ENERGY

Tesla is Gearing Up to Disrupt Ethanol Suppliers by Entering the Renewable Fuel Credit Market

Tesla | May 13, 2021

Tesla has recently intended to join the lucrative renewable fuel credit market, which is currently dominated by ethanol producers and is soon to be opened up to electric vehicles.

At least eight companies have submitted to the Environmental Protection Agency to be included in the multibillion-dollar US renewable credit market, but their names have not been released.

According to Reuters, Tesla is one of those companies: “Tesla Inc is trying to penetrate the multibillion-dollar U.S. renewable credit market, aiming to benefit from the Biden administration's march toward new zero-emission targets, according to two sources familiar with the matter.”

The program was launched in the mid-2000s by the Bush administration to improve the US biofuel industry and reduce the country's reliance on foreign oil.

In the meantime, it created an unusual scenario in which a large amount of farmland began to be used by ethanol producers, who are now largely funded by the program.

Since electric cars will also help achieve this aim, it has been recommended that they be included in the program, which the Biden administration is expected to review.

According to Reuters, Tesla's inclusion in the program may be very disruptive:

“However, it is likely to irritate those in the United States refining industry, which will need to purchase the credits, known as RINs, generated by Tesla and other alternative fuel providers, essentially subsidizing an electric car firm that aims to push petrochemical refiners out of business.”

The specifics of Tesla's participation remain unknown at this time, as they will need to track the use of renewable energy in their electric vehicles.

It seems difficult to execute, but it makes sense because it seeks to accomplish the same purpose as the original program.

Around the same time, it will most likely benefit farmers whose yields have been severely affected by ethanol producers, who are currently utilizing approximately 40% of corn crops.

It would certainly be a new source of revenue for Tesla, which could be significant, particularly when combined with the possible reform of the federal EV rebate program.

Spotlight

America must shift away from fossil fuels and towards clean, renewable sources of energy in order to protect our air, water and land, and to avoid the worst consequences of global warming. Renewable energy sources, such as wind and solar power, are virtually unlimited and produce little to no pollution. With renewable energy technology improving and costs plummeting, it is now possible to imagine a future in which all of America’s energy comes from clean, renewable sources.

Spotlight

America must shift away from fossil fuels and towards clean, renewable sources of energy in order to protect our air, water and land, and to avoid the worst consequences of global warming. Renewable energy sources, such as wind and solar power, are virtually unlimited and produce little to no pollution. With renewable energy technology improving and costs plummeting, it is now possible to imagine a future in which all of America’s energy comes from clean, renewable sources.

Related News

SOLAR+STORAGE

Nexamp Secures $440 Million for Solar and Energy Storage Portfolio

Nexamp | March 08, 2021

Nexamp, Inc., a main renewable energy generator and local area solar supplier, has shut a $440 million senior got credit office for a 380-megawatt portfolio of solar and energy stockpiling resources, the biggest debt financing of its sort. The assorted portfolio traverses five state markets and comprises of almost 100 local area solar tasks, including energy stockpiling limit adding up to 120MWh. MUFG Union Bank, N.A. filled in as the Coordinating Lead Arranger for the partnered financing, which included support from a far reaching gathering of market-driving loan specialists. Nexamp has arisen as the biggest proprietor administrator of local area solar resources across the area's quickest developing business sectors, and this financing mirrors the organization's situation as a market chief with a demonstrated history of renewable energy financing and resource arrangement. Evenhanded admittance to clean energy is a sign of Nexamp's main goal; this declaration insists the accomplishment of the organization's imaginative local area solar stage that makes solar a possibility for anybody, with no credit checks for people, no direct charges, nothing to introduce and no drawn out responsibility. "The strong lender interest in response to this portfolio demonstrates the momentum behind the renewable energy industry and is a clear validation of Nexamp's approach," noted Peter Tawczynski, Chief Financial Officer, Nexamp. "We have built the most progressive and accessible community solar model available today, removing many of the traditional barriers and making it simple for customers to partner with Nexamp. As we bolster our solar portfolio with energy storage solutions, we look forward to launching new products in more geographies and delivering savings to our expanding customer base." The financing course of action, joined with Nexamp's extraordinarily coordinated plan of action, positions the organization for quickened development in the coming year. Nexamp creates, gets, assembles, claims and works its solar and capacity projects, while getting and dealing with a quickly developing client endorser base of in excess of 25,000 homes and organizations. With almost 300 new solar and capacity projects in the pipeline, this financing perceives Nexamp's unparalleled ability to make clean energy open rapidly to more networks. "Nexamp aims to help our customers and partners accelerate their decarbonization journey. Our community solar platform is an increasingly important part of that process for many, combining meaningful cost savings with a simple way to contribute to the clean energy revolution," said Nexamp CEO Zaid Ashai. "This financing enables Nexamp to double down on our own urgent mission to deliver sustainable energy options for our customers in an equitable manner." "Distributed power generation—and community solar in particular—is a growing segment of the renewable energy market that plays a vital role in reducing carbon emissions with the participation of a wide range of community members, and Nexamp is a reputable market leader in this field," says Takaki Sakai, Managing Director of MUFG's Project Finance team that led the financing. "MUFG is honored to help Nexamp advance its continued growth through the successful closing of this landmark debt financing—one of the largest to have been provided to a community solar portfolio—and we look forward to continuing our strong partnership." About Nexamp Nexamp is leading the transformation to the new energy economy with proven solar and storage solutions that make clean energy more accessible. Our comprehensive solar and energy storage capabilities—including project development and acquisition, design, construction, and operations—make it possible to extend clean energy savings and benefits to more customers. Nexamp's industry-leading community solar platform makes solar an option for anyone, providing guaranteed savings on their annual electricity costs. With more than 300 MW of renewable energy generating assets currently in operation, we are building a decarbonized energy future.

