RIL to invest in renewables, green H2 in Gujarat

Spanish Market: Electricity, Hydrogen
13/01/22

Indian conglomerate Reliance Industries (RIL) said it has signed an initial agreement with the government of Gujarat to develop renewable energy and green hydrogen, with an aim to make the state "net zero and carbon free".

The deal envisages total investment of 5.96 trillion ($80.6bn) rupees, of which RIL proposes to spend Rs5 trillion ($67.6bn) over 10-15 years on a 100GW renewable energy power plant and a green hydrogen eco-system.

The company has begun scouting for land for the renewables power project in Kutch, Banaskantha and Dholera, in consultation with the state government. It said it has requested 450,000 acres of land in Kutch.

The firm plans to invest another Rs600bn ($8.1bn) on solar photovoltaic (PV) modules, electrolysers, energy storage batteries and fuel cells.

RIL is shifting its focus to renewables and has committed to becoming a net-zero carbon emissions firm by 2035. It has already committed to investing around $10bn to build four gigafactories — an integrated solar PV module factory, an energy storage battery plant, an electrolyser factory to produce green hydrogen and a fuel cell plant — over the next three years.

By Sathya Narayanan

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25/06/26

House committee advances data center power bill: Update

Updates with statement from Data Center Coalition in the fifth paragraph Houston, 25 June (Argus) — A US House of Representatives subcommittee advanced a bill to make large-load power users such as data centers pay their own way when it comes to powering their projects, an effort to protect regular consumers from higher utility bills. The House Energy and Commerce Subcommittee on Energy approved the measure by voice vote Wednesday as part of a package of electricity bills, sending it to the full committee for further consideration. The bill would require developers of projects requiring 100MW of power or greater to cover the full cost of new power plants, transmission lines or other grid upgrades needed to serve their facilities. The legislation, HR 9340, known as the Ratepayer Protection Act, was introduced by Rep. Gabe Evans (R-Colorado) and co-sponsored by Rep. Kathy Castor (D-Florida). The bipartisan bill largely mirrors President Donald Trump's ratepayer protection pledge, under which major technology companies, including Amazon, Google, Microsoft and Meta, agreed in March to ensure that the costs of powering new data centers, including grid upgrades, are not passed on to residential consumers. Rep. Frank Pallone (D-New Jersey), the panel's top Democrat, noted the suite of bills — which also included measures to improve load forecasting, speed up generator interconnection, and expand transmission capacity — was a "useful first step", but he said more aggressive action was needed to "ensure that data center developers are held accountable and that consumers aren't left holding the bill." An industry group representing data center developers endorsed the House measure. "We are committed to paying the full cost of the energy we use," Data Center Coalition (DCC) chief executive Josh Levi said in a statement. "DCC supports the approach taken by the Ratepayer Protection Act to achieve this goal and ensure the industry's energy costs are not shouldered by residents and businesses." Manufacturing groups are pressing lawmakers to narrow the bill's scope, warning that its broad definition of "large-load customers" could sweep in energy-intensive industries well beyond data centers. In a letter to the committee, the Industrial Energy Consumers of America urged legislators to instead target "large computational load" users, arguing the current language risks raising costs and creating regulatory uncertainty for manufacturers that compete globally and are not driving recent spikes in electricity demand. The measure now heads to the full Energy and Commerce Committee for consideration, where it could face further amendments before any potential consideration by entire House. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Plant upgrades may delay rise in US coal demand

