Energy storage system supplier Sungrow has 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 10 sites in New South Wales, combining to deliver up to 49.9MW/200MWh of distributed energy storage.
The partnership means Sungrow's liquid cooling energy storage system will be used in Hive battery projects. Hive is a “scalable and distributed battery energy storage project that can be easily adjusted to meet diverse requirements”, a Sungrow statement said.
Rob Ashdown, co-founder and managing director of Clean Energy Transfer Fund, said: "Sungrow has stepped up and supported Hive battery developments at each development hurdle, and we look forward to building a strong partnership in the future."
Joe Zhou, country manager of Sungrow Australia, added: "Sungrow has been deeply engaged in the Australian market for a long time with innovative products and solutions, reaching an international advanced level". Zhou added that the Hive battery system would generate “optimal yields for clients”.
New York state governor Kathy Hochul has 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.
A statement from the governor’s office said state agencies will begin “immediate inspections” of energy storage sites, and the working group will “help prevent fires and ensure emergency responders have the necessary training and information to prepare and deploy resources in the event of a fire”.
The New York State Division of Homeland Security and Emergency Services’ Office of Fire Prevention and Control (OFPC) staff and the Department of Environmental Conservation’s (DEC) Emergency Response Unit responded to an incident in Jefferson County last month in which they supported “emergency response partners” with performing precautionary air monitoring tests in the surrounding area of the fire, the statement said.
OFPC deployed additional personnel to Jefferson County in the aftermath of the incident to assist local fire officials in their investigation into the initial cause of the fire. The statement added that The New York State Division of Homeland Security and Emergency Services’ Office of Emergency Management (OEM) and the DEC were continuing to monitor the situation and are prepared to provide additional support on the ground in Jefferson County. An additional investigation is underway into fires in Orange County last month.
“Following multiple fire safety incidents across New York, I've directed state agencies to immediately form the Inter-Agency Fire Safety Working Group to mobilise the personnel and resources necessary to keep New Yorkers safe,” Governor Hochul said. “The working group will collaborate with first responders and local leaders to identify best practices, address potential risks to public safety, and ensure energy storage sites across New York are safe and effective."
The governor’s office said that while fires at energy storage facilities are exceedingly rare, Governor Hochul had directed the Division of Homeland Security and Emergency Services OFPC, the New York State Energy Research and Development Authority, the New York State Department of Environmental Conservation, Department of Public Service, and the Department of State (DOS) to lead the working group to independently examine energy storage facility fires and safety standards. The group will “leverage nationally renowned experts and national laboratories in energy storage root cause and emergency response analyses to independently assess and identify common causes, air monitoring results or other community impacts, and other factors involved with energy storage fires”, the statement said.
The statement continued: “The working group will thoroughly investigate the recent energy storage fires in New York and will conduct a comprehensive fire safety review, including emergency response analysis, of energy storage projects that experienced thermal runaway events across New York. Findings will include a list of recommendations for stationary energy storage equipment and installations. The working group will review energy storage system operations and operators as they: examine the condition of their batteries to verify operation within design parameters; remedy any deficiencies identified; verify operation of on-site fire suppression; and confirm fire suppression plans with local fire departments, among other best practices.”
The findings and resulting recommendations will also be shared with the New York City Fire Department, National Fire Protection Association, International Code Council, the New York State Fire Prevention and Building Code Council, and Underwriters Laboratories (UL).
A class action lawsuit has been filed Eos Energy Enterprises that alleges that the energy storage company made “materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects”.
The lawsuit was filed by class action law firm Glancy Prongay & Murray LLP in the United States District Court for the District of New Jersey. The case, ‘Houck v. Eos Energy Enterprises’, has been filed on behalf of persons and entities that purchased or otherwise acquired Eos securities between 9 May, 2022 and 27 July, 2023.
Specifically, the lawsuit alleges that Eos failed to disclose to investors that Bridgelink Commodities, a company that is responsible for 45 per cent of Eos’ backlog is “connected to a group whose assets were seized by a creditor and sold in an auction” and that, as such, Bridgelink’s commitment and ability to purchase Eos products was “not as secure as Eos had led investors to believe”.
Consequently, the lawsuit alleges that Eos’ backlog was overstated and that the overstatement “negatively impacts” Eos’s ability to secure the loan it has applied for via the Department of Energy’s Loan Programs Office. The lawsuit also claims that, as a consequence, Eos’ positive statements about its business, operations, and prospects were “materially misleading and/or lacked a reasonable basis”.
