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Released May 01, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Hyundai Motor Company (Seoul, South Korea) is one of the latest companies to sign a power purchase agreement (PPA) for the output from a renewable power plant to offset emissions at facilities that the company is building in Georgia. However, as the Texas solar plant and Hyundai's upcoming plants will occupy two completely separate power grids, critics are wondering how effective long-distance contracts such as Hyundai's are in reducing carbon emissions at the site of a specific plant.
Hyundai's agreement with Matrix Renewables (Madrid, Spain) for 70% of the output of the upcoming 215-megawatt (MW) Stillhouse solar plant in Bell County, Texas, is more specifically a virtual power purchase agreement (VPPA), under which Hyundai will earn renewable energy "credits" that will be applied to its overall power use, regardless of the locations of Hyundai's facilities. Hyundai is aiming to have net-zero emissions by 2045. Construction of Matrix's plant is planned to begin this year, putting it on track for completion in 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report.
But Hyundai's agreement with Matrix, which will go toward Hyundai's net-zero goals, has some Georgia residents irked. After agreeing to more than $2 billion in tax abatements from the Georgia state government, Hyundai is now supporting a renewable energy project outside of the state. Adding fuel to concerned citizens' fires is the fact that in March, the Georgia Public Service Commission gave the green light to a plan to add three natural gas-fired turbines at Georgia Power's Plant Yates near Newnan to help meet increased demand from, among other things, an influx of manufacturing plants such as Hyundai's. Plans for the new turbines remain in an early stage of development, although they would add approximately 1,400 MW of power in a simple-cycle configuration. Subscribers can click here for more details.
Hyundai is in fact underway with multiple projects in Georgia. These include two projects to manufacture lithium-ion batteries and an electric vehicle (EV) assembly plant. A 2,284-acre site in Bryan County, about 25 miles west of Savannah, has been selected to be home to the assembly plant and one of the battery plants. Construction on the EV plant kicked off first, commencing in the summer of 2022. The facility includes 11 buildings, encompassing about 17 million square feet. Hyundai recently moved up the facility's expected start date from first-quarter 2025 to fourth-quarter 2024. The plant will manufacture approximately 300,000 EVs per year. While plans initially called for production of only all-electric vehicles, Hyundai now is considering adding hybrids to the plant's production lineup as adoption of all-electric vehicles in the U.S. has been slower than anticipated.
Construction on the adjacent lithium-ion battery plant kicked off last year and is planned to be completed around the same time as the EV plant. The battery plant will manufacture up to 30 gigawatt-hours of batteries per year, supplying not only Hyundai, but also Kia Corporation (Seoul), which also has a large factory in Georgia, and Genesis Motor (Seoul).
Together, the facilities are expected to employ about 8,500 people. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can learn more by viewing the project reports on the EV and battery plants.
Hyundai's other Georgia battery plant in Bartow County is jointly owned with South Korean battery manufacturer SK On (Seoul). When completed in mid-2025, the 3.3 million-square-foot plant will supply 30 gigawatt-hours to vehicle manufacturers including Hyundai and Kia. Subscribers can learn more by viewing the project report.
Had Hyundai wanted to keep its PPA within Georgia, it possibly could have found a partner in one of the state's many solar projects, which account for more than $1.9 billion in current and planned activity. One of the largest of these is under construction in Decatur County, about 250 miles from Hyundai's Bryan County plants, but supplying power to the SERC Reliability Corporation grid rather than the Electric Reliability Council of Texas (ERCOT) grid. Construction on NextEra Energy Incorporated's (NYSE:NEE) (Juno Beach, Florida) Flint River Solar Energy Center kicked off last year and is expected to be completed this fall. The facility will use an estimated 325,750 solar panels to provide 200 MW of emissions-free power. Subscribers can click here to learn more about the project.
