While Tesla’s energy storage segment is smaller than its automotive business, it has been experiencing significant growth. This segment has rapidly accelerated and expanded after maintaining consistent growth over the years, with recent massive Megapack contracts secured. 

Tesla and Intersect Power have signed a contract for 15.3 GWh of Megapacks, Tesla’s advanced battery storage system, for the latter’s solar and storage projects through 2030. This deal, along with previous agreements, positions Intersect Power as one of the top global buyers and operators of Megapacks. It has nearly 10 GWh of large-scale storage expected by the end of 2027.

Though the contract’s cost wasn’t disclosed, the massive energy involved says it’s a multi-billion dollar deal, depending on pricing. 

Tesla’s Megapack is a large-scale lithium-based battery energy storage system aimed at improving grid stability and preventing outages. Each unit has a storage capacity of over 3 MWh, sufficient to power 3,600 homes for 1 hour.

Tesla’s Battery Energy Storage Crazy Growth

Despite a decline in automotive revenues, Tesla has seen growth in other business segments, particularly in energy storage, which is becoming increasingly profitable. With the rising number of Megapack installations and an expanding fleet, Tesla expects consistent profit growth in this segment.

In Q1 2024, Tesla’s energy storage deployments hit a record high of 4.1 GWh. Revenue and gross profit from the Energy Generation and Storage segment also reached all-time highs.

In Q2 2024, Tesla Energy deployed 9.4 GWh of energy storage products, including Megapacks, Powerwalls, and solar products. That’s more than double the Q1 2024 deployment (132% increase) and up 157% year-over-year.

Tesla has previously supplied 2.4 GWh of Megapacks for Intersect Power’s solar and storage facilities, which are either operational or under construction.

The new agreement will see more than half of the Megapacks used for 4 major battery installations in California and Texas. They will begin operations by the end of 2027, including some of the biggest battery installations in the U.S. The remainder will be allocated to future solar and storage projects coming online between 2028 and 2030.

Mike Snyder, Senior Director of Tesla Energy, stated, 

“Intersect continues to be an exceptional partner, and their development expertise combined with the plug-and-play nature of Tesla’s vertically integrated technology enables the speed and scale needed to enhance grid resilience and support greater renewables integration.”

Amplifying Intersect Power’s Leadership in Clean Energy Storage

Intersect Power is a clean energy company focused on innovative, scalable low-carbon solutions. Established in 2016, the company develops, owns, and operates some of the world’s largest clean energy resources, delivering low-carbon electricity, fuels, and related products for both domestic and international markets.

Intersect Power is committed to advancing grid-tied renewables and large-scale clean energy assets, including battery storage, data centers, and green fuels. It has a portfolio of 2.2 GW of operating solar PV and 2.4 GWh of storage.

The energy company is known for its large and adaptable Battery Energy Storage Systems (BESS) at its solar and storage facilities in Texas and California. The Megapacks are set for delivery in 2025 and 2026 and will be produced at Tesla’s Megafactory in Lathrop, California.

Currently, Intersect Power has 2.4 GWh of Tesla Megapacks either operational or under construction. These include the 1 GWh at the Oberon solar and storage facility and 448 MWh at the Athos III solar and storage facility in California. An additional 1 GWh of Megapacks is being installed at the Radian and Lumina solar and storage facilities in Texas. Their full operational status are expected within the year.

RELATED NEWS: Sungrow and Algihaz Join Forces for 7.8 GW Energy Storage in Saudi Arabia

According to the U.S. Energy Information Administration, battery storage capacity in the country has been on the rise since 2021. It is projected to increase by 89% by the end of 2024, provided that developers bring all planned energy storage systems online as scheduled.

Current plans indicate that U.S. battery capacity could exceed 30 gigawatts (GW) by the end of 2024, surpassing the capacities of petroleum liquids, geothermal, wood and wood waste, and landfill gas.

Tesla Energy’s Power Gain Major Boost with Megapacks

Tesla Energy has also signed a $375 million contract to provide Megapacks for a major battery project in Australia. The agreement will support the construction of a 415 MW/1660 MWh battery, one of the world’s largest four-hour duration batteries.

The Megapacks will be used for Akaysha Energy’s Orana Battery Energy Storage System (BESS), located in New South Wales within the Central West Orana Renewable Energy Zone (REZ).

Tesla Megapacks have been making notable strides in Australia’s energy market. In October 2023, a 150 MW/300 MWh Tesla Megapack system was commissioned in New South Wales. 

Earlier this year, a 250 MW/500 MWh project broke ground in Queensland. Additionally, in April 2024, Tesla Energy was awarded a contract by Neoen to expand the Collie Battery, aiming to transform it into the largest battery in Australia, with a final capacity of 560 MW/2,240 MWh.