Last week, Eos issued a statement seeking to reassure investors that customers representing a significant proportion of its backlog were financially sound companies following allegations that Eos had large contracts with companies that were unlikely to honour their obligations.
In the statement, Eos referred to reports concerning “legal proceedings involving multiple Bridgelink legal entities”. The statement added that Eos Energy “believes that its customer, Bridgelink Commodities, LLC, is a separate legal entity which is not implicated in the legal matters” highlighted by reports.
The statement went on to say that Bridgelink Commodities, which represents 45 per cent of Eos Energy’s backlog, had “reconfirmed that it continues to build pipeline and is actively seeking financing for energy storage projects covered by Eos’s multi-year master supply agreement”.
The financial position of Bridgelink Commodities has been the subject of scrutiny by Iceberg Research.
Institutional investors have begun backing storage in a big way, but increased investment is bringing more scrutiny for which many energy storage businesses will be unprepared
As more investors enter storage market, companies are under growing scrutiny
Storage sector now facing public relations challenges as business models questioned
Financial viability, product quality & ESG credentials being probed
There seems to be little doubt that energy storage deployment is set to increase dramatically in the coming years. Data from Statista suggests that the value of the global battery storage market will more than triple in the next five years, soaring from $5.4 billion currently to $17.5 billion in 2028.
But such bullish predictions may be failing to take into account imminent public relations challenges that the energy storage industry will have to face, in the short-term at least. For many years, the energy storage industry has had an extremely low profile. It is only in the last two years that worldwide energy storage deployment has started to accelerate substantially. Two years ago, global cumulative energy storage installations stood at around 25GW, according to BloombergNEF – in contrast, two years from now, global cumulative energy storage installations are expected to reach almost 150GW, a six-fold increase (see chart). In short, a much broader range of investors are now starting to take energy storage seriously. Institutional investors had initially been sceptical about the renewables sector – an analysis conducted in 2020 showed that despite accounting for $87 trillion in assets under management, institutional investors had, up to then, played a minor role in financing renewables.
However, as larger investors begin backing energy storage, so the scrutiny placed on the sector and the businesses that operate in it is also increasing. For example, analysts are now taking a much closer look at energy storage companies’ financials. Only last week, one high profile energy storage company was accused of having a “fake” backlog, which was being used to “relentlessly” pump its stock. The company was also dismissed as having “abysmal financials” and of having signed contracts with financially dubious companies.
'Dumb ideas' and 'failed technology'
Another public relations challenge energy storage companies are increasingly facing, particularly those at an early stage of development, is convincing potential investors that their technology actually works. One energy storage company – which has a market cap that is measured in the hundreds of millions – has been accused of selling a “failed technology”, while YouTubers have posted videos claiming certain forms of gravity energy storage offered by some companies are a “dumb idea” and urge potential investors not to “fall for it”. Searches on YouTube also unearth videos in which leading energy storage companies are accused of marketing products that are “incredibly stupid” and not feasible.
It's clear that in the increasingly competitive energy storage market, technology providers are starting to fight dirty. Rumours of supposedly ‘independent’ market observers seeking to discredit certain types of energy storage technology while secretly being on the payroll of market players with ‘skin in the game’ may be wide of the mark, but it’s clear that as the battle for energy storage market domination intensifies, it’s more important than ever that energy storage companies do as much as possible to manage their public image.
And this is before we get into the issue of public concern about fire risk. A number of proposed battery storage projects have been cancelled due to local communities’ concerns about fire-related risks, including worries about toxins being released into the air. If that wasn’t enough, manufacturers of lithium-ion batteries are also having to deal with increased scrutiny regarding how and where they source lithium. For example, earlier this year, it was reported that lithium-ore processing operations in Yichun, in China’s Jiangxi province, had been shut down due to a government investigation into infringements of environmental laws, including alleged incidents of pollution.
With energy storage companies under the microscope, here we highlight the four biggest public relations challenges they face:
1. Are investors & potential customers convinced your technology actually works?
There has been considerable scepticism about some of the energy storage technology on offer in the market. Criticism ranges from talk of batteries not being an effective way of storing wind and solar energy, to claims that some types of gravity storage would not operate efficiently in certain environments. Other brickbats that have been thrown include suggestions that alternatives to lithium-ion batteries have lower round trip efficiency and that, as a consequence, widespread uptake of such rival technologies is unlikely.
