PowerSecure announces 100% Renewable Fuel Initiative for Durham campus microgrid

Rhea-AI Summary

PowerSecure, a subsidiary of Southern Company (NYSE: SO), has announced a 100% Renewable Fuel Initiative for its Durham campus microgrid. The initiative, starting this month, will use hydrotreated vegetable oil (HVO) as a renewable fuel in the PowerBlock generator, part of the hybrid microgrid.

HVO, a high-quality fuel similar to conventional diesel, is produced through hydrotreatment of vegetable oils or renewable raw materials. This initiative aligns with PowerSecure's commitment to innovation, sustainability, and a clean energy future. CEO Chris Cummiskey emphasized the initiative's role in displacing carbon emissions and serving as a milestone for PowerSecure and its clients.

This move is part of PowerSecure's 'all of the above' energy strategy, designed to provide continued value to customers and communities in the rapidly evolving energy sector.

Positive

• Implementation of 100% Renewable Fuel Initiative at Durham campus microgrid
• Use of hydrotreated vegetable oil (HVO) as a sustainable fuel alternative
• Alignment with company's commitment to innovation and sustainability
• Potential for carbon emission displacement

Negative

• None.

Insights

Energy Solutions Expert

PowerSecure's shift to 100% renewable fuel for its Durham campus microgrid marks a significant step in sustainable energy solutions. The use of hydrotreated vegetable oil (HVO) as a renewable fuel source is particularly noteworthy. HVO's chemical similarity to fossil diesel allows for seamless integration without the need for blending or equipment modifications, making it an attractive option for existing infrastructure.

This initiative aligns with the growing trend of decarbonization in the energy sector. By displacing carbon emissions, PowerSecure is positioning itself as a leader in clean energy solutions. The move could potentially attract environmentally conscious clients and possibly lead to new business opportunities in the rapidly evolving energy landscape.

Environmental Analyst

The adoption of HVO in PowerSecure's microgrid is a positive environmental step. HVO production typically results in lower lifecycle greenhouse gas emissions compared to fossil fuels. However, it's important to consider the source of the vegetable oils used in HVO production. If not sourced sustainably, there could be concerns about land use changes or competition with food crops.

This initiative could serve as a model for other microgrids and energy providers, potentially accelerating the adoption of renewable fuels in the industry. The success of this project could influence policy decisions and market trends towards more sustainable energy solutions, benefiting both the company and the environment in the long run.

Financial Analyst

While the environmental benefits are clear, the financial implications of this initiative require careful consideration. The cost of HVO compared to conventional diesel will be a important factor in determining the long-term economic viability of this shift. If HVO prices remain competitive, it could lead to cost stability and potentially reduced operational expenses for PowerSecure.

This move could also enhance PowerSecure's market position and brand value, potentially leading to increased customer acquisition and retention. However, investors should monitor the impact on profit margins in the short term, as the transition may require initial investments. Long-term benefits could include reduced regulatory risks and potential access to green financing options, which could positively impact the company's financial outlook.

DURHAM, N.C., Aug. 29, 2024 /PRNewswire/ -- PowerSecure, a leading provider of innovative energy solutions and subsidiary of Southern Company, is proud to announce that its Durham campus microgrid will begin a 100% Renewable Fuel Initiative starting this month. This significant step aligns with the company's commitment to innovation and sustainability.

"PowerSecure continues to bring new innovation to our customers with a commitment to a clean energy future," said PowerSecure CEO Chris Cummiskey. "The use of renewable fuels is a forward-thinking solution with sustainability benefits, including the displacement of carbon emissions. The deployment of renewable fuel at our Durham campus microgrid represents a major milestone for PowerSecure and the energy users and producers we serve."

Under the 100% Renewable Fuel Initiative, the first step for the Durham site microgrid is to begin using hydrotreated vegetable oil (HVO) as its renewable fuel in the PowerBlock generator that is part of the hybrid microgrid.

HVO is a type of renewable fuel made from vegetable oils or renewable raw materials. Unlike traditional biodiesel, which is produced through a process called transesterification, HVO is created using a process called hydrotreatment. This involves treating the oils with hydrogen at high temperatures and pressures, resulting in a high-quality fuel that is very similar to conventional diesel in terms of performance and chemical structure. HVO is chemically identical to fossil diesel, allowing for a seamless substitution without requiring any blending, making it the cornerstone of this initiative.

The energy sector is rapidly evolving, driven by customer preferences, technological advancements and environmental initiatives. PowerSecure's "all of the above" energy strategy positions PowerSecure to provide continued value to its customers and communities in this dynamic landscape. Powering the Durham microgrid with 100% HVO is a critical component of this strategy, reflecting PowerSecure's commitment to innovation and sustainability.

About PowerSecure
PowerSecure, a subsidiary of Southern Company, stands at the forefront of the distributed energy infrastructure sector in the United States. With a rich history spanning two decades, PowerSecure's dedicated team of professionals has successfully developed, installed, managed and serviced over 2 gigawatts of microgrid capacity. This achievement underscores PowerSecure's commitment to advancing energy solutions that are both efficient and sustainable, having implemented energy efficiency upgrades valued at more than $900 million. To learn more, visit www.powersecure.com.

About Southern Company
Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women's Choice Award. To learn more, visit www.southerncompany.com.

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SOURCE PowerSecure

FAQ

What is PowerSecure's new 100% Renewable Fuel Initiative for its Durham campus microgrid?

PowerSecure has announced a 100% Renewable Fuel Initiative for its Durham campus microgrid, which will use hydrotreated vegetable oil (HVO) as a renewable fuel in the PowerBlock generator, starting August 2024.

How does the use of HVO in PowerSecure's microgrid benefit the environment?

The use of HVO as a renewable fuel in PowerSecure's microgrid can help displace carbon emissions, contributing to a more sustainable and cleaner energy future.

What is hydrotreated vegetable oil (HVO) and how does it compare to conventional diesel?

HVO is a renewable fuel made from vegetable oils or renewable raw materials. It is chemically identical to fossil diesel, allowing for seamless substitution without blending, while offering similar performance and chemical structure.

How does the Renewable Fuel Initiative align with PowerSecure's overall strategy?

The initiative is part of PowerSecure's 'all of the above' energy strategy, which aims to provide continued value to customers and communities in the rapidly evolving energy sector while focusing on innovation and sustainability.