Energy Innovations: Xcel’s Virtual Power Plant, Form Energy’s Iron-Air Battery, and More

Can a virtual power plant revolutionize grid stability and renewable integration? Tune in to our latest episode as we explore Xcel Energy's ambitious plan to create the nation's first utility-owned virtual power plant, combining distributed solar and battery storage for a total of 840 megawatts of renewable power. We delve into the specifics of this innovative project and discuss the challenges and potentials of utility ownership versus third-party solutions. Plus, hear about a groundbreaking $147 million grant for an iron-air energy storage facility in Maine that promises to alleviate grid congestion and facilitate wind energy integration.

But that's not all—our energy update wouldn't be complete without some hot topics in the EV and battery recycling sectors. Discover how Server Solutions' new $400 million battery recycling plant in Ohio is set to boost EV production, thanks to significant backing from the bipartisan infrastructure law. We also discuss Ford’s strategic pivot in its EV plans amidst financial losses and BMW's surprising triumph over Tesla in the European market. And for our offshore wind enthusiasts, get the latest on the nation's first floating offshore wind lease in Maine and the persistent woes plaguing GE Vernova’s turbine blades. Don't miss our comprehensive coverage of these crucial developments in the energy sector!

Transcript

Speaker 1: 0:00

Hi, I've got your energy stories for this the fifth week of August 2024. And in the first one, xcel Energy is the first utility in the country to file a plan with regulators to build its own virtual power plant. Subsidiary Northern Power in Minnesota plans to combine 440 megawatts of distributed solar with 400 megawatts of battery storage Duration was not mentioned Located strategically on the grid so they can be operated by the utility in a concerted fashion. One could call it a virtual power plant, but there's nothing virtual about it. Excel calls it a quote distributed capacity resource in its filing. It's a real power plant, just distributed assets. Excel estimates it will take 9 to 12 months to set up the program and 36 months for deployments. One area of disagreement is ownership. Xcel Energy wants to own the whole thing and of course various solutions providers would rather they be the entities putting this together.

Speaker 1: 1:07

A $147 million US Department of Energy grant for an 85-megawatt, 8,500-megawatt-hour iron-air energy storage facility at a closed paper mill site in northern Maine. A key value proposition is the ability to ease the congestion issues affecting the ability of the grid up there to integrate wind energy. Longer-duration assets can be particularly useful for wind, whose output may vary greatly from one day to the next. The anticipated commissioning date is 2028. The Bureau of Ocean Energy Management and Maine have agreed on a location for the nation's first floating offshore wind lease. Stretching over 15 square miles and located 28 nautical miles offshore, the lease could host up to 12 machines at 12 megawatts each and will help the state of Maine and industry participants to assess the viability of floating wind, as well as environmental impacts and supply chain issues. Any construction activity won't begin for at least several years, as the Bureau of Ocean Energy Management must approve activities as well as an environmental assessment. Also, an offshore wind.

Speaker 1: 2:08

Gee Vrnova just can't seem to catch a break with yet another offshore turbine blade suffering damage, this one at the UK's massive Duggar Bank project. This is the second such incident at Duggar Bank. Another blade failed in May. The cause remains under investigation. It's not clear that it was a manufacturing-related issue, at least not yet, but if it turns out to be so, that's very bad news for the company, as they may have to investigate all the installed blades out there. Server Solutions opened its $400 million battery recycling plant expansion in Ohio, the first large energy facility to come online after receiving support from the bipartisan infrastructure law, with grants totaling $82 million, the plant can produce annually about 15,000 tons of so-called black mass. That's the substance containing lithium, nickel, cobalt and manganese that can be then separated and integrated into new batteries. An additional expansion is planned for 2026, which ultimately would enable the Ohio plant to support production of up to 250,000 EVs a year.

Speaker 1: 3:15

Speaking of EVs, ford continues to backpedal on its EV plans in the face of huge losses, noting recently that it will no longer manufacture a planned three-row electric SUV and go the hybrid route instead. It also said it wouldn't launch any new EVs unless it can see a path to profitability in the first year. Planned changes could add another $1.9 billion to Ford's total costs. And finally, bmw outpunched Tesla in Europe for the first time in July, selling 14,869 EVs to Tesla's 14,561. The Model Y is still the single most popular EV in the continent, but Tesla's offerings are seen by some as becoming stale. Time for some new offerings, if Musk can take his eyes off SpaceX, ai and robots for at least a few seconds. Well, that's all for this week. Thanks for watching and we'll see you again next week.