2. Is your energy storage business financially sound?
Many energy storage companies are highly innovative start-ups that are desperate for financial backing, but the fact that Swedish long duration energy storage company Azelio recently decided to file for bankruptcy will have spooked some energy storage investors. On 2 May this year, Azelio announced it had entered into a conditional loan agreement “corresponding to SEK 30 million (€2.6 million) from the company’s major shareholder, which ensures the company's short-term liquidity.” However, in July the company admitted that it had not been able to secure sufficient financing to be able to operate the business. Meanwhile, last week, US-based Eos Energy Enterprises was forced into issuing a statement in an attempt to reassure investors that customers representing a significant proportion of its backlog are financially sound companies following allegations that Eos Energy had large contracts with companies that were unlikely to honour their obligations.
3. Do your energy storage projects pose fire risks?
A number of battery storage projects have been postponed after local communities aired concerns about possible fire risks. For example, in April this year, local residents in Maryland’s Prince George’s County in the US launched a campaign against a proposed lithium-ion battery storage system near their homes amid fears of possible fires and explosions. Elsewhere, in the New York borough of Staten Island, developers were forced to withdraw plans for a 120MWh battery storage system after local community fears about fire and possible exposure to toxic chemicals.
4. Is your business ESG-compliant?
China is responsible for 77 per cent of the world’s battery manufacturing, but if your company is sourcing batteries from China this will cause concern among your potential investors, and alarm bells will be ringing when investors weigh up your business’ ESG [environmental, social and governance] credentials. In the context of lithium-ion battery manufacturing, China scores alarmingly poorly from an ESG perspective. As Greenly has highlighted, investors are increasingly interested in ESG criteria for evaluating businesses because higher ESG performance “correlates with higher returns, lower risk, and long-term business sustainability”.
California-headquartered lithium-ion energy storage system developer Flux Power has secured a new $15 million credit facility from Gibraltar Business Capital (GBC) to fund working capital and to refinance its existing credit facility with Silicon Valley Bank (SVB).
The interest rate on the new credit facility is tied to the Secured Overnight Financing Rate (SOFR) plus 5.50% per annum. The facility is secured by the existing assets of the company, matures on July 28, 2025, and includes no warrants. The agreement allows the company to increase the facility to $20 million, in $1 million or greater increments, at the company’s request subject to approval by GBC. Flux Power has also chosen to work with Bank of America for cash management and other operational banking services.
Ron Dutt, chief executive officer of Flux Power, said: “The terms of the new facility are favourable to Flux Power and enhances our borrowing capacity at attractive rates to provide greater financial flexibility to invest in internal initiatives and support our next phase of growth. This marks another important milestone for our company as we continue our strategic long-term growth objectives and strive to create sustainable, long-term value for our shareholders. We appreciate the strong support and confidence provided by GBC.”
Scott Winicour, CEO of Gibraltar Business Capital, added: “Gibraltar Business Capital is pleased to provide a reliable, flexible working capital solution to Flux Power to enable further growth and to advance their goal of driving adoption of clean, safe, and innovative energy solutions. We are honoured to have been selected as Flux Power’s strategic financing partner for the next phase of their journey.”
Gore Street Energy Storage Fund (GSF) has selected EDF as its trading and optimisation partner for the 80MW Stony battery energy storage system (BESS) in Milton Keynes in the UK.
The agreement will see EDF optimise the Stony BESS through its Powershift platform, providing access to a variety of revenue streams including the balancing mechanism, wholesale optimisation and ancillary services.
This is the third contract GSF has awarded EDF, which already manages the trading and optimisation for both the 20MW Lascar and 20MW Hulley BESS assets.
Alicja Kowalewska-Montfort, technical principal at Gore Street Capital, the investment manager of Gore Street Energy Storage Fund, said: “EDF has a strong track record with two of our existing assets, making the agreement to take on Stony a natural progression based on consistently good performance. Its commercial offer represented best value for Gore Street Energy Storage Fund, and we look forward to building on our joint success with the fund’s biggest GB asset to date.”
