Department of Energy funding to boost community-led geothermal projects 

Energy News Beat

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Two community-based geothermal pilot projects, each led by equity-focused nonprofits, have advanced to the second phase of funding through a U.S. Department of Energy program. 

Blacks in Green, a community organization based in Chicago, and Home Energy Efficiency Team, a Boston-based nonprofit dedicated to promoting an equitable transition to clean energy, were included last week in a set of five projects across the country that have been awarded a total of more than $35 million from the DOE’s Geothermal Technologies Office to implement geothermal installations.

The five project teams advancing to the next phase of the DOE project were among a cohort of 11 projects participating in the initial phase of the program, where coalitions selected project sites, assessed geothermal resource and permitting needs, conducted feasibility analysis and local engagement, and identified workforce and training needs. The selected projects’ range of sizes, technologies, and innovations will provide potential templates for other communities considering implementing geothermal systems. 

Three of the five projects are located in urban or suburban areas; two are in rural communities. The other three recipients are the city of Ann Arbor, Michigan; the University of Oklahoma, for a project in the town of Shawnee; and GTI Energy, for a project in Hinesburg, Vermont. 

Blacks in Green, located in West Woodlawn, a predominantly Black community on Chicago’s South Side, serves as the lead for a coalition which was awarded $9.9 million for its Sustainable Chicago Geothermal pilot. Other coalition partners are the City of Chicago, University of Illinois, The Accelerate Group, Citizens Utility Board, Climate Jobs Illinois, dbHMS, GeoExchange, and Illinois AFL-CIO.

The pilot, also located in West Woodlawn, utilizes alleys to circumvent the need for vast open plots for subterranean loop fields that form the heart of a geothermal array. Locating the bulk of geothermal loop lines in alleyways also sidesteps the underground congestion of existing utility infrastructure typically located underneath city streets.

It’s among an assortment of elements in the Sustainable Square Mile approach that advances BIG’s vision for energy justice through clean energy and microgrid/VPP systems owned and managed by the community, said Naomi Davis, BIG’s founder and CEO.

“BIG launched in 2007 with a goal of increasing household income and community resilience against the harms of climate crisis at neighborhood scale using the new green economy — so we’re grateful for this chance to make it manifest,” Davis said in a news release. 

Along with installation of the needed infrastructure within the multiblock footprint, year two of the West Woodlawn project will focus on community outreach and job programs. Once construction is complete, the geothermal system will provide heating and cooling, not to mention lower utility bills, for potentially more than 200 households. 

“The Sustainable Chicago Geothermal project will be a transformational investment in the West Woodlawn community. The effort to eliminate harmful emissions from homes and businesses, while lowering energy burden, has proven to be a community-wide challenge, and requires a community-wide solution,” said Andrew Barbeau, president of The Accelerate Group and principal investigator of the Blacks in Green project, in a news release. 

The need to reconstruct the alleyways after installation of the geothermal array also presents the opportunity to replace asphalt or concrete with permeable pavers. This would work to promote climate resiliency through mitigation of urban flooding, a persistent occurrence in many of Chicago’s South and West Side communities, said Nuri Madina, the director of Sustainable Square Mile, who serves as point person for the pilot.

“All of our programs are designed to create multiple benefits,” Madina told the Energy News Network in September.

Home Energy Efficiency Team, commonly referred to by the acronym HEET, in partnership with Eversource Energy; the city of Framingham, Massachusetts; and engineering consultant Salas O’Brien; was awarded $7.8 million toward construction of a utility-based,community-scale geothermal system.

“We are honored to receive this funding from the DOE’s Geothermal Technologies Office as part of the Community Geothermal Heating and Cooling initiative, and to show how geothermal energy networks can be interconnected to increase efficiency, build resilience, and decarbonize at the scale and speed we need to achieve our climate goals,” said Zeyneb Magavi, executive director for HEET, in a news release.