In even closer proximity to Hyundai's Bartow County battery plant is Consolidated Edison Incorporated's (NYSE:ED) (Baltimore, Maryland) CED Timberland solar plant near Carlton, about 140 miles from the Hyundai site. When completed later this year, the plant will provide 140 MW of power. Subscribers can learn more by viewing the project report.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Hyundai's agreement with Matrix Renewables (Madrid, Spain) for 70% of the output of the upcoming 215-megawatt (MW) Stillhouse solar plant in Bell County, Texas, is more specifically a virtual power purchase agreement (VPPA), under which Hyundai will earn renewable energy "credits" that will be applied to its overall power use, regardless of the locations of Hyundai's facilities. Hyundai is aiming to have net-zero emissions by 2045. Construction of Matrix's plant is planned to begin this year, putting it on track for completion in 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the project report.
But Hyundai's agreement with Matrix, which will go toward Hyundai's net-zero goals, has some Georgia residents irked. After agreeing to more than $2 billion in tax abatements from the Georgia state government, Hyundai is now supporting a renewable energy project outside of the state. Adding fuel to concerned citizens' fires is the fact that in March, the Georgia Public Service Commission gave the green light to a plan to add three natural gas-fired turbines at Georgia Power's Plant Yates near Newnan to help meet increased demand from, among other things, an influx of manufacturing plants such as Hyundai's. Plans for the new turbines remain in an early stage of development, although they would add approximately 1,400 MW of power in a simple-cycle configuration. Subscribers can click here for more details.
Hyundai is in fact underway with multiple projects in Georgia. These include two projects to manufacture lithium-ion batteries and an electric vehicle (EV) assembly plant. A 2,284-acre site in Bryan County, about 25 miles west of Savannah, has been selected to be home to the assembly plant and one of the battery plants. Construction on the EV plant kicked off first, commencing in the summer of 2022. The facility includes 11 buildings, encompassing about 17 million square feet. Hyundai recently moved up the facility's expected start date from first-quarter 2025 to fourth-quarter 2024. The plant will manufacture approximately 300,000 EVs per year. While plans initially called for production of only all-electric vehicles, Hyundai now is considering adding hybrids to the plant's production lineup as adoption of all-electric vehicles in the U.S. has been slower than anticipated.
Construction on the adjacent lithium-ion battery plant kicked off last year and is planned to be completed around the same time as the EV plant. The battery plant will manufacture up to 30 gigawatt-hours of batteries per year, supplying not only Hyundai, but also Kia Corporation (Seoul), which also has a large factory in Georgia, and Genesis Motor (Seoul).
Together, the facilities are expected to employ about 8,500 people. Subscribers to Industrial Info's GMI Industrial Manufacturing Project Database can learn more by viewing the project reports on the EV and battery plants.
Hyundai's other Georgia battery plant in Bartow County is jointly owned with South Korean battery manufacturer SK On (Seoul). When completed in mid-2025, the 3.3 million-square-foot plant will supply 30 gigawatt-hours to vehicle manufacturers including Hyundai and Kia. Subscribers can learn more by viewing the project report.
Had Hyundai wanted to keep its PPA within Georgia, it possibly could have found a partner in one of the state's many solar projects, which account for more than $1.9 billion in current and planned activity. One of the largest of these is under construction in Decatur County, about 250 miles from Hyundai's Bryan County plants, but supplying power to the SERC Reliability Corporation grid rather than the Electric Reliability Council of Texas (ERCOT) grid. Construction on NextEra Energy Incorporated's (NYSE:NEE) (Juno Beach, Florida) Flint River Solar Energy Center kicked off last year and is expected to be completed this fall. The facility will use an estimated 325,750 solar panels to provide 200 MW of emissions-free power. Subscribers can click here to learn more about the project.
In even closer proximity to Hyundai's Bartow County battery plant is Consolidated Edison Incorporated's (NYSE:ED) (Baltimore, Maryland) CED Timberland solar plant near Carlton, about 140 miles from the Hyundai site. When completed later this year, the plant will provide 140 MW of power. Subscribers can learn more by viewing the project report.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