Stuart Fenner, director of wholesale market service commercial at EDF, said: “We are very pleased that Gore Street Energy Storage Fund has once again chosen EDF as its trading and optimisation partner and we are committed to continuing to strengthen our relationship into the future. This partnership will provide essential flexibility to the energy system and reinforces EDF’s commitment to helping Britain achieve net zero.”
Energy storage management system provider Electriq Power and TLG Acquisition One Corp (TLGA), a publicly traded special purpose acquisition company, have completed a merger, with the combined company Electriq Power Holdings listing on the New York Stock Exchange and NYSE American.
The transaction - including pre-closing financings - generated more than $45 million in equity for Electriq through private placements, PIPEs, loan conversions and non-redemptions, in addition to a project equity financing in excess of $300 million that was secured prior to the transaction.
Frank Magnotti, chief executive officer of Electriq, said: “With utilities shifting towards time of use billing, batteries and software play a critical role as part of the technology platform. Our technology stack is designed to meet the needs of this new environment and enables us to deliver across key value chains including consumer, installer, fleet management and grid services.”
Mike Lawrie, who was CEO of TLGA prior to the merger and who will be chairman of Electriq’s board, said: “The capabilities of Electriq’s innovative residential energy storage and management platform, combined with ever increasing demand for distributed clean energy solutions, offers exciting new growth and opportunities ahead for all our stakeholders.”
Duff & Phelps and Gibson, Dunn & Crutcher LLP advised TLGA, while Ellenoff Grossman & Schole LLP acted as legal counsel to Electriq Power.
US-based utility scale energy storage platform Peregrine Energy Solutions has entered into a memorandum of understanding (MOU) with Six Nations of the Grand River Development Corporation (SNGRDC), the investment and development arm of a Canadian First Nations community, with the aim of developing energy storage and renewable energy assets in the Canadian market.
Peregrine will develop and manage the projects, with SNGRDC providing investment.
“The Peregrine team is grateful to have the support and trust of the SNGRDC as we aggressively pursue greenfield battery energy storage systems and renewable energy investments in the Ontario market,” said Ryan Scalise, vice president of origination for Peregrine.
Matt Jamieson, president & CEO of SNGRDC, said: “Battery investment in and around our community advances our nation’s focus on supporting the clean energy transition and will also generate value for our future members.”
Rising costs are forcing UK offshore wind developers to make tough choices about their projects, as Vattenfall's decision to put its 1.4GW Norfolk Boreas on hold shows. We consider what this means for offshore wind companies in UK and other European countries.
Vattenfall has put its 1.4GW Norfolk Boreas on hold due to rising costs
Inflation will harm the UK's bid to achieve 50GW offshore wind by 2030
This should be a warning to policymakers in the UK and elsewhere in Europe
Rising costs are doing what celebrities can’t.
The UK’s High Court last month dismissed a legal challenge by the campaign group Suffolk Energy Action Solutions against the UK government’s approval of the 1.7GW East Anglia 1 North and 2 projects. SEAS is backed by celebrities including the actor Ralph Fiennes, and said the substations and other onshore grid infrastructure for the Iberdrola project would have a “catastrophic” impact on the landscape.
The group said it was not opposed to offshore wind in principle, but was challenging the consultation process and said that much of the transmission infrastructure could be installed offshore. The group said it will continue its court battle, while Iberdrola subsidiary Scottish Power Renewables said it remained committed to the scheme.
However, one project where onshore transmission will not be needed is Vattenfall’s 1.4GW Norfolk Boreas. On 20th July, the Swedish utility put the project in the North Sea on hold because it said it no longer made financial sense; and the decision will call into question the future of the 1.8GW Norfolk Vanguard complex too.
Vattenfall won a Contract for Difference for Norfolk Boreas last year at £37.35/MWh (in 2012 prices), but Vattenfall has decided that is not enough as it grapples with the effects of inflation. The difficult market is doing damage where well-known NIMBYs can’t. Its decision raises questions for offshore wind in UK and the rest of Europe.
UK: 50GW goal unlikely
The Norfolk Boreas decision has been a while in the making. Vattenfall and Ørsted have warned about the impact of rising costs for the last year, and their demand for more support from the UK government was loudest ahead of the Budget in March. But the fact one has stopped a project will send shockwaves through the sector.
The immediate question for the UK government is whether it needs to accelerate the proposed reforms of the CfD regime. It started a review of the system in April to take into account ‘non-price’ factors in bids, so that it does not only pick winners based on who bids the lowest strike prices. But changes will only come into force after the fifth round of CfD bidding concludes, with results due in the next few months.