25/06/26

Plant upgrades may delay rise in US coal demand

Houston, 25 June (Argus) — Recent federal initiatives to support the US coal industry may initially delay any uptick in coal demand as power plant operators upgrade coal-fired units to reliably meet growing energy needs. US president Donald Trump on 4 June directed the US Department of Energy (DOE) to provide hundreds of millions of dollars to expand the nation's coal capacity, including $425mn for upgrades at 12 existing coal plants in the US, claiming authority under the Defense Production Act. DOE had previously committed to providing $175mn to support six other coal plant modernization projects. The funding, announced earlier this month, was one of the latest efforts under the Trump administration to delay coal plant retirements to maintain the nation's baseload generation. "With the new trend of US electricity demand increasing rapidly, these actions ensure that rather than eliminate energy sources, the US is maintaining an energy mix that meets the needs of American consumers," Jim Grech, chair of the National Coal Council and chief executive of US producer Peabody Energy, said in remarks to Argus this week. "Our existing coal plants provide essential dispatchable generation, and extending their operation is one of the most cost-effective ways to support reliability and meet incremental demand." Multiple selected recipients of these grants said DOE's support will help to reduce internal cost pressure to complete projects that were already included in their capital investment plans but were not yet adequately funded. US utility Tennessee Valley Authority (TVA), for example, was selected to receive up to $46.3mn of the Defense Production Act grants for projects at its Cumberland plant, including previously planned upgrades to turbine and generator systems, the boiler and environmental controls such as a scrubber module, the company told Argus this week. TVA has also committed an additional $69.4mn to the plant. If awarded, the federal grants could also allow utilities to begin work on these projects, which aim to extend the selected plants' operational life and potentially increase their generation capacity, sooner than initially planned. Still, multiple market participants confirmed that most of these plant upgrades may require utilities to put units into recurring forced outages. Sources added that many existing coal plants in the last decade or longer have not received the necessary maintenance and funding to ensure their units can reliably operate over an extended period, especially at higher dispatch levels. Without these funded upgrades, certain coal plants would likely break down within a few days if their operators tried to ramp up their capacity factor rates to the levels needed to meet the increase in power demand anticipated within the next few years, one market participant said. At least some of the coal units set to receive federal funding are currently operating at sub-50pc capacity factor rates, with some operating as low as 30pc, sources said. In order to support the growing energy needs later this decade, market participants claimed capacity rates at these units would need to climb to 60-70pc or higher. Forced coal plant outage rates have already increased by a meaningful measure in the last year. The North American Electric Reliability Corporation's (NERC) annual weighted equivalent forced outage rate calculation for coal units increased to 14.1pc last year from 11.2pc in 2024, according to its 2026 State of Reliability report published on Wednesday. In addition, NERC estimated the amount of unavailable coal-fired generation as a result of plant outages in 2025 grew by 39,835 GWh from the previous year. As such, additional units getting taken off line over extended periods of time to complete work on the planned upgrades may further weigh on near-term coal consumption and generation over the next couple years even as overall electricity demand is expected to rise. Total US coal consumption is projected to fall to 418.8mn short tons (379.9mn metric tonnes) this year and slide again to 403mn st next year, down from 452.4mn st in 2025, according to the US Energy Information Administration's (EIA) latest Short-Term Energy Outlook released on 9 June. Similarly, the agency forecasts domestic coal generation to drop from a year earlier by 6.6pc in 2026 and by 3.2pc in 2027. This decline over the next two years is also expected to reduce coal's portion of the US' fuel mix, which EIA projects will fall to 16pc in 2026 and 15pc in 2027 from 17pc last year. On the other hand, after these coal plant upgrades are completed near the end of the decade and into the 2030s, market participants expect coal to account for a larger portion of the nation's total generation, which is projected to rise by 0.9-1.6pc annually over the next few decades, EIA said in April in its 2026 Annual Energy Outlook . While some sources claim coal's market share in the US could potentially climb to 20pc or higher, other sources have a less robust perspective and only expect coal's share to inch back up to its present level following the completion of the projects. Still, even if only a few larger coal plants were to consistently operate at much higher capacity factor rates in the long-term, that could boost annual coal consumption at each plant by several million short tons, various US utilities and producers estimated. Because of this potential uptick in coal demand, many buyers are concerned whether coal producers, particularly in the eastern US, will have enough availability later this decade and into the 2030s to supply their contract needs. As a result, even though multiple forced outages expected in the near future may weigh on near-term coal use, several utilities were heard in the last few months seeking greater volumes of coal through the end of 2029 and beyond to secure shipments before supply further tightens. By comparison, many eastern US coal buyers in the last couple years rarely solicited the market for term contracts beyond one to two years. By Anna Harmon and Elena Vasilyeva Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

