EON plans to invest $30bn in energy transition by 2026

24 November | Investment

German energy company EON has announced plans to invest around $30bn (€27bn) in its energy transition by 2026. Under this plan, the company will allocate $24.6bn for expanding its energy networks and €5bn to expand its customer solutions business.


By 2026, EON intends to increase its annual investments in energy networks by around $1.1bn, which will raise its regulated asset base by at least 6% a year. As part of its digitisation efforts, EON will invest almost $2.2bn in digitalising its network planning, monitoring and control.


The move is intended to position the company as one of the first energy companies to digitally control its network infrastructure at all voltage levels. Its distributed energy infrastructure solutions would also be expanded with an annual investment of between $560m and $672m. In addition, the company aims to increase its presence in the hydrogen segment by participating in European project partnerships such as H2.Ruhr.


EON CEO Leonhard Birnbaum said: “EON will now launch a comprehensive growth and investment offensive to establish a zero-carbon energy world. Extending our forecast timeframe to five years until 2026 underscores the resilience and the strong growth potential of both of EON’s core businesses, which, in the decade ahead, will benefit substantially from Europe’s energy transition.


“In 2030, EON will be bigger, greener, more digital and more diverse.”

23 November | Projects

Dogger Bank starts construction works on O&M base in the UK


Dogger Bank Wind Farm has started construction works on its operations and maintenance (O&M) base at Port of Tyne in England, UK. SSE Renewables will lead the construction works of the 3.6GW Dogger Bank Wind Farm while Equinor will operate it from the new net-zero carbon base.


Equinor, which is managing the base construction works, has appointed real estate advisor CBRE as the principal designer while Bowmer + Kirkland will serve as the facility’s principal contractor.


The new base will be built and operated according to the UK Green Building Council’s Net Zero Carbon Buildings Framework. It will be constructed using low carbon materials to meet the energy efficiency classifications.


Covering an area of 3400m², the O&M base will serve as the onshore hub for Dogger Bank Wind Farm, which is located more than 130km offshore. The base is slated for completion in the fourth quarter of next year, ahead of wind farm operations that are expected to begin in 2023.


Dogger Bank project director Steve Wilson said: “Today we’re celebrating the start of work to build this innovative zero-carbon base, but it’s also a great chance to take stock and celebrate what’s already been achieved since the overall construction of the wind farm commenced in early 2020.”

22 November | Finances

Bulb Energy collapse leaves 1.7 million without supplier


UK utility Bulb Energy has announced its collapse into administration, leaving 1.7 million customers without an energy supplier. The bankruptcy of the UK’s seventh-largest energy retailer marks the most recent and largest in a long line of UK utilities going bust because of high international energy prices.


Energy regulator Ofgem will put Bulb into “special administration”, attempting to restructure the company. In the meantime, it has advised customers that they do not need to take any action and that energy supplies will continue as normal. A Bulb Energy spokesperson said: “Please don’t worry as your energy supply is secure and all credit balances are protected.”


Bulb will now enter a Special Administrator Regime, where the UK Government will prop up the company as it restructures.


Before now, Ofgem has transferred customers of bankrupt utilities to a “supplier of last resort”. This involves other utilities bidding to offer the lowest possible rates to transferred customers.


However, while previous collapsed utilities had relatively small customer bases, Bulb’s large number of customers may prove too much for any single supplier to take on. With energy prices staying above consumer tariff caps, few utilities currently offer contracts to new customers.


19 November | Renewables

DESRI signs 350MWac offtake agreement with Entergy Louisiana


US-based renewable energy producer DE Shaw Renewable Investments (DESRI) has signed three offtake agreements with Entergy Louisiana (ELL) for 350MWac of power capacity. The company will build three solar facilities in Louisiana on the basis of power purchase agreements or build transfer agreements with ELL.


