ENGIE announces 235MW in Latin America power purchase agreements with Gerdau and Nuevo Pudahuel
Multinational electric utility company ENGIE announced this week that it has signed a 15-year power purchase agreement in Mexico to Gerdau, the largest producer of long steel in the Americas.
ENGIE is developing a 130MW solar plant, currently under construction in Sonora, northern mexico. The plant will contain approximately 400,000 solar panels which will provide Gerdau with 100% of its required energy after the facility’s completion in 2019. “With the construction of this new solar farm… ENGIE will exceed 1000 MW of renewable energy generation capacity in the country in operation or in construction”.
According to ENGIE’s press release, they have “also signed a power purchase agreement with Santiago de Chile airport operator, Nuevo Pudahuel, to supply 100% certified renewable energy which will reduce the airport’s CO2 emissions by 35,700 tons per year. Under the 16-year agreement, ENGIE will supply the airport with 105 GWh per year of green electricity to meet all its power needs.”
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“These two contracts clearly illustrate our strategy to deliver renewable energy to B2B customers as part of our customer solutions offer in Latin America”, said Philip De Cnudde, CEO of ENGIE Latin America.
ENGIE Executive Vice-President, in charge of the Business Units Global Energy Management and Latin America, Pierre Chareyre, concluded that “ENGIE is very proud to be tapping into the nascent green corporate PPA market and to deliver clean energy directly to its customers. These two new agreements are fully aligned with the Group’s strategic objective to pursue the development of renewable energy projects and to reinforce its presence in Latin America, a region with high growth perspectives.”
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.