SEMPRA INFRASTRUCTURE, ENTERGY LOUISIANA SIGN MOU TO ADVANCE RENEWABLE ENERGY
- Companies to collaborate on developing options for renewable energy procurement for Sempra Infrastructure affiliated facilities
Jan 27, 2022
SAN DIEGO, Jan. 27, 2022 /PRNewswire/ -- Sempra Infrastructure, a subsidiary of Sempra (NYSE:SRE) (BMV:SRE), announced today it has entered into a memorandum of understanding (MOU) with Entergy Louisiana, LLC to develop options designed to accelerate the deployment of renewable energy to power Sempra Infrastructure's facilities in the state.
"Electrification of industrial processes, increasing Louisiana's renewable and zero carbon electricity resources, and becoming a leader in the deployment of carbon sequestration, are three of the pillars that are critical to ensuring our success in a net-zero world," said Louisiana Governor John Bel Edwards. "I applaud companies like Sempra Infrastructure and Entergy Louisiana that are working to help make this vision a reality."
The MOU is non-binding and sets forth a framework for Entergy Louisiana and Sempra Infrastructure to collaborate on developing additional options for renewable energy procurement for Sempra Infrastructure affiliated facilities, subject to the ultimate approval of the Louisiana Public Service Commission and, with respect to Cameron LNG, its joint venture partners. The MOU also provides for collaboration for the potential reduction of methane emissions upstream of Sempra Infrastructure facilities.
"We have long valued Entergy Louisiana as a critical partner in our efforts to build world-class infrastructure that creates economic opportunity for the state while also providing lower carbon-natural gas and energy security to the world," said Lisa Glatch, president of LNG and Net-Zero Solutions for Sempra Infrastructure. "As we look towards electrifying our next generation of facilities and enabling new net-zero solutions like carbon sequestration, we are immensely excited about the opportunity to explore how we can jointly accelerate the deployment of renewable energy to power these new technologies."
Sempra Infrastructure owns a 50.2% interest in Cameron LNG, a 12 million tonnes per annum (Mtpa) liquefied natural gas export facility operating in Hackberry, Louisiana and is working with the Cameron LNG joint venture partners to develop a cost-effective and lower-emission potential expansion of the facility. The proposed Cameron LNG expansion would include an additional liquefaction train with an offtake capacity of approximately 6.75 Mtpa that would utilize electric compression, equivalent to adding approximately 300 megawatts (MW) of demand to the Entergy Louisiana system.
"Entergy Louisiana is excited to partner with one of the nation's leading energy infrastructure companies to work to reduce emissions through clean electrification and integration of renewable energy into their operations. The annual electricity consumption of a high load factor industrial facility, like the proposed Cameron LNG expansion, is equivalent to the output of approximately 900 MW of renewable energy capacity," said Phillip May, president and CEO of Entergy Louisiana. "Entergy is focused on helping industrial customers like Sempra Infrastructure meet their sustainability goals, and the progress we've made removing carbon emissions from our own generating fleet benefits our customers and the environment."
In 2021, Entergy announced plans to triple its renewable energy portfolio over a three-year period, as well as achieve 11 gigawatts of renewable energy by 2030. These investments make Entergy well-positioned to provide the significant amounts of renewable energy Sempra Infrastructure contemplates using in Louisiana. Additionally, Entergy has its own emissions reduction goals, including cutting in half its baseline carbon emissions rate by 2030, which is expected to be achieved several years sooner than originally planned, and achieving net-zero carbon emissions by 2050.
In addition to owning other natural gas infrastructure in Louisiana, Sempra Infrastructure is developing a new high-deliverability natural gas storage facility and a carbon sequestration facility in southwest Louisiana. Sempra Infrastructure owns one of the leading renewable energy companies in Mexico and operates more than 1,500 MW of clean power generation facilities, including two wind farms and five operating solar parks.
The development of Sempra Infrastructure's projects in Louisiana is subject to a number of risks and uncertainties, including securing all necessary commercial agreements and permits, obtaining financing and other factors, including reaching a final investment decision.
About Sempra Infrastructure
Sempra Infrastructure delivers energy for a better world. Through the combined strength of its assets in North America, the company is dedicated to enabling the energy transition and beyond. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future. For more information about Sempra Infrastructure, please visit www.SempraInfrastructure.com.
About Entergy Louisiana
Entergy Louisiana, LLC provides electric service to approximately 1.1 million customers and natural gas service to more than 93,000 customers in the greater Baton Rouge area. It has operations in southern, central and northern Louisiana. Entergy Louisiana is a subsidiary of Entergy Corporation (NYSE: ETR), an integrated energy company engaged in electric power production, transmission and retail distribution operations. Entergy delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy owns and operates one of the cleanest large-scale U.S. power generating fleets with approximately 30,000 megawatts of electric generating capacity, including 7,000 megawatts of nuclear power. Headquartered in New Orleans, Louisiana, Entergy has annual revenues of $10 billion and approximately 12,500 employees. Learn more at entergy.com and follow @Entergy on social media.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this [press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.
In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy, Comisión Reguladora de Energía, U.S. Federal Energy Regulatory Commission and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent or approval of partners or other third parties, including governmental entities; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations; changes to laws, including proposed changes to the Mexican constitution that could materially limit access to the electric generation market and changes to Mexico's trade rules that could materially limit our ability to import, export, transport and store hydrocarbons; failure of foreign governments and state-owned entities to honor their contracts and commitments and property disputes; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; the impact of energy and climate goals, policies, legislation and rulemaking, including actions to reduce or eliminate reliance on natural gas generally; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, may be disputed by insurers or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas; the impact of the COVID-19 pandemic, including potential vaccination mandates, on capital projects, regulatory approvals and the execution of our operations; cybersecurity threats to the storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business; volatility in foreign currency exchange, inflation and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure is not the same company as San Diego Gas & Electric or Southern California Gas Company, and neither Sempra Infrastructure nor any of its subsidiaries are regulated by the California Public Utilities Commission.
SOURCE Sempra North American Infrastructure
For further information: Media: Paty O. Mitchell, Sempra Infrastructure, Media@SempraGlobal.com, Twitter: @SempraInfra; Neal Kirby, Entergy Corporation, firstname.lastname@example.org