This Week in Climate & Clean Energy Wins: Week of 8/28/23

This week in private sector news, Redwood Materials raised over $1 billion to build capacity and expand their domestic battery supply chain for the production of  battery materials – made in the U.S. for the first time. 6K Energy and Forge Nano, Inc. announced a five-year purchase and supply agreement for materials used in EV battery cell production. Bila Solar will invest $35 million in manufacturing lightweight solar modules in the U.S., starting with a factory renovation in Indiana, and NV Energy plans to spend $1.8 billion on new infrastructure to bolster solar power in Nevada.

Electric vehicles like the Ford Mach-E and Tesla Model Y are examples of how leasing an EV is the cheapest option on the market for new car buyers across the U.S. as a result of tax incentives from the Inflation Reduction Act. Experts predict that geothermal energy has the capacity to power the U.S. five times over, inspiring a push for advancements in heat harvesting technology. A report from the Global Wind and Energy Council (GWEC) projects that 380 Gigawatts of new offshore wind will be built by 2032, after reaching 64.3 Gigawatts in 2022.

The Department of Energy (DOE) announced up to $300 million in grants to accelerate and strengthen electric transmission siting and permitting, with the goal of lowering electricity costs and reducing climate pollution. DOE also announced upwards of 100 awards totalling $126 million in research and development grants for projects addressing clean energy, decarbonization, and more. The U.S. Department of the Treasury and the Internal Revenue Service released guidance on Inflation Reduction Act provisions to ensure good-paying jobs and expand the clean energy workforce. The Department of the Interior (DOI) held an offshore wind energy auction for the Gulf of Mexico region, receiving a bid of $5.6 million on a lease projected to power nearly 435,400 homes with clean energy.

Lastly, in Michigan, Governor Whitmer announced she will ask the legislature to pass a 100% “clean energy standard” in the fall. In Mississippi, Mullen’s – the state’s new electric vehicle (EV) factory – rolled out its first EV this week. In Massachusetts, the Healey-Driscoll Administration announced over $18 million in grants to over 40 organizations that will support an expanded clean energy workforce in the state. In Tennessee, WPLN reported that the state has secured $7 billion through 14 clean energy projects since last August. This represents nearly 80% of all capital investments Tennessee has made in the past year. 

Private Sector

• Redwood Materials has raised over $1 billion to expand its U.S. battery factories and supply chain. [Tech Crunch, 8/29/2023]
  • The company says it will use the funds to continue building capacity, expanding the domestic battery supply chain, and allowing customers to buy battery materials — like lithium, nickel and cobalt — made in the U.S. for the first time.
• 6K Energy and Forge Nano, Inc. announced a five-year purchase and supply agreement for materials used in battery cell production. [PR Newswire, 8/28/2023]
  • “The Inflation Reduction Act’s goal of securing America’s position as a world leader in domestic clean energy manufacturing relies heavily on our nation’s ability to supply lithium-ion batteries on US soil. This agreement is a critical first step for our industry and one which we believe will strengthen domestic supply chains for lithium-ion battery production in the United States,” said 6K Energy President Sam Trinch. 
• Bila Solar will invest $35 million in manufacturing lightweight solar modules in the U.S. [PV Magazine, 8/29/2023]
  • The company announced plans to open a solar module manufacturing facility in Indianapolis, where the company says it will produce 1 GW of glassless, frameless solar modules per year.
• NV Energy plans to spend $1.8 billion on new infrastructure to bolster solar power in Nevada. [Review Journal, 8/25/2023]
  • An application submitted by NV Energy to the Public Utilities Commission this week seeks approval for a $1.56 billion solar facility in Northern Nevada, $83 million for converting NV Energy’s last coal plant to run on natural gas, $54 million to prolong a power plant’s life cycle and $173 million for transmission infrastructure improvements throughout the state. 

New Reports

• Leasing an EV is the cheapest option by thousands for new car buyers across the U.S. as a result of new federal tax incentives. [Forbes, 8/27/2023]
  • The Ford Mach-E is nearly $7,500 cheaper per year, and the Tesla Model Y is more than $5,000 cheaper per year compared to their gas-powered equivalents.
• Hot dry rocks below the earth’s surface have enough energy to power the entire country five times over, inspiring a new push to develop U.S. geothermal harvesting technology. [New York Times, 8/28/2023]
  • With technological advancements, experts predict geothermal energy could supply 12% of America’s electricity by 2050.
• A total of 64.3 GW of global offshore wind capacity across three continents and 19 countries was in operation by the end of 2022 despite supply chain bottlenecks. [Electrek, 8/28/2023]
  • GWEC projects 380 GW of new offshore wind will be built by 2032.

Biden Administration

• DOE announced up to $300 million in grants for states, tribes, and local governments to accelerate and strengthen electric transmission siting and permitting processes. [DOE, 8/29/2023]
  • The program seeks to streamline federal reviews of transmission projects and incentivize investment in a range of grid updates that will help lower electricity costs, strengthen reliability, and reduce climate pollution.
• DOE announced 106 awards totaling $126 million in research and development grants for 90 different small businesses’ projects. [DOE, 8/25/2023]
  • These projects will address clean energy and decarbonization, cybersecurity and grid reliability, fusion energy, and nuclear nonproliferation.
• The U.S. Department of the Treasury and the Internal Revenue Service released proposed rules and FAQs on key provisions in the Inflation Reduction Act to ensure good-paying jobs and expand the clean energy workforce. [Treasury, 8/29/2023]
• DOI held the first-ever offshore wind energy auction for the Gulf of Mexico region, resulting in one lease area receiving a bid of $5.6 million. [DOI, 8/29/2023]
  • The project has the potential to generate approximately 1.24 gigawatts of offshore wind energy capacity and power nearly 435,400 homes with clean, renewable energy.

State-Level  

• In Michigan, Governor Whitmer will ask the legislature to pass a 100% “clean energy standard” in the fall, aiming to make the state a national leader in transitioning to a green electrical grid. [Crain’s Detroit Business, 8/25/2023]
• In Mississippi, Mullen’s – a new EV factory in the state – rolled out its first vehicle this week: an electric class 3 commercial truck. [Associated Press, 8/26/23].
  • Mullen’s plant employs 61 people in Tunica, a community mainly known for agriculture and casino gambling.
• In Massachusetts, the Healey-Driscoll Administration announced over $18 million in grants to over 40 organizations that will support an expanded clean energy workforce in the state. [Mass.gov, 8/29/2023]
  • The awards are focused on lowering barriers faced by underserved and underrepresented populations entering the clean energy workforce, introducing young people to clean energy careers, providing essential training for climate-critical fields, and supporting minority- and women-owned businesses in the clean energy sector.
• Since last August, Tennessee has secured $7 billion through 14 clean energy projects, according to WPLN’s new assessment of public announcements. These projects represent nearly 80% of all capital investments Tennessee has made in the past year. [WPLN, 8/29/2023]
  • The companies behind these projects have promised the creation of more than 5,600 jobs, which is more than a third of all jobs announced through major investments in Tennessee this past year.