Insights

XGS Energy Secures Additional $13 Million to Accelerate Advanced Geothermal Deployment

DETAILS

- XGS Energy has secured $13 million in additional financing to accelerate its advanced geothermal project development across the Western United States. - New investors include Aligned Climate Capital, ClearSky, ClimateIC, and WovenEarth Ventures. - The financing round attracted significant interest and builds on previous investments from Constellation Technology Ventures, VoLo Earth Ventures, and Valo Ventures in 2024. - Josh Prueher, CEO of XGS, expressed excitement about the new investors' understanding of power infrastructure requirements and the potential of their technology. - Mano Nazar, former Chief Nuclear Officer of NextEra Energy, will join the XGS Energy Board of Directors following this financing. - Nazar highlighted XGS's advanced geothermal technology as capable of delivering energy to the grid faster than other baseload technologies amid rising energy demand. - XGS's water-independent geothermal system aims to address financeability and geographic scalability challenges in geothermal development. - The company has completed a shallow field test of its Thermal Reach Enhancement technology and is operating its first commercial-scale well in California. - The new funding will support XGS's multi-gigawatt project pipeline as demand for baseload power increases. - Investors acknowledge XGS's approach to minimizing exploration risks and optimizing for long-term predictability as key to securing project financing. - XGS intends to expand its team through the year and continue its fundraising efforts for future growth. - The company is preparing for a growth equity round later this year, aiming to showcase results from its first commercial-scale system and its expanding project pipeline. - Kevin Kimsa from ClimateIC noted the urgency of global energy supply challenges and emphasized XGS's readiness to meet these demands with innovative technology and expertise.

COMPANIES

XGS Energy, Aligned Climate Capital, ClearSky, ClimateIC, WovenEarth Ventures, Constellation Technology Ventures, VoLo Earth Ventures, Valo Ventures, Anzu Partners, BlueScopeX, B Current Impact Investment, H&P, MIH Capital, Thin Line Capital

TAGS

Geothermal

PG&E Advancing $43 Million for Nine New Community Microgrids in Northern California

DETAILS

- Pacific Gas and Electric Company (PG&E) plans to award up to $43 million for developing nine new community microgrids in Northern and Central California. - The application window for the second wave of Microgrid Incentive Program (MIP) grant funding opens on April 3. - Interested parties must submit project ideas by May 30, 2025, via email. - The MIP supports the development of microgrids to assist disadvantaged communities most vulnerable to power outages. - Microgrids can disconnect from and reconnect to the grid to maintain energy during outages. - Community microgrids are designed to serve vulnerable customers and essential community resources. - PG&E received around 50 inquiries from various organizations since launching the MIP in late 2023. - Out of these, 22 projects advanced to submit applications after initial screening and consultations. - Each of the 22 projects received a $25,000 grant for application development. - Nine projects were selected after a thorough evaluation based on community benefits and project costs. - The selected projects will undergo due diligence to confirm project details before formally accepting the awards. - Approximately $34 million will fund generating resources, engineering, project management, and property costs. - Each project will receive up to an additional $1 million for interconnection costs related to distributed energy resources. - The chosen projects include four in Humboldt County, three in Lake County, and two in Marin County, with four serving tribal communities. - These microgrids will provide energy resilience to nearly 9,000 customers, including many with access and functional needs. - Selected projects will receive between $1 million and $6 million based on their scoring from PG&E. - Generation resources will include various clean energy solutions such as solar and battery energy storage. - The MIP is a $200 million competitive grant program approved by the California Public Utilities Commission to fund clean-energy community microgrids. - Projects under the MIP can receive up to $14 million in funding for a multi-customer community microgrid. - More information and application details for the second wave of funding can be found on PG&E's website. - PG&E serves over sixteen million people across 70,000 square miles in Northern and Central California.

COMPANIES

Pacific Gas and Electric Company, Southern California Edison, San Diego Gas and Electric

TAGS

Power

RWE expands partnership with GE Vernova to secure U.S.- made components for two energy projects

DETAILS

- RWE has chosen American manufacturer GE Vernova to provide over 100 domestically produced wind turbines for energy projects in West Texas. - The partnership supports the commitment to advancing America's manufacturing and energy dominance through collaboration with leading U.S. companies. - RWE's investment aims to increase domestic energy production, supporting demand growth and generating new economic activity and job creation. - RWE is expanding homegrown energy capacity near Big Spring, Texas, with strategic investments to meet the demands of the state's booming manufacturing and technology sectors. - The projects involve repowering the 127 MW Forest Creek wind farm and constructing the 181 MW Honey Mesquite project, providing a total of 308 MW of new and upgraded power capacity. - Both projects will utilize GE Vernova's domestically produced wind turbine technology, reinforcing RWE's commitment to support U.S. manufacturing. - GE Vernova will supply 109 state-of-the-art 2.82 megawatt wind turbines for the projects. - Onsite construction at Forest Creek is underway, modernizing the facility for an additional 30 years of operations. - The project includes decommissioning original components and constructing new foundations for the GE Vernova turbines. - RWE is partnering with Wanzek Construction, Inc. to manage the recycling and repurposing of decommissioned materials. - Construction of the Honey Mesquite wind farm is expected to start later this year, with operations beginning in late 2026. - The two projects will create hundreds of jobs during peak construction times and contribute millions in economic activity to rural West Texas. - Since 2007, RWE has invested $9 billion in Texas, starting with the Forest Creek wind farm. - RWE is committed to long-term economic benefits for communities hosting its facilities, ensuring job opportunities and tax revenues for local services. - The upgraded Forest Creek and Honey Mesquite projects are expected to generate approximately $60 million in tax revenue for local counties, enhancing their financial support for essential services. - RWE is a prominent renewable energy company in the U.S. with over 15 years of experience in developing and operating renewable facilities. - The company has a workforce of around 2,000 in the U.S. dedicated to the clean energy transition and developing innovative energy solutions. - RWE Clean Energy is the third-largest operator of onshore wind, solar, and battery storage in the U.S. - RWE Offshore Wind Holdings is the only U.S. developer with offshore wind lease areas on all three coasts, investing heavily in expanding its generation portfolio in the country.

