Low Carbon Pulse Edition 36
08 March 2022
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Please click here for the First Compendium of Low Carbon Pulse (containing Editions 1 to 28, covering October 6, 2020 to October 5, 2021) and here for the Second Compendium of Low Carbon Pulse containing Editions 29 to 35, covering October 7, 2021 to February 20, 2022). Click here and here for the sibling publications of Low Carbon Pulse, the Shift to Hydrogen (S2H2): Elemental Change series and here for the first feature in the Hydrogen for Industry (H24I) features.
Having received feedback, Low Carbon Pulse will move to a monthly news cycle (to be published during the first week of each calendar month) with Edition 37 to be published April 5, 2022. As news items arise throughout each month, Low Carbon Pulse Bulletins, will be published. The move to a longer news cycle allows the author to complete articles in the S2H2: Elemental Change series and further H24I features, and other articles.
As foreshadowed in Edition 33 of Low Carbon Pulse, the US Federal government held its first auction process for the award of off-shore wind fields in US Federal waters field in the final week of February 2022. On Friday 24, 2022 the hammer fell on the auction process, with heightened expectations matched – see page 22 below.
The International Panel on Climate Change (IPCC) Working Group II (on Impacts, Adaption and Vulnerability) (WGII) finalised its findings as part of the Sixth Assessment Report (AR6), which were published on February 28, 2022 (see page 2 below), with the headline being that: "The extent and magnitude of climate change impacts are larger than estimated in previous assessments".
At the meeting of the UN Environment Assembly (UNEA) in Nairobi, Kenya, 175 UN Member States agreed to address plastic at large in the environment (see page 4 below). An article on plastics is close to being finalised.
Each Saturday (and Sunday) morning, at around 4 am, the author sits down to write Low Carbon Pulse. On the morning of Saturday March 5, 2022, the author's routine was upset by news of the passing of Mr SK Warne, or Warnie to millions around the world. One of the author's favourite sporting memories arises from a One Day International day night match at the Sydney Cricket Ground (Steve Waugh was injured), Warnie was captain. At slip, in ringing bowling changes and field settings Warnie was as masterful as he was at leg-spin bowling. Vale, Warnie.
Clicking on the contents list will take the reader to the section clicked:
LIST OF CONTENTS: EDITION 36 OF LOW CARBON PULS |
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---|---|---|---|
Pages 2 to 6 |
Timeline for 2022 |
Pages 15 to 16 |
Carbon Accounting, Carbon Capture, Carbon Capture and Use and CDR |
Page 6 |
Legal and Regulatory highlights |
Page 16 |
Carbon Credits, Hydrogen Markets and Trading |
Pages 6 to 7 |
Climate change reported and explained |
Pages 16 to 18 |
E-fuels / Future Fuels / Now Fuels |
Page 7 |
GCC Countries |
Page 19 to 20 |
Cities, Clusters, and Hubs and Corridors and Valleys, and Giga-Factories |
Pages 7 to 9 |
Africa, India and Indonesia; Japan & ROK |
Page 20 | Green Metals / Minerals, Mining and Difficult to Decarbonise Industries |
Pages 9 to 10 |
PRC and Russia |
Page 20 to 23 |
Wind round-up, on-shore and off-shore |
Pages 10 to 12 |
Europe and UK; and Americas |
Page 24 |
Solar, Sustainability and NZE Waste |
Pages 12 to 13 |
France and Germany; and Australia |
Pages 24 to 26 |
Land Mobility / Transport |
Page 13 |
Blue Green Carbon Initiatives & Biodiversity |
Page 26 | Ports Progress and Shipping Forecast |
Page 14 |
Bioenergy and heat-recovery |
Pages 26 to 28 |
Airports and Aviation |
Page 15 |
BESS and HESS (and other energy storage) | Page 29 | NZE Publications |
PLASTICS |
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---|---|---|---|
Petroleum Source |
Monomer & Description of Production |
Polymers |
SPI Code (Resin Code) |
Ethane (C2H6) | Ethylene (C2H4, an olefin), produced by cracking ethane, used to produce polyethylene (PE) |
PE is a thermoplastic (aka as polythene), the most commonly used polymer |
2 (SPI Code 1) HD 4 (SPI Code 4) LD |
Ethylene (C2H4, an olefin), produced at very high temperatures in tubular reactor |
Polyethylene terephthalate (PET/PETE) is a thermoplastic (aka as polyester) |
1 (SPI Code 1) |
|
Ethylene (C2H4, an olefin) Tetra-fluoro-ethylene | Poly-tetra-fluoro-ethylene (PTFE), is a thermoplastic |
7 (SPI Code 7) |
|
Ethyl-urea (C3H8N2O) |
Polyurethane (PUR / PU / PUT), is a thermo-stet, but can be thermoplastic |
7 (SPI Code 7) | |
Propane (C3H8) | Propylene (C3H6, an olefin), produced by liquid catalytic cracking, used to produce polypropylene (PP) |
PP is a thermoplastic (aka: polypropene), second most commonly used polymer |
5 (SPI Code 5) |
Ethane (C2H6) |
Vinyl Chloride (C2H3Cl): derived from ethylene and chloride (a VCM) |
Polyvinylchloride (PVC), is a thermoplastic |
3 (SPI Code 3) |
Tri-chloro-ethane |
Vinylidene Chloride (C2H2Cl2) |
Poly-vinylidene chloride (PVDC), is a thermoplastic |
7 (SPI Code 7) |
Ethane (C2H6) |
Vinyl Acetate (C4H6O2) (a VAM) |
Poly-vinyl acetate (PVAc), is a thermoplastic |
7 (SPI Code 7) |
Ethane (C2H6) Benzene (C6H6) |
Styrene (C8H8): derived from Benzene and Ethylene, ethyl-benzene |
Polystyrene (PS), is a thermoplastic |
6 (SPI Code 6) |
Propane (C3H8) |
Acrylonitrile (C3H3N): derived from Propylene (C3H6), catalysed with ammonia |
Poly-acrylonitrile (PAN), is a thermoplastic |
7 (SPI Code 7) |
Acrylonitrile can produce co-polymers acrylonitrile butadiene styrene (ABS) and styrene- acrylonitrile (SAN), both are thermoplastics |
7 (SPI Code 7) |
||
Ethane (C2H6) | Methyl methacrylate (C5H8O2): ethylene (C2H6) source |
Poly-methyl methacrylate (PMMA) |
7 (SPI Code 7) |
Natural polymer |
Isoprene |
cis-Polyisoprene (Natural Rubber) | Not applicable because natural |
Butane (C4H10) |
Chloroprene (CD): derived from Butadiene (C4H6, an olefin), then chlorinated |
Poly- chloroprene (Synthetic Rubber, including Neoprene) |
7 (SPI Code 7) |
Methane (CH4) |
Formaldehyde is catalysed (anionic), to produce homo-polymer Formaldehyde is catalysed (acid), to produce co-polymer |
Poly-oxy-methylene (POM) is a bio-inert thermoplastic (Also known poly-formaldehyde) |
7 (SPI Code 7) |
Not applicable |
Caprolactam (Nylon 6) and adipoyl chloride and hexa-methylene diamine (Nylon 66) |
Nylon |
7 (SPI Code 7) |
Natural polymer |
Lactic acid (C3H6O3) derived by the fermentation of carbohydrates or chemical synthesis, with lactic acid being polymerized using ring-opening polymerization |
Polylactic (C3H4O2) or polylactide (PLA) is a thermoplastic aliphatic polyester, sometimes called a bio-plastic |
Not applicable because natural |
This does not mean that each year 375 to 400 million metric tonnes of plastics are released into the environment, but the plastics that are not collected and recycled or disposed of in an environmentally safe manner are at large in the environment, critically in waterways and oceans.
Low Carbon Pulse will follow the development of the international legally binding agreement to end plastic pollution. Plastics has long been a focus of the author of Low Carbon Pulse, and will become another area covered by Low Carbon Pulse. (The author is working on a PhD on plastics (part-time). The UNEP initiatives have provided renewed impetus for the author to finish it.)
Two key events were to have straddled Editions 36 and 37 of Low Carbon Pulse, both have been postponed as follows:
The MENAW and APAC events will add to the emerging agendas for both COP-27 and COP-28.
The demand for carbon credits is increasing at pace in the Voluntary Carbon Market / Voluntary Carbon Credit Market. In the Voluntary Carbon Market / Voluntary Carbon Credit Market, carbon credits have value to corporations that have committed to achieving GHG emission reductions and, in the longer term, NZE, on the basis of carbon neutrality.
In a stand-alone article, the author of Low Carbon Pulse will outline Carbon Credits, Article 6 and the Paris Rulebook, and the near, medium and long term role of Carbon Credits, including as deforestation is curtailed and ceases, and afforestation and reforestation continues, and possible regulation of the Voluntary Carbon Markets / Voluntary Carbon Credit Markets.
