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Hitachi Energy plans $37M expansion in Halifax County

Hitachi Energy Ltd. will invest $37 million to expand its operation in Halifax County, creating 165 jobs, Gov. Glenn Youngkin announced Wednesday.

The technology company will add 26,000 square feet to its existing facility in the county to make space for a new production line of large transformers to support the utility and renewable energy markets.

The existing facility opened in 1968 to service the distribution transformer market and in 2008, the plant added the capability to produce medium power transformers in addition to distribution transformers. The site has two buildings: the distribution transformer factory, which is 517,000 square feet and the power transformer factory, which is 90,000 square feet. The 26,000-square-foot addition will be to the power transformer factory.

The facility currently produces both distribution transformers and power transformers. Following the expansion, Hitachi will be able to produce larger power transformers that operate at higher voltages.

“These latest investments in the facility and equipment are intended to support the establishment of an additional 26,000 square feet of production space for addressing the increased demands of renewable power generation, among other fast-growing markets. The 26,000 square feet. will be added to an existing building devoted to the production of power transformers, a Hitachi spokesperson told Virginia Business.

“Hitachi Energy’s ambitious expansion in Halifax County represents a strong commitment and tremendous vote of confidence in the commonwealth of Virginia as a great place to do business,” Youngkin said in a statement. “Hitachi Energy has been an important, long-standing employer in Southern Virginia for nearly 50 years, and we are thrilled the company will create additional good-paying jobs in the community.”

The company’s North American headquarters are in Raleigh, North Carolina, and it has 4,600 employees in the region, with more than 720 in Virginia and 370 in Halifax County. The 165 new jobs will be in skilled manufacturing, but the company also has staff in a variety of other functions at the facility.

Hitachi serves customers in the utility, industry and infrastructure sectors. The company’s global headquarters is in Switzerland and it employs about 38,000 people across 90 countries.

“We are pleased to see global manufacturers like Hitachi Energy expanding their footprint in Southern Virginia,” Virginia Port Authority CEO and Executive Director Stephen A. Edwards said in a statement. “As The Port of Virginia moves forward on its goal of becoming carbon-neutral [by 2040], we look forward to providing a supply chain solution for a company that will deliver a sustainable energy future for all. When we work with like-minded businesses like Hitachi, we see opportunities to grow and learn.”

The Virginia Economic Development Partnership worked with Halifax County and the Halifax County Industrial Development Authority to secure the project for Virginia. Youngkin approved a $511,500 grant from the Commonwealth’s Opportunity Fund to assist Halifax County with the project. The Virginia Tobacco Region Revitalization Commission also approved a grant for $220,000 from the Tobacco Region Opportunity Fund for the project.

Hitachi is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone grant program, as well as state benefits from the Virginia Enterprise Zone program, administered by the Virginia Department of Housing and Community Development. Funding and services to support Hitachi Energy’s employee training activities will be provided through VEDP’s Virginia Jobs Investment Program.

Charlotte County approves Va.’s largest solar farm

The largest solar project in Charlotte County — and Virginia, according to Dominion Energy Inc. — was approved by the county’s Board of Supervisors in July.

Reston-based utility-scale solar developer SolUnesco LLC received a conditional-use permit to build the $800 million to $1.6 billion Randolph Solar project in the southern part of the county. SolUnesco plans to sell the solar farm to Dominion, which would construct and operate the facility. It is expected to generate 800 megawatts — enough energy to power 200,000 homes. Dominion hopes to break ground in 2025 and bring the project online in 2027.

SolUnesco signed agreements with more than 150 landowners who collectively own more than 1,000 parcels that make up the site of the planned solar farm. About 4,500 of the 21,000 acres will be fenced in, surrounding the solar panels and equipment, which will sit on roughly 3,000 acres.

The project was a topic of debate in Charlotte for the past year. SolUnesco submitted the application for the project in June 2021 and spent the next year working with county officials to make the project more acceptable.