READ MORE: Australia Unveils Ambitious National Battery Strategy to Power Clean Energy Future

This Megapack agreement, alongside Tesla and Intersect Power’s significant deal underscore the growing demand for advanced energy storage solutions. These partnerships are set to enhance grid stability and support the transition to a low-carbon economy worldwide.

The post Tesla Signs A Landmark Multi-Billion Dollar 15 GWh Megapack Deal appeared first on Carbon Credits.

Global financial services group HSBC is launching a new business unit, HSBC Infrastructure Finance (HIF), to focus on infrastructure financing and project finance advisory opportunities tied to the transition to a low-carbon economy. The bank has appointed former UK Member of Parliament Danny Alexander as CEO of the new unit.

HIF aims to secure a significant share of deals in major markets. It will also integrate elements from the bank’s Global Banking Real Asset Finance team.

Taking the Helm and Driving Infrastructure Finance in Transition Markets

The new unit plans to expand HSBC’s debt origination and distribution businesses by building new relationships with both public and private sector entities.

Greg Guyett, CEO of Global Banking and Markets at HSBC, remarked on the announcement, noting that: 

“We have a leading presence in the regions where infrastructure needs to be developed and financed to enable a just transition to a low carbon economy. We also look to support the UK government’s program to build critical infrastructure in Britain to grow the economy whilst decarbonizing it.”

Danny Alexander, currently the vice president for policy and strategy at the Asian Infrastructure Investment Bank (AIIB) and a former UK government minister, will lead the division. 

Alexander’s appointment is intended to accelerate collaboration with governments, multilateral development banks, and companies, including supporting the UK government’s new initiatives.

In his post announcing the appointment, Alexander expressed his excitement about leading HIF and pursuing significant infrastructure financing and advisory opportunities related to the low carbon transition in strategic markets.

HSBC’s Net Zero Plan

The launch of HIF follows HSBC’s release of its first Net Zero Transition Plan earlier this year, detailing its strategy to finance and support the transition to net zero. The bank set a 2050 net zero target in 2020, committing to align its financing activities with the Paris Agreement’s goals. 

In 2021, HSBC made the transition to net zero one of the 4 key pillars of our corporate strategy. Since 2020, the global financier has taken several steps to begin executing its net zero ambition and managing climate risks. The banking company’s net zero journey is below.

HSBC NET ZERO JOURNEY

The bank’s transition plan covers the HSBC Group and it focuses primarily on the sectors and customers where they anticipate making the most significant impact on emissions reductions. 

For each sector, the bank describes the necessary technologies, investment needs, and external dependencies for a viable net zero by 2050 pathway, and identifies where a 1.5°C-aligned 2030 pathway is most at risk. The company also outlines its related portfolio, aims, targets, and actions to support sector decarbonization.

HSBC’s emissions from its own operations and supply chain are relatively small compared to its financed emissions, but reducing them is crucial for becoming a net zero bank. 

HSBC Greenhouse Gas Emissions from Own Operations

Source from HSBC Net Zero Transition Plan

The bank aims to achieve net zero in its own operations and supply chain by 2030, including 100% renewable electricity and minimizing its direct impact on nature. This involves cutting emissions across energy consumption, travel, and supply chains.

In 2022, HSBC exceeded targeted reductions by achieving a 58.5% decrease in energy and travel emissions compared to 2019 levels. This accomplishment was driven by the bank’s three key efforts:

A 24% reduction in energy consumption achieved through optimizing building use and strategically reducing office space and data center operations.
Purchasing 48% of energy from renewable sources by leveraging renewable tariffs and engaging with landlords.
An 85% reduction in business travel, primarily attributed to Covid-19-related international travel restrictions.

Looking forward to 2030, HSBC aims for a further 50% reduction in energy consumption. High-quality carbon removal or offsets will be used only for residual emissions that cannot be otherwise reduced from 2030 onwards.

The financier engages with market participants to develop carbon credits and support initiatives for a credible carbon market. Climate Asset Management, HSBC’s joint venture, is sourcing high-quality carbon removals. The bank also participates in HKEX’s International Carbon Market Council and advocate for integrity in the voluntary carbon market through initiatives like the Integrity Council.

Aligning Financing with Global Climate Goals

To achieve GHG emissions reduction targets and reach net zero, HSBC is implementing a plan, focusing on these three areas:

Supporting Customers

HSBC is prioritizing the transition of its customers to net zero by providing finance, services, insights, and tools. The bank is engaging with corporate customers on their transition plans and offering products and services to facilitate this shift.

Transforming Operations

In 2021, HSBC made the “transition to net zero” one of the four pillars of its corporate strategy. This integration into the corporate strategy has led to embedding net zero considerations into sustainability risk policies, risk evaluation, decision-making tools, and processes. The bank aims to be net zero in its own operations and supply chain by 2030.

