May 17, 2020

Exelon Buys Constellation in $7.9 billion Acquisition

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2 min
Exelon Corp. will buy Constellation Energy Group Inc. in a $7.9 billion acquisition
In its efforts to consolidate,Exelon Corphas agred to buy Constellation Energy Group for $7.9 billion. Exelon CEO John Rowe has failed three times in...

 

In its efforts to consolidate, Exelon Corp has agred to buy Constellation Energy Group for $7.9 billion. Exelon CEO John Rowe has failed three times in the past to acquire a smaller rival. Since 2003, Rowe—the longest serving utilities CEO in the U.S.—has tried and failed to make the acquisition, but now, market conditions seem prime to finally make it happen.

Several similar deals have been taking place in the energy industry as a result of lower power prices and rising costs due to tightened environmental standards.

Constellation shareholders will receive 0.93 shares of Exelon for each share of Constellation. This is estimated to be a 12.5 percent premium over Constellation’s final closing share price.

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Constellation, similar to Exelon, operates as a regulated utility and wholesale power provider. However, Constellation also features one of the largest retail power divisions in the U.S.

Constellation CEO Mayo Shattuck cites the acquisition as a way for Constellation—whose retail business has operated on adding generating stations as demand for power grows—to “jump to the endgame,” by merging with Exelon’s wholesale division.

The newly combined company will still be called Exelon and will form the U.S.’s second largest residential electricity and gas company, meeting the energy needs of 6.6 million customers.

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Jul 30, 2021

Major move forward for UK’s nascent marine energy sector

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Sustainability
3 min
The UK’s nascent marine energy sector starts exporting electricity to the grid as the most powerful tidal turbine in the world begins to generate power

Although the industry is small and the technologies are limited, marine-based energy systems look to be taking off as “the world’s most powerful tidal turbine” begins grid-connected power generation at the European Marine Energy Centre

At around 74 metres long, the turbine single-handedly holds the potential to supply the annual electricity demand to approximately 2,000 homes within the UK and offset 2,200 tonnes of CO2 per year.

Orbital Marine Power, a privately held Scottish-based company, announced the turbine is set to operate for around 15 years in the waters surrounding Orkney, Scotland, where the 2-megawatt O2 turbine weighing around 680 metric tons will be linked to a local on-land electricity network via a subsea cable. 

How optimistic is the outlook for the UK’s turbine bid?

Described as a “major milestone for O2” by CEO of Orbital Marine Power Andrew Scott, the turbine will also supply additional power to generate ‘green hydrogen’ through the use of a land-based electrolyser in the hopes it will demonstrate the “decarbonisation of wider energy requirements.” 

“Our vision is that this project is the trigger to the harnessing of tidal stream resources around the world to play a role in tackling climate change whilst creating a new, low-carbon industrial sector,” says Scott in a statement. 

The Scottish Government has awarded £3.4 million through the Saltire Tidal Energy Challenge Fund to support the project’s construction, while public lenders also contributed to the financial requirements of the tidal turbine through the ethical investment platform Abundance Investment.

“The deployment of Orbital Marine Power’s O2, the world’s most powerful tidal turbine, is a proud moment for Scotland and a significant milestone in our journey to net zero,” says Michael Matheson, the Cabinet Secretary for Net-Zero, Energy and Transport for the Scottish Government. 

“With our abundant natural resources, expertise and ambition, Scotland is ideally placed to harness the enormous global market for marine energy whilst helping deliver a net-zero economy.

“That’s why the Scottish Government has consistently supported the marine energy sector for over 10 years.”

However, Orbital Marine CEO Scott believes there’s potential to commercialise the technology being used in the project with the prospect of working towards more efficient and advanced marine energy projects in the future. 

We believe pioneering our vision in the UK can deliver on a broad spectrum of political initiatives across net-zero, levelling up and building back better at the same time as demonstrating global leadership in the area of low carbon innovation that is essential to creating a more sustainable future for the generations to come.” 

The UK’s growing marine energy endeavours

This latest tidal turbine project isn’t a first for marine energy in the UK. The Port of London Authority permitted the River Thames to become a temporary home for trials into tidal energy technology and, more recently, a research project spanning the course of a year is set to focus on the potential tidal, wave, and floating wind technology holds for the future efficiency of renewable energy. The research is due to take place off of the Southwest coast of England on the Isles of Scilly

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