SolUnesco has received approval for seven other solar projects, all of which have been sold to energy companies, including Dominion, which acquired three of the properties. Two of the seven projects SolUnesco previously sold are already operating in Henry and Greensville counties, generating 20 megawatts and 60 megawatts, respectively. The five other solar farms are in various stages of development in Albemarle, Charlotte, Gloucester, Mecklenburg and Orange counties.

Over Randolph Solar’s 35-year lifespan, Charlotte County will receive about $314 million in payments and fees associated with the project, according to County Administrator Daniel Witt. It’s a sizeable amount for a county with a typical annual budget range of $26 million to $38 million, excluding public schools funding.

Randolph Solar won’t be the first solar project in Charlotte. Twitty’s Creek Solar, a 134-acre, 15-megawatt project, has been operating since December 2020. Developed by Holocene Clean Energy, Twitty’s Creek is owned by Alchemy Renewable Energy. Another Holocene project, the 105-acre, 5-megawatt Red House Solar, became operational this summer.

Charlotte has approved three more projects: Moody Creek Solar, a 1,653-acre, 150-megawatt project from SolUnesco; Courthouse Solar, a 1,318-acre, 167-megawatt solar farm; and Tall Pines Solar, a 240-megawatt, 2,086-acre project.

Fluence announces next CEO, president

Julian Nebreda will become Arlington-based energy storage and digital applications company Fluence Energy Inc.’s president and CEO on Sept. 1.

Nebrada succeeds Manuel Pérez Dubuc, who will step down on Aug. 31. Nebreda has been a Fluence board member since September 2021 and was most recently executive vice president and president of U.S. & Global Business Lines for Arlington-based Fortune 500 energy company AES Corp., a role in which he was responsible for the growth of AES’ renewables in the U.S.

AES co-founded Fluence as a joint venture with global industrial manufacturing conglomerate Siemens AG in 2018. Valued at more than $1 billion, the unicorn company launched its initial public offering in October 2021 and is on track to post fiscal 2022 revenue of $1.1 billion. Fluence announced late last year that the Qatar Investment Authority would invest $125 million in the company, with AES and Siemens retaining approximately 44% shares each of the company.

Fluence specializes in energy storage technology and associated services and solutions to complement renewable energy projects such as wind and solar farms. Its products include an artificial intelligence-driven technology platform for managing and bidding on energy assets. The company has 4,800 megawatts of energy storage across 185 storage projects deployed, under contract or under management in 30 markets worldwide.

“I am honored to lead Fluence into the next phase of its maturity and growth,” Nebreda said in a statement. “The potential of this company is tremendous and Fluence is well positioned to capitalize on the broader energy transition. As we take Fluence to the next level of success, we will focus on delivering sustainable profitability, while continuing to capture the growth offered by our young industry.”

 

SCC approves Dominion’s $9.8B offshore wind farm

The State Corporation Commission has approved Dominion Energy Inc.’s application for the proposed $9.8 billion Coastal Virginia Offshore Wind Project (CVOW), which calls for the construction of 176 wind turbines 27 miles off the coast of Virginia Beach.

The Richmond-based Fortune 500 utility has already erected two pilot turbines for its 2.6-gigawatt Coastal Virginia Offshore Wind (CVOW) project. Installation of the wind turbines is expected to begin in 2024. When completed in 2026, the CVOW project will be the nation’s largest offshore wind farm, powering up to 660,000 homes with renewable energy.

The SCC also approved the electric interconnection and transmission facilities to connect CVOW with the existing transmission system.

“Following a full proceeding, the commission found, as directed by the General Assembly, that construction of CVOW is in the public interest,” the SCC wrote in a news release announcing the approval.

It will likely be the largest capital investment and single largest project in the history of Dominion Energy Virginia, according to the SCC. 

“Our customers expect reliable, affordable energy, and offshore wind is key for delivering on that mission. We are very pleased that the commission has approved this important project that will benefit our customers,” Dominion Energy Chairman, President and CEO Robert M. Blue, said in a statement.  “We are reviewing the specifics of the order, particularly the performance requirement.” 

$14 monthly electric bill hikes

With the approval of the wind farm, the SCC also approved a revenue requirement of $78.702 million for the rate year from Sept. 1, 2022, through Aug. 31, 2023, to be recovered through rate increases to Dominion’s customers. 