The facilities are the Vacherie Solar Energy Centre, the SJ Louisiana Solar Project and the Sunlight Road Solar Project. Vacherie and SJ Solar will be built next to each other in St James Parish and have 150MWac of capacity each, while the 50MWac Sunlight Road project will be developed in Washington Parish.


DESRI previously built the 20MWac St James Solar Project in St James Parish, meaning Vacherie and SJ Solar will be its second and third solar facilities in the region. Sunlight Road will be the company’s second project in Washington Parish, where it developed the 50MWac Iris Solar Project.


DESRI chief development officer Hy Martin said: “DESRI is pleased to partner with Entergy Louisiana on these three solar facilities, which bring the collective total of our renewable energy projects with Entergy Louisiana above 400MWac.


“Continuing our long-standing work with Entergy Louisiana, these projects will provide affordable energy to Louisiana residents and create local economic development benefits as the state becomes a national leader in the new energy economy.”

18 November | Deals

ADNOC and TAQA to form renewable energy and hydrogen company


The Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi National Energy Company (TAQA) have agreed to form a renewable energy and green hydrogen joint venture. Under the partnership, the two companies plan to install 30GW of renewable energy generation capacity by 2030.


They aim to position Abu Dhabi and the United Arab Emirates as a global leader in the green hydrogen segment, by focusing on the development of renewable energy and waste-to-energy projects in both the domestic and overseas markets.


They will also focus on the production and storage of green hydrogen.


UAE minister of industry and advanced technology and ADNOC managing director and Group CEO Dr Sultan Ahmed Al Jaber said: “This innovative and collaborative venture is a bold new initiative as it combines both companies’ respective areas of expertise and paves the way for our viable entry into the clean energy space.


“This platform will enable ADNOC to capitalise on the many renewable energy and hydrogen opportunities both locally and globally. Building on ADNOC’s highly successful partnership and growth model, we invite other partners to join this promising new venture on its exciting journey.”


US-based investment bank Moelis & Company is serving as ADNOC’s exclusive financial adviser for the partnership, with Citi acting as TAQA’s sole financial adviser.

18 November | Investment

SSE announces $16.8bn investment to expedite net-zero efforts


UK-based energy company SSE has unveiled plans to invest $16.8bn (£12.5bn) in clean energy projects by 2026 to expedite its efforts towards net-zero emissions. Under its Net Zero Acceleration Programme, SSE plans to deliver 25% of the 40GW of offshore wind capacity that the UK aims to install by 2030.


The company will facilitate more than 20% of the required investment in the UK’s electricity network infrastructure while continuing to expand it overseas.


By 2026, SSE will deliver 8GW of installed renewable capacity and develop a renewable pipeline with more than 15GW of capacity. The company will also deliver an additional capital investment of $1.33bn.


The programme will also focus on expanding the country’s electricity networks, increasing regulated asset value to $12bn and increasing capital allocation for renewables growth.


In addition, SSE plans to partner with other companies in the renewable segment and sell a 25% stake in its SSEN Transmission and SSEN Distribution businesses. The company has also set a target of increasing its renewable output fivefold by adding more than 16GW to its low-carbon generation capacity.


SSE chief executive Alistair Phillips-Davies said: “Today’s announcement will maximise our long-term potential and capture growth opportunities during a critical time for the energy sector, creating jobs, delivering on government ambitions, and creating value for society and shareholders.”

In brief

Leeward Renewable Energy secures funding for Colorado wind farm


Leeward Renewable Energy has secured financing of around $190m for the construction of its 145MW Panorama Wind Farm in Weld County, Colorado. The financing includes a construction loan, a back leverage term loan commitment and a tax equity bridge loan.

Vestas recovers from cyber attack and data breach


Integrated wind company Vestas has started recovering data after a cyber security breach of internal systems. In order to minimise the issue, the company shut down its IT systems “across multiple business units and locations”.

Shell to acquire 51% stake in floating wind project in Ireland


Shell has signed an agreement with Irish renewable energy developer Simply Blue Group to acquire a 51% stake in the Western Star venture. The 1.3GW floating wind project will be developed by Simply Blue Group and Shell personnel in two phases.

