Explore Hurricane Helene's devastation and Big Tech's shift to nuclear and hydrogen energy in this week's update.

How are tech giants like Google and Microsoft planning to power their rapidly growing data centers in a sustainable way? Get ready for an eye-opening episode as we tackle this question and so much more. From the devastating impact of Hurricane Helene on the southeastern United States to the US Department of Interior's Bureau of Ocean Energy Management canceling an offshore wind auction due to low interest, we'll break down the most pressing energy stories of the week. Plus, we'll explore California’s new law aimed at upgrading its transmission system to better integrate renewable energy, and the ambitious project by startup ECL to build a 1,000-megawatt hydrogen-powered AI-driven data center in Texas.

Feel the pulse of innovation with insights from the Energy Disruptors Conference in Calgary, Alberta. Discover how the US Department of Defense is pioneering the first transportable nuclear reactor project in Idaho, and why the green hydrogen and modular nuclear power movements are gaining traction among tech behemoths. With expert commentary on the challenges and opportunities facing the future of energy, this episode is a must-listen for anyone keen on understanding the transformative shifts in the energy landscape as we move into October 2024. Don't miss out on these compelling stories that could shape the future of energy.

Transcript

Speaker 1: 0:00

Greetings from Calgary, alberta, where I'm speaking at the Energy Disruptors Conference this week. I've got your energy stories for this, the first week of October 2024. Well, last week, hurricane Helene slammed into the southeastern United States, killing dozens and leaving almost 6 million customers in 10 states out of power Utilities. Said that some areas were so badly hit that a full reconstruction of energy infrastructure will be required. Said that some areas were so badly hit that a full reconstruction of energy infrastructure will be required. Florida got slammed, but North and South Carolina were also badly mauled. In some areas, restoration times could not be estimated even three days after the storm, because the roads have been impassable. Well, the US Department of Interior's Bureau of Ocean Energy Management canceled its floating offshore wind auction off Oregon's coast due to lack of bidder interest, commenting that only one of five companies eligible to bid had remained interested. The BOE intends to collaborate with state and tribal officials to ascertain whether future lease sale opportunities exist.

Speaker 1: 0:58

Google CEO Sundar Pichai indicated that the company is working on data centers that will be north of 1,000 megawatts in size, and he noted that modular nukes may offer one future supply route as the company faces challenges in meeting its decarbonization goals in the midst of this rapid boom in AI-driven compute loads. In a glass-half-full scenario, prashai sees room for long-term optimism, with growing data center loads resulting in massive capital investment in new sources of power supplies. Also in that boat is Microsoft, which has begun testing the use of green hydrogen at a data center in Ireland. Hydrogen supplier ESB will deploy 250 kilowatts of fuel cells to deliver electricity to the data center power control and administrative building at Microsoft Dublin campus over an eight-week period. This is part of a series of projects designed to show where hydrogen can fit into the power supply picture for the data center industry. But that initiative pales in comparison to an announcement from data center startup ECL, which claims that it will develop a 1,000 megawatt hydrogen-powered AI-driven data center near Houston, texas. Initial capacity will start at 50 megawatts next summer at a price tag close to $450 million. Ai cloud provider Lambda will be the first customer receiving part of that capacity. Ecl says that it has three hydrogen pipelines to feed the facility and it will deliver electrons at a cost of between 8 and 12 cents a kilowatt hour. The company has some experience with this, inaugurating an initial one megawatt modular hydrogen-supported data center in Silicon Valley last May. While ECL boasts zero emissions from the site. The reality is that the H2 will be derived from the carbon intensive steam methane reformation process that strips hydrogen from methane molecules. By next year, 50% of its supply is anticipated to be blue hydrogen, involving carbon capture and storage, and by 2026, the goal is to migrate to 80% blue and 20% green hydrogen from renewables. My view those numbers will be tough to achieve, given the lack of technological maturity and experience with carbon capture and storage and the current cost therein, as well as the entire green hydrogen supply chain from the cost of renewables to electrolyzers and storage and transportation. Generous federal tax credits will surely help, but it still could be a heavy lift at those target prices.

Speaker 1: 3:26

In California, governor Newsom signed SB 1006, a law directing the state to upgrade its transmission system through grid-enhancing technologies, including dynamic line rating systems that look at real-time transmission capabilities rather than relying on static ratings. Advanced power flow systems, systems and topology optimization software that route power more efficiently around transmission and delivers it to the loads that need it. And reconductoring, where more efficient lines can be used to retrofit existing towers and rights-of-way and increase power flows. These approaches may significantly cut congestion and facilitate integration of larger quantities of renewables. And finally, the United States Department of Defense just broke ground in eastern Idaho on a project to install and test the country's first transportable nuclear reactor. The Generation 4 reactor is meant to yield between one and five megawatts of power for military use in remote locations. A protective concrete structure will be built to house the reactor, which is expected to be shipped in four shipping containers from Virginia sometime in 2026. Well, that's all for this week from Calgary. Thanks for watching and we'll see you again next week.