&P data suggests, there are indications that Tesla could lose market share (to Wärtsilä in particular) in the coming months and years, that is if it’s not already doing so. On the plus side for the company, it emerged in April this year that it would be opening a factory in Shanghai that will be capable of producing 10,000 of its Megapack products per year, which is equal to around 40GWh of energy storage. The company will begin construction of the factory in the third quarter of this year and start production in the second quarter of 2024. Meanwhile, other positive news included the announcement in July that renewable energy producer Neoen would be expanding its Western Downs Battery in Queensland, Australia to 270 MW / 540 MWh, with the extension being delivered by Tesla and construction contractor UGL. However, the recent news about a fire breaking out at the 50MW/100MWh Tesla Bouldercombe Battery Project near Rockhampton, Queensland, Australia will sow seeds of doubt in the minds of potential customers. The company’s 2022 annual report said that its 2022 energy generation and storage segment revenue stood at $3.9 billion, an increase of 40 per cent on the previous year. However, in what could be an indication of more recent market uncertainty, while the company’s Q2 2023 automotive revenues stood at $21.2 billion, up from $19.9 billion the previous quarter, its energy generation and storage segment revenues actually fell slightly to $1.509 billion, down from $1.529 billion the previous quarter.
Hyperstrong
In June this year, Beijing-based Hyperstrong began setting up its first overseas operation in Munich, Germany. Hyperstrong’s CEO Jianhui Zhang (pictured) a former chief technology officer at Siemens has stated that Europe and the US are two markets that offer growth opportunities for his company. The company has deployed more than 5GWh of energy storage spanning more than 300 projects, ranging from utility-scale to commercial & industrial and residential assets. In a series A funding round in 2015, Hyperstrong raised RMB130 million ($18 million), with funding from IDG Capital and Qiming Venture Partners. A series B funding round in 2016 raised RMB445 million ($61 million). HyperStrong – which has obtained multiple IEC, VDE, UN and UL certifications for its storage products – has proved popular with customers due to its production quality standards, project delivery capabilities, and big data processing expertise. Last month, it was reported that NaaS Technology Inc., the first US-listed electric vehicle charging service company in China – had joined forces with HyperStrong and Yongtai Energy, another energy storage equipment integrator, to supply around 380 charging stations with energy storage equipment. The total order value is RMB204 million ($28 million), with implementation taking place in the coming months.
Virginia-headquartered energy storage project developer Delorean Power LLC and Holden Municipal Light Department (HMLD), a municipally-owned utility, are to build a 5MW / 22MWh battery energy storage facility in the town of Holden, Massachusetts.
The project will be owned and operated by Delorean and will serve HMLD and its customers.
The project is expected to be operational in October 2024.
Rory Jones, Delorean co-founder and managing partner, said: “We are excited to partner with HMLD on an innovative project that brings Holden to the forefront of one of the fastest growing and most fundamental sectors of tomorrow’s energy industry. At Delorean, our focus is on optimising the flexibility of energy storage with creative project structures and high-value sites that maximise benefits for our partners. HMLD has been a great collaborator, working hand in hand with our team to ensure the most impactful project and cost savings for Holden.”
HMLD general manager Barry Tupper added: “Holden Municipal Light Department’s mission is to continuously provide the citizens of Holden safe and reliable electricity at a reasonable and competitive rate. HMLD’s power portfolio is currently 60 per cent non-carbon emitting, including wind, solar, hydro, and nuclear generating assets. HMLD is currently ahead of the state-mandated Greenhouse Gas Emissions Standards for municipal light plants for 2030. With this project, HMLD is leading the way in environmental stewardship in a fiscally responsible manner. We are excited to add a battery storage system to our newly rebuilt Chaffins Substation to help us continue with our mission.”
New York-based battery storage developer NineDot Energy has signed an energy credit subscription agreement with Starbucks.
NineDot energy storage sites operate under the Value of Distributed Energy Resources (VDER) Value Stack programme. Under the scheme, battery sites receive credits for responding to the electric utility’s calls to export power during high-stress periods. NineDot virtually allocates VDER credits often as discounts to remote subscribers’ utility bills. The VDER program was established by the New York Public Service Commission to encourage development of clean energy sites that benefit local electric networks.
NineDot’s initial battery storage site, located in the Pelham Gardens neighbourhood of the Northeast Bronx, is a fully approved, community-scale battery storage system in New York City, designed to provide power and resilience to the local power grid at times of peak demand. This site is operational and generating energy credits this year. In addition, NineDot has approximately 30 projects under construction across the city, with many more in the evaluation and design phase.