The proposed plans by HEET and its partners would connect to the first Framingham geothermal network, which was commissioned earlier this year. Once approved by the state Department of Public Utilities and upon completion, it would represent the first utility-owned community geothermal network to connect to an adjacent operational loop, establishing guidelines for the interconnection and growth of geothermal networks. 

“This innovative project not only showcases Framingham’s commitment to sustainable energy solutions but also sets a precedent for other communities across the nation. By harnessing the natural heat from the earth, we are taking a significant step towards reducing our carbon footprint and promoting renewable energy sources. Our collaboration with HEET and Eversource exemplifies the power of partnerships in driving forward clean energy initiatives,” said Framingham Mayor Charlie Sisitsky in a news release. 

The HEET-led program operates on the principle that utility-scale geothermal systems could operate on a billing model similar to that of natural gas or electrical utilities, and ultimately replace them, Magavi the Energy News Network in October 2022.

“So instead of feeding natural gas into these buildings, we could feed geothermal water,” Magavi said. “And then we could meter that and sell that. It’s no different than when you pay your water bill.”

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A symbolic gesture or Trojan horse? Ohio groups question purpose of ‘green’ nuclear bill 

Energy News Beat

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Ohio environmental advocates are questioning the intent of a pending state law that would add nuclear power to the state’s legal definition of “green” energy.

House Bill 308’s sponsors say the legislation is meant to signal that Ohio is open for business when it comes to nuclear power research and development, but critics warn the language could have broader implications in the future.

“Legislators don’t just put something into the code unless it has meaning and purpose and value,” said Megan Hunter, an attorney with Earthjustice, one of several environmental groups challenging a similar 2022 state law that classified natural gas as a “green” energy source. “Why would you do this if it has no impact or meaning or effect?”

Critics fear the language could be used to greenwash power plants or divert public funding from renewable energy projects, though the bill’s sponsors deny that motive.

“It doesn’t promise any incentives or anything beyond simply placing nuclear under the category of green energy in the Ohio Revised Code,” said state Rep. Sean Brennan, a Democrat from Parma who co-sponsored the nuclear legislation with Republican state Rep. Dick Stein of Norwalk. 

The General Assembly passed the nuclear legislation on Dec. 11. As of Thursday it was awaiting Gov. Mike DeWine’s signature.

Brennan said the question of why the language should be in a law instead of just a resolution didn’t come up in discussions with Stein, who initially asked him to cosponsor the bill.

Stein said the legislation is “about sending a signal to the market that Ohio wants to be a partner and won’t be an impediment,” in contrast to other states that don’t want nuclear energy. He said he hopes it will help attract jobs and federal funding, building on last year’s creation of a state nuclear development authority.

Stein would not speculate on follow-up steps lawmakers might take, saying his term in the House of Representatives ends this month.

Ohio does not currently have state incentives or policy preferences for “green” energy. The state’s renewable energy standard essentially ended in 2019 as a result of House Bill 6, the coal and nuclear bailout law at the heart of the state’s ongoing corruption scandal. Opponents testifying against the current legislation, though, said they worry the definition will be used to water down future clean energy policies. 

“HB 308 will enable the manipulation of public funds into private, corporate hands,” said Pat Marida, a coordinator for the Ohio Nuclear-Free Network, in her December 13 testimony. Also, she said, “there is nothing ‘green’ about nuclear power,” referring to radioactive waste, which continues to be stored at power plant sites.

Future state programs might offer funding or other advantages for projects that meet the state’s definition of “green” energy, for example. And even if the definition doesn’t open doors to new government funding, it could provide cover to private companies that want to count gas and nuclear energy toward their climate or clean energy targets, another advocate warned.

“Insidiously, it does potentially become important,” said Nathan Alley, conservation manager for the Sierra Club of Ohio. Many companies have adopted clean energy goals, he noted. “This might telegraph to them that they could invest in nuclear energy and achieve the same climate and/or energy goals as if they invest in solar or wind.”

Ohio lawmakers aren’t the only ones who want to define natural gas and nuclear power as “green energy.” Model legislation finalized by the American Legislative Exchange Council this fall does the same thing. ALEC is a Koch-linked group that has long opposed renewable energy and actions to address climate change.