UK to set in law GHG cuts of 87pc over 1990-2042

25/06/26

UK to set in law GHG cuts of 87pc over 1990-2042

London, 25 June (Argus) — UK parliament has agreed on the country's seventh carbon budget, and will set into law greenhouse gas (GHG) emissions reductions of 87pc by 2042, from a 1990 baseline. The vote, which took place in the evening of 24 June, passed with 332 votes for and 94 against. The UK's Labour government has pursued ambitious decarbonisation policies since it won a landslide victory in July 2024. The government earlier this month set out its proposal for the emissions cuts, in line with recommendations from the parliamentary advisory Climate Change Committee (CCC). Carbon budgets, which are legally-binding in the UK, cap the total GHG emissions that the UK can emit over five-year periods. The seventh carbon budget, which covers 2038-42, will have a limit of 535mn t/CO2 equivalent (CO2e), including the UK's share of international aviation and shipping emissions. This is "consistent with the Paris Agreement" and its most ambitious target to curb the global rise in temperature to 1.5°C above pre-industrial levels, the government said. The CCC welcomed the results of yesterday's vote. It "provides the long-term certainty that businesses, investors, and communities need to accelerate the transition away from fossil fuels… this legislation will help unlock innovation, drive clean investment, and strengthen the UK's competitiveness in a low-carbon world", CCC chair Nigel Topping said. The UK is on track to meet its fourth and fifth carbon budgets, which cover 2023-27 and 2028-32, respectively, the CCC said this week in its annual assessment of government progress on climate targets . But the government must accelerate electrification to hit climate goals beyond that, the committee added. The UK met its first three carbon budgets, which covered 2008-2022 collectively, largely through power sector decarbonisation, including shutting coal-fired power generation. The country has a legally-binding target to reach net zero GHG emissions by 2050. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan's northeast hit by earthquake, energy sites safe

25/06/26

Japan's northeast hit by earthquake, energy sites safe

Tokyo, 25 June (Argus) — A 7.2-magnitude earthquake struck northeastern Japan today. No major damage to nuclear power plants or thermal power facilities and domestic refineries has been reported so far, according to industry sources contacted by Argus . The earthquake occurred off the coast of Iwate prefecture at 07:30 on 25 June Japan time (22:30 GMT on 24 June), according to the Japan Meteorological Agency. The quake registered an upper-6 seismic intensity — the second-highest level on Japan's shindo scale — in Aomori prefecture. There is no risk of a tsunami from the earthquake, the agency said. Japanese prime minister Sanae Takaichi also said there was no risk of a tsunami. The government would assess the damage and work to respond to the disaster, she added. The earthquake did not affect power generation facilities in the Tohoku area, with no damage reported to nuclear, thermal, hydroelectric, or renewable power plants, Tohoku Electric Power told Argus . Around 4.6GW of coal-fired capacity and 7.9GW of gas-fed capacity were available for operation in Tohoku as of 25 June, according to a power plant operational status notice by the Japan Electric Power Exchange. The 825MW Onagawa No.2 nuclear reactor in Miyagi, close to the earthquake's epicentre off the Iwate coast, continues to operate. No damage was reported at the Rokkasho nuclear fuel reprocessing plant in Aomori, which is scheduled to begin operations in the April 2027-March 2028 fiscal year. Two major biomass power plants in Tohoku — the 75MW unit at Ofunato in Iwate and a similar-sized plant at Hachinohe in Aomori — were also unaffected, sources told Argus . In Hokkaido, where the quake registered at 4 on Japan's seismic intensity scale in some areas, there was no damage to power generation facilities, a representative at Hokkaido Electric Power said. No nuclear reactors are currently operating in Hokkaido, with the 2,070MW Tomari nuclear plant remaining safely closed. Japanese refiner Eneos operates the 145,000 b/d Sendai refinery in Miyagi. But the earthquake had no impact on Eneos' facilities including refineries, the company said. By Fumito Nagase, Motoko Hasegawa, Kohei Yamamoto, Takeshi Maeda, Reina Maeda, Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Early gas turbine bet key to Chevron-Microsoft deal

