Dominion Energy to buy Scana for $14.6bn
The Virginia power company, Dominion Energy, is to buy Scana Corp, the utility company based in South Carolina.
The stock-for-stock deal, which values Scana at approximately $7.9bn, will include the utility company’s debt.
Subsequent to the announcement of the deal, Scana’s shares surged 27% in premarket trading.
The deal, valued at $14.6bn, is to be Dominion’s largest ever acquisition.
The two companies revealed that the utility’s shareholders are to receive 0.6690 shares of Dominion Energy per share held in Scana, which is approximately $55.35.
The Richmond-based company will be offering $1,000 payments to the average residential customer, whilst also committing to 5% rate cuts.
“Dominion acquiring Scana makes a lot of sense,” commented Shahriar Pourreza, an analyst for Guggenheim Securities.
Scana’s shares dropped rapidly between June 2017 and this month, falling from trading at $70 to just $48.
“Dominion is still going to have a very big uphill climb” added Mr Pourreza.
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.