The focus on fuels there are not derived or produced from fossil fuels is increasing. Low Carbon Pulse covers E-Fuels / Future Fuels and bio-energy. In addition to the focus on hydrogen and hydrogen based fuels (including ammonia and methanol), including hydrogen derived from biomass, there is focus on the derivation and production of Renewable Natural Gas, derived from biomass, including biomethane, both for use as pipeline gas and for use as bio-compressed natural gas (Bio-CNG) and bio-liquified natural gas (Bio-LNG).
In a stand-alone article, Michael Harrison and Richard Guit will outline the sources of fossil fuels and non-biomass fuels (including crop fuels), and the feedstocks and technologies used to produce each E-Fuel / Future Fuel, and each form of bio-energy, and of course the GHG arising from their deviation and production, and use.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse in respect of laws and regulation, and broader policy settings, in each case describing substance, progress and impact.
To manage the length of this Edition 36 of Low Carbon Pulse, legal and regulatory news items within the current news cycle will be picked up in Edition 37 of Low Carbon Pulse.
The format of Low Carbon Pulse does not allow detailed coverage of the various regulations relevant to progress to NZE across the EU.
In anticipation of the expiry of the four month scrutiny and objection period (which started at the end of January 2022) expiring without an effective objection to the Taxonomy Complementary Climate Delegated Act, the author of Low Carbon Pulse will provide a summary of the key regulations and their effect over coming months in a standalone article by the end of June 2022.
This section considers news items within the news cycle of this Edition 36 of Low Carbon Pulse relating to climate change and its impact. The intention is to monitor significant and material data points and information, and to explain them.
Edition 35 of Low Carbon Pulse reported that the International Energy Agency (IEA) would release its noted Global Methane Tracker, and that the January and February Report on Reports would outline its findings.
On February 23, 2022, the IEA released its Global Methane Tracker 2022. The key finding in the IEA's press release was as follows:
"Global methane emissions from the energy sector area are about 70% greater than the amount national governments have officially reported … underlining the urgent need for enhanced monitoring efforts and stronger policy action to drive down emissions of the potent greenhouse gas."
"Methane has contributed around 30% of the global rise in temperature to date … Emissions from fossil fuel operations present a major opportunity [to limit global warming in the near term] since the pathways to reduction are both clear and cost-effective".
On February 23, 2022, nature published a report (entitled Observed poleward freshwater transport since 1970), the headline from which is that the global water cycle is 7.4% (having been estimated to be between 2% and 4% previously). By way of reminder, the water cycle describes the movement of water globally: evaporation, ascension, condensation, and precipitation.
Increased global temperatures are accelerating or intensifying (depending on how one views the water cycle). In summary, the result of this acceleration / intensification is that freshwater moves to wet regions, with the result that, as a general statement, and overtime, drier regions, critically, sub-tropical regions become drier.
(For further detail on changes to the water cycle see the IPCC WGI Climate Change 2021: The Physical Science Basis Report.)
This section of Low Carbon Pulse considers news items within the news cycle of this Edition 36 of Low Carbon Pulse relating to the Gulf Cooperation Council (GCC) Countries, being countries that are leading the way in the development of Blue Hydrogen and Green Hydrogen capacity for own use and for export.
On February 21, 2022, EWEC (Emirates Water and Electricity Company) announced that it would conduct its third auction of Clean Energy Certificates (CECs) in Abu Dhabi on Monday March 14, 2022. The first CEC auction took place in September 2021, and the second in November 2021. It is reported that the auction of CECs as part of the CEC scheme has assisted greatly in the expansion of the market for EWECs' clean energy sources.
On February 24, 2022, arabnews.com reported (under A $20bn Saudi project will transform Jeddah, with history, heritage and culture at its core) on plans for a face lift of Jeddah, Saudi Arabia's Red Sea port city, to make Jeddah one of the most liveable cities by 2030. While described as a face lift, the plans go deeper, and will result in Jeddah being a smarter historical city.
fuelcellsworks.com reported that in Dubai, United Arab Emirates (UAE) on March 2, 2022, Engie (leading international energy corporation) and POSCO (leading iron and steel producer, headquartered in the Republic of Korea) signed a memorandum of understanding to explore the development jointly of Green Hydrogen production plants and related infrastructure in the Middle East, Australia and in South America. As reported, Engie is to leverage its existing industrial-scale hydrogen value chain experience to support POSCO's production of hydrogen.
This section considers news items within the news cycle of this Edition 36 of Low Carbon Pulse relating to Africa. Africa remains the continent with the most developing countries, the most Least Developed Countries and the most countries vulnerable to climate change, and the continent with some of the lowest levels of electrification.
On February 21, 2022, energy-utilities.com reported (under African Development Bank to provide $ 379 m financing to Sahel solar scheme) that the African Development Bank had approved a USD 379 million financing facility as part of the funding for the Dessert to Power G5 Sahel scheme.
The Dessert to Power G5 Sahel scheme involves the delivery of electrical energy within Burkina Faso, Chad, Mali, Mauritania and Niger from a 500 MW photovoltaic facility, providing renewable electrical energy to around 695,000 households across the five countries. It is reported that the African Development Bank is to provide technical assistance for seven years, in addition to the financing facility.
On February 28, 2022, energy-utilities.com reported that Masdar (Abu Dhabi Future Energy Company) had signed an agreement with the Tanzania Electric Supply Company (Tanesco) to develop renewable electrical energy projects in Tanzania. The agreement between Masdar and Tanesco continues the forward-thinking engagement of Masdar regionally. In 2021, Masdar entered into a similarly forward looking agreement with Ethiopia.
On February 28, 2022, itp.net/business reported that CISCO (leading information technology system corporation) and Schneider Electric (leading electrical energy system corporation) are to develop a smart grid for Egypt. It was recounted that the Ministry of Electricity and Renewable Energy and Schneider Electric had contracted to develop four control centres for the national grid in 2020.
It might be expected that the smart grid developed by Schneider Electric and CISCO will provide a benchmark for smart systems, deploying the latest technology from corporations at the forefront of operational technologies and information technologies.
On March 2, 2022, energy-utilities.com reported (under Tunisia prepares plan for 3.8 GW of solar capacity by 2030) that the Tunisian Government is preparing a national strategy for photovoltaic solar installation with a view to reaching 3.8 GW of installed photovoltaic solar capacity by 2030.
This section considers news items within the news cycle of Edition 36 of Low Carbon Pulse relating to India and Indonesia, two countries with increasing populations and urbanisation, attendant increased levels of electrification, and being the countries with the third and seventh most GHG emissions.
On February 21, 2022, it was reported widely that Tata Power Renewable Energy Limited (a wholly owned subsidiary of Indian power giant, Tata Power) and RWE Renewables GmbH (a world leader in off-shore wind field development, deployment and operation) had signed a memorandum of understanding (MOU).
Viewed in the context of the good offshore-wind resources of India (with its 7,600 kilometres of coastline) and Government of India policy settings for installing 30 GW of off-shore wind field capacity by 2030, the MOU, is significant. The combination of Tata and RWE for these purposes is timely, with the Government of India progressing its policy settings, and the resulting regulator framework, and technical studies.
It is understood, among others, that technical studies are progressing in respect of Gujarat and Tamil Nadu. This reflects the assessment of the World Bank in respect of the prospectivity of off-shore wind field areas, with 215 GW of off-shore wind field capacity (83 GW floating and 112 fixed-bottom), with Gujarat and Tamil Nadu having the most prospective wind resources.
Edition 21 of Low Carbon Pulse identified the off-shore areas most prospective for the development of off-shore wind field capacity: the coastlines off Andhra Pradesh (south-eastern coastal region of India), Gujarat (western coast of India), Karnataka (south-western India, with Arabinan Sea and Indian Ocean coastlines), Maharashtra (western coast of India) and Tamil Nadu (south coast of India) offer the most prospective off-shore wind resources.
On February 21, 2022, it was reported widely that Adani Group (leading Indian conglomerate of global scale) and Ballard Power Systems (leading fuel cell technology corporation) signed a memorandum of understanding (MOU). Under the MOU, Adani and Ballard will consider the commercialisation of the production and use of fuel cells in a range of applications, focusing on industrial applications land mobility applications in India.
As reported in Edition 28 of Low Carbon Pulse, Adani intends to invest in the development and deployment of Green Hydrogen production capacity in India:
"On September 22, 2021, it was reported widely that Adani Group intends to invest up to USD 20 billion over the next 10 years. On October 2, 2021, Adani Green Energy reported its acquisition of 5 GW of photovoltaic solar and wind assets from SB Energy India for USD 3.5 billion.
With Adani, Reliance and TATA each now committed materially and significantly to reduce GHG emissions, and the investment necessary to achieve this, it is clear that the might of India's private sector is now very much aligned with the public sector, including state owned corporations."
