Colonial Pipeline Co. defended a proposal for operational changes on its fuel network after objections from oil majors Exxon Mobil Corp. and Chevron Corp. and commodities trader Trafigura. Colonial, which operates the largest gasoline pipeline in the US, said the changes “will enhance pipeline integrity and reliability and create more capacity for shippers” in a Monday filing with the US Federal Energy Regulatory Commission.  According to the filing, the proposed changes would mitigate risks associated with “pressure cycling,” which occurs when changes in internal pressure lead to stress in the pipe wall. By transporting fewer products on the pipeline route, among other changes, “Colonial will experience fewer segment slowdowns and shutdowns (and the associated restarts) that more frequently arise when transporting multiple products in the same cycle,” the company said in the filing. Trafigura, Exxon Mobil, Chevron and several other refiners previously filed motions asking the regulator to block Colonial’s proposed changes. Among the potential changes are halting the transport of volatile grade five gasoline on the maxed-out pipeline and boosting capacity by several thousand barrels a day. Shippers on the system, which transports about 2.5 million barrels of fuel a day from the refinery belt of Texas and Louisiana to demand centers in the East Coast, say the changes will contribute to operational hurdles and higher costs. Large swaths of the East Coast, where several refineries have shuttered in recent years, depend on Colonial’s pipeline to meet fuel demand, giving it an outsized effect on the domestic fuel market. If approved, the changes would likely take effect in September. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed. MORE FROM THIS AUTHOR Bloomberg

In this week’s Charging Forward, Zenobe starts construction on a 400 MW battery energy storage (BESS) project in Scotland, Drax is set to acquire Harmony Energy’s project portfolio and SSE and Gilkes Energy submit plans for Fearna pumped storage hydro. This week’s headlines: Zenobe starts construction on 400 MW Eccles BESS in Scotland SSE reaches milestone at 320 MW Monk Fryston BESS Drax to acquire Harmony Energy Income Trust (HEIT) SSE and Gilkes Energy submit Fearna pumped storage hydro plans Long duration storage cap-and-floor design unveiled BayWa r.e. submits plans for Scottish BESS Trinasolar progresses Essex solar-BESS project Root-Power gets nod for 100 MW Lincolnshire BESS Downing secures consent for two BESS projects Gresham House secures consent for Gretna Green BESS Pulse Clean Energy activates 42 MW West Manchester BESS Polaron wins £1m Manchester Prize for battery design tech International news: Renewco Power to partner on 2.2 GW BESS pipeline in Spain, German crystal sulphur battery startup closes €15m investment round Zenobe starts work on 400 MW Eccles BESS Battery storage developer Zenobe has started construction on a 400 MW/800 MWh BESS project near the village of Eccles in the Scottish Borders. It brings Zenobe’s live and contracted portfolio of projects in Scotland to 1.05 GW, a twentyfold increase since the company announced its first 50 MW project in East Ayrshire in 2022. Zenobe raised £220m in debt financing for the Eccles project, which is set to go live in 2027. The Eccles site will feature Tesla’s Megapack 2 XL battery system, becoming the first project in the UK to feature the grid-forming technology. © Supplied by ZenobeA render of Zenobe’s 400 MW Eccles BESS project in Scotland. Under a contract with the National Energy System Operator (NESO), Zenobe’s Eccles BESS will provide stability services to the UK grid. The company estimates the

Shell has undergone a “cultural reset” as it slashes its low-carbon investments in search of so-called “performance, discipline and simplification”, chief executive Wael Sawan said on Tuesday. The oil company has halved its target for low-carbon investments across its renewables and energy solutions business to 10% of capital expenditure by 2030, down from 15-20% in 2024. By the end of 2024, it had spent about $8bn of its capex budget of up to $15bn for low-carbon investments for the 2023-25 period, according to its annual report. “Demand for energy will continue to grow,” Sawan told shareholders at its capital markets day. He said the FTSE 100-listed company had identified gas as a “winner” in the energy mix, in particular liquefied natural gas (LNG). LNG will be the biggest contribution Shell will make to the energy transition going forward, he added. About one fifth, or 20%, of the oil company’s capital has been deployed in hydrogen, carbon capture and storage (CCS) and low-carbon fuels, but in aggregate these segments are “not delivering adequate returns”, according to Sawan. Sawan said he acknowledged the “critical role” that LNG plays in the energy transition and that Shell plans to deliver some of the industry’s lowest-cost and carbon intensive molecules. He described the company’s mantra as “delivering on what we say we will do”, such as profitably transitioning towards net zero by 2050, as it seeks to focus on share performance. Sawan pointed out that Shell’s shares have outperformed its peers, and that it had recorded its lowest net debt in nearly a decade. Amid what the chief executive described as a “normalised” oil environment in terms of pricing, the company is embarking on “rightsizing” capital expenditure and making “higher distributions”. CEO pay rises 5% In 2025, the boss of the Dutch oil company’s basic

