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Texas: Wind and solar stake claim to land of oil

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Employees of the French energy company Engie inspect wind turbines in a new project in Dawson, Texas, on February 28, 2023
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Modern Texas was built on oil, and its production has long been a source of immense pride. But now, areas that moved to the steady rhythm of oil derricks for more than a century are making the state a national leader in wind and solar energy.

A convergence of factors has led to this unexpected result: favorable weather (lots of wind and sun), relatively cheap land, the lure of federal clean-energy subsidies, and a desire to backstop a utility system that failed dramatically during a 2021 cold snap.

Two counties south of Dallas, Navarro and Limestone, symbolize this surprising shift. Inextricably part of the Texas petroleum industry since the late 19th century, they are now in the vanguard of the renewable revolution.

Wind and solar projects “have Navarro County leading the nation with renewables,” said the county’s economic development director, John Boswell. 

Symbolizing this push is a new wind farm inaugurated last week by French multinational energy company Engie, with 88 wind turbines capable of producing 300 megawatts (MW) of power.

A half-hour’s drive to the west, in the small town of Abbott, is a 250 MW solar farm, also built by Engie, that is now producing electricity. 

Texas is the nation’s leader — by far — in providing clean energy to corporate and industrial buyers, at 35 percent of the national total, according to the American Clean Power organization.

The state of Ohio has about half Texas’s number of corporate and industrial projects, just ahead of California in third place. 

“It’s true that when we think about Texas, we think about this very large oil and gas state,” said Engie executive Frank Demaille. 

But, he added, its natural resources are not all buried in the ground. 

“They’ve got lots of wind, lots of sun, and are very good at managing all their different resources.”

– Plentiful resources –

With its huge and sprawling petrochemical industry,  a population of 30 million, and a fierce history of independence, Texas in many ways stands apart from the rest of the country — for better or for worse.  

One way its go-it-alone mentality did not help became apparent in 2021, when a rare and intense cold wave swept through the state — whose power utility was not connected to two major national grids — provoking electric outages that affected millions and were blamed for more than 200 deaths.

Texas today remains primarily dependent on fossil fuels. As of early this year, gas was its leading source of energy (at 42 percent, according to Ercot, which manages the state’s electrical grid). Coal trails at 11 percent. 

But renewable sources have carved out a major role.

Wind-generated power now provides 29 percent of Texas’s needs, with solar at 11 percent. The remainder comes from nuclear and hydropower.  

By comparison, wind was at 24 percent just two years ago, and solar at less than 5 percent.

Given Texas’s deep investments in and long history with carbon-based energy, experts don’t expect it to give way to renewables anytime soon.

“I think what you’ll see in the future is a combination of both of those, because Texas is committed to both” sources, said Jeff Montgomery, whose Blattner Energy company is behind 400 renewable projects across the country.

Texas is a major supplier of natural gas to Europe. And now, said Demaille of Engie, “because of the war in Ukraine, we’re importing more gas from the US, and especially from Texas.”

Meantime, however, legislation backed by the Biden administration and voted into law last year could accelerate the move to renewables through substantial federal subsidies.

– ‘Show the value’ –

Robert Lowry, superintendent of the Coolidge school district in Limestone County, said the tax revenues that renewable-energy projects generate can make a difference for school systems like his.

“We have the funds now to be able to do some great things for our kiddos that we’ve ever had before,” he said.

But not everyone shares that enthusiasm.

John Null, an engineer who lives near Dawson, said locals aren’t seeing the immediate benefit they would hope for from the huge wind turbines visible from his window.

During an ice storm last month, for example, the turbines kept turning but, linked to a broader network, provided no energy to the neighboring community. 

He said wind power needs to be “properly pitched” to the public.

“Show me the value,” he said, and people would support wind energy.

In some areas, renewable projects are touted as providing power to poorer neighborhoods.

In a less-affluent part of Houston, the fourth-largest US city, a solar farm is to be built over a former dump. That project should begin providing 50 MW of power in 2024, said BQ Energy CEO Paul Curran. 