ALEC’s model bill would have its definition “apply to all programs in the state that fund any ‘green energy’ or ‘clean energy’ initiatives.” Another model ALEC bill would define nuclear energy as “clean energy” and put it on a par with renewable energy.

A coalition of environmental groups is currently challenging House Bill 507, Ohio’s 2022 law that labeled natural gas as “green energy,” arguing in court that the way in which it was passed violated the state constitution. The groups say last-minute amendments violated provisions that require bills to deal with a single subject – the initial two-page bill dealt with chickens – and call for at least three hearings in each house of the General Assembly where lawmakers can hear testimony from supporters and opponents.

That lawsuit has been briefed and is currently awaiting a decision from Judge Kimberly Cocroft at the Franklin County Court of Common Pleas. HB 308 should not affect that case, said Hunter and Alley.

As with HB 507, though, lawmakers added last-minute amendments to HB 308. One of those would extend lease terms for drilling under state park and wildlife areas from three years to five years. That was unacceptable to Brennan, who voted against the Senate amendments when it came back to the Ohio House.

Still, he supports what he views as the main purpose of the legislation: attracting more nuclear power to Ohio. In his view, solar and wind won’t be enough to meet growing energy demands while shifting away from fossil fuels in order to address climate change. “I believe nuclear is going to be hugely important for our energy independence, and hopefully Ohio will become an exporter of electricity in the future.”

Hunter wasn’t surprised that lawmakers made last-minute amendments to the bill. For her, it shows the importance of the ongoing litigation over HB 507.

“Those constitutional protections are there for a reason,” she said. “And seeing the General Assembly have blatant disregard for them again and again harms Ohioans. It deprives them of these constitutional rights.”

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South Korea awards almost 1.9GW of offshore wind capacity

Energy News Beat

South Korea’s Ministry of Trade, Industry, and Energy has awarded nearly 1.9GW of offshore wind capacity across five projects in the country’s latest offshore wind auction.

More precisely, the ministry awarded 1,886MW of offshore wind capacity across three fixed-bottom projects, one of which is in two phases, and one floating wind project.

The projects chosen are the 750MW Firefly floating wind project developed by Equinor, Vena Enery’s 500MW Taean, Daehan Green Power’s 104MW Yeonggwang Yawol, Jeonnam’s 532MW Anma – which is the only two-phase project. Anma is split across two phases, one of which has a 224MW capacity while the other has a 308MW capacity.

With that, the government also awarded 20-year fixed tariff power purchase agreements to the four developers. The auction’s ceiling price was set at $124.3 per megawatt-hour.

The ministry opened a tender for 2.8GW of wind and solar energy capacity back in October. It set aside 1.5GW of capacity for offshore wind. The invitation to tender was later issued and it offered 1GW of capacity for fixed-bottom offshore wind projects and 500MW of floating wind. Both of those targets were exceeded.

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ExxonMobil buys FPSO Liza Destiny from SBM Offshore

Energy News Beat

ExxonMobil Guyana, the local arm of US supermajor ExxonMobil, has acquired the FPSO Liza Destiny from Dutch floater expert SBM Offshore.

ExxonMobil bought the FPSO ahead of the maximum lease term which would have expired in December 2029.

The purchase allows the US supermajor to assume ownership of the unit while SBM Offshore will continue to operate and maintain the FPSO up to 2033.

The transaction comprises a total cash consideration of around $535m. SBM Offshore said the net cash proceeds would primarily be used for the full repayment of the $405m project financing and would decrease the company’s net debt position.

The FPSO Liza Destiny has been on hire at the Stabroek Block offshore Guyana since December 2019. It was converted from a VLCC and is designed to produce up to 120,000 bopd with an associated gas treatment capacity of 170m cfpd, a water injection capacity of around 200,000 bpd and an overall storage volume of 1.6m barrels.

