Methane, LCAW & SunZia: This Week's Top Five Energy Stories
1. Why Methane is Centre Stage at London Climate Action Week
Methane was on the agenda at London Climate Action Week today, with the UN's António Guterres urging oil and gas firms, AI companies and governments to act
Methane is not always the easiest climate issue to turn into a headline. It lacks the political theatre of coal phase-outs, the scale of huge wind and solar installations and the economic drama of an oil shock.
That said, methane has become one of the most problematic pieces of the climate crisis, so much so that it was top of the agenda as London Climate Action Week began today.
In a speech framed around what he called a “Tale of Two Crises” – climate breakdown and energy insecurity – UN Secretary-General António Guterres used his special address in London to discuss methane and the challenge it poses to the energy transition.
"Methane is responsible for around one-third of global warming," he explained.
"It is some eighty times more powerful than carbon dioxide," he added, "but unlike CO₂, methane breaks down in the atmosphere within a decade or two. That means that aggressive cuts could produce visible temperature relief within a generation."
2. SunZia: The US's Largest-Ever Renewables Project Goes Live
Pattern Energy's SunZia project, the largest renewable energy and transmission scheme in US history, is now fully operational across New Mexico and Arizona
Pattern Energy has confirmed that SunZia, the largest renewable energy infrastructure project ever undertaken in the US, is now fully operational.
The project comprises an approximately 3.65GW wind farm and a 550-mile high voltage direct current transmission line.
Together they are designed to deliver more power than the Hoover Dam which, for many years, was the country's largest clean energy installation.
At full capacity SunZia is expected to supply enough electricity to power around one million American homes annually.
Construction began in September 2023, though the project's roots stretch back far further.
"SunZia becoming fully operational is a milestone more than 18 years in the making and one that I've been fighting for since I first came to Congress," said Martin Heinrich, US Senator for New Mexico, commemorating the opening of the site.
“Through a whole series of obstacles spanning over a decade and a half, we kept working to move it forward because we knew what it could mean for America’s energy future and New Mexico’s role in leading it.
"Now, New Mexico is home to one of the largest energy infrastructure projects in the Western Hemisphere.”
3. Inside EDF & Holtec's Proposal to Expand UK Nuclear Power
The two firms have submitted proposals to build small modular reactors in Cottam, Nottinghamshire, as the UK pushes to expand its nuclear energy capacity
EDF and Holtec International have submitted a joint proposal to the UK Government, detailing their plans to build a series of small modular reactors at a site in Cottam, Nottinghamshire.
The firms are proposing to build on a brownfield site – a former coal-fired power station that was decommissioned seven years ago.
Under the proposal, the site could play host to four of Holtec's SMR-300 units, widely considered among the best reactors on the market.
Together, these SMRs could produce an estimated 1.3GW, equivalent to roughly 3% of the UK's energy demand according to Carbon Brief.
The companies have also signed Heads of Terms to form a joint venture that will take the project forward.
Simone Rossi, the CEO of EDF UK, believes Cottam is the perfect site for a nuclear installation.
"The Cottam project supports the UK government's ambition to expand nuclear capacity and will facilitate significant re-development of a region that has given so much to the UK through its coal heritage," she says.
4. Project Kilby: Chevron & Microsoft's Data Centre Power Deal
Chevron and Microsoft have agreed a 20-year deal for Project Kilby, a 2.67GW gas-fired plant that will power the tech giant's new West Texas data centre
Chevron has signed a 20-year power purchase agreement with Microsoft to build a dedicated gas-fired generation facility in West Texas.
The development is named Project Kilby and it will be built and operated by Energy Forge One, a subsidiary of Chevron.
The purpose of the project is to supply electricity directly to a Microsoft data centre, thereby reducing its reliance on the regional grid.
Chevron has been working on the project alongside Engine No. 1, an investment firm best known for its 2021 boardroom campaign that pushed ExxonMobil toward emissions reduction targets.
Jeff Gustavson, Chevron's President of New Energies, says that companies like Chevron are key to enabling the AI boom.
"AI is reshaping the global economy, and abundant, affordable, reliable energy is essential to fuelling that transformation," he explains.
"Chevron is uniquely positioned to deliver power to customers with certainty, speed and at a competitive cost, leveraging Permian natural gas and our proven execution capabilities.
"This project links Chevron's traditional strengths to emerging demand, creating differentiated value for our shareholders and the communities where we operate."
5. How Scotland Can Tap Into a £10bn Biomethane Opportunity
The Green Gas Taskforce and SGN say that biomethane could supply half of Scotland’s gas demand by 2050, adding £10bn (US$13.2bn) in GVA and 8,000 new jobs
Scotland could produce enough biomethane to meet roughly half of its current gas demand by 2050, according to a new report from the Green Gas Taskforce, setting out an expansive vision for renewable gas as a pillar of the country’s energy transition.
The report, which was published alongside Scottish Gas firm SGN, argues that Scotland has enough sustainable feedstocks to generate 19TWh of biomethane by mid-century, up from an estimated 8TWh by 2030.
This, the report suggests, could be enough fuel to heat 76% of homes in Scotland, while also catering to industry, transport and power generation.
While scaling the country's biogas infrastructure would require enormous investment – something which is never quantified in the report – the Green Gas Taskforce suggests that biogas could save money in other areas.
Using biomethane – which is a fuel that can be dropped into existing gas networks – means that people would not need to rip out their boilers, while less strain might also be placed on the electricity grid.
The Taskforce and SGN also suggest that Scotland's biomethane sector could contribute £10bn (US$13.6bn) to the national economy if fully funded and expanded, while it could also support around 8,000 jobs.
The report also claims that 85p(US$1.12) of every £1 (US$1.32) invested in biomethane would stay within the UK economy, which the report says is the highest domestic content share of any renewable or low-carbon technology.
