Low Carbon Pulse Edition 26
08 September 2021
Please click here for Edition 25 of Low Carbon Pulse. Please also click here and here for the first two articles in the Shift to Hydrogen Series (S2H2): Elemental Change series: the S2H2 series provides a narrative and perspective on hydrogen generally. Please click here for the first feature in the Hydrogen for Industry (H24I): the H24I features provide an industry by industry narrative and perspective.
The third and fourth articles in the S2H2 series will be published before the end of October 2021. The third article will be on Hydrogen Plans, Roadmaps, and Strategies, and the fourth article will be on CCS / CCUS.
As noted in Edition 25 of Low Carbon Pulse, since mid-May 2021, a number of reports have been published outlining pathways to NZE. The report with the most impact, certainly on first reading, was the BloombergNEF New Energy Outlook (NEO). It packs a punch. Edition 22 of Low Carbon Pulse reported on NEO: NEO is worth reading, and viewing, noting that the graphics are compelling.
As reported in Edition 22 of Low Carbon Pulse, a key message from NEO was: "based on current trends, the world is on track to exceed its carbon budget, and the 2OC increase in global average temperatures compared to pre-industrial times, by 2044".
Given the Sixth Assessment Report – Climate Change 2021, The Physical Science Basis (2021 Report) of the Intergovernmental Panel on Climate Change (IPCC), and the increasing frequency of extreme weather events, the focus has switched to the shared socio-economic pathway (SSP) in the 2021 Report. One pathway, SSP1-1.9, assumes an accelerated reduction in GHG emissions and achievement of NZE by 2050. SSP1-1.9 emphasises the importance of staying as close as possible to a 1.5OC increase in global average temperatures.
The question being asked increasingly is how much longer do we have until the carbon budget is exceeded and we reach a 1.5OC increase, or until we enter the 1.5OC to 2OC range. The 2021 Report suggests that we are likely to exceed a 1.5OC increase by 2040 (but we may do so earlier). The Chief Economist of BloombergNEF, Mr Seb Henbest, has noted: "As soon as 2028, we will have exhausted the emissions budget to stay within 1.5 OC of warming".
However the GHG emission carbon budget is represented, it hoped that at COP-26 there is a collective realisation of the need to provide more funding to reduce GHG emissions so as to replenish the global carbon budget.
As foreshadowed in previous editions of Low Carbon Pulse, ahead of COP-26, current and relevant matters will be considered. This Edition 26 of Low Carbon Pulse covers the roles of Central Banks, Carbon Price and the Courts in the context of reductions in GHG emissions generally and NZE specifically.
In an opinion piece, Wood Mackenzie notes that hydrogen is likely to play a crucial role in energy transition, and that COP-26 will be the acid test for the development of hydrogen (and hydrogen-based fuels).
Wood Mackenzie notes that COP-26: must go far beyond setting new emissions targets. Ensuring that hydrogen is not just a "fuel for the future", but a fuel that needs to be … implemented into global society from today [and] should be top of the agenda."
The Wood Mackenzie opinion piece goes on to the outline why hydrogen is vital. The opinion piece is excellent. The underlying theme is that the production, and use, of hydrogen (and hydrogen-based) energy carriers, in particular energy carriers that are green, needs to increase, promptly. This theme is echoed in Reclaiming Hydrogen for a Renewable Future, from Earthjustice, and the DNV Report (see DNV Report on this page). It is difficult to overstate the need for government involvement in the development of renewable electrical energy capacity to allow the development of Green Hydrogen capacity as soon as possible.
As ever, the challenge is the amount of renewable electrical energy that is needed for this, and the related matter of land and the location of that land. Also, the mass of water required, and its sources and its storage (in addition to current water use), are critical. As such, there is a role for Government in the development of off-shore wind fields to be dedicated to the production of Green Hydrogen (and as such allowing for the production of Green Ammonia and Green Methanol), using electrolysers located off-shore (noting the Siemens off-shore electrolyser pilot as part of H2Mare: see below under German progress continues, home, on the seas, and overseas). Also there is likely a role for Government as wholesale buyer and seller of Green Hydrogen.