The great thing for India is that it has a number of corporations actively planning and positioning to develop the Indian hydrogen industry. In addition to Tata and Adana, Reliance Industries is well-placed to develop and to deploy capacity.
On February 23, 2022, it was reported widely that India and Australia has signed a letter of intent for the purposes of cooperating to scale up the production of ultra-low cost photovoltaic solar and clean hydrogen.
Edition 35 of Low Carbon Pulse reported that on February 17, 2022, the Ministry of Power released the key policy settings for interim (or near term) hydrogen capacity development (Near Term Hydrogen Strategy), with Edition 35 honing on the policy settings supporting Green Hydrogen (and Ammonia) production.
Since the announcement of the Near Term Hydrogen Strategy, there has been considerable analysis of it, and its impact on the cost of production hydrogen, with the consensus being that in the near term the costs of production of hydrogen will fall below USD 2 per kilogram by the mid-2020s, and as low as USD 1.50 per kilogram by 2030. As noted in Edition 34 of Low Carbon Pulse, Reliance Industries is targeting a cost of production of USD 1.00 per kilogram of Green Hydrogen.
On March 3, 2022, energetica-india reported that a proposal developed by Reliance, JSW Steel and Chart Industries, and the India Hydrogen Alliance, that had been provided to NITI Aayog and the Ministry of New and Renewable Energy (MNRE).
From the report in energetica, it has been proposed that a Public-Private H2Bharat Taskforce be established to identify and to develop at least five GW scale Green Hydrogen Hubs across India within the next 18 months.
In a clear sign of the excellent working relationship between the Government of India and business and industry in India, the CEO of NITI Aayog Mr Amitabh Kant, welcomed the proposal, commenting as follows:
"… the aim to bring down the cost of green hydrogen to $2.5/kg by 2025 and $1/kg by 2030. This is possible only by increasing the size and scale of hydrogen manufacturing. …. The H2Bharat Taskforce is an interesting proposal to kick-start green hydrogen project development at a large GW-scale. We welcome this voluntary initiative from the industry and look forward to collaborating on it".
Attached is the link to the February edition of India H2 Monitor – February 2022. As noted in previous editions of Low Carbon Pulse, we intend to include the link rather than repeat the content of the India H2 Monitor.
On March 4, 2022, hydrogen-central.com reported that First Deputy Minister of State-Owned Enterprises, Mr Pahala Mugraha Mansury stated: "We have developed the ammonia and biomass co-firing as well as the utilisation of carbon capture technology to reduce the usage of coal at [coal-fired] power plants".
For these purposes, it was reported that on March 2, 2022, PT Pupuk Indonesia (state-owned fertiliser corporation), PT Pertamina (state-owned national energy corporation) and Mitsubishi Corporation had signed a cooperation agreement to progress the development of Green Hydrogen and Ammonia production capacity.
This section considers news items within the news cycle of this Edition 36 Low Carbon Pulse relating to Japan and ROK, being the countries with the fifth and tenth most GHG emissions, and the greatest dependence on imported energy carriers.
On February 25, 2022, Kawasaki Heavy Industries, Ltd (KHI) announced that Suiso Frontier (built by KHI) had returned to Hy touch Kobe (the liquified hydrogen receiving terminal at Kobe, Japan, built by KHI).
As reported in Editions 32, 33 and 34 of Low Carbon Pulse, the arrival of the Suiso Frontier marks the completion of the world's first ocean voyage to transport liquified hydrogen over a long distance.
In a report that "slipped by" the author of Low Carbon Pulse, in late January 2022, asia.nikkei.com reported that Japan is to require power utilities to allow the installation of BESSs operated by other corporations on their grids.
The Japanese Government is to make available financial support to allow the installation of BESSs, and in so doing provide incentives for the installation of BESSs to stabilise, and to preserve the integrity of grids, as the dispatch of renewable electrical energy over those grids continues to increase.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the PRC and Russia, being countries that give rise to the most and the fourth most GHG emissions.
On February 25, 2022, scmp.com reported (under Climate Change: China to slash costs of energy storage systems for industry to leapfrog the world by 2030, according to five-year plan) that the PRC plans to cut the cost of energy storage systems by 2025, including by the use of compressed air storage (CAS – see Edition 21 of Low Carbon Pulse for background on CAS). The plan is outlined in a five-year plan drafted by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA).
Edition 35 of Low Carbon Pulse reported on virtual event held by the International Renewable Energy Agency (IRENA) and the SGCC, Facilitating the Transition Toward Smart Electrification with Renewables in China. The virtual event complemented the report prepared jointly by IRENA and State Grid Smart Electrification with Renewables: Driving the transformation of energy services. The January and February Report on Reports will outline the findings from Smart Electrification with Renewables: Driving the transformation of energy services.
One of the key element of Smart Electrification with Renewables: Driving the transformation of energy services is the development of energy storage across the electricity grids owned and operated by SGCC. On March 2, 2022, it was reported in the People's Daily that SGCC intends to develop and to deploy up to 100 GW of BESS by 2030, and up to 100 GW of pumped storage capacity (up from 26.3 GW currently).
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to countries within the European Union (EU) and the EU itself (as an economic bloc) and the UK given geographical proximity, and similar policy settings and progress towards NZE. In combination, countries comprising the EU give rise to the most GHG emissions after the Peoples Republic of China (PRC) and the US. The UK is a top-twenty GHG emitter, but has been a front-runner in progress towards NZE.
Edition 35 of Low Carbon Pulse reported on the plans of France to develop and deploy six new nuclear reactors to generate electrical energy.
By way of reminder, the map provides a summary of installed nuclear energy capacity across the EU.
On February 24, 2022, it was reported widely that Belgium and the UK had signed an energy cooperation agreement providing for each country to work closely on initiatives to achieve decarbonisation, including future energy interconnection, carbon capture, use and storage, low carbon hydrogen production, and off-shore wind field development.
During the week commencing February 28, 2022, it became apparent that the EU intends to seek to reduce exposure to volatile hydrocarbon prices (coal and natural gas) by accelerating progress to increased renewable electrical energy and the production and use of Green Hydrogen (Hydrogen Accelerator), and in the near to medium term, to access more varied sources of natural gas supply, principally in the form of LNG.
During the next two quarters of 2022, the expectation is that there will be a focus on maximising gas in storage, to at least 80% by September 30, 2022. At the same time, it is understood that the Hydrogen Accelerator policy setting will be implemented.
By way of rare editorial comment, the EU needs to be clear to the market, committing to the market to ensure that term contracts are concluded for LNG to allow the development of further LNG supply sources globally by underpinning the economics of those developments. Germany is doing this already.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the US, Brazil, Canada, and Mexico, being countries that give rise to the second, sixth, ninth and eleventh most GHG emissions.
This section considers news items within the news cycle of this Edition 36 of Low Carbon Pulse relating to France and Germany.
On February 28, 2022, electrive.com reported that the German Federal Government wants to progress to 100% renewable electrical energy by 2035. The accelerated target contrasts with the previous target of moving away from fossil fuels "well before 2040".
To achieve this goal the German Federal Government is understood to be progressing amendments to the Renewable Energy Sources Act (EEG). It is understood that the EEG is ready, and that it will contemplate (and provide a path to) the achievement of photovoltaic solar and wind power reaching 80% of electrical energy used by 2030.
By 2030, it is expected that Germany's on-shore wind farm capacity will have doubled to 110 GW of installed capacity, with off-shore wind field capacity to reach at least 30 GW of installed capacity (equivalent to the output of 10 nuclear energy power stations). Photovoltaic solar installed capacity is planned to reach 200 GW by 2030.
Low Carbon Pulse will follow the progress of the amendment of the EEG and the policy settings that will result from it.
Other sections of this Edition 36 of Low Carbon Pulse cover news items relating to Germany, critically the news that the German Federal Government, Kreditanstalt fur Wiederaufbau (KfW) is to become a shareholder in the LNG terminal at Brunsbuettel.
This section considers news items that have arisen within the news cycle of this Edition 36 Low Carbon Pulse relating to Australia, a top-twenty GHG emitting country, and a developed country with the highest GHG emissions per capita.
Australia is however progressing to NZE at a faster rate than many other developed countries, and, along with the GCC Countries, is one of four countries rich in solar resources (and wind resources) that appear likely to lead in the development of the hydrogen economy over the next five years (and beyond): Australia, Chile, the PRC and Spain.
On February 24, 2022, it was reported widely that a funding agreement had been signed by Brookfield Infrastructure Group, DBHex Management Pty Ltd, Itochu Corporation and North Queensland Bulk Ports Corporation.
The purpose of the funding agreement is reported to be the completion of detailed feasibility in respect of the proposed Dalrymple Bay Hydrogen Project. The funding agreement, and the completion of the detailed feasibility study that it will allow, builds on the MoU signed among the parties in August 2021. It is likely that Dalrymple Bay Hydrogen Project will benefit from being located within one of the Queensland Renewable Energy Zones (QREZs).
