Sempra Infrastructure, a subsidiary of Sempra (SRE), announced 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.