Each month the US National Oceanic and Atmospheric Administration (NOAA), among other things, reports on findings for the previous month. In the second edition of Low Carbon Pulse each month, we will cover latest data from the NOAA report for the previous month.
On August 31, 2021, CNBC reported on the publication of the 2020 Report. A headline from the 2020 Report is that 2020 was the UK's third warmest year since records began in 1884. As noted in Edition 12 of Low Carbon Pulse, on 24 March 2021, human-activities in the UK were giving rise to the lowest level of GHG emissions since 1879. This illustrates that the temperature graph is trending up, and the GHG emissions graph, down, reflecting the need to accelerate the reduction of GHG emissions.
As a straight-talking Texan known to the author said in early June 2021: "When it rains, it rains too much, when it's hot, it's really hot, too hot. Y'all can deny the reason for it, but not the fact of it".
In the reporting on climate change at the moment, many commentators have picked up on the term "extreme weather event", possibly in the context of the 2021 Report. As is often the case, the term is used loosely. For ease of reference it means: "an event that is rare at a particular place and time of year, normally rare means rarer than the 10th or 90th percentile of a probability density". The paradox is that the greater the frequency of "extreme weather events", by definition the fewer of them there will be!
On September 1, 2021, DNV (the Norwegian headquartered classification society) released its annual report (DNV Report).
While the DNV Report will be considered and summarised in the August Report on Reports as an Appendix to Edition 27 of Low Carbon Pulse. The headline from the DNV Report is that it is close to certainty, even if there was the renewable electrical energy to required levels installed today, that there is no prospect currently of achieving NZE by 2050 absent a massive increases in hydrogen deployment.
The findings in the DNV Report are aligned with those of Chief Economist of BloombergNEF, Mr Seb Henbest, effectively that by 2030 the available carbon budget to stay within the 1.5OC average global temperature increase will have been exceeded.
Carbon Budget is used frequently, and in different contexts, but in this context it is used to refer to the maximum aggregate mass of all GHGs in the atmosphere that must not be exceeded to ensure that a stated increased in average global temperature will not be exceeded.
Background: The following news item has been steaming towards us for a while: Edition 25 of Low Carbon Pulse reported on Maersk's move to methanol and Edition 21 of Low Carbon Pulse reported that A.P. Moller – Maersk had signed a ship-building contract with Hyundai Mipo Dockyards, the first methanol powered and propelled container vessel.
Previous editions of Low Carbon Pulse (and sibling publications of Low Carbon Pulse, Global Ports, Port Liability Regimes), have reported on the progress of the shipping industry towards decarbonisation, including "achieving zero-emission vessels as the dominant and competitive choice by the end of the [current] decade" (see Edition 19 of Low Carbon Pulse under Global Maritime Forum), and the initiatives of some countries and economic blocs to achieve this outcome, including the extension of the EU ETS to the shipping industry (see Edition 22 of Low Carbon Pulse).
Edition 25 of Low Carbon Pulse reported on the move by Maersk (the world's largest container shipping company) to contract with Denmark's European Energy (and its subsidiary REIntegrate) for the development of an e-methanol production facility to supply low carbon methanol.
The headline being that the initiative kept Maersk on schedule to have: "the world's first container vessel operated on carbon neutral methanol on the water by 2023".
On August 24, 2021, A.P. Moller – Maersk announced that Maersk had accelerated the rate of its fleet decarbonisation with an order for eight container vessels capable of being powered and propelled using carbon neutral methanol. With each container vessel costing USD 175 million, this is a USD 1.4 billion commitment.
The eight container vessels are to be built by Hyundai Heavy Industries (HHI) and delivered in 2024. The multi-vessel shipbuilding contract with HHI gives Maersk an option for four additional container vessels. As would be expected, the engines will be dual fuel, to allow the use of both low carbon methanol and low sulphur heavy fuel oil. As noted in previous editions of Low Carbon Pulse, HHI has been working on the dual fuel technology for some time with MAN ES and Alfa Laval (see Edition 21 of Low Carbon Pulse).