Edition 20 of Low Carbon Pulse reported that Australian Future Energy (AFE) announced that it had entered into a memorandum of understanding (MoU) with leading Japanese trading house, Itochu Corporation. AFE intends to develop the USD 750 million Gladstone Energy and Ammonia Project (GEAP), and is reportedly close to commencing front end engineering and design (FEED).
It is reported that under the MoU, Itochu Corporation will consider potential investment in GEAP and the role that Itochu may have in the marketing of hydrogen-based fuels produced by GEAP. The GEAP is intended to produce 230,000 metric tonnes per annum of ammonia and 91,000 metric tonnes per annum of hydrogen.
On February 25, 2022, it was reported widely that Fortescue Future Industries (FFI, a wholly-owned subsidiary of Fortescue Metals Group, founded by Dr Andrew Forrest, AO), Powerlink (a state-owned enterprise) and Economic Development Queensland have an agreed arrangement that will provide the means to transmit renewable energy to FFI's Gibson Island 50,000 metric tonnes per annum Green Hydrogen production plant.
On February 28, 2022, it was reported widely that Orica (among other things, leading manufacturer of ammonium nitrate) and Origin Energy (one of the Big Three integrated energy corporations in Australia) had signed a memorandum of understanding (MOU) to undertake a feasibility study in respect of the establishment of a Hunter Valley Hydrogen Hub. As noted in previous editions of Low Carbon Pulse, the Hunter Valley is one of the areas of New South Wales (and Queensland) best known for world class coal-mines. The Green Hydrogen produced would be used to displace natural gas currently used by Orica at Kooragang Island, Newcastle, New South Wales facility, with the Green Hydrogen being combined with nitrogen.
One of the key elements of the reporting around the MOU is that the water to be used as the feedstock to produce Green Hydrogen is to be sourced from waste water, with the recycled water to be electrolysed using a 55 MW electrolyser. In countries (and regions) scarce in fresh water, or with competing needs for water, the use of waste water is now being considered actively. The three sources of water for Green Hydrogen production are: fresh water, waste water to produce recycled water or sea-water to produce desalinated water.
On February 16, 2022, Origin Energy announced that its 2,880 MW Eraring power station, in NSW, would close by August 2025 (seven years ahead of previous its planned closure). Eraring is the largest remaining coal-fired power station in Australia. As reported previously in Low Carbon Pulse, Origin Energy intends to install a 700 MW / 1,400 MWh BESS, on the site of the decommissioned power station.
On March 1, 2022, it was reported widely that the Government of Tasmania (Australia's Island State) is to develop a Green Hydrogen Hub in the Bell Bay region of Tasmania. Previous editions of Low Carbon Pulse have reported on the development Green Hydrogen and Green Ammonia projects in the Bell Bay region (see Editions 4, 18 and 20 of Low Carbon Pulse).
On March 4, 2022, the Government of Victoria announced its off-shore wind field (OWF) targets, with first electrical energy by 2028, and 9 GW of installed off-shore wind field capacity by 2040. As noted in previous editions of Low Carbon Pulse, Australia has some of the best off-shore wind resources in the world, and the State of Victoria has some of the best wind resources of the Australian states.
The detail of the policy settings of the Government of Victoria are in its Offshore Wind Policy Directions Paper.
2028 |
2032 |
2035 |
2040 |
---|---|---|---|
First electrical energy |
At least 2 GW of OWF capacity |
At least 4 GW of OWF capacity |
At least 9 GW of OWF capacity |
This section considers news items that have arisen within the news cycle of this Edition 36 Low Carbon Pulse relating to the Blue Carbon and Green Carbon initiatives and Biodiversity.
On March 3, 2022, The Irish Times reported on the initiative from environmentalists to map comprehensively and to preserve the seagrass beds. The article is well-worth a read, both for the commentary on seagrass ecosystems around the Republic of Ireland, and more broadly.
While the value of seagrass beds is well-established to provide habitat for marine life and bird species, the value of seagrass as a primary means of carbon storage is receiving increasing attention in the Republic of Ireland.
The Irish Times article notes that while seagrass covers around 0.1% of the ocean floor, seagrass stores 13% of carbon stored in the oceans. With the increasing awareness of the role of seagrass (as one of the means of Blue Carbon storage) is the realisation that one third of Blue Carbon sinks (including salt marshes and mangrove swamps) have been lost since 1990.
The infographic illustrates the impact of the answer to the question – to till or not to till?
The tillage of soil impacts the characteristics of soil and the release and the retention of GHG as a function of decomposition of the organic matter arising from land use. As ever, there is a balance – there are benefits in leaving residue and not tilling, including insulating soil from radiative heat, and the decomposing residue can provide structure as the organic matter combines with the soil over time.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to bioenergy, being energy, whether in gaseous, liquid or solid form, derived or produced from biomass. Bioenergy includes any energy derived or produced from biomass (organic matter arising from the life-cycle of any living thing, flora or fauna, including from organic waste streams), whether in gaseous, liquid or solid form.
In addition, recovered heat and waste heat (derived from any source, including waste water) has been added to this section.
From recent activity and reporting, it appears likely that the avoidance of waste heat energy, and the recovery of waste heat energy will become a priority under the first pillar as a part of Energy Efficiency (IEA) and Energy conservation and efficiency (IRENA). By some estimates, up to 67% of energy arising is wasted. The increased awareness of sourcing heat reflects increased awareness of the energy used to heat buildings, and its source: heating buildings results in around 25% of total final energy demand, with around 75% of the feedstock used to satisfy that energy demand derived from fossil fuels.
It would not be an edition of Low Carbon Pulse without an excellent infographic from the good folk at TotalEnergies.
Edition 34 included an infographic entitled TotalEnergies' Aerobic Digestion Ecosystem infographic. Edition 35 of Low Carbon Pulse included an infographic entitled Hydrogen Production Ecosystem.
As a sibling to the TotalEnergies' Aerobic Digestion Ecosystem infographic, the infographic provides an excellent overview of a biogas plant using anaerobic digestion technology to derive biogas from organic biomass (feedstock).
The biogas produced from the plan is itself feedstock for the production of biomethane (in the US referred to as Renewable Natural Gas or RNG), which can be compressed to produce compressed natural gas or Bio-CNG or liquified to produce Bio-LNG.
Attached is a link to the Ashurst Waste to Wealth Compendium including articles on waste, waste technologies, and anaerobic digestion.
On February 16, 2022, Eni announced that it had commenced the production of bio-ethanol from lignocellulosic biomass at its Crescentino plant using Proesa® technology.
As announced, the Crescentiono plant (Versalis Plant) is self-sustaining, processing up to 200,000 metric tonnes of biomass a year to produce up to 25,000 metric tonnes of bio-ethanol a year. The processing of the biomass producing renewable electrical energy which is used to produce steam used by the Versalis Plant, which processes short supply chain biomass and lignin. The Proesa® technology produces bio-gas using a thermal process (rather than an aerobic process).
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to battery electric storage systems (BESSs) and hydrogen energy storage systems (HESSs). In addition to BESSs and HESSs, other forms of energy storage systems are covered, including use of compressed air energy storage (CAES) and pumped storage. In this context, long duration energy storage (LDES) is considered, being energy technology that is able to allow the off-take electrical energy out of storage for a duration of more than four hours. In the brave new world described in Edition 13 of Low Carbon Pulse: "BESS storage of 10/12/24 hours is being contemplated for business users, and up to 72 hours for telecommunications companies, including to guard against the consequences of land-borne weather events". The November and December Report on Report provides a summary of the LDES Council and McKinsey report from November 2021.
BESS and HESS (and energy storage) news items arising from the news cycle covered by this Edition 36 of Low Carbon Pulse have been covered in other sections (see "BESSs to find place on the grid, someday", "State Grid Corporation of China (SGCC)", "Orica and Origin plan Hunter Valley Hydrogen Hub", and " Peabody to pivot").
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to carbon accounting and carbon dioxide removal (CDR), including bioenergy carbon capture (BECCs), bioenergy carbon capture use and storage (BECCUS), carbon capture and storage (CCS), carbon capture use and storage (CCUS) and direct air capture (DACS). Effective accounting for carbon arising and CDR go hand-in-hand.
By way of background CDR is recognised in the 2021 Report as including: afforestation, soil carbon sequestration, bioenergy with carbon capture and storage (BECCS), wet land restoration, ocean fertilisation, ocean alkalinisation, enhanced terrestrial weathering and direct air capture and storage (DACS) are all means of CO2 removal.
The IEA pathway to NZE estimates that in order to achieve NZE it will be necessary to capture and to remove up to 7.6 giga-tonnes of CO2 each year through CCS, CCUS and CDR. CCS and CCUS (and BECCS and BECCUS) involve the capture at the source of CO2, preventing release to the climate system. The following provides a helpful overview of carbon capture as things currently stand.