A former petroleum industry executive, Curran says fossil fuels and renewable energy sources need not be in competition.

“It’s not very difficult if you do wind and solar in the right places for the right market,” he said.

“It’s very well received by energy experts and oil industry people.”

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ByteDance says ‘no plans’ to sell TikTok after US ban law

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A new US law requires TikTok to sever all ties with its Chinese parent ByteDance or face a ban in the United States
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Chinese tech giant ByteDance has said it has no plans to sell TikTok after a new US law put it on a deadline to divest from the hugely popular video platform or have it banned in the United States.

US lawmakers set the nine-month deadline on national security grounds, alleging that TikTok can be used by the Chinese government for espionage and propaganda as long as it is owned by ByteDance.

The Information, a tech-focused US news site, reported that ByteDance was looking at scenarios for selling TikTok without the powerful secret algorithm that recommends videos to its more than one billion users around the world.

ByteDance denied it was considering a sale.

“Foreign media reports about ByteDance exploring the sale of TikTok are untrue,” the company posted Thursday on Toutiao, a Chinese-language platform it owns.

“ByteDance does not have any plans to sell TikTok.”

TikTok has been a political and diplomatic hot potato for years, first finding itself in the crosshairs of former president Donald Trump’s administration, which tried unsuccessfully to ban it.

It has forcefully denied any link to the Chinese government, and said it has not and will not share US user data with Beijing.

TikTok says it has also spent around $1.5 billion on “Project Texas”, under which US user data would be stored in the United States.

Its critics say the data is only part of the problem, and that the TikTok recommendation algorithm — the “secret sauce” for its success — must also be disconnected from ByteDance.

TikTok CEO Shou Zi Chew has said the company will take the fight against the new law to the courts, but some experts believe that for the US Supreme Court, national security considerations could outweigh free speech protection.

– Bullish investors –

The estimated valuations of TikTok are in the tens of billions of dollars, and any forced sale would present major complications.

Among those with deep enough pockets, US tech giants such as Instagram-parent Meta or Google would likely be blocked from buying the app over competition concerns.

Further, many investors consider TikTok’s recommendation algorithm to be its most valuable feature.

But any sale of such technology by a Chinese company would require approval from Beijing, which designated such algorithms as protected technology following Trump’s attempt to ban TikTok in 2020.

Beijing has so far vocally opposed any forced sale of TikTok, saying it will take all necessary measures to protect Chinese companies.

While TikTok is a global phenomenon, it represents a small fraction of ByteDance’s revenue, according to analysts and investors. 

ByteDance has enjoyed explosive growth in recent years, becoming one of the most valuable companies in the world. Its international investors, including US firms General Atlantic and SIG as well as Japan’s SoftBank, have stakes worth billions.

“TikTok US is a very small part of the overall business. It is an exciting part of the story, for sure, but… relative to the overall size, it’s a very small part,” ByteDance investor Mitchell Green, of US-based Lead Edge Capital, told CNBC television last month.

“If it was kicked out of the US, we would not sell.”

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Five things we learned at the China Auto Show

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The consumer tech giant is the latest entrant to China's cut-throat EV market, with its new SU7 model the star of the show
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One of China’s largest auto shows kicked off in Beijing on Thursday, with electric vehicle makers keen to show off their latest designs and high-tech accessories to consumers in the fiercely competitive market.

Here are the key developments from Auto China’s first day of action:

– Xiaomi –

The consumer tech giant is the latest entrant to China’s cut-throat EV market, with its new SU7 model the star of the show.

Less than one month after its launch, almost 76,000 pre-orders have been placed, Xiaomi said, an accumulation of orders that will take months to deliver given its current production capacity.

Xiaomi boss Lei Jun was swarmed at Auto China on Thursday by legions of loyal fans, eager to follow the entrepreneur’s every move around the convention complex.

– XPeng –

Among car giant Tesla’s main rivals in the Chinese market is XPeng, which announced plans to begin large-scale deployment of AI-assisted driving in its vehicles in May.