“Over the projected 35-year lifetime of the project, for a residential customer using 1,000 kilowatt-hours of electricity per month … [it] is projected to result in an average monthly bill increase of $4.72 and a peak monthly bill increase of $14.22 in 2027. The rate adjustment clause is effective for usage on and after Sept. 1.”

However, the SCC wrote in its ruling: “In so finding that these costs must be recovered from customers, the commission is also keenly aware of the ongoing rise in gas prices, inflation and other economic pressures that are impacting all utility customers. This is a prescriptive statute, and we applied it based on the record in this case.”

The SCC ordered consumer protections, including that Dominion must file a notice within 30 days if the offshore wind farm’s cost is expected to exceed the current estimate or if the final turbine installation is delayed beyond Feb. 4, 2027. Dominion must also inform the SCC about any material changes to the project and says “customers shall be held harmless for any shortfall in energy production below an annual net capacity factor of 42% as measured on a three-year rolling average.” 

“The final order from the SCC affirms that CVOW meets all Virginia statutory requirements for rider cost recovery and the issuance of a Certificate of Public Convenience and Necessity for the onshore infrastructure. The order also includes a performance requirement, but does not outline the details surrounding that requirement,” Dominion noted in a news release. 

Harrison Godfrey, managing director of Virginia Advanced Energy Economy, an industry association that has supported Dominion’s proposal, applauded what it called the SCC’s attempts to protect ratepayers by requiring Dominion to provide notices if the wind farm’s total costs exceed estimates as well as requiring the utility to deliver project updates to the commission on any material changes or cost overruns. 

Dominion submitted its application to the SCC in November 2021. The offshore wind farm had been previously estimated to cost $7.8 billion but that cost was increased by $2 billion late last year. Bob Blue, the Richmond-based Fortune 500 utility’s chair, president and CEO attributed the increase to rising commodities expenses and general cost pressures across a number of industries due to inflation. He also cited the need to build about 17 miles of new transmission lines and other associated infrastructure for the project.

East Coast supply chain hub

The project is expected to attract significant investments to Hampton Roads while spurring as many as 900 construction jobs and 1,100 jobs in operations and maintenance, Hampton Roads Alliance President and CEO Doug Smith told Virginia Business. 

“This country is building an industry from scratch, that is the offshore wind industry,” Smith said. “Dominion’s project represents an opportunity for Virginia, and candidly, Hampton Roads, in particular, to be on the forefront of that new industry. What that will allow us to do is to begin to build the supply chain hub for the East Coast and build upon the strengths of a very skilled workforce and maritime industrial base that very few other regions have.”

Virginia Advanced Energy Economy has estimated that the offshore wind industry will add 5,000 jobs to the commonwealth over time.  

Hampton Roads, already home to skilled shipbuilders who build and maintain naval ships across its various shipyards, including Huntington Ingalls Industries’ Newport News Shipbuilding division, has been preparing for the needs of an offshore wind workforce. Earlier this year, the Hampton Roads Workforce Council launched its Hampton Roads Strong campaign in partnership with local community colleges and the Virginia Ship Repair Association to recruit workers to the maritime trade, skills that are transferable to the needs of offshore wind, said the workforce council’s president and CEO, Shawn Avery. 

News of the SCC’s approval also comes a day after the U.S. Department of Commerce announced it was granting $11 million to the workforce council to invest in workforce development. 

“This grant couldn’t come at a better time to help develop the workforce,” Avery told Virginia Business Friday. “What it’s really going to do is increase the capacity to put training in place. It’s got a lot of funding in it for recruitment of individuals. … It’s really developing a system that’s going to meet the needs of the offshore wind industry and the shipbuilding/ship repair industry and anything else we need to happen.”

