In a groundbreaking collaboration, industry titans Google, Microsoft, and steelmaker Nucor Corporation have announced their partnership aimed at advancing innovative energy generation and storage projects.
This week’s joint declaration unveils a strategic alliance focused on leveraging collective demand to propel the development of cutting-edge clean electricity technologies. The trio intends to pioneer new business models and consolidate their demand for emerging energy solutions.
The envisioned models are tailored to expedite the progression of pioneering projects, encompassing advanced nuclear, next-generation geothermal, clean hydrogen, long-duration energy storage (LDES), and other innovative ventures.
As a pivotal initial step, the conglomerates will issue a request for information (RFI) across various regions in the United States to identify prospective projects in need of off-take agreements. Detailed information on the initiative can be accessed here.
The consortium emphasizes the imperative of overcoming financing hurdles faced by nascent clean electricity technologies, citing the inherent risks and novelty associated with early-stage projects. By crafting novel commercial frameworks and amalgamating demand from three of the world’s foremost energy consumers, the collaborative endeavor aims to mitigate risks for utilities and developers, thereby catalyzing crucial investments.
The ambitious objective is to usher in these transformative projects by the early 2030s, with the intent of driving down technology costs through iterative deployment.
The collaborative effort will commence with the validation of demand aggregation and procurement models via pilot projects featuring advanced technologies in the United States. Subsequently, a project delivery framework will be piloted to support early commercial ventures.
Key components of this framework include securing off-take agreements for emerging technologies, amplifying customer advocacy on long-term ecosystem enhancements, and crafting innovative tariff structures in collaboration with energy providers and utilities.
The initial RFI is currently open for submissions until April 12, with the first round of power purchase agreements (PPAs) anticipated to be finalized around Q1 2025.
Project evaluation criteria are stringent, encompassing technology maturity, capacity for firm, dispatchable power generation, carbon footprint reduction targets, and scalability potential.
Both Google and Microsoft are prominent procurers of PPAs to offset their extensive data center energy consumption. Meanwhile, Nucor Corporation, a leading steel producer in North America, has a history of engaging in PPAs to sustain its operations.
In addition to conventional nuclear power PPAs, Microsoft has ventured into speculative agreements, notably partnering with Helion Energy with aspirations to procure fusion power by 2028.