Read More

SOLAR+STORAGE

Wallbox Collaborates with Iberdrola to Use 100% Renewable Energy in its New Barcelona Plant and Offices

Wallbox | April 26, 2021

Wallbox and Iberdrola have signed a long-term on-site Power Purchase Agreement (PPA) to produce, use, and reuse 100% of the renewable energy generated at its Zona Franca plant and offices in Barcelona. Iberdrola's investment in the photovoltaic installation would enable Wallbox to save money on green energy production and usage from the start. In this way, the energy provider emphasizes renewables' sustainability through bilateral contracts that encourage energy production at competitive and stable rates with broad customers dedicated to sustainable consumption. Wallbox will achieve its target of operating in these facilities with energy autonomy while still reducing its carbon footprint, placing it at the forefront of efficient energy management by focusing primarily on solar energy. The Wallbox factory in Barcelona's Zona Franca will be outfitted with photovoltaic solar panels that will generate 1,500 MWh/year for self-consumption of these facilities and offices, which is equal to the consumption of 500 households. Installation at the offices will begin at the end of April and will be finished by the end of June, enabling the photovoltaic system to be operational at the start of the second half of the year. About Wallbox Wallbox is a leading energy management firm that develops intelligent charging solutions for electric cars. Wallbox builds a smart ecosystem that transforms the way we manage, consume, and store energy by combining cutting-edge technologies with excellent design. Wallbox, which was established in 2015 and has its headquarters in Barcelona, has the goal of facilitating the use of electric cars today to enable more efficient use of energy tomorrow. Wallbox's technology, which envisions an environment free of fossil fuels, allows people to create, use, and exchange renewable energy in ways they never considered possible. Wallbox now exports to over 60 countries and employs 400 people in offices across Europe, Asia, and the Americas, as well as two of its factories. Wallbox provides four chargers, including Quasar, the world's first bi-directional home charger with innovative bi-directional charging technology, which received the top award at CES, the world's leading industrial technology show.

Read More

ENERGY

TechnipFMC and Bombora Collaborate for a Wind-Wave Hybrid Floater

TechnipFMC | April 06, 2021

TechnipFMC and Bombora have formed a strategic alliance to build a floating wave and wind power project. TechnipFMC's technologies and experience delivering integrated engineering, procurement, construction, and installation projects offshore will be combined with Bombora's patented multi-megawatt mWave wave energy technology. The collaboration will initially concentrate on TechnipFMC and Bombora's InSpire (integrated semi-submersible platform with advanced renewable energy) project, which commenced engineering work in November 2020. The hybrid system demonstrator will provide 6MW of combined floating wind and wave energy, followed by commercial platforms in series one and series two, which are expected to provide 12MW and 18MW, respectively. “Our key competencies and integration capabilities make us a perfect project architect and collaborator in designing clean energy technologies alongside Bombora's expertise and unique, proprietary mWave technology,” said TechnipFMC president subsea Jonathan Landes. “We are pleased to be working on a project that advances our environmental commitment while still contributing to a more prosperous future.” “Bombora is partnering with TechnipFMC to accelerate development of our floating integrated mWave platform solutions for commercial wind farms,” said Bombora managing director Sam Leighton. “With TechnipFMC's impressive track record of executing large-scale energy ventures and Bombora's revolutionary mWave technology, we are sure that InSpire will play a key role in the offshore energy sector.”

Read More