Exolum advances solar self-consumption to cut energy costs

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Exolum operates a 4,000-kilometer pipeline network in Spain to move oil and fuels and runs about forty hydrocarbon storage facilities. The company has decided to build solar power plants to power its operations.

Formerly known as Hydrocarbon Logistics Company, Exolum has highlighted electricity costs as the second-largest item in its overall expense structure, second only to payroll. Electricity usage is also the primary source of the group’s greenhouse gas emissions, and the organization has accelerated its climate goals by moving its net-zero target forward to 2040.

Last year, powering large facilities that transport and store hydrocarbons in tanks consumed roughly 260 gigawatt hours in Spain alone. This accounted for about 80 percent of the company’s electricity demand across the eight countries where it operates. The group has existing contracts for renewable electricity through guarantees of origin, but it aims to become a major producer of its own power. The strategy is to boost green energy share while reducing the energy expenditures it shoulders.

“We needed substantial energy to feed the pumping systems along the pipelines. We are developing our own solar plants to generate electricity and lower the cost of energy by moving oil,” stated Jorge Lanza, CEO of Exolum. He also noted the impact of electricity price spikes last year, driven in part by the energy crisis intensified by the conflict in Europe.

Self-consumption photovoltaic plant at Exolum facilities in Peloponnese toledo EXOLUTION

Exolum already operates three self-consumption photovoltaic plants in Spain that began producing last year and is advancing plans to commission three more soon. This multi-site investment, totaling around 10 million euros, is expected to enable six plants to cover a meaningful portion of the company’s electricity needs. The leadership target is to reach at least 20 percent of consumption from these new installations as announced by the chief executive in a recent press briefing.

The former CLH has photovoltaic facilities in Peloponnese, near Toledo, and in Barcelona, where capacity has been expanded repeatedly, with work ongoing to enlarge the site a fourth time. A third project is under development in Algeciras, scheduled to reach completion later this year. Exolum is also finalizing a new solar plant for self-consumption in Huelva and is pursuing permits to build two additional plants in Poblete and Arahal.

The company says it is exploring additional options to reduce emissions. These include supplying renewable electricity to third parties through long-term power purchase agreements and adopting newer, more efficient technologies that lower pumping energy use. Exolum employs pipeline planning systems and friction-reducing additives in the transport of hydrocarbons. The dosing of these additives is guided by algorithms designed to maximize efficiency as the liquids flow through the network.

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