The CEO of A.P. Moller – Maersk, Mr Soren Skou said: "The time to act is now, if we [are] to solve shipping's climate challenge. This order [for the eight container vessels] proves that carbon neutral solutions are available today across container vessel segments and that Maersk stands committed to the growing number of our customers who look to decarbonise their supply chains."
As is the case with all sectors of the transport industry, a decision needs to be taken as to when to invest in new fleet, and when to refurbish and retire existing fleet. These decisions may be regarded as pressing for the container shipping industry, and the broader shipping industry.
As noted in Edition 25 of Low Carbon Pulse (see under Mammoth commitment from Mammut), many corporations are seeking to decarbonise their supply / value chains, increasingly seeking commitments from shipping lines to achieving NZE.
For global corporate sustainability leader, A.P. Moller – Maersk, with strong ties to other corporate sustainability leaders (including Amazon, Disney, H&M Group, HP Inc, Levi Strauss & Co., Microsoft Inc., Novo Nordisk, Protor and Gamble, PUMA, Schneider Electric, Signify, Syngenta and Unilever), this commitment may be regarded as part of a new sustainability pact.
As will be apparent from the announcement from A.P. Moller – Maersk, customers of Maersk are delighted by the commitment.
SCOPE 1 | SCOPE 2 | SCOPE 3 |
---|---|---|
Direct GHG emissions arising from any activity and source that are controlled or owned by an organization. | Indirect GHG emissions arising from any activity and source not controlled or owned by an organization but used by it. | GHG emissions arising from any activity, not Scope 1 or 2 emissions, but part of the supply chain of that organization. |
Possibly the most stated and restated theme in Low Carbon Pulse (and sibling publications relating to hydrogen and hydrogen-based fuels) is the need for supply and demand for hydrogen and hydrogen based energy carriers to develop in tandem.
In the announcement of the order for the eight container vessels, Mr Soren Skou noted that: " ..this is a firm signal to fuel producers that sizeable market demand for the green fuels of the future is emerging at speed".
It is understood that Maersk will use carbon neutral e-methanol or sustainable bio-methanol as soon as possible. Also it is understood that in the near to medium term, the supply of low carbon methanol is likely to be challenging. To address this challenge, it should be expected that A.P. Moller – Maersk will increase demand from corporations with which it has existing supply arrangements, and contract with other corporations for supply.
Hitherto it has not been necessary to take a deeper dive into the facts and statistics of methanol in Low Carbon Pulse, but given the commitment made by A.P. Moller – Maersk, and readily available information from the Methanol Institute (of which more later in this Edition 26 of Low Carbon Pulse), and other sources, a greater level of factual and statistical background seems appropriate. (The fourth article in the S2H2 series, CCS and CCUS, takes a deeper dive, critically in the context of use of CO2).
A.P. Moller – Maersk has signalled for some time that it is likely to prefer carbon neutral e-methanol or sustainable bio-methanol over other energy carriers for its shipping fleet.
One of the key decision points for A.P. Moller – Maersk will have been the energy density of methanol (compared to other low carbon fuels), energy density being one the three key characteristics identified in the excellent Hydrogen Europe publication How Hydrogen Can Help Carbonise the Maritime Sector (HE FF Paper) as being key for any decision on use of low carbon fuels. The other two key characteristics are availability and security of supply (of which A.P. Moller – Maersk is clearly aware) and GHG neutrality "from well to wake" (see Edition 16 of Low Carbon Pulse, and below under Wake up to well-to-wake accounting).
In 2020, global methanol production was estimated to have been around 100 million tonnes. Coincidently, this is around the same mass of grey hydrogen produced in 2020. Methanol is used as feedstock for the production of olefins (and, in turn, plastics) and for the production of chemicals, and as an additive to motor spirit (i.e., gasoline or petrol).
