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Tesla and NatPower Ink 25 GWh BESS Deal for Italy, UK

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Energy firm NatPower and Tesla (TSLA) have finalized a major multi-year supply and execution agreement to construct more than 25 gigawatt hours of battery energy storage systems or BESS across Italy and the UK.

The deal represents the initial five-project delivery phase of a long-term infrastructure program that aims to surpass 100 gigawatt-hours of total capacity, NatPower said in a statement on Tuesday.

Deployed assets will be fully owned and operated by NatPower, while Tesla is slated to supply its flagship Megapack hardware alongside engineering, procurement, and construction services, it said.

The full capital expenditure for the program is estimated at $4-5 billion dollars, with corporate projections modeling long-term revenues in excess of $15 billion dollars over a 20-year operational lifecycle, the company said.

European power systems are facing unprecedented strain from rapid electrification, renewable intermittency, and the explosion in power demand from artificial intelligence data centers.

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US Rig Activity Holds Steady as Private Operators Expand Market Share, RBC Says

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Commodities

US DOE Awards 500,000 Barrel SPR Crude Exchange to Vitol

The US Department of Energy awarded a contract covering 500,000 barrels under its Strategic Petroleum Reserve crude exchange program to commodity trader Vitol, according to award information released Monday.The award was made under a Request for Proposals seeking the exchange of up to 40 million barrels from the SPR.As of June 22, the Department of Energy said Vitol had been awarded a contract covering 500,000 barrels.The solicitation covers up to 40 million barrels of sour crude from the Strategic Petroleum Reserve's Bryan Mound and Big Hill sites. The DOE said offers will compete on overall value to the government.DOE plans to supply 8 million barrels from Bryan Mound in July 2026 and another 7 million barrels in September 2026. Both exchange programs require a minimum return volume of 3 million barrels per month.At Big Hill, DOE is offering 11 million barrels in August 2026 and 14 million barrels in September 2026. The associated return periods begin in 2027 and extend into 2028, according to the department.DOE said bidders are responsible for securing sufficient pipeline and terminal capacity, adding that lower inventory levels could reduce delivery rates and require buyers to manage any resulting logistical constraints.DOE said Strategic Petroleum Reserve crude includes a blend of domestic and international grades, including Isthmus, Urals, Alaskan North Slope, Arabian Light, Saharan and Dubai crude streams.The agency requires returned crude to meet quality specifications and reserves the right to reject barrels that fail compatibility standards. Offerors must submit quality information 90 days before the return period begins.DOE said that oils with elevated light-end gas content or vapor pressure could affect storage integrity and limit the reserve's ability to deliver oil when needed.The minimum offer size stands at 3 million barrels for both pipeline and vessel deliveries. DOE said awards to a single bidder generally will not exceed 20 million barrels unless additional volumes remain available.The notice did not disclose financial terms or delivery schedules for the Vitol award, nor did it mention whether additional awards may be made under the solicitation.

Commodities

US Natural Gas Update: Futures Edge Up on Hotter Early July Forecasts

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