British firm Global OTEC will deploy its first energy-generating onshore ocean thermal energy conversion (OTEC) plant as part of a demonstration project. The London-based company has developed the OTEC Power Module, a compact and modular power plant that converts thermal energy from the ocean into electricity. Global OTEC said the pilot is the “next step in revolutionising tropical energy access” and will demonstrate “real-world scalability and readiness for mass production”. OTEC technology is primarily viable in tropical and subtropical regions and could potentially generate up to 10,000 TWh of electricity, according to the International Renewable Energy Agency (IRENA). Global OTEC founder and chief executive Dan Grech said the company had “moved beyond proving the concept” of its technology. “We’re setting out the blueprints for the commercialisation of a new category of renewable energy,” Grech said. “This demonstration plant is designed to be repeatable, compact and efficient, enabling a new generation of offshore infrastructure powered reliably by the ocean.” Ocean thermal energy Global OTEC said its demonstration project will be deployed onshore, with the location expected to be finalised later this year. The plant will draw from existing deep seawater intake sites to tap into the temperature difference between warm surface water and cold deep ocean water. The natural temperature gradient will drive an Organic Rankine Cycle (ORC) system capable of generating up to 500 kW of consistent baseload power. Global OTEC said the project aims to validate technical performance, cost efficiency and replicability ahead of future offshore trials. “Moving beyond whitepapers and lab tests, building physical OTEC systems is essential,” Grech said. “Our vision is a future where OTEC is seen as a cornerstone of the global energy transition.” Since its inception in 2017, Global OTEC has focused on developing its technology as an alternative to fossil fuel generation for small

In an EBW Analytics Group report sent to Rigzone on Tuesday by the EBW Analytics Group team, Eli Rubin, an energy analyst at the company, said natural gas bulls are attempting to “hold the line” ahead of the April contract rollover. “The April natural gas contract tested support in the mid-to-high $3.80s Sunday and Monday evenings, but bullish call option holders are attempting to maintain support at the $4.00 strike price ahead of contract options expiration tomorrow,” Rubin noted in the report. “Strengthening weather runs and Henry Hub spot prices rebounding to $4.03 may reinforce support,” Rubin added. In the report, Rubin said strong daily heating demand tomorrow and early next week could provide further price support. “Sizable weekly injections are possible in early April, though, with mild spring weather helping to rapidly erode outstanding storage deficits over the next month,” Rubin warned. “In the immediate term, price action will be a function of trader positioning through April contract options expiration tomorrow and final settlement on Thursday,” Rubin added. “While technical support appears staunch, we retain a modest bearish bias over the next 7-10 days as May becomes the NYMEX front-month and bearish spring fundamentals roll forward,” Rubin continued. In a separate EBW Analytics Group report sent to Rigzone on Monday by the EBW Analytics Group team, Rubin said the April natural gas contract tested both support and resistance on Friday before closing within a penny of Thursday’s sub-$4.00 per million British thermal unit (MMBtu) close. “Despite sinking last night [Sunday] due to a warmer weekend weather shift, though, initial support is holding firm this morning,” Rubin noted in that report. “DTN’s mild weekend weather shift is far larger than forecast by other meteorologists. Still, the outlook amplifies near-term downside price risks as a mild spring envelops the country into

Dive Brief: Renew Home will begin deploying “homes-first” virtual power plant features this summer that can leverage more than 3 GW of shiftable load under its control, the home energy management company said Monday. The Renew Home VPP will automatically integrate participating energy providers’ time-of-use or demand rate plans and solicit household feedback to improve personalization for customers, Renew Home said.  Utilities and other energy providers can use the VPP’s digital portal to notify Renew Home of price increases or grid and capacity constraints that would benefit from load shifting, dispatch households enrolled in Renew Home’s Rewards Shift program in as little as five minutes and see event performance results. Dive Insight: Renew Home launched in May from the merger of Google Nest Renew and OhmConnect, a home energy management provider. In its announcement last year, it previewed plans to expand its shiftable load from about 3 GW to 50 GW by 2030. That would provide a significant amount of the 80 GW to 160 GW of VPP capacity the U.S. Department of Energy’s updated VPP Liftoff Report says the country needs to meet at least 10% of peak load in 2030. “We saw the liftoff report as a major call to action,” Renew Home CEO Ben Brown said in an interview this month. With AI- and electrification-fueled load growth and rising grid maintenance and modernization costs due in part to more frequent extreme weather events, “it is a massive task to keep adding capacity to the grid to support the modern economy we all want to be a part of,” he said. Virtual power plants offer the fastest, lowest-cost option for new dispatchable capacity, Brown said. “We are 60% of the cost of a gas peaker plant and 40% of the cost of new utility-scale batteries,” he said. Renew