24/06/26

Early gas turbine bet key to Chevron-Microsoft deal

Houston, 24 June (Argus) — A developer behind a massive west Texas data center power project locked up scarce turbine supply years before signing customers, giving it a head start that helped secure a deal with Chevron and Microsoft. "Having the supply chain secured allowed us to meet an aggressive timetable," Brian Boland, chief financial officer at Joulent, the power development arm of energy investment firm Engine No. 1, said in an interview with Argus Wednesday. Early procurement of gas turbines and the high-voltage equipment needed to power a project that will begin operations without a connection to the local grid was "critical" to landing the deal, he said. The Kilby project is a planned 2.67GW gas-fired facility in west Texas that will be located next to a Microsoft data center. Joulent is developing the power-generation plant in a partnership with Chevron, which will supply electricity directly to the data center through a subsidiary under a 20-year power purchase agreement. More data-center developers are seeking to build their own generation and operate independent of the grid, or "behind-the-meter," because of extended wait times to get connected through the traditional interconnection process. The rush to build gas-fired plants to meet the expected surge in data center-driven power demand growth has squeezed gas turbine supply globally, with major turbine manufacturers reporting substantial production backlogs and lead times stretching up to 7-8 years. Anticipating such a backlog, Engine No.1 locked in roughly 4GW of gas turbines as well as high-voltage equipment like transformers and breakers in the past three years, before even partnering with Chevron to develop a power generation plant. This early procurement was "critical" to being able to meet Microsoft's 2028 time frame, said Boland. Protecting ratepayers While the project will begin operations fully behind the meter, Boland said it is designed to eventually connect to the grid, with the equipment required to do so already secured. Until then, the facility will rely on a combination of gas turbines, battery storage and multiple generation units to maintain reliability. The battery system will serve as a "synthetic reserve" to absorb fluctuations in data center demand and stabilize the system during sudden load changes or unit trips. Under this arrangement, regular ratepayers are shielded from costs associated with Microsoft's power needs, said Boland, and eventually the project will be able to provide excess power to the grid. Rising power prices have become a flashpoint around the US as some markets with heavy concentrations of data centers have seen household electricity bills rise by double digits. "We do not want to drive up costs on ratepayers," he said. "We're very focused on insulating customers from price increases because of the incremental demand." Chevron will build out the gas infrastructure needed to supply the plant, including a roughly 20-mile lateral connection to the Waha Hub, a key pricing point for Permian Basin gas supplies. The site's proximity to the hub allows the project to tap into the region's large volumes of associated gas, which Boland said provides a cost advantage and reduces concerns about fuel availability. Waha gas prices typically trade at a deep discount because of a long-standing shortage of pipeline capacity to take product out of the region. With Permian gas production totaling roughly just over 25 Bcf/d, it is unlikely that even surging demand from data centers and other large industrial users would meaningfully shift pricing dynamics, Boland said, adding sustained oil production is expected to keep associated gas volumes high and excess supply persistent. Joulent is looking to replicate the model beyond the Kilby project. The company has about 25GW of projects in its development pipeline and is in discussions with additional customers. The firm is pursuing sites in the Permian as well as other regions, aiming to build out a series of multi-gigawatt facilities across multiple markets. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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