Currently, the vast majority of methanol (CO3OH) produced is derived from synthesised gas (syngas): carbon monoxide (CO) combined by hydrogen (H2) derived from the application of steam methane reforming (SMR) of natural gas (and possibly gasification of coal) to produce CO2: in chemical shorthand, CO2 is produced by the hydrogenation of CO using a catalyst (comprising compounds of copper, alumina, magnesia and zinc oxide). SMR is the same technology used to derive grey hydrogen from natural gas.
If the electrical energy for hydrogenation is renewable, the CO3OH is an energy carrier with embedded carbon that will give rise to CO2 on oxidation, but the CO2 that arises, in theory at least, will be absorbed into a renewable resource, with the continued growth in that renewable resource providing a carbon neutral outcome.
Edition 27 of Low Carbon Pulse will include a piece on phrases and words used to seek to convey lower or low carbon fuels and feedstocks. In passing, it is noted that this news item could have been included in either the E-Fuel / Future fuel round up or Port News and Shipping Forecasts section of this Edition 26 Low Carbon Pulse, but given its significance, it is contained in a standalone section.
Low carbon methanol is one of the E-Fuels / Future Fuels being considered to power and to propel the shipping sector. As the HE FF Paper notes, given current technologies, all of the practical low carbon, carbon neutral or all zero-emission fuels (EF Fuels) contemplated by the shipping sector are derived or produced from hydrogen, including low carbon methanol.
Each of the following is being considered as a possible fuel to power and to propel vessels so as to decarbonise the shipping industry: 1. Hydrogen (H2); 2. Ammonia (NH3); 3. Bio / E-diesel; 4. Bio / E-kerosene; 5. Bio / E-LNG. The HE FF Paper provides a summary in respect of each of them.
Ammonia and LNG are regarded as being the most prospective for the purpose of powering and propelling vessels. Ammonia and methanol are regarded as the most likely, each being produced using proven technologies and there being existing standards and law and regulations.
Green Hydrogen is the only fuel that does not give rise to GHG emissions on production or oxidation (it contains no carbon atoms). Green Ammonia does not give rise to GHG emissions on production, but does give rise to N2O on oxidation (see Edition 25 of Low Carbon Pulse).
As noted in previous editions of Low Carbon Pulse (normally in the context of reporting on NZE Reports), the mass of hydrogen production required "to green" energy carriers so as to displace fossil fuels tests the bounds of comprehension. It is not just hydrogen as a energy carrier that needs to be produced, it is hydrogen as a molecule to be synthesised to produce hydrogen-based fuels.
To help illustrate this, the following table describes each hydrogen-based fuel.
BIOENERGY / HYDROGEN-BASED FUEL TERMINOLOGY | |
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Bioenergy: energy derived or produced from biogas or biomass, whether in gaseous, liquid or solid form | Biofuel: a subset of Bioenergy, being any energy carrier that is derived or produced from biogas or biomass for use as a fuel |
Biogas: a mixture of CH4 and CO2 (and trace elements of other gases), arising from the decomposition of organic matter, including derived or produced from anaerobic digestion | Biomethane (or Renewable Natural Gas (RNG)): CH4 in near pure form, derived or produced from upgrading Biogas or gasification of biomass. Biogas and Biomethane are Biogases |
E-Fuel (or electro-fuels): any energy carrier that is derived or produced using renewable electrical energy, incl. energy carriers derived and produced from renewable and non-renewable sources, including each of the E-Fuels | E-Fuels: include E-diesel, E-kerosene, E-LNG, E-methanol the derivation or production of each of which requires the synthesis of H2 with CO2 (hence synthetic fuel). E-Ammonia requires the synthesis of H2 with N |
Ammonia compound of H2 with N (NH3) that can be used in direct combustion, in fuel cells to derive electrical energy, or as a medium to carry hydrogen | Methanol (methyl alcohol) is a compound of carbon, hydrogen and oxygen (CH3OH) that can be used in direct combustion to power and to propel vehicles and vessels |
Both Ammonia and Methanol are existing chemical commodities with existing laws and regulations (and standards) covering production, storage and transportation, and proven means of compression / pressurisation and refrigeration (in the case of Ammonia). Ammonia or Methanol derived from fossils fuel using CCS / CCUS is Blue Ammonia or Blue Methanol. Ammonia or Methanol derived from biogas or biomass using BECCS / BECCUS is likely Low Carbon Ammonia or Methanol. It is fair to say that the synthesis of CO2 and H2 using CO2 captured by CCS or BECCS is receiving increased interest.
