CFE Outlines Investment in New AssetsBy Cas Biekmann | Thu, 12/10/2020 - 14:17
Further details about significant CFE investments for new power producing assets and Mexico’s dependence on US natural gas are this week’s most important stories. In other news, CFE looks to France to potentially expand its geothermal capacities and Amazon now claims to be the highest corporate buyer of renewables worldwide.
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CFE Reveals More Details About Energy Investments
CFE detailed additional information regarding the expansion of its power producing capacity. The state utility is planning to install 4,347MW through combined cycle and aeroderivative turbines totaling MX$62.754 billion (US$3.15 billion) in investment.
The capacity will consist of six combined cycle-based natural gas projects that were announced at the end of November during the second round of infrastructure projects, along with extra capacity via aeroderivative turbines, reported La Jornada. These projects will primarily focus on the Yucatan and Baja California peninsulas, representing 1,547MW and 1,714MW, respectively. Both areas are not able to fully connect to the main grid, making these projects necessary to meet the local energy demand.
Mexico Will Still Depend on US Natural Gas
The Mexican government seeks to reduce its dependency on US natural gas imports by implementing national projects like the underground storage venture in Caverna Salinas. This type of storage seeks to increase the country’s energy security in the short and long term. However, President López Obrador says it will take a long time before Mexico can produce enough energy to become self-sufficient.
Total Acquires 16.6 Percent Stake in IEnova's LNG Project
Reuters reported that Total has acquired the stake in the significant LNG project, located in the North of Mexico. IEnova has also received the necessary export permit.
CFE and French Embassy Sign Geothermal Cooperation Agreement
CFE signed a cooperation agreement with the French Embassy in Mexico. The agreement concerns a feasibility study regarding the implementation of binary cycle technology in CFE-owned geothermal fields, reported Energía a Debate. The study is to start in 2021 and will take 18 months to complete.
Mexico Drops in BNEF’s Renewable Transition Ranking
Mexico was ranked 51st on the list of developing countries most focused on the transition to clean energy, according to the BloombergNEF Climatescope 2020 report. The report incorporates data from 108 developing countries and 29 developed ones. Mexico fell in the ranking compared to 2019, when it was ranked 24th. In 2018, Mexico still occupied the eighth place. This means that Mexico dropped 43 positions in the span of two years, El Financiero reported.
Carbon Capture Tech on the Rise
Carbon capture and storage (CCS) is a relatively simple concept: tackle emissions from existing fossil fuel-based power generation and industrial processes. In a world where climate change is becoming a pressing issue, CCS appears to be a godsent technology. In Mexico, its efficiency has been touted as well. Nevertheless, experts question its potential if incentives, such as fair carbon prices, keep lagging behind.
Amazon Claims to Be Biggest Corporate Buyer of Renewables
The Verge reported that Amazon now is the largest corporate buyer of renewable energy worldwide. Amazon has invested in 6.5GW of wind and solar projects, which would surpass Google’s investment by 1GW. In 2019, Amazon promised to reach net-zero carbon emissions by 2040 and plans to run its infrastructure completely on renewables by 2030.
Energy Infrastructure Partners Acquires 49 Percent Stake in BayWa r.e.
Energy Infrastructure Partners-advised funds will purchase a 49 percent stake in BayWa r.e., the renewable arm of German company BayWa, which also owns projects in Mexico. The minority stake is valued at US$641.7 million, reported Renewables Now.