New York City battery storage sites are helping to support the New York Governor’s roadmap for 6,000 MW of energy storage capacity in New York State by 2030, with a view to creating a net zero carbon state by 2040. NineDot is on track to achieve its goal of developing 400MW of battery storage capacity by the end of 2026.
David Arfin, NineDot Energy CEO and co-founder, said: “We are thrilled to have Starbucks as an anchor subscriber. “We know that fighting climate change requires collaboration between energy providers like NineDot and energy consumers like Starbucks, who have been focused, vocal and active in pursuing their sustainability goals. NineDot has a strong pipeline of battery energy storage projects that can support Starbucks throughout the New York City area.”
Michael Kobori, Starbucks chief sustainability officer, said: “As part of our promise to give more than we take from the planet, Starbucks is proud to be a subscriber with NineDot Energy to help move New York’s clean energy transition forward. We’re excited to be a leading community battery storage subscriber in New York City in support of community-scale battery storage, which benefits some of the people most impacted by climate change by accelerating the retirement of fossil fuel power stations that run during peak energy demand,”
Investment in transmission must match spending on renewables if a global transition to low-carbon energy is to succeed, Iberdrola chairman Ignacio Galan has said.
Galan told a Bloomberg New Energy Finance event in London this week that "for every euro invested in renewables, one euro must be invested in electricity grids"; and added that investments in grids should be multiplied by three or four times to be able to integrate new renewables and boost the resilience of grids.
Regulators in New York have rejected pleas from the wind industry to raise subsidies for four offshore wind and 86 onshore renewable energy developments.
The New York State Public Service Commission has rejected the plan, which it said would involve increasing consumer energy bills by billions of dollars. The offshore wind projects are Equinor and BP's 816MW Empire Wind 1, 1.3GW Empire Wind 2, and 1.2GW Beacon Wind; Ørsted and Eversource's 880MW Sunrise Wind.
The developers have argued that the project costs have been increased by supply chain disruption, inflation and rising interest rates.
Oregon-headquartered nickel-zinc (NiZn) battery-based energy storage system provider ZincFive has been appointed an approved supplier by ABB for the delivery of UPS [uninterruptible power supply] systems that include NiZn battery systems.
ABB has completed a comprehensive set of tests of ZincFive’s nickel-zinc battery-based ‘BC Series UPS Battery Cabinets’ to ensure full compatibility with their UPS systems. The testing was done by ABB and ZincFive in their US and Switzerland locations to certify ZincFive’s BC Series on the ABB MegaFlex UPS platform.
Sébastien Surply, head of power protection, ABB Electrification, said: “ABB works closely with innovative companies to provide customers with sustainable option. “Extensive testing has ensured ZincFive’s NiZn batteries meet data centre safety, performance, and reliability requirements. The adoption of NiZn technology will enable our MegaFlex UPS solutions to provide high levels of power protection and will support customer decarbonization goals.”
ZincFive CEO and co-founder Tim Hysell, said: ““As the importance of sustainability in data centre backup battery systems continues to grow, companies such as ABB are leading the industry in bringing the power of good chemistry to the data centre market. Our shared commitment to reducing carbon footprint and operating costs without sacrificing safety or performance is what makes this collaboration a great benefit for ABB customers.”
Vattenfall has installed a 20MW, two-hour battery energy storage system (BESS) next to its 16-turbine Ray Wind Farm near Otterburn in Northumberland England.
Owned and operated by Vattenfall, 'Battery@Ray' could meet the electricity demand of 3,500 UK households for 24 hours.
The wind farm has been operating for more than six years and produces around 10 per cent of Northumberland’s energy needs.
“Co-locating the battery at Ray Wind Farm enables the production of electricity to be more cost effective by sharing infrastructure, such as the roads around the site and the electricity grid connection,” a Vattenfall statement said.
Ross Williams, project manager at Vattenfall, said: “Battery projects were in their infancy when Ray Wind Farm first started generating fossil-fuel free energy. Since then, battery technology has advanced, and I’m delighted that Battery@Ray is now energised and helping towards our ambition of fossil-free living.
“Ray is a great example of how we can unlock the environmental and economic benefits of renewable energy. Local and regional solutions for storing and using electricity, are becoming increasingly important, as the UK moves to net zero and our electricity requirements increase. Projects like Battery@Ray are the missing piece of the jigsaw, providing a solution here and now.”
Japanese developer Tokyu Land and solar specialist Renewable Japan have teamed up to invest $2bn in European renewable projects in the next five years.