So far, ExxonMobil has acquired two of the four FPSO units built by SBM for its operations in Guyana – the FPSO Unity in 2023 and FPSO Prosperity in early November.

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Aker Solutions nets new deal in Norway with Vår Energi

Energy News Beat

EuropeOffshore

Norway’s Aker Solutions has signed a contract for maintenance and modification services on Vår Energi’s Jotun, Balder, and Ringhorne assets in the southern area of the Norwegian Continental Shelf.

The five-year agreement includes an option for Vår Energi to extend the contract by up to three additional two-year periods.

No precise figure was given for the deal but Aker Solutions stated that the deal was sizeable which puts the value between NOK500m and NOK1.5bn ($44m and $131.5m).

Aker Solutions has been providing maintenance and modification services for Vår Energi’s Jotun, Balder, and Ringhorne assets for more than 20 years. The operator is currently Norway’s second-largest exporter of gas.

The work will be managed from Aker Solutions’ office in Stavanger while fabrication will be carried out at the company’s yard in Egersund. The work under the frame agreement will start in January 2025.

The contract will be booked as order intake in the fourth quarter of 2024 in the life cycle segment.

At the start of the week, Aker Solutions won an extension for a similar contract from compatriot oil and gas firm Aker BP. The contract covers the operated field centres offshore Norway – Valhall and Hod, Ula and Tambar, and Alvheim and Skarv.

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Castor offloads another boxship 

Energy News Beat

Cyprus-based shipowner Castor Maritime has announced its second containership sale. The Nasdaq-listed company is offloading the 2005-built 2,700 teu Gabriela A for $19.3m at a net gain of $0.8m.

Castor picked up the German-built boxship, with charter attached, in a family-related deal from Ismini Panagiotidi-controlled Pavimar Shipping for $25.38m in late 2022 when it made its entry into the containership segment. Delivery to the new undisclosed owner is expected in the first half of 2025.

The sale follows a recently struck $16.5m deal with an unaffiliated third party for the sister vessel Ariana A, for which the company will book a loss of about $3.3m. Castor currently owns 13 vessels, comprising 10 bulk carriers and three containerships, including the duo agreed for sale.

Earlier this month, the Petros Panagiotidis-led company spent nearly $193m to acquire a majority stake in Frankfurt-listed MPC Münchmeyer Petersen Capital (MPC Capital), the founder and cornerstone shareholder of Oslo-listed tonnage provider MPC Container Ships with a fleet of 63 vessels.

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EnTrust strikes deal on cash offer for Belships

Energy News Beat

US asset management firm EnTrust Global is set to launch a voluntary cash tender offer to take over Norwegian bulker owner Belships. 

Blue Northern, a special purpose vehicle formed by funds managed by the Blue Ocean maritime investment team at EnTrust, will offer NOK20.50 per share in cash for all issued and outstanding shares in the ultramax specialist. 

The bid values Belships at NOK 5.182bn ($452m), representing a premium of nearly 30% compared to the company’s closing price on Thursday.

Shareholders, involving members of the board and management, who collectively own 61.2% of the outstanding shares in Belships, have already accepted the offer. They include Frode Teigen, the company’s largest shareholder; chairman Peter Frølich; and CEO Lars Christian Skarsgård.

Teigen owns 53.9% of the shares in the Oslo-listed company he took control of six years ago via his investment vehicles Kontrari and Kontrazi. 

Belships has 42 bulk carriers on a fully delivered basis, with 12 ultramaxes joining the fleet between 2025 and 2028.

“This acquisition will allow the Blue Ocean team to continue the growth of its maritime investment portfolio through an investment in an attractive and versatile platform with a modern fleet,” said Svein Engh, senior managing director and portfolio manager of EnTrust.

The acceptance period for the offer should start by January 24 next year and remain open for at least 20 business days. EnTrust intends to close the transaction in the first or second quarter of 2025, after which Belships should be delisted from the Oslo Stock Exchange.