It is important however to note that on oxidation, neither Ammonia nor Methanol derived or produced from any source (or whatever the colour code) are GHG emission free: Ammonia gives rise to N2O and Methanol gives rise to CO2.
Edition 25 of Low Carbon Pulse (under UK Hydrogen Strategy (UKH2S)) outlined the scope of the UK Hydrogen Strategy (UKH2S) published on August 17, 2021. The publication of UKH2S was both welcome, and generally stated, well received.
Edition 23 of Low Carbon Pulse outlined (under Clustering and hubbing around the UK) the background to each of the clusters and hubs in the UK. One of the clusters / hubs is HyNet North West, led by Progressive Energy Ltd (PE).
On August 23, 2021, HyNet North West announced a world first: leading glass maker, Pilkington Glass, commenced trials to produce float (or sheet) glass using hydrogen for the high-heat temperature processes.
As is the case with other difficult to decarbonise industries using fossil fuels to achieve the required high-heat temperatures, industrial glass manufacture uses natural gas (which is predominantly CH4), which on oxidation gives rise to CO2 (and gives rise to fugitive emissions on extraction, processing and transportation).
See: World first as 100% hydrogen fired at Pilkington UK, St-Helens
Leaving to one side the pleasant surprise of the publication of UKH2S, given consistency of intent and narrative ahead of publication (including the sibling policy setting, Energy White Paper (EWP), published in December 2020), the UKH2S did not contain any surprises. While some commentators who have characterised an absence of detail as surprising, it is good to have the EWP in mind when reading and reflecting on the UKH2S.
One area of some criticism that has emerged is that Blue Hydrogen is contemplated in the UKH2S. A number of editorials and news items have reported that the "twin-track" of Blue Hydrogen and Green Hydrogen will allow the scaling up of hydrogen production more quickly. A good thing, and necessary to allow supply and demand to develop in tandem. Accompanying this narrative is one to the effect that Blue Hydrogen is not zero-carbon as is the case with Green Hydrogen, because the CCS / CCUS used to produce Blue Hydrogen does not capture 100% of the CO2 emissions arising.
It is important to frame thinking on this: CCS / CCUS facilities are being developed to capture CO2 emissions arising currently from industrial processes around the UK, critically industrial clusters. The capture of CO2 from these processes requires CCS / CCUS, and the capture of CO2 and the payment for CCS / CCUS services is going to underpin CCS / CCUS. This is a good thing.
The use of those CCS / CCUS services to capture and to store or to capture and to use CO2 arising from Blue Hydrogen production is an opportunity that may be regarded as essential to the development of supply and demand for hydrogen. While not stated expressly, the "twin-track" is likely to become one track as the Green Hydrogen industry develops, and Green Hydrogen is used to decarbonise the high-temperature heat processes currently giving rise to CO2 that is to be captured and stored. There are shades of Blue and Green, but overtime expect Green Hydrogen and Green Hydrogen-based energy carriers to prevail.
Recently the inauguration ceremony was held for the 100 MW Nur Pavoi Solar Project in Uzbekistan (the Nur Pavoi Solar Project or NPSP). The NPSP is significant for a number of reasons: it is the first independent power producer project to be financed in Uzbekistan and it is the country's first utility scale solar project. It is understood that the NPSP is the first of up to a planned 1 GW of renewable energy projects in Uzbekistan.
For Masdar it is another step on its path as a member of the elite club of global "go to investors" in the renewable energy sector.