The pair are seeking to build a 1GW of renewables portfolio in Europe over the next five years by both developing and acquiring projects.
Australian utility AGL has signed a power purchase agreement to supply biotech company CSL with power from Macarthur Wind Farm in Victoria.
The seven-year PPA is due to come into effect in January 2025, and CSL said the deal would enable it to reduce its global scope 1 and 2 carbon emissions by 23%.
Indian power company JSW Energy has ordered Envision Energy turbines for a 653.4MW wind farm in the Karnataka and Maharashtra regions of India.
Chinese turbine maker Envision is set to supply 198 3.3MW turbine for the complex, which is due to be commissioned by the end of 2024.
Battery energy storage system provider EVLO Energy Storage (EVLO), a wholly owned subsidiary of Hydro-Québec, has signed an equipment supply agreement with SolarBank Corporation to supply battery energy storage systems (BESS) for three SolarBank EPC projects in Ontario, Canada.
EVLO will supply each of the three project sites with a 5 MW / 20MWh ‘EVLOFLEX’ system.
SolarBank is constructing the projects for solar power finance compnay Solar Flow-Through Funds, two First Nations communities, and a third party developer in Ontario. SolarBank secured approval for the projects from Ontario’s IESO under the province’s Expedited Long-Term 1 (E-LT1) Reliability Procurement for battery storage.
The BESS for the three projects are expected to be commissioned by summer 2025.
Dr. Richard Lu, CEO of SolarBank said: “We are pleased to move forward on constructing our first energy storage projects with EVLO, a leader in the Canadian battery storage industry. Safety and longevity were two of our primary considerations, and we are confident that the EVLOFLEX will deliver on both fronts.”
Sonia St-Arnaud, president and CEO of EVLO, said: “It is an exciting time as the IESO progresses through its largest procurement of energy storage to date. Energy storage is critical for increasing reliability and resiliency while lowering greenhouse gas emissions, and we’re proud to support the reliability of the Ontario grid by supplying EVLOFLEX systems to SolarBank.”
Hexagon Energy is in talks with investment bankers with a view to selling almost 2GW of standalone storage projects in the ERCOT [Electric Reliability Council of Texas] region.
In addition, the company is considering offers for its 138 MW Woodridge Solar project in Albermarle County, Virginia, but Hexagon is also “evaluating delaying the development timeline to provide more certainty around the domestic content procurement”, the company confirmed.
The standalone storage portfolio comprises 17 projects, totaling 1,800 MW, which are scheduled to begin operations in the third quarter of 2025. All of the projects except one qualify for the 10 per cent energy community ‘adder’ in the Inflation Reduction Act.
The portfolio included 16 projects of 100 MW each with two-hour duration batteries and a 200 MW storage project of two-hour duration. The portfolio includes nine projects in the Houston metro area, six in the Rio Grande Valley and two in the Dallas-Fort Worth Area.
With regard to the Woodbridge project, Hexagon is looking at a potential delay of the construction of the project by another six to 12 months to see if it can lock in the ‘adder’ from the IRA for domestic manufacturing.
Developers are expected to have more domestic supply options in 2025 as the likes of Enel North America, via its Oklahoma plant, and Hanwha Q Cells, via its planned expansion in Georgia, are both forecasting commercialisation by the end of 2024, Hexagon said.
Eurus Energy has secured permits for a 20MW green hydrogen facility in Delfzijl in Groningen, the Netherlands.
The company is due to take a final investment decision on the project in 2024, with commissioning scheduled in 2025. The project will be linked to Eurus Energy's 38.7MW Mondriaan wind farm, which was commissioned in September 2021.
The Delfzijl facility is set to supply green hydrogen for use in the chemicals industry.
Renewable energy developer BayWa r.e. has received planning consent for a 171MWh battery energy storage project in Stockton-on-Tees in Northeast England.
BayWa r.e. said the project would be one of the company’s biggest standalone battery energy storage systems (BESS) in Europe, and its first in the UK.
It will be develooped in partnership with Grüne Energien Solar GmbH.
The 57 MW ‘Meadow Farm’ BESS project will also include measures to improve local biodiversity, including the planting of native grassland, wildflowers, hedgerows, and trees. The measures will achieve a biodiversity net gain of more than 28 per cent for habitats, and more than 14 per cent for hedgerows, BayWa r.e. said.
John Milligan, managing director at BayWa r.e. UK, commented: “BESS facilities like Meadow Farm allow flexibility within the national electricity transmission, complementing renewable energy generation profiles. Having successfully secured planning approval for our first standalone BESS project in the UK reflects our ongoing dedication and growth in delivering innovative projects.”
