Entergy Looks to Hydrogen, Solar Solutions as it Adapts to Changing Energy Market

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Researched by Industrial Info Resources (Sugar Land, Texas)--Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana) finds itself facing the same existential questions as many energy providers across the U.S. as it prepares to shut down one of its longest-operating power-generation facilities and expand its role in the renewables market. Industrial Info is tracking about $9.7 billion worth of active projects from Entergy, about half of which is attributed to the closure and demolition of aging or otherwise unfavorable facilities.

Click on the image at right for a graph detailing Entergy's active projects, by project type.

Entergy reported consolidated earnings of $531 million for the third quarter, compared with $521 million in third-quarter 2020. By segment, earnings decreases were limited to the Entergy Wholesale Commodities business, which were due largely to lower revenues from the shutdown of the Indian Point Nuclear Power Plant's Unit 3 in April, which followed the shutdown of Indian Point Unit 2 in April 2020. Heavier-than-normal asset write-offs and impairments were due primarily to a $340 million ($268 million net-of-tax) loss which resulted from the sale of Indian Point in May 2021.

The Indian Point Energy Center in Buchanan, New York, about 25 miles north of midtown Manhattan, permanently stopped generating electricity when it retired Unit 3, its last operating nuclear reactor, on April 30. (Unit 1 ceased operating in 1974.) The plant had been operational for 59 years, but it closed earlier than originally planned after Entergy failed to secure a 20-year license renewal for both reactor units it had been seeking since 2007. New York challenged the renewals, citing environmental and safety concerns resulting from the plant's nearness to New York City. Low wholesale electricity prices and increased operating costs also contributed to Entergy's decision to retire Indian Point early, according to the U.S. Energy Information Administration (EIA).

Indian Point units 2 and 3 now will undergo a dismantlement and demolition process, which is expected to last more than a decade. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed project reports on the dismantlement and demolition of Unit 2 and Unit 3.

Also during the quarter, Entergy's Texas subsidiary filed an application for approval with the Public Utility Commission of Texas for Entergy's proposed Orange County Advanced Power Station. The 1,230-MW, natural gas-fired power plant, which will utilize hydrogen as a secondary fuel, would begin construction in the second quarter of 2023 if approved by the commission, according to Entergy Texas. Subscribers can learn more from Industrial Info's project report.

Although the Orange County plant would use natural gas as its primary fuel, Entergy pointed to its hydrogen content as a step toward long-term sustainability and decarbonization. "Southeast Texas is well-positioned to play a key role in the transition to increased use of hydrogen in electric generation," said Sallie Rainer, president and CEO of Entergy Texas. "Our region is home to hydrogen producers, pipelines, storage and industrial users. We look forward to working with industry partners on the role the Orange County Advanced Power Station will play in providing reliable power while also meeting the sustainability needs of our customers and communities, and also to establish Southeast Texas as a global hub for hydrogen production and consumption."

Entergy's efforts in renewable energy received a significant boost during the quarter, when the Arkansas Public Service Commission approved the proposed West Memphis Solar Plant in Proctor, Arkansas, which would generate 180 MW from photovoltaic (PV) modules. A subsidiary of NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) will develop and construct the project, and Entergy's Arkansas subsidiary will purchase, own and operate it upon completion. Subscribers can learn more from Industrial Info's project report.

Construction on the West Memphis project is set to begin in fourth-quarter 2022, although many factors still could delay or change the proposed investment. "There is a lot of work ahead in securing the West Memphis solar facilities for our customers, but we are confident that this is the best and most economical path for growing renewable energy in Arkansas," said Entergy Arkansas President and CEO Laura Landreaux.

Entergy also is proposing a solar plant in Livonia, Louisiana, which would generate 150 MW from PV panels. Entergy Louisiana is seeking permits for the project, which, if approved, would not begin construction until the summer of 2023 at the very earliest. Subscribers can learn more from Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.