Tech giant Google has signed a hydro framework agreement (HFA) with Brookfield Asset Management and its renewable business, Brookfield Renewable, to procure up to 3GW of carbon-free hydroelectric capacity in the US.
The inaugural contracts under this HFA involve Brookfield's Holtwood and Safe Harbor hydroelectric facilities in Pennsylvania.
These 20-year power purchase agreements (PPAs) for the two facilities symbolise an investment exceeding $3bn by Google and supply 670MW of capacity.
Google will be able to purchase carbon-neutral electricity from up to 3GW of hydroelectric assets that will be relicensed or modernised to prolong their operational lifespan while continuing add power to the grid.
Google data centre energy head Amanda Peterson Corio stated: “At Google, we’re dedicated to responsibly growing the digital infrastructure that powers daily life for people, communities and businesses.
“This collaboration with Brookfield is a significant step forward, ensuring a clean energy supply in the PJM [Pennsylvania-New Jersey-Maryland] region where we operate. Hydropower is a proven, low-cost technology, offering dependable, homegrown, carbon-free electricity that creates jobs and builds a stronger grid for all."
The first assets contracted through this agreement are Pennsylvania-based hydropower plants that Brookfield is relicensing.
Brookfield and Google are targeting the mid-Atlantic (PJM) and mid-continent (MISO) electricity markets. There is also potential for expansion into additional regions across the US.
The PPAs with Brookfield’s Holtwood and Safe Harbor facilities will support Google’s data centre operations within PJM territory.
The structure of this transaction enables Brookfield to uphold existing contracts, such as the supply of power from the Safe Harbor facility to Amtrak consumers.
Brookfield Asset Management president Connor Teskey stated: “Our partnership with Google demonstrates the critical role that hydropower can play in helping hyperscale customers meet their energy goals. Delivering power at scale and from a range of sources will be required to meet the growing electricity demands from digitalisation and artificial intelligence.”
Google recently made its commercial commitment to fusion energy by agreeing to purchase 200MW of power from Commonwealth Fusion Systems (CFS), a company spun out from the Massachusetts Institute of Technology.