Edition 20 of Low Carbon Pulse (under Black Gold and Blue and Green Gold and Oman's aim is true), reported on the progress that Oman is making in embracing Green Hydrogen as a carbon neutral energy source. Editions 18 and 25 have reported on the Hyport DUQM project. This strong narrative is continuing. On September 1, 2021, the Oman Daily Observer, Business, reported on the continued progress, critically that the Oman Society for Petroleum Services (OPAL), the umbrella organisation for energy and energy services corporations in the Sultanate, is working closely with OQ (the global integrated energy group of the Sultanate of Oman) and EJAAD (the leading member-ship based government, industry and research and development organisation).
As noted in Edition 25 of Low Carbon Pulse, the establishment of Hy-Fly (National Hydrogen Alliance) under the auspices of the Ministry of Energy and Minerals, has been recognised quickly as a gamechanger. It is understood that additional projects are likely to be announced in the near to medium term. It is reported that one of the members of Hy-Fly, Shell, is progressing with a number of renewable energy projects.
In a recent sibling publication (Realising Reserves and Realising Capital), members of the Ashurst Global Towards Zero Emissions team outlined trends to realise reserves and to realise capital, among other things, to fund progress towards NZE.
On August 23, 2021, it was reported that the Government of India (GoI) intends to monetize up to USD 81 billion of assets under long-term leasing arrangements (one of the means of releasing capital outline in the Realising Reserves and Realising Capital article) to enable recycling of capital (Recycling Program).
Edition 22 of Low Carbon Pulse (under Patience is a virtue, and patient capital has virtue), reported on a World Economic Forum (WER) publication entitled In emerging markets, patience is a virtue in the race to net zero. Chief Executive of GoI think tank, NITI Aayog, Mr Amitabh Kant, said: "The strategic objective of the program is to unlock the value of investments in brownfield public sector assets by tapping institutional and long term patient capital which can thereafter be leveraged for further public investments".
While there has been focus on assets in the natural gas pipeline and power transmission sector, it appears likely that the rail and road sectors are likely to yield most for the Recycling Program. This said, natural gas assets and power transmission sector assets will yield significant capital for the Recycling Program. As those advising on any long-term leasing program will know, it will be critical for the long-term leases to ensure that GoI is able to continue to develop new infrastructure, and to augment existing infrastructure, including the assets subject to the long-term leases, to progress to NZE, this is critical for the power transmission sector as renewable electrical energy is developed and becomes the pre-dominant source of electrical energy over time.
On August 25, 2021, H2VIEW, reported a project of GPS Renewables and HyGear (see below under Hydrogen Production Hub) to capture landfill gas (comprising CO2 and CH4) and to process the organic waste stream from municipal solid waste to derive biogas. The biogas will be processed further to derive bio-methane, and that biomethane will be reformed to derive hydrogen (3 G Project). The first of the H24I features (entitled Hydrogen from Waste) provides an outline of projects of this kind.
In the Indian context, the 3 G Project will be a first, and hopefully the first of many. As has been noted in a number of editions of Low Carbon Pulse (and covered again in this Edition 26 of Low Carbon Pulse below), bio-energy with carbon capture (BECCS) and bio-energy with carbon capture and use (BECCUS) are key to reduction in GHG emissions globally. Further, given the developing nature of the waste management system in India, and the amount and the nature of organic waste arising, there are a number of technologies that may be used to derive bio-gas and to use it to produce electrical energy or heat, or both, and to process it further to produce bio-methane or to reform it to produce hydrogen.
On August 25, 2021, it was reported widely that during the first six-months of calendar year 2021, 72% of the increase in demand for electrical energy in India was matched by increased solar and wind capacity. This said there was an increase in coal capacity too. In neighbouring Bangladesh the increase in electrical energy demand was matched entirely by coal-fired capacity.
Edition 25 of Low Carbon Pulse reported on the FTI Consulting and Teri report (in the South Asia New Energy Series), covering many facets of the development of renewable energy capacity across South Asia. The continued development of coal-fired power is addressed in the report. It is hoped that the findings in the report and other initiatives will be acted upon promptly.