Though construction of the wind farm isn’t expected to begin until 2024,  Siemens Gamesa Renewable Energy S.A., a Spanish wind turbine company, is already investing $200 million to build the first U.S. offshore wind turbine blade manufacturing facility at the Port of Virginia’s Portsmouth Marine Terminal. Siemens Gamesa will make 176 14.7-megawatt turbines to be installed in the Dominion wind farm’s 112,800-acre commercial lease area. Construction of the factory is expected to be complete in early 2023, bringing with it 310 jobs. 

Reaching net-zero

The CVOW will help Virginia reach its target, codified in the Virginia Clean Economy Act (VCEA), of having 100% carbon-free energy production by 2045, and Dominion Energy’s goal of reaching net-zero carbon and methane emissions by 2050. President Joe Biden’s administration has set a 2030 target to establish 30,000 megawatts of offshore wind power capacity.

The VCEA mandates that all electricity consumed in the commonwealth must have zero carbon emissions and be generated from renewable energy sources by 2050. It also requires stringent energy-efficiency standards that are projected to generate as much as $3,500 in savings for the average Virginia household over the next 30 years, according to a study by Advanced Energy Economy, an industry trade association. 

Although Republicans wield more power in Richmond this year and have expressed dissatisfaction with the VCEA, utilities do not expect significant changes to the law.

 

BWXT appoints new president of nuclear operations

The new president of BWX Technology’s Nuclear Operations Group Inc. spent three decades working for the Navy as a civilian.

Sharon H. Smoot started her new position Aug. 1. She is responsible for the BWXT subsidiary’s mission to provide a range of nuclear components and services, including manufacturing reactor components for Navy submarines and aircraft carriers as well as nuclear and non-nuclear research and development and component production, the Lynchburg-based Fortune 1000 defense contractor said in a news release.

“Sharon brings not only proven executive leadership in large, complex industrial and naval operations, but also a reputation for delivering results while inspiring confidence in customers and employees,” Kevin McCoy, president of BWXT’s government operations, said in a statement. “Her successful career within the highest levels of the U.S. Navy across fiscal, policy, nuclear industrial operations and technical functions will be highly valuable in effectively managing our nuclear production facilities in the U.S.”

Smoot spent more than 30 years working for the Navy as a civilian, most recently as executive director for logistics, maintenance and industrial operations for the Naval Sea Systems Command. She also held positions of increasing responsibility in the Office of the Chief of Naval Operations, U.S. Fleet Forces Command and at Norfolk Naval Shipyard. She earned a master’s degree in engineering management from Old Dominion University and a bachelor’s degree in electrical engineering from Virginia Tech. She succeeds Joel W. Duling, who has retired.

BWXT has approximately 6,600 employees across the United States and Canada, as well as joint ventures at more than a dozen Energy Department and NASA facilities.

Hanley Energy to add 343 jobs in Ashburn

Irish energy management company Hanley Energy will invest $8 million to expand its Hanley Energy Electrical division in Loudoun County, a project expected to create 343 jobs, Gov. Glenn Youngkin announced Thursday.

Hanley Energy will open a facility at 44381 Russell Branch Parkway to serve the data center market in Ashburn with equipment installation and service. Electricians and apprentice electricians will be among the new positions.

“Virginia has emerged as one of North America’s premier locations for technology, and Loudoun County is the epicenter of the data center industry. This contribution is a perfect fit for Hanley Energy and its vital services that keep this sector growing,” Youngkin said in a statement.

Hanley Energy provides critical power and energy management solutions. It specializes in designing and building turnkey solutions to deliver power from the grid to data center IT racks.

The company has operated in Ireland for 13 years, and it established its U.S. headquarters in Loudoun County in 2016.

Hanley Energy CEO Clive Gilmore said, “We are greatly looking forward to moving into our new facility next month. This impressive facility will increase our output, range of products and services to our ever-growing U.S. market.”

The Virginia Economic Development Partnership worked with Loudoun County to secure the project for Virginia. VEDP will support Hanley Energy through the Virginia Jobs Investment Program, which provides consultative services and funding to support employee recruitment and training to companies creating jobs.

Derivatives exchange company to create 37 jobs in Fairfax

Tysons-based derivatives exchange company Nodal Exchange will invest $300,000 to expand its Fairfax County headquarters, creating 37 jobs, Gov. Glenn Youngkin announced Thursday.

