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.

Canada’s Prime Minister, Justin Trudeau, recently announced the rollout of the carbon rebate, now known as the Canada Carbon Rebate. This rebate is designed to offset the expenses Canadians incur from carbon pricing when purchasing gasoline and is distributed quarterly on the 15th of each month, starting from April. 

The Canada Carbon Rebate Program

The Canada Carbon Rebate (CCR), formerly known as the Climate Action Incentive Payment (CAIP), is a tax-free amount designed to help eligible individuals and families offset the cost of federal carbon price. It includes a basic amount and a supplement for residents of small and rural communities.

The amount Canadians receive from the carbon rebate varies depending on their province of residence and household size. Each year, the rebate is determined based on the anticipated revenue collected by the federal government from carbon pricing in each province. 

READ MORE: Canada’s $5 Billion Carbon Pricing Revenue Sparks Debate

For instance, a single taxpaying adult in New Brunswick can expect to receive approximately $95 in each quarterly payment. In contrast, a family of four in Alberta is likely to receive $450 per deposit. 

Provinces where fossil fuels contribute more to electricity generation receive higher rebates due to the higher carbon pricing costs borne by consumers. Starting from the last payment of the year, a 10% increase in the rural supplement acknowledges the greater energy needs of rural residents and their limited access to cleaner transportation options. 

This initiative is a cornerstone of Canada’s strategy to reduce emissions and build a sustainable future, as emphasized by Steven Guilbeault, Minister of Environment and Climate Change. He highlights that pricing pollution is an effective method to cut emissions while ensuring all revenues are returned to Canadians. 

The Canada Carbon Rebate aims to provide households with extra income every three months, supporting essential expenses such as groceries and rent. 

Canadians can use an online estimator tool to gauge their potential rebate, ensuring transparency and clarity in the process.

Here are the key details to keep in mind:

Distribution and Eligibility:

The Canada Carbon Rebate returns 90% of the revenue collected from the carbon levy to households in eight provinces where it is applicable. Provinces like British Columbia and Quebec, with their own carbon pricing systems, do not receive federal rebates.

Installments and Amount:

The rebate is distributed in four instalments annually, tailored to household size and province of residence. Families of four can expect to receive between $190 and $450 in this instalment.

Factors Affecting Rebates:

Provinces where fossil fuels contribute more to electricity generation receive higher rebates, reflecting higher carbon pricing costs borne by consumers in those regions.

The announcement also marks the deadline for small businesses to file tax returns to qualify for the new automatic refundable tax credit aimed at offsetting carbon pricing costs. This initiative replaces a previous grant system that saw limited success, returning only $35 million of an owed $2.5 billion from April 2019 to March 2024.

There have been challenges with bank deposits failing to clearly identify the rebates as intended by the government. This causes confusion among recipients. Recent legislative changes now mandate banks to use the label “CdaCarbonRebate” for these deposits, aiming to enhance clarity and transparency for recipients.

RELATED NEWS: Saskatchewan Achieves Legal Win Over Canada’s Federal Carbon Tax

These developments underscore Ottawa’s ongoing efforts to manage carbon pricing impacts on both households and small businesses. Overall, it reflects broader strategies to address climate change while supporting economic resilience.

The post Canada Carbon Rebate to Offset Carbon Pricing Costs For Millions of Canadians appeared first on Carbon Credits.

Wood Mackenzie, the global leader in providing data analytics and solutions in sustainability and renewable energy has recently rolled out a media statement on cost brackets for expanding CCUS, worldwide. It has predicted an investment of around $196 billion in 2034.

What Does Wood Mackenzie’s 10-Year CCUS Market Forecast Say?

In this analysis, Wood Mackenzie has estimated that global carbon capture capacity can surge up to 440Mtpa and storage capacity will go up to 664 Mtpa. The combined process will require $196bn of total investment by 2034 out of which USD 80B is expected to come from the North American and European Governments. 