On February 25, 2022, ExxonMobil announced FID to expand carbon capture capacity at its LaBarge facility in Wyoming. The expansion will increase CO2 capture by 1.2 million metric tonnes a year.
The Port of Antwerp has announced progress on the initiative involving the Port of Antwerp, Air Liquide and Fluxys, and BASF, Borealis, INEOS, and TotalEnergies that commenced in 2019. The initiative in 2019 involved undertaking a feasibility study in respect of Antwerp@C, with the feasibility study being completed in 2021. Engineering studies are now to be undertaken, including to assess the development of infrastructure to serve as a backbone throughout the Port of Antwerp along industrial zones. The Antwerp@C CO2 project is to capture and to export CO2, with the CO2 to be stored permanently.
Air Liquide, Fluxys and Port of Antwerp subsidiary, Pipelink, have organised an Open Season to assess and to map demand for CO2 service provision initially and in the near term.
Edition 34 of Low Carbon Pulse reported on the Atlas of Carbon and Hydrogen Hubs from the Great Plains Institute. The US DOE has a Carbon Storage Atlas. The good folk at the Great Plains Institute used the DOE Carbon Storage Atlas to produce the following map.
On March 3 and 4, 2022, it was reported widely that Continental Resources is to invest USD 250 million to develop "the largest carbon capture and sequestration project of its kind in the world". Prospectively, the CCS project will source up to 8 million metric tonnes of CO2 annually from up to 31 ethanol plants in the mid-west of the US. See map for locations and development timeline.
On March 3 and 4, 2022, it was reported widely that INPEX (Japan's largest oil and gas exploration and production corporation) intends to seek to progress the development of a CCS project off-shore Darwin, Northern Territory, as part of its plans to achieve its commitment to NZE – Net Zero 2050.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the creation of carbon credits, the role of carbon credits, and the trading of them.
Also this section covers the development of hydrogen markets and trading (bilateral and likely wholesale).
As reported in Edition 18 of Low Carbon Pulse, on May 20, 2021, plans for a new global carbon exchange were announced. The global carbon exchange is to be located in Singapore. DBS Bank, Singapore Exchange, Standard Chartered Bank and Temasek have established a joint venture, Climate Impact X (CIX), for this purpose. The stated intention of the CIX is to provide "high-quality carbon credits to address hard-to-abate emissions".
Managing Director of the Monetary Authority of Singapore, Mr Ravi Menon, noted that the CIX represented the adoption of a "twin strategy" of the reduction of GHG emissions and the off-set of GHG emissions, which provides a "practical and effective" way to achieve the Paris Agreement Goals.
On March 3, 2022, it was reported widely that DBS Bank, Standard Chartered Bank, and Temasek are continuing to put in place the arrangements to allow the development of CIX. It has become increasingly clear that CIX will provide a trading platform for high quality carbon credits / carbon offsets. The standalone article entitled Carbon Credits, Article 6 and the Paris Rulebook will provide a detailed perspective on the importance of effective trading platforms.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development of production capacity to derive and to produce E-fuels (energy carriers derived or produced using renewable energy) and Future Fuels (energy carriers derived and produced that are characterised as clean carbon or low carbon fuels). E-fuels include Green Hydrogen and Green Ammonia, and Future Fuels include Blue Hydrogen and Blue Ammonia.
Previous editions of Low Carbon Pulse had reported on Wilhelmshaven as follows:
On January 24, 2022, AtlasInvest (a corporation that invests in both conventional oil and gas and renewable projects) announced plans to develop a €2.5 billion hydrogen facility that will derive hydrogen from methane (i.e., Liquid Natural Gas or LNG) imported from GCC countries.
The hydrogen facility will be located within the hinterland of the Port of Wilhelmshaven. It is reported that the hydrogen facility will have capacity to produce up to 500,000 metric tonnes of hydrogen per year. It is understood that CCS / CCUS is not contemplated, and as such the hydrogen produced will be Grey Hydrogen.
By way of reminder, Edition 14 of Low Carbon Pulse reported that on April 15, 2021, Uniper (German utility giant) planned to develop a hydrogen hub located in Wilhelmshaven (Green Wilhelmshaven) comprising a receiving terminal for Green Ammonia, then using a cracker to derive Green Hydrogen. The plans included a 410 MW electrolyser. On full development, it was estimated that the facilities at Green Wilhelmshaven would produce up to 295,000 metric tonnes per year of Green Hydrogen.
In Edition 14 it was noted that the decision of Uniper to develop Green Wilhelmshaven may end its plans to import LNG using a floating storage and regasification unit at Jade Bay, in Wilhelmshaven. Given the plans of AtlasInvest, it would seem likely that Wilhelmshaven may become a key Green Hydrogen and Grey Hydrogen Hub.
On February 27 and 28, 2022, it was reported widely that the German Federal Government had asked Uniper to resume its plans to develop an LNG receiving terminal in Wilhelmshaven as the Federal German Government develops its thinking around energy security. As originally planned, Uniper intended to develop a 7.3 million metric tonnes per annum floating storage receiving terminal (FSRU).
In addition to a FSRU at Wilhelmshaven, the Federal German Government wants to develop and deploy an LNG receiving terminal at Brunsbuettel. The LNG receiving terminal at Brunsbuettel has been planned for a while by joint venturers Gasunie (a Dutch natural gas infrastructure and transportation company) and Oiltanking (a logistics service provider of tank terminals for petroleum products, chemicals, and gases), a subsidiary of Marquard & Bahis AG), with Vopak reported as passive in the joint venture. It is understood that RWE expressed interest in use of the LNG receiving terminal at Brunsbuettel to re-gasify LNG imported from Australia.
German Chancellor, Mr Olaf Scholz said: "We have decided [quicky to] build two LNG terminals at Brunsbuettel and Wilhelmshaven", the speed of that decision became apparent.
On March 5, 2022, Vopak announced (under German LNG Terminal in implementation phase with new shareholder structure) that the shareholders of German LNG Terminal GmbH and the German Federal Government had agreed on key points to allow progress of the LNG receiving terminal at Brunsbuettel. On March 4, 2022, Gasunie and Kreditanstalt fur Wiederaufbau (KfW), acting for the German Federal Government, signed a memorandum of understanding to start construction jointly of the LNG receiving terminal at Brunsbuettel, with KfW to join German LNG Terminal GmbH as a shareholder, with Oiltanking and Vopak to leave as shareholders by May 2022.
The participation of the German Federal Government, through KfW, and the project implementation role taken by Gasunie, in the development of LNG receiving terminal at Brunsbuettel is extremely significant in all the circumstances.
By way of an update, it is apparent that the plans of Uniper for Green Wilhelmshaven include the development of a Green Ammonia receiving and hydrogenation terminal, and a Green Hydrogen production facility comprising 1 GW electrolyser capacity.
Echoing the longstanding narrative of Low Carbon Pulse, Mr Gunnar Grobler of Salzgitter AG stated: "We are aligning Salzgitter AG to low CO2 production processes and the circular economy … The secure and economically viable sourcing of Green Hydrogen is a fundamental pre-requisite on our journey toward SALCOS …".
On February 22, 2022, S&P Global Platts published its Hydrogen Price Wall, mapping hydrogen prices across means of production and regions of use. The Hydrogen Price Wall is to be found in the updated Atlas of Energy Transition.
While Low Carbon Pulse does not report on the cost or price of hydrogen, the S&P Global Platts Hydrogen Price Wall (as part of the Atlas of Energy Transition) provides a helpful point of reference.
On February 28, 2022, norsk-e-fuel.com announced plans to develop a sustainable / synthetic aviation fuel (SAF) production plant in Mosjøen, Norway, signing an agreement with the municipality of Vefsn and Mosjøen og Omegn Naeringsselskap KF (MON). The SAF production plant is to produce SAF from CO2 and water, powered by renewable electrical energy from the Mosjøen area. The CO2 will be sourced from direct air capture (DAC), using technology developed by Climeworks (see Editions 25 and 26 of Low Carbon Pulse) and electrolysers provided by Sunfire (see Editions 29 and 34 of Low Carbon Pulse).
The Norsk e-Fuel consortium comprises, Climeworks, Sunfire, Valinor AS (green energy investment corporation headquartered in Norway, and parent company of Norsk Vind), and Paul Wurth / SMS Group (leading engineering, procurement and construction corporation).
On March 1, 2022, it was reported widely that the Florida Power & Light Company is to develop and to deploy a Green Hydrogen production plant using a 25 MW electrolyser supplied by Cummins Inc. The Green Hydrogen production plant is to be located within the Cavendish NextGen Hydrogen Hub.
On March 1, 2022, it was reported widely, and covestro.com announced, that FFI and Covestro (leading plastics manufacturer headquartered in Germany) had contracted for the sale and purchase of 100,000 metric tonnes a year of Green Hydrogen starting in 2024.
