OYA, Oil Well Shares Plan $3 Billion, 3GW Clean Energy Project

OYA Energy

(Credit: Pixabay)

by | Nov 10, 2022

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OYA Energy

(Credit: Pixabay)

A large energy project in the eastern United States that will include wind, solar and energy storage infrastructure in addition to green hydrogen production is set to be a part of a joint venture between OYA Renewables and Oil Well Shares.

The joint venture will be called Chrysalis Energy and is estimated to bring 3 gigawatts of energy capacity across 1.5 million acres in Pennsylvania, Ohio, and West Virginia. The $3 billion first phase is expected to be completed by 2030, with ongoing energy transitions as part of the project taking place in the region after that.

Chrysalis Energy will develop, construct, and operate the community and utility-scale solar, wind, and energy storage projects. The scope of the size of the project, which OYA Chairman Manish Nayar says is likely the largest single private land deal in the Pennsylvania-New Jersey-Maryland (PJM) Interconnection territory, gives the joint venture flexibility to develop more clean energy, such as green hydrogen production.

Nearly 20% of the electricity used in the US is generated by renewable sources, according to the Department of Energy. The US has a goal to achieve 100% clean energy by 2035, and the Energy Information Administration says about 60% of the added capacity in 2022 will come from renewable sources, nearly half of that from solar installations.

The Inflation Reduction Act includes numerous incentives to boost renewable energy production and manufacturing, including “energy communities” designed to increase clean energy projects in areas where economies have relied on fossil fuel production. The DOE has laid out plans that include the increase of microgrids and energy storage systems to help the country reach energy transition goals.

Other large projects are being developed with infrastructure such as energy storage at the forefront, such as a 500-megawatt, 2-gigawatt-hour development in the Los Angeles area. A 2.6 GW offshore wind development in Virginia is also waiting for final approval.

The Chrysalis Energy project will take place in Oil Well Shares-owned land. Oil Well Shares is based in Ohio, and OYA has 9 GW of solar capacity across North America.

The companies say the joint venture’s location is a good fit for this kind of development because of its strong industrial presence and high population density. The companies say the development will increase energy supply and resilience in the region, and the development will work with existing infrastructure and businesses in the area.

PJM is part of the Eastern Interconnection grid operating an electric transmission system serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

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