Partnering for Systemic Change

HSBC is engaging with stakeholders across geographies to support policies, regulations, and partnerships that facilitate the transition to net zero. The bank is a signatory of the Taskforce on Climate-related Financial Disclosures (TCFD) and advocates for climate risk disclosures.

The bank also pledged to prioritize financing and investment that contributes to the low carbon transition, aiming to support customers with $750 billion to $1 trillion in finance and investment by 2030.

The post HSBC Opens New Unit For Low-Carbon Finance, Alongside $1 Trillion Pledge appeared first on Carbon Credits.

July 10 marked an extraordinary moment for Amazon, reaching its 100% renewable energy goal a stunning seven years ahead of schedule. Originally set for 2030, the rapid transition across all operations surprised the world. So how did Amazon achieve this moment of massive success? Let’s discover…

Decoding Amazon’s Journey to 100% Renewable Energy

Bloomberg NEF reported that Amazon has invested billions in installing 500 solar and wind projects globally. This is enough to power 7.6 million U.S. homes. The retail giant has been the world’s top corporate buyer of renewable energy in the last four years. They have set an example by adapting to the growing demand for AI while exploring new energy sources and approaches for achieving carbon neutrality.

Amazon’s Chief Sustainability Officer Kara Hurst has elaborately said,

“Reaching our renewable energy goal is an incredible achievement, and we’re proud of the work we’ve done to get here, seven years early. We also know that this is just a moment in time, and our work to decarbonize our operations will not always be the same each year—we’ll continue to make progress, while also constantly evolving on our path to 2040. Our teams will remain ambitious, and continue to do what is right for our business, customers, and the planet. That’s why we’ll continue investing in solar and wind projects, while supporting other forms of carbon-free energy, like nuclear, battery storage, and emerging technologies that can help power our operations for decades to come.”

MUST READ: US Corporations Ramp Up Renewable Energy, Amazon Leads the Pack

Once all projects are operational, they can remove approximately 27.8 MMT CO2 annually. Here are some remarkable achievements driving Amazon’s transition to 100% renewable energy:

Mississippi’s Wind Farm Powering Amazon Data Centers

Delta Wind, one of the Mississippi’s largest wind farms supplies carbon-free energy to power Amazon’s local operations and data centers. Apart from this, Amazon has also partnered with Entergy to develop 650 MW of new renewable energy projects in Mississippi over the next three years. It aims to reach 1.3 GW of clean energy through solar and wind farms in the state.

Amazon Leads in Offshore Wind Projects in Europe

Currently, Amazon supports 1.7 GW capacity across six offshore wind farms in Europe. It expects to power 1.8 million average European homes once they become 100% operational. This makes Amazon the top corporate purchaser of offshore wind globally.  The 750 MW Amazon-Shell HKN Offshore Wind Project which began operations last year, provides renewable energy across the Dutch coast.

Expanding Renewable Energy in Asia Pacific

Amazon has a robust grip over the Asia Pacific region. Its portfolio includes 80 renewable energy projects throughout India, Australia, China, Indonesia, Japan, New Zealand, Singapore, and South Korea. The company invested in 50 wind and solar projects with a total capacity of 920 MW in India, alone.

As the largest corporate purchaser in Japan, Amazon has enabled 20 projects, including 14 onsite solar installations and six offsite wind and solar projects. Amazon has helped Japan overcome its energy challenges. It works closely with industry groups and policy stakeholders to expand renewable energy procurement in the corporate sector.

AI Powers Solar Storage for 24/7 Energy

Energy demand for decarbonizing the grid is unstable when reliant on solar and wind power. Amazon believes incorporating AI and ML in carbon-free energy (CFE) can be a game-changer for grid stability. The company has developed a unique formula for installing battery storage systems with solar projects to ensure an uninterrupted CFE supply. A recent blog post highlights the significance of the Baldy Mesa solar farm, operated by AES, where machine learning models from Amazon Web Services (AWS) predict optimal times for the battery to charge and discharge energy. This innovation enhances the efficiency of solar-powered projects, even when sunlight is limited.

According to the International Energy Association (IEA),

“The global fleet of wind turbines generates over 400 billion data points annually. AI and ML models can use this data to enhance the efficiency of carbon-free energy projects.”

Amazon’s Net Zero Strategy and Carbon Footprint 

Amazon’s goal is to achieve net zero carbon emissions by 2040. This is a decade ahead of the Paris Climate Agreement timeline. By joining the Climate Pledge, Amazon believes in regularly measuring and reporting their GHG emissions, implementing decarbonization strategies, and using credible carbon offsets to neutralize any remaining emissions.

source: Amazon 2023 sustainability report

According to its annual sustainability report, Amazon reported a 3% reduction in overall emissions in 2023. Its total emissions fell from 70.74 MMT CO2e equivalent in 2022 to 68.82 MMT CO2e in 2023, with meeting the target of 100% renewable electricity globally.