On March 2, 2022, h2.view.com reported (under ExxonMobil unveils ambitious blue hydrogen targets for integrated refining and petrochemical site) on plans of ExxonMobil to produce one billion cubic feet of Blue Hydrogen daily at its petrochemical and refining site, Baytown, Texas. The Blue Hydrogen would be used as feedstock at the olefins plant at Baytown. CCS will be key to the plans, with up to 10 million metric tonnes of CO2 per annum to be captured.
On March 3, 2022, it was reported widely that European Energy had agreed to procure from Siemens Energy a 50 MW electrolyser (using proton exchange membrane technology) to produce Green Hydrogen to combine with CO2 to produce e-Methanol in Kassø, Denmark, located close to the source of renewable electrical energy to power the electrolyser, a 300 MW photovoltaic solar farm owned by European Energy. See infographic on e-Methanol production.
The e-Methanol production project will supply e-Methanol to AP Moller Maersk and to Circle K. As noted in previous editions of Low Carbon Pulse, one of the key risks for AP Moller Maersk in procuring dual fuel container ships was the supply of sufficient clean or low carbon methanol.
Edition 26 of Low Carbon Pulse reported on the decision of AP Moller Maersk to order eight dual fuel container vessels, capable of being power and propelled by methanol. In reporting on this decision it was noted that AP Moller – Maersk was aware of the need to continue to procure supplies of methanol.
Edition 35 of Low Carbon Pulse reported on Mitsubishi Heavy Industries (MHI) is to establish the Takasago Hydrogen Park to produce hydrogen that MHI will use to allow it to develop and to commercialise its hydrogen gas turbine technology. Takasago Hydrogen Park will use electrolyser technology to produce Green Hydrogen, and it will produce hydrogen from the thermal treatment of methane (Grey without CCS / CCUS, Blue Hydrogen, without CCS / CCUS).
On February 22, 2022, MHI made its own announcement which included the following infographic of the Takasago Hydrogen Park.
On February 22, 2022, h2-view.com reported Apex Clean Energy (see Edition 35 of Low Carbon Pulse) had signed a memorandum of understanding with the Port of Corpus Christi Authority and EPIC Midstream to consider the development of a GW scale green fuels hub, at the hub of which would been Green Hydrogen production capacity.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development of:
Also the section considers developments in cities to decarbonise (including using waste heat), and to cool, cities. The development of infrastructure at ports and installation and support vessels for off-shore wind developments are considered in the Ports Progress and Shipping Forecast section of each edition.
On February 25, 2022, northvolt (under Northvolt to transform closed paper mill in Sweden into new Gigafactory) announced that it plans to develop the Kvarnsveden Mill and the area surrounding it at Borlange, Sweden. As announced, northvolt is to use the site to manufacture battery cells - up to 100 GWh of cathode material annually.
On February 25, 2022, is was reported that the Delta Corridor has the support of the Dutch Government: the Delta Corridor comprises a pipeline system between Maasvlakte (Rotterdam – see Editions 30, 31 and 33 of Low Carbon Pulse for background on Maasvlakte) and the Ruhr region of northern Germany.
The Delta Corridor is one of nine projects within the Dutch Multi-Year Program for Infrastructure Energy and Climate (Miek). See map.
Edition 29 of Low Carbon Pulse reported on the commitment of FFI and Plug Power to develop a giga-factory in Australia as follows:
"Dr Andrew Forrest, AO (founder of Fortescue Metals Group, one of the Big Three Australian iron ore producers, and before that the driving force behind the development of the enduring Murrin Nickel Project) knows the "real deal" when he sees it. Dr Forrest established Fortescue Future Industries (FFI), and is chair of it.
On October 10, 2021, Dr Forrest announced the development of a giga-factory at Gladstone, Queensland. On October 14, 2021 Dr Forrest announced that the giga-factory would be developed in a 50 / 50 joint venture with Plug Power, with the giga-factory to develop proton exchange membrane (PEM) electrolysers."
On February 28, 2022, it was reported widely that Dr Andrew Forrest AO had attended a ceremony to mark the commencement of construction of the Green Energy Manufacturing Centre or GEM. The GEM will manufacture electrolysers, batteries, electrical cabling, photovoltaic solar panels, and wind turbines at Gladstone, Queensland.
On March 3, 2022, the plans of Green Hydrogen International were reported widely - the development of a 60 GW green hydrogen megaproject in the US State of Texas (Hydrogen City). The plans include the production of 2.5 million metric tonnes of Green Hydrogen a year, and the use of Piedras Pintas Salt Dome as a HESS. See graphic.
On March 3, 2022, the Mayor of New York City, Mr Eric Adams, announced plans to redevelop the South Brooklyn Marine Terminal as the location for facilities to support off-shore wind development and operation and maintenance of the Beacon Wind (see Edition 8 of Low Carbon Pulse) and Empire Wind (see Edition 20 of Low Carbon Pulse) off-shore wind field projects. The redeveloped terminal will be called the Sustainable South Brooklyn Marine Terminal.
On March 4, 2022, the UNEP published Smart, Sustainable and Resilient cities: the Power of Nature Based Solutions. The report will be considered in the March and April Report on Reports.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the extraction of metals and minerals necessary for the decarbonisation of activities to progress towards achievement of NZE, the use of E-fuels and Future Fuels to power and to propel vehicles used to extract and to transport metals and minerals, and the use of E-fuels and Future Fuels to process and to treat those metals and minerals. Also this section considers the Difficult to Decarbonise industries, including the iron and steel sector.
On February 23, 2022, a number of new sources reported that Vale SA (one of the world's largest mining and resources corporations) had signed a memorandum of understanding with Hunan Valin Group. Vale SA is seeking to reduce its Scope 3 emissions by 15% by 2035, and this initiative is understood to be part of the planning.
On February 26, 2022, the post-gazette.com published an article written by Ms Jennifer Wilcox, entitled Creating a mineral supply chain from mining wastes. The article is well-worth a read. The premise of the article is one that is applicable on a global scale: spoil / waste arising from mining operations (and power operations for that matter) is stored on open-sites, sites that require rehabilitation.
At many sites, metals and minerals are present, including rare earth elements (REEs). The challenge is the development of scalable technology, and accompanying viable economics, to recover metals and minerals from the spoil / waste. Again, this is a global challenge. This is an area in which governments have a role to play in providing funding support to allow the development of technologies that recover metals and minerals from all waste stream on a scalable and viable basis.
On March 2, 2022, it was reported widely that Peabody Coal has entered into a joint venture with Riverstone Credit Partners, R3 Renewables, to develop up to 3.3 GW of photovoltaic solar capacity and 1.6 GW of BESS capacity by the mid-2020s. The photovoltaic solar and BESS capacity is to be located on, or close to, land on which coal mining operations have been undertaken, starting with land in the US States of Indiana and Illinois.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development of wind power generation capacity, on-shore and off-shore (fixed bottom and floating).
On February 18, 2022 the Ministry of Infrastructure invited applications for three more off-shore wind field concessions (following the processes that started on January 21, 2022 and February 8, 2022). At the moment, there are three 60 day windows open for applications.
It is reported that there are 11 areas for which applications may be submitted to build and to operate off-shore wind fields and energy islands: these areas are the nine the subject of current application processes, and two in respect of which windows were opened in Q4 of 2021.
On February 25, 2022, offshoreWIND.biz reported (under Ørsted and PGE Seek More Room Offshore Poland) that on February 23, 2022, Ørsted and PGE had applied for off-shore wind field capacity directly adjacent to the 2.5 GW Baltica Offshore wind project (see Editions 14 and 18 of Low Carbon Pulse for coverage of Baltica 2 and 3).
Edition 35 of Low Carbon Pulse reported that PKN Orlen (a Polish based oil refiner and petroleum retailer, see Editions 20 and 34 of Low Carbon Pulse) and Polska Grupa Energetyczna (PGE) has submitted multiple applications for permits to develop off-shore wind field capacity in areas recently designated for development in the Polish sector of the Baltic Sea.
PKN Orlen has submitted applications for seven areas, covering around 3 GW of installed capacity. PGE has submitted applications for six areas, with two applications submitted jointly with Enea and one jointly with Tauron.
Edition 35 of Low Carbon Pulse reported that the Swedish Government is to identify suitable areas to develop off-shore wind fields for the purposes of generating 120 TWh annually from sources of renewable electrical energy (noting that the electrical energy consumption of Sweden is 140 TWh annually).
It is understood that the Swedish Energy Agency (SEA) has identified, and reported on, three areas – located in the Baltic Sea, the Gulf of Bothnia and the North Sea having wind resources of between 20 to 30 TWh annually. The SEA will work with the Swedish Maritime Administration (SMA) to identify areas from which 90 TWh annually can be generated. The SEA is to report on progress by no later than March 2023, the SMA no later than December 2024.