COMPANIES

RWE, GE Vernova, Wanzek Construction, Inc., MasTec Renewables

TAGS

Wind

JetBlue Marks First Regular Supply of Sustainable Aviation Fuel (SAF) for Commercial Air Travel in New York

DETAILS

- JetBlue and its fuel partners have marked the first regular supply of sustainable aviation fuel for commercial air travel in New York at John F. Kennedy International Airport. - This supply is part of a 12-month agreement with World Fuel Services for at least 1 million gallons of neat sustainable aviation fuel from Valero Marketing and Supply Company. - JetBlue’s sustainable aviation fuel supply is supported by corporate partners who help cover the cost premium over traditional jet fuel. - An additional 4 million gallons of neat sustainable aviation fuel is possible under the terms of the deal with the backing of corporate partners. - JetBlue's chief financial officer highlighted the importance of incorporating sustainable aviation fuel into their flights to help decarbonize the aviation industry. - The fuel is produced by Diamond Green Diesel LLC, blended with conventional jet fuel, and is delivered through existing infrastructure to be used by JetBlue at JFK. - Blended sustainable aviation fuel can lower lifecycle greenhouse gas emissions by approximately 80% compared to conventional jet fuel. - World Fuel Services aims to enhance the supply network for sustainable aviation fuel on the U.S. East Coast through this collaboration. - The delivery of sustainable aviation fuel in New York was explored in a 2021 study by the Port Authority and the National Renewable Energy Lab. - The successful delivery of sustainable aviation fuel has already been demonstrated at LaGuardia Airport and through a transatlantic flight fueled by sustainable aviation fuel at JFK. - Port Authority leadership expressed pride in collaborating with JetBlue to promote sustainable air travel. - The Port Authority is committed to achieving net-zero emissions by 2050 and encourages partnerships to advance sustainability goals. - Expanding the sustainable aviation fuel market requires public and private collaboration along with federal and state incentives. - JetBlue has doubled its sustainable aviation fuel procurement year-over-year since 2020 and has other sustainability initiatives like improved aircraft efficiency. - JetBlue is known for low fares and exceptional service, operating flights to over 100 destinations.

COMPANIES

JetBlue, World Fuel Services, World Kinect, Valero Marketing and Supply Company, Valero Energy Corporation, Diamond Green Diesel LLC, Darling Ingredients Inc., Port Authority of New York and New Jersey

TAGS

SAF

Lithium Americas Announces $250 Million Strategic Investment from Orion Resource Partners for Thacker Pass

DETAILS

- Lithium Americas announced a strategic investment of $250 million from Orion Resource Partners for the Thacker Pass lithium project in Nevada. - The investment will enable fully funded status for the development and construction of Phase 1 of Thacker Pass, targeting completion by late 2027. - Orion will purchase senior unsecured convertible notes totaling $195 million and will enter into a Production Payment Agreement worth $25 million. - Additional funding of $30 million may be provided by Orion within two years upon request from Lithium Americas. - The investment will close the week of March 10, 2025, subject to closing conditions. - This partnership is expected to strengthen relationships with General Motors and the U.S. Department of Energy. - Orion has agreed to consider supporting up to $500 million in financing for Phase 2 of Thacker Pass. - Orion's commitment underscores the strategic importance of developing a domestic supply chain for critical minerals. - The initial investment is expected to meet all requirements from the U.S. Department of Energy and General Motors under a $2.26 billion loan. - Lithium Americas anticipates making an affirmative final investment decision for Phase 1 concurrently with the closing of the Orion investment. - The engineering contractor for the project was issued full notice to proceed in late 2024 to manage project risk. - Orion's investment will cover all remaining equity capital funding needs under the DOE loan. - The Notes from Orion will mature in 2030 and bear an interest rate of 9.875%. - Payments made under the Production Payment Agreement will be based on lithium processed and gross revenue. - Payments include a fixed rate of $128 per tonne of lithium processed each year for 72 quarters post-production. - Variable payments of 0.96% of total gross revenue are also included, subject to adjustments. - Orion will have oversight rights through appointed independent consultants to monitor project development. - The completion of Thacker Pass will create approximately 2,000 direct jobs over a three-year construction period. - Lithium Americas is focused on responsibly developing the largest known lithium resource in the world at Thacker Pass.

COMPANIES

Lithium Americas Corp., Orion Resource Partners LP, General Motors, U.S. Department of Energy, Bechtel, Goldman Sachs & Co. LLC, Evercore Group L.L.C., Vinson & Elkins LLP, Cassels Brock & Blackwell LLP, Torys LLP, Davis Graham & Stubbs LLP

TAGS

lithium

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