Energy & Infrastructure Updates: SMRs, Offshore Wind Leases, Battery Milestones, and More

Are small modular nuclear reactors the future of energy for data centers and oil and gas operations? This week, we explore the burgeoning interest in Oklo's innovative micro-reactors, which have received letters of intent for an impressive 1,350 megawatts of capacity. We'll delve into how these reactors could revolutionize energy consumption by major industries and examine the Bureau of Ocean Energy Management's green light for offshore wind projects off the Oregon coast. Additionally, we'll analyze the latest big moves on the East Coast, from Equinor Wind and Dominion securing significant leases to Orsted's project delays, shedding light on the challenges and triumphs within the offshore wind sector.

Shifting gears, we're celebrating a significant milestone in the electric vehicle ecosystem with NIO's 50 millionth battery swap, underscoring the growing acceptance and efficiency of EV swapping networks in China. We'll also highlight the U.S.'s impressive strides in utility-scale electric generating capacity, with a focus on solar power leading the charge. Closing on a high note, we delve into Natron Energy's announcement of a $1.4 billion factory in North Carolina for sodium ion batteries, a promising and cost-effective alternative to lithium-ion technology. Tune in for these exciting updates and more, and stay ahead in the fast-evolving world of energy.

Transcript

Speaker 1: 0:01

I've got your energy stories for this, the third week of August 2024. While all the projected demand growth for AI-driven data centers was likely to bode well eventually for the small modular nuclear companies, now we're seeing proof of that. In its latest quarterly call, small modular reactor company Oklo stated that it has non-binding letters of intent for approximately 1,350 megawatts of micro-reactor capacity as of this month, up 93% from last July. Of course, a letter of intent is not yet a power purchase agreement, but it's a start. Interestingly, 50 megawatts of reactor capacity would support oil and gas operator Diamondback Energy's activities in the Permian Basin, but the lion's share would be devoted to data centers. Potential commitments for Oklo include 100 megawatts over 20 years to Wyoming hyperscales data centers and up to 500 megawatts of power to Equinix. Oklo's sodium-cooled fast-fishing reactors are planned as 15 megawatt or 50 megawatt modules, and these would fit nicely with your typical data center. None of this is likely to result in steel in the ground until the late 2020s or even early 2030s, as Ockel still doesn't have its license from the Nuclear Regulatory Commission.

Speaker 1: 1:19

Well, the Bureau of Ocean Energy Management, the BOEM, released its final environmental assessment concerning offshore wind leases off Oregon's coast, finding that these lease issuances would have no significant impacts to people or the environment. In April, the Department of the Interior announced a proposed offshore wind lease sale for two wind energy areas in Oregon, with the first to be held later this year. That's deep water off there, so those will be floating wind installations On the east coast. The Bureau of Ocean Energy Management's auction for two lease areas off Delaware, maryland and Virginia the first lease in a decade yielded two provisional winners and $92 million in bids. Equinor Wind provisionally won a lease for $75 million covering 101,000 acres about 26 miles offshore, and Dominion's Virginia Electric and Power provisionally won a lease for $17.5 million covering about 176,000 acres 35 miles offshore. Dominion's already well on the way with its first 2.6 gigawatt coastal Virginia offshore wind project, expected to reach completion by late 2026. But it's not all roses for offshore wind, as we know, and recently offshore developer Orsted booked Q2 losses of about $575 million owing in part to delays in its US offshore wind portfolio. Million owing in part to delays in its US offshore wind portfolio. It also delayed its 704 megawatt Revolution Wind Project off Rhode Island in Connecticut from 2025 to 2026, citing existing soil contamination at an onshore transformer station that's located at a formal naval air station.

Speaker 1: 3:03

Chinese electric automaker NIO says its EV swapping network just notched its 50 millionth battery swap, providing a cumulative 2.62 million megawatt hours of electricity to EV drivers. Thus far, about 60 percent of all the energy used by its electric vehicles comes through that swapping network. Nio also estimates it cut 2.8 billion minutes of wait time versus hours that would have been spent at public EV charging stations. Nio is reported to have almost 2,500 swap stations in mainland China, with 825 located on major highways and, astonishingly to me at least, these stations offer an average 79,000 services per day. Me at least. These stations offer an average 79,000 services per day.

Speaker 1: 3:49

Us developers and power plant owners added 20.2 gigawatts of utility-scale electric generating capacity over the first two quarters of this year, with another 42.6 gigawatts of capacity expected prior to year's end. Solar crushed it, totaling 12 gigawatts and representing 59% of all additions. Battery storage came in second, with 4.2 gigawatts, representing 21% of overall US capacity additions. And finally, sodium battery manufacturer Natron Energy announced it will build a $1.4 billion North Carolina factory that can produce 24 gigawatts of its sodium ion batteries. Although somewhat less energy dense than typical lithium ion batteries, these don't contain expensive cobalt or lithium. They're going to be less costly. Furthermore, sodium batteries are stable and have long cycle lives, so they'll be perfect for power grids. Although we're seeing some sodium batteries already in EVs in China, natron Energy hasn't yet announced the construction start date, but we can expect to see that soon. Thanks for watching and we'll see you again next week.