As noted on page 1 above, the hammer fell on the first auction process run for the award of lease areas to develop off-shore wind fields in US Federal waters.
As reported in Edition 33 of Low Carbon Pulse, the auction process for the development of off-shore wind field development for the New York Bight would commence on February 23, 2022 with six areas up for bids by developers (Lease Areas). The auction process is the domain of the Bureau of Ocean Energy Management (BOEM).
The auction process commenced on February 23, 2022. During the first day of the auction process there were 21 rounds of bidding: see renewablenergyworld (under New York Bight offshore wind auction advances as bids total $1.5 billion). See graphic on the Potential Energy Impact of the New York Bight Lease Areas.
On February 24, 2022 (day two of the auction process), the BOEM suspended bidding after the rounds of bidding did not result in winners.
On February 25, 2022 (day three of the auction process), the BOEM continued, and completed the auction process – after three days, and 64 rounds of biddings. The headline was that the auction process had resulted in the award of the six Lease Areas for an aggregate of final bid prices of USD 4.37 billion.
LEASE AREA AND CAPACITY |
SUCCESSFUL BIDDER AND BID |
---|---|
OCS-A 0539 / 1.38 GW to 3 GW |
Bight Wind Holdings, LLC (National Grid & RWE Renewables) USD 1.1 billion |
OCS-A 0538 / 964 MW to 1.5 GW |
Attentive Energy (EnBW and TotalEnergies with Total now having 100%) USD 795 million |
OCS-A 0541 / 925 MW to 1.2 GW |
Atlantic Shores Offshore Wind Bight LLC (EDF and Shell) USD 780 million |
OCS-A 0537 / 870 MW to 1.1 GW |
OW Ocean Winds East LLC (EDP Renewables and Engie) USD 765 million |
OCS-A 0541 / 925 MW to 970 GW |
Invenergy Wind Offshore LLC USD 645 million |
OCS-A 0544 / 525 to 700 MW |
Mid-Atlantic Offshore Wind LLC (CIP) USD 285 million |
There were 25 corporations that had pre-qualified to bid. Each pre-qualified bidder could bid for one or more Lease Area. If there were two or more live bids for any Lease Area, a further round of the auction process took place. At the start of each round, the BOEM increased the bid price for each Lease Area.
On February 25, 2022, it was reported widely the BOEM has moved on from the New York Bight auction process to sizing and shaping of the offshore wind leases off the coast of the US State of Oregon: BOEM has identified three Call Areas, thinking around which is now being finessed to define Wind Energy Areas. See the map of proposed Call Areas
On February 25, 2022, the Network Agency of the German Federal Government (Bundesnetzagentur) commenced the tender process for up to 980 MW of off-shore wind capacity. The bidder with the bid that requires the least funding support will be successful. Bids must be submitted on or before September 1, 2022.
On February 25, 2022, Rijksdienst voor Ondernemend (RVO) Nederland (anglesized to the Enterprise Agency) published a report (entitled the Netherlands System Integration Offshore Wind 2030-2040). The RVO is proceeding on that basis that by 2040 there will be 38.5 GW of installed off-shore wind field capacity, moving to 72 GW by 2050 (under one scenario – the national scenario) and 31 GW, moving to 38, 42 GW or 43 GW of installed capacity by 2050 (under three other scenarios).
Edition 29 of Low Carbon Pulse noted that on October 6, 2021, it was reported that the RVO is procuring the undertaking of metocean campaigns in respect of two off-shore areas (Lots 1 and 2) in the Dutch sector of the North Sea, within the Ijmuiden Ver Investigation Area (IVIA).
The IVIA is one of three off-shore areas identified in the Dutch Offshore Wind Energy Roadmap 2030. The IVIA is 62 kms off the west coast of the Netherlands, having an area of 400 km2. The IVIA has four lots in all, with IVOA I and II to be tendered in to 2023, and IVOA III and IV to be tendered in to 2025.
On March 4, 2022, the author came across the following graphic representing wind farms across Europe - the brighter the green dot, the greater the intensity of electrical energy produced by the wind farm
Edition 34 of Low Carbon Pulse noted that on January 25, 2022, Korea Floating Wind (comprising Aker Offshore Wind (33.3%) and Ocean Winds (66.7%), had been granted its first Electricity Business Licence (EBL) for 870 MW in respect of its off-shore wind field. At that time, the CEO of Aker Offshore Wind, Mr Phillippe Kavagyan stated: "We are very pleased by this timely grant of the first Electric Business Licence, confirming that strong support that we receive in South Korea to make offshore wind a national ambition."
On March 4, 2022, it was reported widely that that Korea Floating Wind had been granted its second EBL for 450 MW in respect of its off-shore wind field. Ocean Winds announced the grant of the second EBL, and noted:
"obtaining the second EBL represents another key step towards realising the world's first large scale commercial floating wind project. The EBL is a mandatory requirement to generate and to supply electricity in South Korea … [Korea Floating Wind] now holds a 1.32 GW EBL [of] capacity".
The grant of the second EBL allows continued development, on an exclusive basis, of the East Blue Power area, Korea Floating Wind working with its partner Kumyang Green Power. Looking ahead, the intention is to achieve operational completion by 2028, having achieved financial close in 2024".
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development of solar power generation capacity, on-shore (photovoltaic and concentrated) and floating.
Also this section covers relating to the development of facilities and technologies to process and to recycle NZE Waste. Also this section considers the treatment of residual NZE Waste.
On February 24, 2022, it was reported widely that EDP Renewables (a leading global renewable energy corporation, headquartered in Portugal) is to invest USD 10 billion in Singapore and South East Asia (SEA).
EDP has concluded its acquisition of 91% of Sunseap (a Singapore renewable energy corporation – see Editions 13, 14, and 22 of Low Carbon Pulse).
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development and deployment of land vehicles, buses and coaches, cars, industrial vehicles and trucks, and trains.
On February 24, 2022, is was reported widely that Hexagon Purus (a leading hydrogen system technology provider) is to supply high-pressure hydrogen systems for use in buses powered and propelled by fuel-cell electrical technology.
On February 25, 2022, it was reported widely that by June 2022 Santiago will have 1,775 electric buses running across the city. In addition to electromobility in Santiago, regions of Chile are progressing to electromobility.
During the news cycle of this Edition 36 of Low Carbon Pulse, MAN Energy Solutions (a subsidiary of Volkswagen) announced plans to move into the market for electrolysers, investing €500 million to produce polymer electrolyte membrane electrolysers "as quickly as possible". This may be regarded as a significant development because the application of the manufacturing and fabrication capacity of MAN Energy Solutions will increase significantly the supply of electrolysers.
Since the turn of the calendar year 2022, a number of news items have appeared indicating that progress is being made to develop hydrogen combustion engines (HCEs). The author was planning to include a summary of progress in this Edition 36 of Low Carbon Pulse.
On February 24, 2022, fuelcellworks.com published an article (under Hydrogen Combustion Engines Are Coming) that provides a useful summary of the current state of play: Cummins Inc, Renault, Toyota and Yamaha have announced progress to develop Hydrogen Combustion Engines or HCEs (that combust hydrogen to power and to propel vehicles, rather than using fuel-cell technology to derive electrical energy from hydrogen). One can sense the displacement of petrol head, with hydrogen head.
On March 4, 2022, it was reported widely that the Swedish city of Gothenburg is to test wireless charging of taxis, allowing continuous charging of taxis without the need to drivers to spend time recharging.
On March 1, 2022, it was reported widely that Acciona and AFC Energy had announced the development of a hybrid hydrogen fuel cell system (HFC). The HFC will be deployed at a construction site of Acciona so as to decarbonise the site. It is understood that the HFC is based in Anion Exchange Membrane technology of AFC Energy, and will allow the use of green methanol.
The following infographic is helpful to understand the cost of electrical vehicle battery costs:
On February 23, 2022, it was reported widely that MaserFrakt (leading transport group) had placed orders for two Hyzon HyMax-250 fuel cell trucks, having a range of 680 kilometres. This is continued and further progress for MaserFrakt which already has 750 vehicles in its transport fleet powered and propelled without the use of fossil fuels.
On February 23, 2022, it was reported widely that the Van Kessel Group (headquartered in the Netherlands) had ordered five hydrogen trailers from Wystrach GmbH (a subsidiary of Hexagon Purus, a leading hydrogen system technology provider). It is understood that each trailer has capacity to transport 400 kilograms of compressed hydrogen (at 300 bar).
Van Kessel Group will use the hydrogen trailers to deliver hydrogen to sites installed with its Greenpoint Hysolar refuelling infrastructure. In addition to the Greenpoint Hysolar refuelling infrastructure in operation at Nieuwegein, Van Kessel Group is developing refuelling infrastructure at Dordrecht, Ede, and Oude-Tonge.