Julian Gerstner, head of storage EMEA at BayWa r.e., added: “We are thrilled to bring our storage capabilities to the next level with our largest standalone storage project in the UK to date and one of our biggest in Europe. The development of large BESS projects – either connected with renewable energy plants or as stand-alone – demonstrates the full potential of green energy, bringing grid flexibility and stability, as well as contributing significantly to the acceleration of the energy transition.”
Shell-backed energy storage company MGA Thermal has reportedly suspended operations at its demonstration unit in Tomago, New South Wales, Australia after crews from Fire and Rescue NSW (FRNSW) were called out to stabilise a dangerous heat build-up at the site.
Crews were called to the site at 5.15am last Friday (6 October). A statement from FRNSW said three employees “made it to safety as authorities established an 800m exclusion zone and evacuated 15 neighbouring businesses”.
Firefighters called in a “bulk carbon dioxide tanker from Sydney “as they sprayed CO2 onto the 14x3m over-heated machinery”.
FRNSW said firefighters were prevented from using water to cool the machinery due to the risk of explosion. Crews also used dry chemical powder extinguishers to douse burning electrical cables at the site.
In February this year, it was announced that oil giant Shell had provided A$560,000 in funding for the demonstration unit.
The demonstration unit, which is approximately 12 metres long and three metres wide, was built to provide a demonstration of the technology for prospective industrial and power customers.
A report published last month by fire suppression technology supplier Firetrace International said there was a real danger public opposition to energy storage could grow significantly due to fire risk fears, threatening critical battery deployment and, as a result, net zero goals.
Singaporean commodities giant Trafigura has increased its stake in green hydrogen developer H2 Energy Europe to become the company's majority owner.
Trafigura said the deal would support its expansion in Europe and give H2 Energy the capacity to deliver major investments in green hydrogen production and infrastructure projects. H2 Energy is planning to take a final investment decision on a 1GW green hydrogen facility in Esbjerg, Denmark, in 2024.
China Three Gorges has picked Longi Hydrogen Energy to supply four electrolysers for a green hydrogen project in Ordos City in China's Inner Mongolia region.
Longi Hydrogen Energy is a subsidiary of solar panels giant Longi Green Energy Technology. CTG has picked the Longi electrolysers for a project that is capable of producing 10,000 tonnes of green hydrogen each year. They will be powered by a giant solar plant in Narisong, Ordos City.
South Korean conglomerate SK E&S and Copenhagen Infrastructure Partners have reached financial close on the 99MW Jeonnam offshore wind project in South Korea.
SK and CIP are developing the scheme in a 51:49 joint venture, and are looking to commission it in 2024. The development is due to be commissioned in 2024. The pair are also jointly developing the 800MW Jeonnam 2 and 3 projects in South Korea.
Hive Energy has picked Thyssenkrupp Uhde to help it develop its first green hydrogen and ammonia production plant in Spain.
Thyssenkrupp Uhde is set to support on front-end engineering design (FEED) work for the Albamed 1 project. This pre-FEED work is set to enable Hive to secure commercial deals and regulatory support for the project.
Investment firm Schroders Greencoat has raised £330m for its renewable infrastructure fund from six UK local government pension schemes.
The funds are part of the Brunel Pension Partnership and this mandate is for long-term investments in renewable energy and infrastructure projects in southwest England. This is set to include wind and solar projects, as well as battery storage and green hydrogen production.
The wind industry needs almost a quarter of a million new wind turbine technicians by 2027 to meet the sector's long-term targets, research has said.
The Global Wind Energy Council and Global Wind Organisation revealed in their 'Global Wind Workforce Outlook 2023-2027' report today that 574,000 technicians will be needed by 2027. Of that, 42% (243,800) would be new entrants to the sector to cover the expansion of wind and retirements of existing workers.
That 574,000 in 2027 would be a 17% increase from the 489,600 wind turbine technicians in the industry in 2022.
Saudi Arabian firm NEOM Green Hydrogen is looking to develop additional projects in Saudi Arabia and across the Middle East and North Africa (MENA) region.
NEOM Green Hydrogen is a joint venture between ACWA Power, Air Products and NEOM; and achieved a $8.4bn financial close in May for its debut green hydrogen complex in Saudi Arabia. David Edmondson, chief executive at NEOM Green Hydrogen, said the company's priority was on delivering its first project, but would consider investing in further similar developments in MENA.