Norfolk Boreas shows the weakness of this system in an inflationary market, because winning bidders have to commit to CfD strike prices years before buying turbines and other services. We discussed potential changes to CfDs in April, and the clamour for change has only got louder as developers have argued that the maximum round five CfD price of £44/MWh in 2012 prices is too low.
The government said it is listening to the wind industry, and it will have to if it wants to stand any chance of reaching its target of 50GW offshore wind by 2030. That will only happen if companies in the supply chain can build profitably. If they can’t then the UK offshore wind project pipeline, which is now over 100GW according to RenewableUK, will remain as what is dismissively known as ‘bragawatts’. Vanity not sanity.
Another potential knock-on effect is on the onshore wind sector. In mid-July, the UK’s Conservative government faced calls from 21 of its own MPs to end the country’s de facto ban on onshore wind, which has been in place since 2015. The UK’s renewable energy plans for the last eight years have focused on fast growth in the offshore wind sector, but Norfolk Boreas shows that the UK cannot now rely on offshore wind alone. This could push the government to loosen the shackles for onshore wind developers.
Norfolk Boreas is only one project, but Vattenfall’s decision clearly shows the system isn’t working. The UK’s ‘race to the bottom’ cannot continue indefinitely.
Germany’s alarming auction
Supply chain pressure is not solely a UK issue. That is why the result of Germany’s 7GW offshore wind tender last month, where the government secured winning bids totalling €12.6bn for the four sites, has caused consternation in the industry.
Groups led by oil giants BP and Total Energies won two sites each, but the process has attracted criticism because of ‘uncapped negative bidding’. In other words, the winning bidders have to pay for the right to build offshore wind farms, and the high prices they had to bid to win sites will be passed on. This means higher energy bills for consumers, and increased pressure on companies in the offshore supply chain that have already been grappling with slimmer profit margins as more governments have turned to competitive auctions. Inflation will only worsen that.
The effects of inflation and over-ambitious tender bids will not be immediate. We do not expect a host of projects to follow Norfolk Boreas and be put on ice over summer. Nevertheless, Vattenfall’s decision should show governments that competition has its limits, and they will need to adapt if they want to see new offshore wind farms built.
Otherwise, just like celebrity actors, we may see more projects face their curtain call.
Cambridge Power has secured planning permission for a 60MW battery energy storage system at Redcote Lane, Leeds in the UK.
Situated on a brownfield site adjacent to a major substation, the project was approved by by Leeds City Council under delegated powers.
A Cambridge Power statement said: “The swift approval by the Northern Power Grid (NPG) for a near-term connection in Autumn 2024 highlights Cambridge Power’s excellent track record and reputation for delivering projects efficiently. This is despite the challenges faced in other parts of the region, such as for their site in Newcastle which is experiencing delays of over 13 years.”
Neil Waterson, head of planning at Cambridge Power said: "We are thrilled to celebrate this significant milestone for Cambridge Power with the approval of our tenth consecutive planning success in two years. This will help to play a pivotal role in transforming the energy landscape by providing reliable, sustainable, and efficient storage capabilities. We are grateful for the support of all our consultants, including Johnson Mowat, Rossi Long, DRaW, Professional Consult and Futures Ecology in helping to achieve another positive outcome for Cambridge Power.”
Munich-based energy storage system provider VoltStorage has secured a €30 million venture debt loan from the European Investment Bank.
The loan will be used to co-finance the development and commercialisation of vanadium redox flow batteries for commercial and agricultural use, as well as “scale up new Iron-Salt-Battery-technology (ISB).
VoltStorage plans to bring ISB technology to utility scale from 2025 onwards.
“With the development of the ISB, VoltStorage is setting standards in the field of long duration energy storage, offering wind and solar farms a highly cost-effective and resource-saving option for bridging supply gaps during periods of low wind and sun and for ensuring base load capability.” a statement said.
EIB Vice-President Ambroise Fayolle, who is responsible for activities in Germany, said: “The EIB supports innovative and sustainable advanced technology developed and manufactured in the European Union, and especially storage technology. VoltStorage’s technology has the potential to become a game changer for renewable energies, making them as reliable 24/7 as fossil fuel power plants have been in the past. We are therefore proud to support this promising start-up.”
