Avangrid Sells Kitty Hawk North, Saudi Arabia Localizes Towers

This week on Uptime News Flash, Avangrid sells the Kitty Hawk North lease area to Dominion Energy. In Saudia Arabia, the government signed two major localization agreements for wind energy steel towers. And Enerjisa Üretim has secured a major 1 billion 10 year term loan for the development of the YEKA 2 wind power plant. Welcome to Uptime News Flash. Industry news lightning fast. Your hosts, Allen Hall, Joel Saxum, and Phil Totaro discuss the latest deals, mergers, and alliances that will shape the future of wind power. News Flash is brought to you by Intelstor. For market intelligence that generates revenue, visit www.intelstor.com. Allen Hall: Well, Phil, Saudi Arabia has taken a significant step forward in its wind energy sector with the signing of two major localization agreements for wind energy steel towers. The agreements were signed by the Kingdom's Local Content and Government Procurement Authority with Al Yamama Steel Industries and Arabian International Company for Steel Structures. These deals are part of a large initiative that saw 107 agreements and memorandums of understanding signed during the Energy Localization Forum in Riyadh, valued at approximately 27 billion. I didn't realize there was that much money in steel towers, Phil, but wow. These agreements are impressive. Philip Totaro: Yeah, that that's for all agreements that they sign, not just the steel tower ones to, to clarify for everybody. But the, the interesting tidbit with this is the fact that, they obviously have a couple of, wind farms now in Saudi Arabia, one that's operational, one under construction, as well as a demo turbine from GE from, from a few years back. And they're, they're at a point where they're really looking at the future of renewable energy for themselves in, in their domestic market so that they can, have more control over, how much oil they export and, and where they export it to moving forward. So this gives them another knob to turn if they can use this renewable power for the power generation. Industry instead of leveraging their own oil abundant though it may be, they all recognize that there's a finite amount. So this is part of their efforts at domestication of part of the industry that they see as, as being an important element for them moving forward. So much so that their public investment fund has, has, Also made moves in the past to, put money behind renewable ventures in in Europe and Asia and even looking at the United States as well. So, this is them taking a step forward in terms of their renewable energy market. Joel Saxum: Yeah, Saudi Arabia keeps on basically reinventing itself and, and morphing into something that it wasn't in the past, which is very interesting. I, for one, I follow the, the Neom project very closely because it's really interesting to me. So they're spending a lot of money. I mean, they even went as far as to lure a lot of the PGA players away for their own golf league. And now they're setting up with Dana White from the UFC, they're setting up their own boxing league. So they're doing a lot of things. They're taking advantage of, of course, the money they have now to try and build what their economy is for the future. And, they have been a classically oil and gas economy. And, and that's where a lot of their sovereign wealth comes from. So they have the capabilities to make large structures and invest in, in, in industry. So going to steel towers for wind makes absolute sense for them. Allen Hall: Avangrid has successfully closed the sale of its Kitty Hawk North offshore wind lease area to Dominion Energy. The transaction was completed for 160 million dollars, comprising a lease acquisition payment of 117 million plus development cost reimbursement. While selling the northern section, Avangrade retains ownership of Kitty Hawk South, which has the potential to deliver 2. 4 gigawatts of power to North Carolina, Virginia,