UKCI and Norfund to support wind portfolio in South Africa


Norfund and the UK Climate Investments (UKCI) have agreed to invest in a joint venture to fund its 40% participation in the development of a 700MW onshore wind portfolio in South Africa. The joint venture belongs to two local companies, H1 Holdings and Pele Green Energy.

17 November | Projects

TerraPower selects site for nuclear reactor demonstration plant


US-based nuclear energy technology company TerraPower has chosen Kemmerer, Wyoming, as the preferred site for its Natrium reactor demonstration project.


The site is located near the Naughton Power Plant, the remaining two coal units of which are scheduled to close in 2025. The project is being supported by the US Department of Energy and is expected to receive around $1.9bn from the US Government, including $1.5bn under the bipartisan infrastructure bill.


Use of the site is subject to the finalisation of definitive agreements and all required permits, licencing and support.


TerraPower intends to apply for the construction permit to Nuclear Regulatory Commission by mid-2023. The plant is expected to become operational in 2028. The company said that the demonstration project is aimed to validate the Natrium technology’s design, construction and operational features.


The plant will be equipped with a 345MW sodium-cooled fast reactor and a molten salt-based energy storage system. The storage technology can increase the plant’s output to 500MW, enough to power 400,000 homes, if necessary.


TerraPower president and CEO Chris Levesque said: “People across Wyoming welcomed us into their communities over the past several months, and we are excited to work with PacifiCorp to build the first Natrium plant in Kemmerer.


“Our innovative technology will help ensure the continued production of reliable electricity while also transitioning our energy system and creating new, good-paying jobs in Wyoming.”

17 November | Projects

FFI secures approval for electrolyser facility in Australia


Australia-based green energy company Fortescue Future Industries (FFI) has secured planning approval from Australia’s Queensland Government to build an electrolyser facility in Gladstone.


The permit will allow FFI to build the first stage of its global Green Energy Manufacturing Centre at Aldoga in the Gladstone State Development Area. The project will involve building a ‘world-leading’ electrolyser, renewable industry and equipment factory at Gladstone.


These will be built on a 4ha site, with the electrolyser assembly building covering a 12,900m² area. Once complete, the facility will have the initial capacity to manufacture 2GW worth of electrolysers a year.


FFI chairman Dr Andrew Forrest said: “Gladstone is going to be at the centre of Queensland’s green energy revolution, with the first electrolysers scheduled to enter production in 2023.


“This project will not only be a gamechanger for green manufacturing in regional Queensland, but it will also provide a major boost for the local economy and indelibly put Queensland as an epicentre of the coming green industrial revolution.”


In September, French renewable energy company Neoen reached financial close for its Kaban Green Power Hub project in Far North Queensland. The project includes a 157MW wind farm near Ravenshoe and an upgrade to a 320km transmission line.

In brief

Leeward Renewable Energy secures funding for Colorado wind farm


Leeward Renewable Energy has secured financing of around $190m for the construction of its 145MW Panorama Wind Farm in Weld County, Colorado. The financing includes a construction loan, a back leverage term loan commitment and a tax equity bridge loan.

Vestas recovers from cyber attack and data breach


IIntegrated wind company Vestas has started recovering data after a cyber security breach of internal systems. In order to minimise the issue, the company shut down its IT systems “across multiple business units and locations”.

Shell to acquire 51% stake in floating wind project in Ireland


Shell has signed an agreement with Irish renewable energy developer Simply Blue Group to acquire a 51% stake in the Western Star venture. The 1.3GW floating wind project will be developed by Simply Blue Group and Shell personnel in two phases.

UKCI and Norfund to support wind portfolio in South Africa


Norfund and the UK Climate Investments (UKCI) have agreed to invest in a joint venture to fund its 40% participation in the development of a 700MW onshore wind portfolio in South Africa. The joint venture belongs to two local companies, H1 Holdings and Pele Green Energy.