On August 31, 2021, it was reported that world leading steelmaker ArcelorMittal intends to develop USD 6.8 billion of solar, wind and hydrogen facilities in the state of Gujarat and to develop a USD 2.5 billion, 4.5 GW solar facility in the state of Rajasthan. While these developments have yet to proceed to permitting and planning stage, it understood that they will be doing so.
See: Arcelor Mittal website
On September 2, 2021, it was announced that the CEO of Macquarie Bank, Ms Shemera Wikramanayake has been appointed as co-chair of a British and Indian climate change initiative. The Governments of the UK and the India, together with the Climate Finance Leadership Initiative are going to provide valuable guidance. The appointment of Ms Wikramanayake is significant because of the leading role that Macquarie Bank has globally in respect of the development and financing of renewable energy projects.
As noted in Edition 25 of Low Carbon Pulse, the role of BMBF extends beyond Germany. For example (as outlined in Edition 18 of Low Carbon Pulse) the BMBF has funded work in respect of the renewable energy resources and hydrogen production in Africa under West Africa – untapped potential for hydrogen production). The National Hydrogen Strategy of the Federal Government of Germany, published in July 2020 contemplated that €2 billion of funding support would be made available to support Green Hydrogen projects in developing countries.
On August 25, 2021, RECHARGE, reported that Germany is to partner with Namibia to allow the production and export of Green Hydrogen from Namibia and transportation and import into Germany at a price of USD 1.8 per kg. Namibia has world class renewable energy resources, with over 3,500 hours of sun each year, and strong wind resources. These world class resources are considered close to ideal for the production of Green Hydrogen at a price of between €1.50-2 per kg. Further it is estimated that up to 1.7 mtpa of Green Hydrogen could be produced by 2030. This mass of Green Hydrogen production delivered into Germany would be close to sufficient to decarbonise the German iron and steel industry given its current rate of production.
On September 2, 2021, it was announced that a new hydrogen cluster had been established in the Rheinische Revier of North Rhine-Westphalia, Germany. The accompanying narrative to the announcement is that: "The Helmholtz Cluster for Sustainable and Infrastructure and Infrastructure-Compatible Hydrogen Economy will form a central nucleus … with its focus on hydrogen logistics using chemical hydrogen carriers".
On September 3, 2021, the German Federal Ministry of Transport and Digital Infrastructure (BMVI), identified three new centres, located in Chemnitz, Duisberg, and Pfeffenhausen, to focus on founders, start-ups and small to medium sized corporations to develop fuel cell and hydrogen technologies for mobility applications. In addition, Bremen / Bremerhaven and Stade will combine as the fourth centre.
Previous editions of Low Carbon Pulse have reported on the activities of China Petroleum & Chemical Corporation (Sinopec) in progress towards NZE, in particular its leading role in respect of hydrogen.
On August 30, 2021, Sinopec announced plans to spend a considerable amount on various hydrogen energy initiatives, reservoir to bowser, between now and 2025. Sinopec plans to supply hydrogen for the mobility market is underpinned by plans to deploy hydrogen refuelling infrastructure capacity for 200,000 tonnes of hydrogen by 2025, involving the development of up to 1,000 hydrogen refuelling stations. (Sinopec is reported as having developed 20 hydrogen refuelling stations to date, with a further 60 being developed.)
The deployment of refuelling infrastructure capacity provides a distribution network for ever increasing hydrogen production capacity, with plans to have produced 1,000,000 tonnes of Green Hydrogen between 2021 and 2025.
On August 30, 2021, it was reported by Reuters, that China National Offshore Oil Corporation (CNOOC) (global leading oil and gas corporation, and one of the Big Three PRC oil and gas corporations, with Sinopec and China National Petroleum Corporation (PetroChina)) has commenced the first off-shore CCS project, in the South China Sea, 118 miles southeast of Hong Kong.