Jakob Bitner, CEO & co-founder of VoltStorage, added: “We are thrilled to have the support of the EIB in our mission to provide cost-effective and sustainable energy storage solutions for businesses and communities around the world. This financing will enable us to fully focus on developing and commercialising our innovative energy storage solutions, as well as scaling up our production capabilities to meet growing demand. This will accelerate our mission of making renewable energy available 24/7 with sustainable batteries and contribute to the transition towards a more sustainable and resilient energy future.”
Copenhagen Infrastructure Partners has formed a joint venture with Ignitis Group to co-develop offshore wind projects in Estonia and Latvia.
CIP is entering a partnership through its New Markets Fund with the Lithuanian firm's subsidiary Ignitis Renewables. The partners will work on projects in the Baltic Sea.
EDF Renewables has sold a 37.5% stake in its Cypress 1 & 2 Wind complex in Canada to Desjardins Group Pension Plan and Desjardins vehicle DGAM Global Private Infrastructure Fund II.
EDF Renewables Canada retains ownership of 37.5% of the projects in Canadian province Alberta, and First Nations group Blood Tribe holds the remaining 25%. The project was commissioned in two phases, in 2022 and 2023.
European solar and storage developer Cero Generation has become the sole owner of Madrid-headquartered Nara Solar.
Nara Solar was launched in 2019 as a 50-50 joint venture between Cero and Univergy Solar (Univergy). Cero has now taken full ownership of Nara Solar, purchasing Univergy’s 50 per cent shareholding in the company to bring it under direct control within the Cero portfolio.
Nara Solar’s portfolio includes 1GW of solar in development and an early-stage pipeline of more than 1GW, spanning Spain, France and The Netherlands.
Marta Martinez Queimadelos, CEO of Cero Generation, said: “We are delighted to welcome Nara Solar fully into Cero, having worked with the brilliant team at Univergy to create this thriving platform, and seeing it go from strength to strength since its launch in 2019. This transaction is an important achievement for Cero, reflecting our prominent role in the European renewables market, and it enables us to continue to grow our sizeable pipeline and portfolio.”
Octopus Renewables Infrastructure Trust (ORIT) is to invest up to £2m to set up and fund a new development business focused on creating new ground-mounted solar PV and co-located battery storage assets in the UK.
ORIT will own 100% of the new company, which will benefit from exclusive development services from BLC Energy Limited (BLCe). BLCe is a newly formed specialist developer with experience in securing land for building new renewable energy projects.
ORIT will initially invest £700,000, with an expected total investment of up to £2 million to support the development costs of the business until the end of 2025. The new venture will target an initial pipeline of over 350MW of projects in development, with land rights and grid connection offers expected to be secured making the projects suitable for sale or further development.
ORIT will have the exclusive right to provide further funding to bring the initial pipeline to ready-to-build status between 2025 and 2029 by securing planning permissions and any other relevant consents, along with preferential rights to provide development funding to new pipeline identified by BLCe. ORIT will also have the option to build or sell all projects developed for the business by BLCe once ready-to-build.
Phil Austin, chairman of ORIT, said: "This latest investment into a new development platform for solar PV and battery storage assets is an exciting addition to ORIT's portfolio. Investing in the early stages of creating new renewable energy projects brings huge growth opportunities for ORIT, both from value creation through successfully delivering projects, and from the exclusive opportunity to invest into the construction of the sites once they are ready to build.
Insurance giant Allianz has paid €20m for a minority stake in Norwegian green hydrogen and ammonia plant developer Fuella, which was set up in 2020.
Fuella will use the funding to grow its development pipeline of power-to-X projects. The deal also entitles Allianz to invest in Fuella's future green ammonia and power-to-X developments.
This is Allianz's second direct investment in the green fuels market after its deal with Finnish power-to-X producer Ren-Gas in late 2022.
Broad Reach Power has closed $435 million in credit facilities to support the construction of seven standalone energy storage projects totaling 880 MW of capacity in Texas and California.
The battery storage projects are currently under construction with expected commercial operation dates ranging from late 2023 through Q1 2024.
The projects include 825 MW in the ERCOT region and 55 MW in CAISO.
The financing consortium was led by Deutsche Bank AG, New York Branch, and included coordinating lead arrangers and co-syndication agents: Deutsche Bank AG, New York branch; MUFG Bank; and Norddeutsche Landesbank Girozentrale, New York branch.
