Skytree, Return Carbon, and Verified Carbon have partnered with EDF Renewables North America (EDFR) to develop large-scale Direct Air Capture (DAC) facilities in Texas. The collaboration between Skytree, Return Carbon, Verified Carbon and EDF Renewables will produce cost-competitive carbon removal credits and support the world’s efforts to lower greenhouse gas emissions.

Strategic Partnership for Carbon Removal

EDF Renewables North America (EDFR) and Return Carbon have entered into a Term Sheet to supply renewable energy to large-scale DAC plants in Texas, which is expected to reach a goal of 500,000 tons annually in negative emissions. This partnership represents a historic milestone in bringing together DAC technology, renewable energy, and geological sequestration capabilities.

Return Carbon will leverage its project development skills, while Skytree will provide scalable DAC technology using its Stratus units. Verified Carbon will add to its sequestration capabilities in the geology space, offering the infrastructure needed for long-term carbon storage. Together, these entities are building the foundation for a solution that can transform the carbon removal sector.

Also read: EDF Renewables’ Huck Finn Solar Project Reaches Commercial Operation

Innovative Energy Optimization with Flexible Power Purchase Agreements

Gabe Messercola, Associate Director of Capital Improvements at EDF Renewables, stated that co-locating DAC development Behind-The-Meter would optimize renewable energy production, reduce exposure to power market fluctuations, and support the growth of both industries. He also mentioned that Return Carbon’s commitment to operational flexibility, along with Skytree’s equipment, shows that DAC can effectively complement intermittent renewable sources, helping to create a stronger and more resilient energy grid.

One of the major components of the arrangement is the application of a flexible model of power with Behind-The-Meter Power Purchase Agreements (PPA). This setup guarantees price stability for EDFR’s renewable energy parks while offering financial benefits during peak electricity pricing. The co-location of DAC plants with EDFR’s renewable energy facility will allow the fullest utilization of on-site wind energy generated, minimizing exposure to power market volatility and leveraging both the renewable energy and DAC businesses.

San Diego Gas & Electric (SDG&E) announced the approval by the California Public Utilities Commission (CPUC) for the major expansion of its Westside Canal Battery Energy Storage facility in California’s Imperial Valley. The expansion will add 100 MW of capacity, bringing the total energy storage to 231 MW. It will come into service by June 2025.

Raising Energy Resiliency for California Communities

Caroline Winn, CEO of SDG&E, said, “By increasing storage capacity, we can allow more clean energy to be efficiently stored and dispatched when it’s needed most, helping to create a more resilient and sustainable grid for our communities”

This facility is part of SDG&E’s plan to grow its battery storage portfolio to 480 MW and 1.9 GWh by 2025.

Cost Savings and Energy Affordability

One of the most important advantages of the Westside Canal expansion project is that it can assist in keeping energy prices lower for consumers. For the second year running, SDG&E lowered household bills, partly due to federal tax credits on infrastructure expenditures. The company paid back $200 million worth of federal tax credits to customers after it finished several battery storage projects, including Westside Canal.

The growth will also introduce four critical services for enhancing grid stability and efficiency. Services like generation capacity, energy balancing, and congestion management will ensure a more stable and efficient power supply.

Also read: Clearway Energy secures funding and begins construction on California solar and battery storage projects

Key Contributions to Grid Stability and Efficiency

The new Westside Canal facility, expanded in size, will provide peak power backup, ensuring adequate power when it is most needed. It will also offer ancillary services like frequency regulation and voltage control to support grid stability. The facility will also hold excess energy during low-demand hours and release it when demand is high, hence maximizing energy consumption and stabilizing power prices.

The facility will also make power flow more efficient and reduce congestion by taking up energy close to generation points and discharging it when congestion in transmission lines is reduced, thereby leading to a more efficient and reliable network.

Safety commitment by SDG&E is an utmost concern for the expansion project. The facility will have UL/NFPA compliance standards along with leading-edge safety features such as emergency stops, lockable disconnects, and lightning protection. SDG&E is also collaborating closely with local first responders and following established safety practices in energy storage.