Nov 15, 2018

EDF Renewables and Shell Energy sign power purchase deal

Renewable Energy
Sustainability
Andrew Woods
3 min
EDF Renewables and Shell Energy sign power purchase deal
EDF Renewables North America and Shell Energy North America (US) have announced the signing of a 15-year Power Purchase Agreement...

EDF Renewables North America and Shell Energy North America (US) have announced the signing of a 15-year Power Purchase Agreement (PPA) for the energy and renewable attributes related to a 100 megawatt (MWac) / 132 MWp tranche of the Palen Solar project known as Maverick 4 Solar Project. The Project expects to deliver clean electricity by the end of 2020.

Palen Solar is located in Riverside County, California on 3,140 acres of federal lands within a Solar Energy Zone (SEZ) and Development Focus Area, managed by the U.S. Bureau of Land Management (BLM). The BLM recently completed the federal permitting process, issuing the project a Record of Decision (ROD), which sets in motion the path forward for project construction.

EDF Renewables is pleased to have completed the federal permitting process on Palen Solar. This 500 MW project uniquely positions EDF Renewables to help load-serving entities like Shell meet their long-term obligations under California’s Renewable Portfolio Standard (RPS) by offering smaller tranches at industry-leading prices, said Ian Black, senior director, development for EDF Renewables.

SENA, as one of the largest energy suppliers in the West, is actively growing its renewable power business, building on our strengths and capabilities to bring more clean energy solutions to our customers, said Glenn Wright, vice president, Shell Energy Americas. Working closely with companies like EDF Renewables, and its proven track record as a successful developer of large-scale renewables, allows us both to better meet the evolving power needs of our customers.

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 Black added, EDF Renewables is a leading renewable energy counterparty, able to structure offtake agreements around unique needs of clients like Shell Energy North America. We enjoy our close working relationship with SENA and are excited to announce this agreement to help meet its RPS needs. We look forward to strengthening our relationship on future contracts with Shell.

EDF Renewables is one of the largest renewable energy developers in North America with 10 gigawatts of wind, solar, and storage projects developed throughout the U.S., Canada, and Mexico.

SENA and its subsidiaries operate as an integral part of the global Shell Trading network. The company and its subsidiaries trade and market natural gas, wholesale power, environmental and risk management products with counterparties and customers throughout the region. Its customers include large commercial and industrial users, retail energy companies, local gas distribution companies, electric utilities, independent power producers, oil and gas producers, municipalities, and rural electric cooperatives.

SENA consistently ranks within the top three gas and power marketers in North America according to Platts. Capabilities include marketing natural gas within the U.S. and Canada, with a sales volume of 10 billion cubic feet per day; marketing wholesale and retail power, with sales topping 270 million megawatt hours annually; and participating in nearly all organized power markets, with access to over 9,500 megawatts of generating capacity across North America.

 

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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Drax
Biomass
Sustainability
BECCS
Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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