Energy Transfer to buy 120 megawatts of solar energy from northeast Texas solar project
Dallas-based Energy Transfer LP signed a 15-year power purchase agreement to buy 120 megawatts of electricity from a California energy company’s northeast Texas solar project, the company announced Wednesday.
SB Energy Corp., a subsidiary of SoftBank Group Corp. based in San Francisco, is scheduled to begin construction of its Eiffel Solar project in Lamar County in the first half of next year, with energy delivered to Energy Transfer beginning in January 2024. The project will produce a total of 200 megawatts of energy.
Energy Transfer said the purchase will contribute to the company’s energy load requirements set by the Electric Reliability Council of Texas.
“It is our second significant agreement to purchase low-cost solar power to help us meet our ERCOT load requirements for our operations throughout Texas,” said Tom Mason, head of Energy Transfer’s alternative energy group.
The company created its alternative energy group in February to diversify its energy sources through solar, wind and renewable gas projects, which could use Energy Transfer’s existing 90,000 miles of pipelines across the U.S.
In early August, Energy Transfer joined the Environmental Partnership, a coalition of energy companies that spearheads projects to increase renewable energy use, including the 28-megawatt Maplewood 2 Solar farm in West Texas. The farm delivers power to three of Energy Transfer’s cryogenic plants and was the company’s first-ever dedicated solar power purchase contract.
Financial terms of the Eiffel Solar deal were not released.
Other energy companies have also made solar investments this year, including Dallas-based Leeward Renewable Energy, which agreed to buy a solar platform with 10 gigawatts of projects for $261 million as part of a clean energy growth strategy.
While expanding its renewables presence, Energy Transfer has also grown its oil and gas network this year. It landed a $7 billion deal to acquire Enable Midstream that was announced during the unprecedented February winter storm, giving the company access to 5,900 miles of pipeline access across multiple states.
Winter storm Uri, which rocked the state and the future of the Texas energy grid, proved lucrative for Energy Transfer. The company bagged $2.4 billion, making it one of the energy industry’s biggest winners during the storm.
Energy Transfer reported net income of $626 million for the three months ended June 30, up $273 million from the same period in 2020. The oil and gas industry suffered during COVID-19 lockdowns, but oil prices have largely recovered since.
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