We have discovered from the report that nearly half of global investment focuses on CO2 capture. The remaining half will be distributed between the transport and storage sectors at $53B and $43B, respectively. Plans are underway to allocate 70% of the total value chain investment in North America and Europe. The report has further emphasized that increasing production projections does not mean that Wood Mackenzie expects carbon capture supply to meet immediate demands. Long-term projects anticipated for 2034 need up to 640 Mtpa of CO2 storage, but expected commissions are lacking by 200 Mtpa.

Hetal Gandhi, APAC CCUS lead with Wood Mackenzie has put her insights in the press release.

She said out of the total announced projects, 71% are in North America and Europe, backed by government incentives. The US Inflation Reduction Act, UK business models, Canada’s Investment Tax Credit, and the Netherlands SDE++ scheme are key contributors. The new EU Industrial Carbon Management Strategy is also expected to boost European projects. She highlighted that China and India are the largest emitters in the Asia-Pacific region but lack proper CCS infrastructure.

Her predictions say that the power and chemical sectors will face significant gaps between demand and supply until 2034. This region needs utmost CCUS upgradation. Notably, China, India, Latin America, the Middle East, and Africa face development constraints due to a lack of policy, regulatory frameworks, and funding support. Government funding for CCUS in key countries totals around $80 billion. The US leads with 50% of the total, followed by the UK at 33% and Canada at 10%.

MUST READ: Australia Has A US$400B Carbon Capture Opportunity, Wood Mackenzie Says

source: Wood Mackenzie

Using the Investment Effectively, A Wood Mac Study

Following the previous analysis, WoodMac has deep-dived into the role of CCUs in global decarbonization. The research wing has analyzed that some countries are investing in CCUS to decarbonize tough sectors like cement, chemicals, steel, refining, and power. On the other hand, some view CCUS as a long-term decarbonization tool.

 Hetal has schemed out some important points to effectively utilize the investment. She believes that CCUS can be most effective when the technology is affordable and sustainable infrastructure is in place for carbon capture and storage. The key focus should be on heavy emitters.

CCUS has garnered significant attention for addressing climate change. Currently, the global CCUS capacity is around 63 Mtpa, which might surge to 1,700 Mtpa by 2050. However, to keep global warming within 1.5 degrees above pre-industrial levels, capacity would need to reach 7,750 Mtpa. Presently, most CCUS projects are targeting the power and gas sector. In the future, CCUS will be crucial for the cement and steel industries, which have limited alternatives to fossil fuels. The production of blue hydrogen will also benefit significantly from CCUS.

Click here to know what 2024 looks like for CCUS, as per Wood Mac.

source: Wood Mackenzie

CCUS Future: Challenges Amid Opportunities

Wood Mac has also outlined some of the challenges of CCUS. The team analyzed that despite progress, CCUS uptake remains limited. Fauzi Said, senior research analyst at Wood Mackenzie, has developed one solution focusing on hub-based storage ecosystems. He said,

“With storage capacities more concentrated than the spread-out capture capacities, hub-based storage ecosystems will evolve especially in Europe and APAC.”

CO2 sequestering costs are high compared to current carbon prices and practically no revenue is in it. Successful projects have managed costs with incentives, but future success relies on effective policies and well-structured carbon pricing schemes. Furthermore, amine-based processes dominate CCUS, which is not enough. They need more advanced technology to capture CO2 cheaply and with scarce carbon concentration. Another challenge is carbon dioxide’s corrosive nature which makes transportation costly and storage challenging. Thus, cost is a significant factor driving the process.

source: Wood Mackenzie

However, in last month’s Wood Mac’s report, we discovered that ExxonMobil has established a strong position in the US CCUS. Wood Mackenzie made a detailed study that figured out, “The company’s US portfolio achieves a weighted average return of 20% in their base case. Some projects yield even higher returns.”

We hope Wood Mackenzie will come up with more updates on global CCUS status and developments very soon.

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