Major technology companies Google and Microsoft, along with steel producer Nucor, announced a collaboration to develop new business models for clean electricity technologies.
The initiative aims to address challenges faced by emerging technologies like advanced nuclear, next-generation geothermal, clean hydrogen, and long-duration energy storage which the International Energy Agency (IEA) says are necessary to cost-effectively decarbonise grids and help the world meet its growing electricity demand with carbon-free energy sources.
Whilst these technologies are considered crucial for achieving carbon-free electricity grids, they often struggle to secure financing due to their novelty and associated risks that come with them.
By aggregating the demand from large energy consumers, the collaboration looks to reduce risks for developers and utilities considering early-stage projects. This joint effort also intends to influence policy and regulations to foster a more supportive environment for these technologies.
Google itself has set the ambitious goal of running on 24/7 carbon-free energy, procuring clean energy to meet its electricity demand at every hour of every day, everywhere that it operates.
According to the tech giant, wind and solar technologies currently play a significant role in its efforts today, but a broader portfolio of advanced clean electricity technologies are essential to enable it to fully decarbonise our energy consumption.
To this end, Google has already established its ‘first-of-a-kind’ enhanced geothermal technology project with Fervo Energy, which is now powering the grid that serves its data centres in Nevada with “always-on” carbon-free energy.
The collaboration will initially focus on pilot projects in the United States and will explore signing long-term purchase agreements for these emerging technologies, advocate for supportive policies, and develop new electricity pricing structures with utilities.
Benefits for the companies involved include access to a wider portfolio of clean electricity sources and potential cost reductions through economies of scale. Additionally, the project aims to be a model for other large companies to participate in supporting the development of clean energy technologies.
The collaboration plans to share learnings and roadmaps from the pilot projects to encourage broader participation in advancing clean electricity solutions.