“The AI learns the driver’s habits and can then imitate their driving” and enhance security, company boss He Xiaopeng told an audience while presenting the X9, a seven-seater “so spacious it can accommodate five bicycles in its trunk”.

– CATL –

Also present at the show was Chinese battery giant CATL, founded in 2011 in the eastern city of Ningde and now the undisputed global leader in EV batteries.

Its factories produce more than a third of car batteries sold worldwide and are equipped in models from a long line of foreign manufacturers including Mercedes, BMW, VW, Tesla, Toyota, Honda and Hyundai.

Responding Thursday to one of the main criticisms of EVs — long charging times that restrict mobility — CATL announced a remedy: “Shenxing Plus”, an ultra-fast battery pack that the firm says earns one kilometre (0.62 miles) in range for every second of charging.

– Nio –

In contrast to much of the EV industry, Chinese automaker Nio focuses on battery-swap technology rather than recharging individual vehicles.

The Shanghai-based firm founded 10 years ago said Thursday it had accumulated nearly 2,500 battery swapping points across China.

Nio also presented its ET7, a sedan model the firm claims has a range of 1,000 kilometres.

– Tencent-Toyota alliance –

Japanese auto-making juggernaut Toyota also announced Thursday that it would join hands with Chinese tech and gaming giant Tencent in AI, a bid to capitalise on local consumers’ increasing appetite for advanced smart car features.

The cooperation will apply to Toyota vehicles sold in China, said Toyota, which like other foreign manufacturers, has struggled to keep up in the ultra-competitive market as the industry shifts to electric.

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US to give Micron $6.1 bn for American chip factories

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US lawmakers have approved billions of dollars to support the onshoring of semiconductor production
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Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, the White House said Thursday.

The award, to be announced by President Joe Biden as he travels to Syracuse, New York, is the latest in a series of efforts by Washington to bring semiconductor production back to the country.

The United States has been working to ensure its lead in the chip industry, especially with regards to the development of artificial intelligence — both on national security grounds and in the face of competition with China.

The investment will help Micron “bring back leading-edge memory chip manufacturing to the United States for the first time in 20 years,” Chuck Schumer of New York, the Senate majority leader, told reporters.

The $6.1 billion in direct funding comes under the CHIPS and Science Act, a major package of funding and tax incentives passed by Congress in 2022 to boost research and US semiconductor production.

The White House said the funds will go to supporting construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron is headquartered.

The US Commerce Department will also make up to $7.5 billion in proposed loans available under a preliminary deal.

Micron is set to invest up to $125 billion across both states over the next two decades “to build a leading-edge memory manufacturing ecosystem,” according to the White House.

The US chipmaker’s total investment is due to create more than 70,000 jobs, including 20,000 direct construction and manufacturing roles.

– Supply chain shocks –

While semiconductors were invented in the United States, the White House noted that the country makes just around 10 percent of the world’s chips now — and “none of the most advanced ones.”

Micron CEO Sanjay Mehrotra called the step a “historic moment” for US semiconductor manufacturing, saying its US investments will “create many high-tech jobs.”

“Leading-edge memory chips are foundational to all advanced technologies,” said Commerce Secretary Gina Raimondo.

She added that returning the development and production of advanced memory semiconductor technology to the country is “crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.”

Chips are needed in powering everything from smartphones to fighter jets, and are increasingly in demand by automakers, especially for electric vehicles.

But the global chip industry is dominated by just a few firms, including TSMC in Taiwan and California-based Nvidia.

The United States is dependent on Asia for chip production, making it vulnerable to supply chain shocks, such as during the Covid-19 pandemic or in the event of a major geopolitical crisis.

“We’re already seeing AI revolutionize our world and grow at an unprecedented pace,” said Schumer. 

“We cannot, cannot have these chips made overseas, especially by competitors like China. We cannot have them be the only supplier,” he added.

Apart from the grants to Micron, Biden is also expected to announce four new “workforce hubs” in the Upstate New York region, the state of Michigan, as well as the cities of Philadelphia and Milwaukee.

According to senior government officials, such hubs are a way to spur more commitments from employers and educational institutions.

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