PPA research for 2 million MWh of electricity per year
Nebraska Public Power District to provide electricity
New York –
The chemicals and hydrogen company Monolith Materials said on Jan.4 that it was seeking 2 million MWh per year of renewable energy under a deal with the Nebraska Public Power District to supply its facility with Olive Creek 100% renewable energy.
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Monolith said in a press release that to facilitate the proposed $ 1 billion expansion of its Olive Creek facility, it signed a letter of intent with the NPPD to procure the 2 million MWh of annual electricity.
“NPPD will secure generation resources and electricity at the facility will be supplied by Norris Public Power District, a wholesale customer of NPPD,” the statement said.
The Norris Public Power District purchases 98% of its electricity from NPPD and 2% of its electricity from the Lincoln Electric System, according to Norris’ 2019 annual report.
The NPPD has a diverse energy mix for power generation and in 2019 it produced electricity from 0.1% solar energy, 3.3% natural gas and petroleum, 5.2 % hydropower, 5.2% external purchases, 5.4% wind, 34.2% nuclear and 46.6% coal, according to its 2019 financial report.
It also receives 0.1% of eligible local generation, which includes renewable energy facilities installed by its wholesale customers, the NPPD said. The Electric District is also a member of the Southwest Power Pool.
“Renewable electricity is the primary contribution to our proprietary process,” said Rob Hanson, co-founder and CEO of Monolith, in the statement.
“While affordability and reliability are key business considerations, the durability of our power supply is also a critical factor for Monolith. We use this renewable electricity to sustainably manufacture essential products for the automotive, industrial and agricultural sectors, ”said Hanson.
The company uses a commercial-scale methane pyrolysis production process to produce hydrogen with 100% renewable energy, according to its website.
Agreement Details, CER
Monolith’s first production facility, Olive Creek 1, is already using renewable energy credits to offset 100% of its electricity needs and with the Jan. 4 agreement, the company is planning a mix of solar and wind generation resources. as well as energy storage to “provide enough renewable energy to offset the renewable energy needs of its OC1 facility as well as its OC2 expansion,” Monolith said.
NPPD will solicit bids for the project through a tender for additional wind or solar generation, including energy storage, through a power purchase agreement, the said. NPPD President and CEO Tom Kent in the release.
The roughly 2 million MWh of production would create a “sufficient number” of RECs to meet 100% of Monolith’s average annual energy consumption and meet their environmental and sustainability goals, Kent said, noting that although NPPD will add resources production, it will maintain its “very competitive rates,” which was one of the reasons Monolith moved its business to Nebraska.
In 2019, NPPD billed its industrial customers $ 5.50 / kWh for the electricity it sold to them, according to NPPD’s 2019 financial report.
The average price of electricity for industrial customers in Nebraska in October 2020 was $ 7.07 / kWh and $ 7.38 / kWh in October 2019, according to the US Energy Information Administration.
The NPPD plans to reach its PPAs by September 1, 2021, with business operations scheduled to begin by December 31, 2025. The NPPD plans to issue the tender in March 2021, the statement said.