Pointerra to participate in $22.6 billion US energy utility upgrade program

Cloud-deployed technology and AI-driven algorithm developer Pointerra (ASX: 3DP), is set to participate in Fortune 500 company Entergy’s major US utility equipment upgrade program.

An existing Pointerra client, Entergy supplies more than 3 million customers with power throughout Arkansas, Louisiana, Mississippi and Texas.

The new award will see Pointerra and its local engineering, procure and construct (EPC) partners participate in an approximately 10-year, $22.6 billion electric grid resilience CAPEX program.

While already having a relationship with Entergy, Pointerra made a strategic decision to partner with its EPC partners to bid for the very large grid resilience work packages.

That decision has now paid off with their bids turning out to be successful.

Previous success recognised

The successful delivery of its 3D solution for US customer FPL’s (Florida Power & Light) grid hardening program, is expected to allow Pointerra to leverage that experience for Entergy’s program.

Pointerra’s use of its unique 3D platform was in particular recognised for quantified outcomes, such as material time and cost savings, which were achieved on the FPL work.

Since then, FPL has championed the use of Pointerra3D within the US energy utility sector.

For the Entergy project, Pointerra3D will now be used to process and analyse 3D LiDAR and 2D imagery to build a digital twin of Entergy’s electricity network.

This will then allow Entergy and its EPC contractors to use Pointerra3D’s unique Quick Load electric grid assessment tools to rapidly assess and prioritise the works to be completed in the most cost-effective and efficient manner possible.

Up to 4 million poles to be assessed

While the pay rate for the new upgrade program has not been finalised, Pointerra says it expects it will be paid on a price per pole/structure, with each pole to be inspected and analysed using Pointerra3D.

The company believes that up to 4 million poles could be inspected and analysed using Pointerra3D in a program commencing in 2024.

The company has previously been paid between $30 and $60 per pole for similar processing, inspection and analysis work.

This latest Entergy program builds on an existing relationship with the US firm that commenced in early 2022 when Pointerra was selected to assist in a GIS upgrade program using Pointerra3D.

US utility sector undergoing rapid growth

The new Entergy award comes at a time when US energy utilities are pouring billions of dollars into the modernisation and expansion of electric transmission and distribution networks across the country.

With strong government support, they are responding to forecast changes related to climate change and the growing demand being placed on networks by electric vehicles and electric home heating/cooling demand.

Pointerra says that while the US government is providing funding to assist utilities in these programs, the sheer scale of investment required has already resulted in labour and material shortages that are challenging the ambitious programs.

“This has forced US energy utilities and their EPC contractors to adopt innovative approaches to assessing network condition in order to prioritise the deployment of scarce resources to the critical risk areas of each utility’s network,” the company noted.

“Pointerra’s fast, massively scalable cloud platform is uniquely placed to support the US energy utilities in this regard, and with the strong advocacy of existing customers, the company expects to secure additional work from both existing and new customers into the future.”