The company will increase capacity at its headquarters, located at 1921 Gallows Road in Tysons.

“Nodal Exchange offers the largest suite of power and environmental contracts in the world, and we are proud that this Virginia-grown business manages risk in such a critical market, resulting in impressive growth at its headquarters in Fairfax County,” Youngkin said in a statement.

Founded in 2007, Nodal Exchange is part of EEX Group, a group serving international commodity markets. Nodal Exchange offers more than 1,000 power contracts. The company also offers natural gas and environmental contracts, and its wholly-owned subsidiary, Nodal Clear, is registered with the Commodity Futures Trading Commission as a derivatives clearing organization.

“Nodal Exchange was founded in Fairfax County, Virginia, which we believe is an ideal location for attracting and retaining an outstanding professional team necessary for operating a derivatives exchange and clearing house. … It is a wonderful location with a highly educated and diverse workforce,” Nodal Exchange and Nodal Clear Chairman and CEO Paul Cusenza said in a statement.

The Virginia Economic Development Partnership worked with the Fairfax County Economic Development Authority to secure the project for Virginia. The VEDP will support Nodal Exchange through the Virginia Jobs Investment Program, which provides consultative services and funding to support employee recruitment and training to companies creating jobs.

BWXT subsidiary to build first U.S. nuclear microreactor

BWXT Advanced Technologies LLC, a subsidiary of  Lynchburg-based nuclear components and fuel supplier BWX Technologies Inc., will build the first advanced nuclear microreactor in the United States under a $300 million contract awarded by the Department of Defense’s Strategic Capabilities Office, the company announced Thursday.

In March 2021, BWXT was chosen as one of two companies to develop a final prototype design.

The transportable reactor prototype, known as Project Pele, is set to be delivered in 2024 and then tested at the Idaho National Laboratory for three years. The nuclear microreactor will be built in facilities in Lynchburg and Euclid, Ohio. Over the next two years, BWXT expects 120 employees to work on the project, including 40 skilled tradespeople, engineers and other people hired to support the effort.

According to the DOD, the development of a small, transportable nuclear reactor would allow the agency to reduce its carbon emissions and provide tools for disaster relief and critical infrastructure support. The DOD uses approximately 30 terawatt-hours of electricity per year and more than 10 million gallons of fuel per day.

“We are on a mission to design, build and test new nuclear technology to protect the environment while providing power, and we are thrilled with this competitively bid award after years of hard work by our design and engineering team,” BWXT Advanced Technologies President Joe Miller said in a statement. “The entire nuclear industry recognizes that advanced reactors are an important step forward to support growing power needs and significant carbon reduction imperatives.”

Project Pele is a whole-government project with oversight by the U.S. Army, the Department of Energy, the Nuclear Regulatory Commission, NASA and the National Nuclear Security Administration.

The objective is to design, build and demonstrate a prototype mobile nuclear reactor within the next five years, following the Defense Science Board (DSB) study recommendations, according to the office of the Under Secretary of Defense, Research and Engineering. It will provide a resilient power source to the DoD for a variety of operational needs that have in the past relied on fossil fuel deliveries and extensive supply lines. Instead, the microreactor will deliver clean, carbon-zero energy.

The prototype will operate on a power level of one to five million watts of electric capacity and will be transportable in shipping containers via road, rail, air or sea. It will be powered by fuel that can withstand extreme heat with very low environmental risks, according to BWXT. The whole system is designed to be assembled on-site and be operational within 72 hours.

While BWXT is the prime contract and integration lead, other companies on the team are Falls Church-based Northrop Grumman Corp., Aerojet Rocketdyne, Rolls-Royce LibertyWorks and Troch Technologies Inc.

In 2020, BWXT was chosen by the Department of Energy to design and develop a small nuclear reactor as part of a $106.6 million project. The contractor has approximately 6,600 employees across the United States and Canada, as well as joint ventures at more than a dozen Energy Department and NASA facilities.