FURTHER READING: Amazon’s Carbon Emissions Take a Green Turn with Renewables

The post Eureka Moment! Amazon Hits 100% Renewable Energy Goal 7 Years Ahead appeared first on Carbon Credits.

Silver is at the heart of the clean energy transition, essential for solar cells and electric vehicles (EVs) due to its unmatched conductivity. As demand from the photovoltaic industry surges, outpacing supply, silver’s pivotal role highlights both the opportunities and challenges in achieving a sustainable future.

Silver experts highlighted significant challenges in meeting global demand despite robust price signals favoring increased metal production amid the expanding energy transition. This metal plays a critical role in EVs and solar cells, with demand surpassing supply in recent years, leading to depleted inventories. 

According to the Silver Institute, photovoltaics alone are projected to account for 19% of global silver demand in 2024, equivalent to 232 million ounces. This represents almost a 20% increase from 2023 and a substantial 96% surge from 2022 levels.

Anticipating a deficit of 215.3 million ounces in 2024, the Silver Institute forecasts that industrial applications will drive 58.3% of the world’s total demand of 1.2 billion ounces. However, global silver supply primarily results from byproduct production associated with other metals. Moreover, despite high prices, there’s limited incentive for new production.

Shining Spotlight on Silver

Adrian Day from Adrian Day Asset Management emphasized the severity of the silver deficit, attributing it to surging demand from sectors like solar panels and EVs, which have seen demand triple in 3 years. He noted that inventories are critically low with no substantial stockpiles available to mitigate the shortage.

Day further underscored that only about 30% of silver production comes from primary silver mines, with the majority being sourced as a byproduct. This setup means that the supply of newly mined silver does not respond proportionately to price fluctuations. As a result, this could lead to heightened price volatility.

Silver prices have surged significantly this year, prompting speculation about their potential peak in the remaining 6 months. A crucial element to monitor is the supply and demand dynamics, as silver demand consistently exceeds supply.

Historically, silver demand was evenly split between industrial use and investment. However, industrial demand has surged recently, now accounting for 64% of global silver demand, a 19% increase from the previous year.

This upward trend is expected to continue, driven primarily by the Green Energy Transition, especially solar energy. 

Photovoltaic Surge: Solar Energy’s Growing Appetite for Silver

A growing solar power industry is fueling up the surge in the demand for silver, essential for manufacturing photovoltaic (PV) panels. Due to its high electrical conductivity, thermal efficiency, and optical reflectivity, silver is integral to solar PV production. Consequently, mining companies are aiming to boost output as silver prices climb to decade highs.

Global investment in solar PV manufacturing more than doubled last year to around $80 billion, accounting for 40% of global investment in clean-technology manufacturing, according to the International Energy Agency (IEA). China significantly increased its investment in solar PV manufacturing between 2022 and 2023.

Global renewable capacity increased by 50% to nearly 510 gigawatts last year—the fastest growth rate in 3 decades. Three-quarters of this growth came from solar PV energy, as reported by the IEA.

SEE MORE: IEA’s 2023 Net Zero Roadmap: Tripling Renewables and Electrifying the Energy Transition

Demand for silver from solar PV panel manufacturers, especially in China, is forecast to increase by almost 170% by 2030. The amount could reach about 273 million ounces, which would constitute about one-fifth of total silver demand, according to investment manager Sprott.

Coeur Mining is expanding to meet the rising silver demand, completing a significant expansion of a mine in Nevada, which will become the largest source of domestically produced silver in the U.S.

London-based Hochschild Mining is also expanding its silver operations, aiming to secure permits for a silver project in southern Peru later this year. Scheduled to start production in 2027, the project is expected to add 50 million ounces of silver annually.

Some experts noted that given the underlying industrial demand dynamics and existing supply constraints, the industry may be seeing the start of a silver bull market.

Silver’s New Gold Rush

The boom in demand has led to soaring silver prices, reaching $31.3/oz as of writing. This price surge has bolstered the share prices of silver miners. 

However, rising silver prices might force solar PV panel manufacturers to increase their prices later this year.

Paul Wong, a market strategist at Sprott, predicts that silver could see a rise similar to gold, which hit eight straight sessions of record highs in April. Despite trailing gold’s popularity with central banks and sovereign institutions, silver maintains a strong correlation with gold. Wong expects substantial buying from the photovoltaic industry to drive further silver demand, noting that:

“Similar to how gold bullion has soared due to a new wave of major purchasers among central banks and sovereign entities, silver has and will likely see even more substantial buying from the photovoltaic industry.”

Discussing government influence on silver mining, industry leaders highlighted regulatory policies in major jurisdictions like Mexico. The South American nation can either stimulate or deter investment in silver projects due to lengthy permitting processes. 

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