China's Sinopec Invests in Texas Clean Power Project
China Petrochemical Corp., Sinopec, is in advanced talks about investing $1 billion in a Texas clean-energy project in what would become the largest investment by a Chinese company in the US power sector in history.
Additionally, the company has already invested billions in US shale-gas fields. The move would help Sinopec further build favor in the US market, acquiring energy reserves and production expertise.
In addition to tax benefits, the project has secured $450 million in grants from the US Department of Energy and has attained the necessary permits and contracts to buy San Antonio's electricity for the next 25 years.
Meanwhile, Sinopec rival Cnooc Ltd just made a deal for Canada's Nexen Inc., which includes some Gulf of Mexico properties, which has Chinese oil-industry officials wary that their energy investments in the US will be criticized.
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Efforts to collaborate on clean-energy investment have been undermined by trade disputes, including a US anti-dumping case against solar-panel makers. Regardless, Sinopec is working on presenting itself in a different light.
In an agreement between Sinopec and Seattle-based Summit Power Group LLC, a project could begin as early as September to use coal more cleanly through a coal-gasification plant that would use captured CO2 for oil recovery.
Sinopec will use the experience from the projects to bolster enhanced oil recovery efforts in China's large Shangli oil field in Shandong, according to the Wall Street Journal.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.