$54 Billion Chevron LNG Deal with Tokyo Electric
Japan is seeking alternate means by which to generate the electricity lost following the shutdown of the country’s nuclear power plants. The short-term fix is coming in the form of liquefied natural gas (LNG), which Tokyo Electric Power Company (Tepco) has agreed to purchase from Chevron’s Wheatstone project.
Tepco will buy approximately 3.1 million tonnes of Chevron’s LNG reserves annually according to the deal signed Wednesday. The agreement is expected to last up to 20 years and will equate to roughly $54 billion in LNG purchases by Tepco. The agreement will account for more than a third of Wheatstone’s 8.9 million-tonnes-a-year initial output.
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The Wheatstone project is an Australia-based LNG processing facility sourcing its natural gas reserves from the Wheatstone, Iago, Julimar and Brunello offshore gas fields. Tepco is expected to buy a stake in the project that is a joint venture between Chevron, Apache Corp., and a subsidiary of Kuwait Foreign Petroleum Exploration Company.
With LNG taking off in Australia, the decision by Japan to pursue natural gas as an immediate replacement for nuclear is a logical choice. While the country will be looking to implement more renewable energy generation like solar and wind, renewable capacity will be slower to develop. LNG can fill the gap much quicker.
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.