SW community colleges to create wind manufacturing workforce

The presidents of four community colleges in Southwest Virginia signed a memorandum of understanding Wednesday to establish a wind manufacturing workforce development partnership.

“Today’s MOU signing is meaningful because it demonstrates our resident and abiding interest in collaborating. Our four community college presidents are setting an example of how to find ways to work together over significant opportunities that can empower the region as a whole,” said Will Payne, managing partner of Coalfield Strategies LLC and project lead for InvestSWVA.

Mountain Empire Community College, Southwest Virginia Community College, Virginia Highlands Community College and Wytheville Community College “will work together to promote, develop and expand the training and development of a workforce prepared to enter” the supply chain manufacturing workforce in the offshore wind energy field, the MOU states.

“We are realistic about the number of people ready to go to work in manufacturing,” Wytheville Community College President Dean Sprinkle said in a statement. “As a result, we see the wind energy sector as an exciting and compelling path for people who may be ‘on the fence’ about a manufacturing career. Training workers and inspiring them to live and work in our region are elements of our mission in community colleges, and this is an enticing opportunity.”

InvestSWVA commissioned Aberdeen, Scotland-based energy consulting firm Xodus Group Ltd. to perform research for Project Veer, its initiative to help Southwest Virginia manufacturers find entry points in the supply chain for wind energy equipment components announced in December 2021. The firm recommended that regional community colleges sign an MOU formalizing their collaboration, and that the project’s members identify a “major tier company” to act as an anchor and help pave the way to form relationships with global equipment manufacturers

With the MOU signed, the next step in the process is for the colleges to form a leadership team with a senior official and at least one other representative from each college. The stakeholders will work closely with the commerce and trade secretariat, the Virginia Economic Development Partnership, the Virginia Department of Energy and legislators to identify the “major tier company.”

“We accelerated the pace of this first phase of Project Veer from six months to three, so that we could spend the next three months building a timeline around the MOU, a potential partnership with the Hampton Roads Alliance and figuring out how we coordinate centrally to seize this opportunity,” Payne said.

The other chief recommendations of Xodus Group’s report are for the project’s members to form such a partnership with the Hampton Roads Alliance, designate a regional entity to act as a single point of entry into offshore wind and coordinate an approach to retain the next generation of workers, including highlighting the advantages of offshore wind careers.

“Virginia’s Southwest is an answer, a resource and the place to be for wind energy manufacturers looking for business partners who can satisfy market demand in a quality fashion,” Payne said. “The agreement we announce today is foundational to our success not just in the wind energy industry but to our ability to rally around opportunity, together. The presidents of our community colleges are setting a great example.

“This is beyond brainstorming — it’s about action — and they are the catalysts,” he said.

Davenport Energy promotes Harold Thornton to president

Chatham-based Davenport Energy Inc. has promoted Harold E. “Hal” Thornton Jr. to president, the company announced Tuesday.

Thornton has been with Davenport, a provider of gas, diesel fuel propane and petroleum products, for 27 years. He was initially hired as human resources director in 1995, rising through the ranks to supervisory and management positions. Most recently he was executive vice president, a role he has held since 2002. His vice president role will not be filled, according to a company spokesman. Before he joined Davenport, Thornton worked for North American Locating Inc.

“Hal has been a key part of our success, and we are thrilled to promote him to this important position,” Davenport CEO Lewis E. Wall Jr. said in a statement.

Davenport was founded in 1941 and is a family-owned company. Benjamin J. Davenport Jr., whose father founded the company, is now chairman, and Wall is his cousin. The company employs 150 people and has offices in Danville, Gretna, Rocky Mount, Martinsville, Roanoke, South Boston, Covington and Siler City, North Carolina. It supplies propane and fuel oil, along with related services to more than 30,000 customers in Virginia, North Carolina and West Virginia and gasoline and diesel fuel to more than 200 convenience stores.

 “Davenport Energy Inc. has been my work home for nearly 27 years,” Thornton said. “The excitement of watching the company flourish is only matched by the day-to-day honor of being a member of Team Davenport. I am grateful for the opportunities afforded me and look forward to Davenport Energy’s continued success.”