The joint lead arranger was First-Citizens Bank & Trust Company with depositary Bank, collateral and administrative agent Deutsche Bank Trust Company Americas.
Stacey Peterson, CEO of Broad Reach Power, said: “Broad Reach Power is proud to be on the forefront of financing this new asset class, highlighting our portfolio of projects that have been meticulously developed by the team over the last several years as well as the confidence in our team’s ability to construct and operate quality BESS projects.”
Broad Reach Power was represented by White & Case LLP and Paul Hastings LLP represented the lenders.
Abu Dhabi developer Masdar Clean Energy has formed a joint venture with Malaysian conglomerate Citaglobal Berhad to develop 2GW of projects in Malaysia.
The companies have signed a memorandum of understanding to co-develop wind, solar and storage projects in the southeast Asian country.
Austrian developer RP Global and European investor Marguerite have sold two wind farms totalling 103MW in Poland to Engie's Polish subsidiary Engie Zielona Energia.
The deal involves the 23-turbine Kukinia wind farm, which was commissioned in 2013, and the 20-turbine Tychowo wind farm in northern Poland, which was commissioned in 2009.
The Solar Energy Industries Association (SEIA) has been approved by the American National Standards Institute (ANSI) to develop 11 new solar and energy storage standards, two months after being approved as an Accredited Standards Development Organization.
The approved proposals include standards for residential and commercial and industrial installation requirements, supply chain traceability, consumer protection, decommissioning, recycling and end of life management, as well as training for installation, operations and maintenance, and health and safety.
The SEIA said the standards would be developed “under a multi-step, consensus process through SEIA’s Standard Technical Committees, a diverse collection of SEIA members and industry leaders who represent solar developers, installation companies and voices throughout the solar value chain”.
SEIA’s first Standards Technical Committee will prioritise the development of a supply chain traceability standard. This work will build on SEIA’s traceability protocol and is the “natural progression of SEIA’s leadership to ensure that solar and storage products installed in the United States are sourced in an ethical and sustainable way,” a statement said.
“As the solar and storage industry rapidly grows, managing our growth must be a top priority”said SEIA president and CEO Abigail Ross Hopper. “Responsible industries set the bar for guidance on safety, sustainability and ethics, and we are proud to lead the clean energy sector into an era of compliance and maturity that instills confidence in customers, lawmakers, and other critical partners.”
Indian metals producer JSW Steel is set to use green hydrogen at its steel production facility in Vijayanagar in Karnataka, India, in the first half of 2025.
The group has signed a deal with its affiliated company JSW Energy to use fuel from a facility that is set to produce 3,800 tonnes of green hydrogen annually. The fuel is set to be supplied within 18-24 months.
Danish utility Ørsted is facing a lawsuit in US state New Jersey over $1bn of financial support for the 1.1GW Ocean Wind 1 offshore wind project.
Two groups of New Jersey residents are suing the company and the US state because they said a $1bn tax break for the project contravenes state legislation that prohibits laws that benefit individual private companies. The groups, Defend Brigantine Beach and Project Our Coast NJ, have called on the court to invalidate the law.
Energy storage system manufacturer Eos Energy Enterprises has sought to reassure investors that customers representing a significant proportion of its backlog are financially sound companies following allegations that Eos Energy had large contracts with companies that were unlikely to honour their obligations.
A statement issued by Eos Energy said International Electric Power, LLC, "has partnered with Eos since 2020 to co-develop two energy projects in Texas, with Eos providing upfront funding that was repaid when the project secured financing. The first of these projects is currently scheduled to break ground later this summer with product shipments expected in 2023.”
The statement also sought to address allegations regarding its customer Bridgelink Commodities.
In the statement, Eos Energy referred to reports concerning “legal proceedings involving multiple Bridgelink legal entities”. The statement added that Eos Energy “believes that its customer, Bridgelink Commodities, LLC, is a separate legal entity which is not implicated in the legal matters” highlighted by reports.
The statement went on to say that Bridgelink Commodities, which represents 45 per cent of Eos Energy’s backlog, had “reconfirmed that it continues to build pipeline and is actively seeking financing for energy storage projects covered by Eos’s multi-year master supply agreement”.
The financial positions of both International Electric Power, LLC, and Bridgelink Commodities had been the subject of scrutiny by Iceberg Research.