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Qube Ports faces more strikes across Australia

Energy News Beat

OperationsPorts and Logistics

Strikes at major Australian ports are set to continue in an ongoing dispute between unionised workers and Qube Ports over contract negotiations.

Work stoppages will take place in Adelaide, Brisbane, Darwin, Gladstone, Melbourne, and Port Kembla.

On Monday, union members went on strike at 10 ports around the country for a day, but they have been sporadically conducting lower-level industrial action throughout Australia since September. 

Upcoming industrial actions will affect ports handling bulk goods, including grains, steel, and machinery. Additionally, all participating port workers plan to stage eight-hour stoppages when vessels berth.

Qube’s major coal, grain, and fertiliser operation in Port Kembla in Wollongong is facing 13 rolling work stoppages between December 20 and January 3.

The dispute between the Maritime Union of Australia (MUA) and Qube Ports has been ongoing since contract negotiations broke down in April 2024. The MUA accused Qube of deliberately delaying negotiations and has been calling on the government to intervene and prevent the company from bypassing collective bargaining.

Qube has offered its staff an 18% wage rise over four years but the union is also asking for changes to current rostering rules that let the company determine workers’ shifts at 4pm the day before they begin and fatigue management rules to prevent company managers from allocating dangerous work patterns.

“If the MUA prolongs or expands the scope of the strike, cargo handling delays will likely prompt supply chain disruptions through January,” maritime security consultancy Crisis24 warned.

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COSCO signs for 10 kamsarmax newbuilds

Energy News Beat

Dry CargoGreater China

COSCO Shipping is pressing ahead with its massive newbuilding programme in the dry bulk segment.

The Chinese state-owned shipping giant has partnered up with Everbright Financial Leasing for 10 kamsarmax newbuilds, which will be built at Jiangsu Hantong Ship Heavy Industry.

Financial details and delivery dates for the 82,000 dwt vessels, which will be leased to companies owned by COSCO Shipping Bulk, have not been disclosed.

The latest deal follows COSCO’s largest shipbuilding order for 42 bulk carriers worth over $1.8bn, spread across its affiliated COSCO Shipping Heavy Industry and CSSC Chengxi Shipyard in September and eight newcastlemax newbuildings at Jiangsu Hantong in August.

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Swedish police boards Chinese bulker to observe cable outage investigation

Energy News Beat

Swedish police on Thursday boarded the Yi Peng 3, a 23-year-old panamax bulker owned by Ningbo Yipeng Shipping and linked to the severing of two data cables in the Baltic Sea after being invited by Chinese authorities.

The vessel has been wanted for questioning by Sweden as the top suspect in the severing of the Swedish-Lithuanian and Finnish-German fibre-optic cables in November.

Since the incident, it has been anchored in the Kattegat Sea while diplomats in Stockholm and Beijing discussed access to the vessel. Swedish Prime Minister Ulf Kristersson said they requested China’s cooperation in the investigation back in late November but noted that there was no accusation of any sort directed at China.

The Swedish police said in a statement that they were on board the bulker as observers, while Chinese authorities conducted investigations. Danish authorities facilitated the visit. It is understood that representatives from Germany, Finland, and Denmark also boarded the ship.

They also stated that “no investigative measures are carried out” by the Swedish Police Authority while on board the ship.

“The preliminary investigation into sabotage of the two cable breaks in the Baltic Sea continues,” the police authority added.

The preliminary investigation began in November. The police authorities in Finland, Sweden, and Lithuania set up a joint team to investigate the cause of the damage to the cables. The investigation is led by Sweden’s state prosecutor Henrik Söderman of the country’s unit against international and organized crime.

The Swedish Police Authority pointed out that the investigations carried out on the ship on Thursday were not part of the preliminary investigation.

Earlier this week, Norway’s TV 2 and Sweden’s TV 4 revealed underwater footage which further reinforced suspicions of sabotage of the two cables. Underwater drone operations conducted by the television stations and Blueye Robotics revealed a broad, dark drag mark on the seabed where the Yi Peng 3 passed over Danish data cables.

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