On February 25, 2022, it was reported widely that Aberdeen, Scotland, is to procure a waste truck powered and propelled using fuel-cell technology. This procurement is a further step in the forward looking thinking of Aberdeen City Council.
On February 24, 2022, it was reported widely that Chevron Corporation and Iwatani Corporation of America have agreed to install hydrogen refuelling infrastructure at 30 locations in California by 2026.
As might be expected, the hydrogen refuelling infrastructure is to located at existing CVX sites, with hydrogen to be sourced from the CVX refinery at Richmond, California, and from hydrogen production plants to be developed.
Iwatani is to operate and to maintain the hydrogen refuelling infrastructure and provide logistics and transportation services.
On February 28, 2022, Linde Engineering announced that the first CP90 hydrogen refuelling station in the US had opened in Oakland, California. The CP90 hydrogen refuelling station provides up to three times more capacity that existing hydrogen refuelling stations elsewhere in California.
On February 28, 2022, h2-view.com reported that Ameresco (a cleantech integrator and renewable energy asset developer, owner and operator) is to participate in the Guidehouse Clean Hydrogen Economy consortium (which includes Bank of America, Citi Group, Cummins Inc, Linde and Walmart). By participating in the consortium, Ameresco is seeking to advance Green Hydrogen as "a low-carbon, scalable fuel source for the heavy transportation sectors in Los Angeles and Phoenix along the I-10 corridor".
On March 1, 2022, the Australian Renewable Energy Agency (ARENA) announced that it is provide funding support for Viva Energy Australia (VEA), to allow VEA to develop, build and operate a New Energies Service Station (NESS) located at a site in Geelong, Victoria.
The VEA NESS will provide recharging facilities for BEVs and refuelling facilities for FCEVs over the road from VEA's petroleum refining facilities in Geelong. VEA will develop and deploy a 2 MW electrolyser to produce Green Hydrogen for use at the NESS.
ARENA is providing funding support to VEA to acquire 15 FCEVs, which will use the Green Hydrogen produced by VEA, thereby providing demand. The NESS will be the first of its kind, open to the public as a dedicated heavy goods vehicle recharging and refuelling station for BEVs and FCEVs.
In addition to demand from VEA, Barwon Water, Cleanaway Waste Management Group, ComfortDelGro, Australia, and Toll Group have committed to the purchase of FCEVs, including to power and to propel prime movers to transport municipal solid waste and waste water. This innovative approach to the development of supply and demand is significant, providing a model for like developments and deployments elsewhere.
On March 1, 2022, it was reported widely that Dr Andrew Forrest, AO (chair of Fortescue Metals Group) had acquired Williams Advanced Engineering to enable FMG to develop a train power system that will not require any recharging – the so called Infinity Train.
As reported, the train power system will capture energy to recharge batteries on the declines along the route traversed by the trains. FMG has 54 locomotives and 16 train sets.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development and deployment of production and storage capacity, and infrastructure, at ports for E-Fuels / Future Fuels (including Hydrogen Hubs) and to capture and to store or to use of carbon, or both (including Carbon Clusters), and the connection of port infrastructure to the hinterland.
Also this section considers news items that relate to the development of infrastructure at ports, including to allow the development of off-shore wind fields.
Within the news cycle covered by this Edition 36 of Low Carbon Pulse, no news items have come to light on Ferries that may be regarded as significant for the purposes of Low Carbon Pulse.
On February 24, 2022, it was reported widely that H2 Gate (comprising Evos, Hydrogenious, Hysilabs, and Electriq Global), with the Port of Amsterdam, is committed to the development and deployment of 100% a Green Hydrogen supply / value chain from the Port of Amsterdam. It is understood that the intention is to make use of multiple means of carriage / transportation of hydrogen.
As reported in Edition 30 of Low Carbon Pulse, Amsterdam has launched a Hydrogen Hub (AHH). The AHH involves collaboration by the Port of Amsterdam, Amsterdam Airport, Schiphol, Vattenfall, Liander, NZKG, Gasunie, Oram Nobian and the province of North Holland and the municipalities of Amsterdam and Zaanstad. In is understood that the principal aim of the hub is achieve the large-scale transition of the Amsterdam Area and North Sea Canal Area into a hydrogen economy by 2050 through the import and export of hydrogen.
On February 21, 2022, fuelcellworks.com reported that Swedish ship designer, FKAB Marine Design had received Approval in Principle (AiP) for its hydrogen powered and propelled MR Tanker. As reported, this is the first AiP of a design using technology that is current and viable, and that achieves IMO 2050 targets. The design combines CH4 (present in LNG, and used as fuel) with steam to produce CO2 and H2: using gas reforming technology of Helibo, CH4 molecules are split into CO2 and H2, with the H2 used to fuel internal combustion engines and fuel cells using the hybrid marine power and propulsion system technology of ABB. The MR Tanker has been developed jointly by ABB and Helbio (as subsidiary of Metacon AB, a company specialized in development, manufacturing and marketing of Hydrogen and Energy Systems primarily from renewable sources).
On February 23, 2022, Ballard Power Systems (at ballard.com, under Ballard & ABB Approval in Principle for High-Power Fuel Cell Concept to Power Ships) announced that ABB and Ballard Power System, working together, had received approval in principle (AiP) from DNV (leasing classification society, headquartered in Høvik, Norway) for fuel-cell concept developed jointly by ABB and Ballard Power Systems.
The AiP is in respect of a fuel-cell concept that is capable of generating 3 MW or 4,000 horse power of electrical energy. For ABB and Ballard Power Systems the AiP allows them to proceed to progress the further development of the concept to commercialisation.
This section considers news items that have arisen within the news cycle of this Edition 36 of Low Carbon Pulse relating to the development and deployment of technology at airports and in the aviation sector to decarbonise the airports and the aviation industry.
Edition 36 of Low Carbon Pulse was long on news on sustainable / synthetic aviation fuel (SAF), a fair amount of the news involving Neste.
On February 23, 2022, Neste announced (under Using waste as a resource to fight climate change) that it was teaming Mahoney Environmental to source used cooking oil from 45,000 restaurants across the US to produce SAF. In passing, it is encouraging to understand the scale that is contemplated as being necessary.
Among other things, Neste and Mahoney are working with Dallas Fort Worth International Airport (DFW IA) for the purposes of helping DFW IA achieve its target of NZE by 2030.
As a reminder, Edition 35 of Low Carbon Pulse noted in respect of SAF: |
Airbus Industries announced its thinking around progress to use of hydrogen to power and propel aircraft at the end of Q3 of 2020 ("Zero-e"). The announced thinking was accompanied by an outline of three hydrogen powered aircraft concepts:
Edition 33 of Low Carbon Pulse reported as follows:
On February 21, 2022, hydrogen-central.com reported (in something of an update), that the first hydrogen powered and propelled flight from Rotterdam to London was expected in 2024. The report impressed on the reader that: "Together with ZeroAvia, Royal Schiphol Group and Rotterdam The Hague Airport are working hard so that the first zero-emission flights with hydrogen can depart form Rotterdam to London in 2024".
On March 2, 2022, it was reported widely that All Nippon Airways Co (ANA) and Japan Airlines Co (JAL), and a further 14 corporations, had established Act for Sky. Act for Sky has been established to promote production of SAF using cooking oil, and other technologies to derive and to produce SAF from other sources of waste.
On March 3, 2022, TotalEnergies announced that it is producing SAF at its biojet fuel production facilities in La Mède (its biorefinery at Bouches-du-Rhône) and at Oudalle (Seine-Maritime). The production of SAF by TotalEnergies allows it to match the demand for SAF arising from the policy setting in France requiring the use of SAF to satisfy at least 1% of demand for aviation fuel.
At the end of each edition of Low Carbon Pulse, publications mentioned or reviewed in the edition are listed, by organisation, title / subject matter, and link:
ORGANISATION |
TITLE / SUBJECT MATTER |
---|---|
India Hydrogen Alliance |
India H2 Monitor – February 2022 |
International Panel on Climate Change (IPCC) |
Climate Change 2022: Impacts, Adaptation and Vulnerability |
International Energy Agency (IEA) |
Global Methane Tracker 2022 |
IRENA and State Grid |
Smart Electrification with Renewables: Driving the transformation of energy services |
National Oceanic and Atmospheric Administration (NOAA) |
2022 Sea Level Rise Technical Report |
Nature |
Observed poleward freshwater transport since 1970 |
Rijksdienst voor Ondernemend (RVO) Nederland |
Netherlands System Integration Offshore Wind 2030-2040 |
S&P Global Platts |
Hydrogen Price Wall |
UNEP |
Smart, Sustainable and Resilient cities: the Power of Nature Based Solutions |
Rijksdienst voor Ondernemend (RVO) Nederland |
Netherlands System Integration Offshore Wind 2030-2040 |
The author of (and researcher for) each edition of Low Carbon Pulse is Michael Harrison.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.
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