Edition 25 of Low Carbon Pulse reported on framework plans for the hydrogen economy in Russia, critically the development of three clusters for the production of hydrogen, with one of the three in the Eastern sector to provide hydrogen to Asian countries, including into North Asia.
On September 2, 2021, it was announced that Japanese Industry Minister, Mr Hiroshi Kajiyama, and Russian Energy Minister, Mr Nikolai Shulginov, signed a statement of cooperation under which the two countries agree to work together to develop hydrogen and ammonia production capacity.
On September 2, 2021, it was announced that Ministry of Economy Trade and Industry (METI) and Novatek (Russia's largest producer of LNG) signed a memorandum of cooperation in respect of the supply of hydrogen and ammonia (and recognising the use of CCS and CCUS).
Consistent with the perspectives of both Japan and Russia, each country is agnostic as to the source of hydrogen, and as such the statement of cooperation is said to contemplate both CCS and CCUS (i.e., contemplating Blue Hydrogen and Blue Ammonia).
The keen-eyed reader of Low Carbon Pulse will have noted that recent editions of Low Carbon Pulse have grouped news items about the EU, India, Japan, South Korea, PRC, Russia and the US. The thinking behind this is that these countries are critical to progressing to NZE, and as such the activity in these countries is critical. Also Germany, UK and the GCC countries are key, with Germany and the UK leading the way in terms of policy settings, and the GCC countries being key to the shift to hydrogen. While these countries have the heavy lifting to do, other countries need to make progress too.
On August 30, 2021, Hydrogen Fuel News, reported that Nepal, currently highly dependent on fossil fuels (coal, diesel, LPG and motor spirit) is developing a strategy to allow it to produce domestically hydrogen to displace fossil fuels as part of its decarbonisation plans.
Given the key role that bio-energy with carbon capture has to play, we have combined the bio-energy and BECCs / BECCUS sections of Low Carbon Pulse: this combined section will cover bio-energy projects with and without BECCs / BECCUS.
Note: Carbon Dioxide Removal (CDR) is not an instant solution in global terms (as outlined in Edition 24 of Low Carbon Pulse, it takes time), nor is BECCS. For BECCS to make a contribution to a reduction in GHG emissions, it must displace another electrical energy source or energy carrier source, and, in any event, it must result in a carbon neutral outcome (rather than a carbon removal outcome) so as not to give rise to an increase in GHG emissions. The effectiveness of BECCS at a global level is more likely than not to achieve carbon neutrality rather than to remove carbon.
In addition to the news item above (under Biogas to biomethane to hydrogen):
As will be apparent from the above narrative, biofuels and biogas are derived from CH4 intensive sources, and on oxidation those biofuels and biogases give rise to CO2 (or N2O if ammonia).
While there is more than 200 times more CO2 than CH4 at large in the climate system, and each CH4 molecule remains in the climate system for an average of ten years (not hundreds of years), CH4 molecules absorb and retain more radiative heat, and at which CH4 can have up to 80 times the global warming potential of CO2.
This is why in recent Government to Government engagement and reports, there has been a focus on the reduction in CH4 emissions: it is estimated that up to 57% of CH4 could be reduced by 2030, reducing the impact on the climate system by 0.25OC by 2050, and 0.5OC by 2100. These estimates seem to have been determined on a gross basis, rather than net.
While some abatement measures naturally lead to a gross outcome, some do not, for example, the use of organic matter to derive or to produce biofuels and biogases, and the ultimate use those biofuels or biogases will not. As such, for these reductions to be achieved, any GHG emissions arising in deriving or producing biofuels or biogases need to be captured. The capture of the life-cycle of CH4 is achievable, at least in the context of deriving biofuel and biogases from organic matter.
On September 3, 2021, the Infrastructure Australia released the Australian Infrastructure Plan (AIP). The AIP identifies waste as a priority area.
The key findings in the 2021 Report in respect of the warming of the oceans (and in the realm of Blue Carbon) are:
"It is virtually certain that the global upper ocean (0-700 metres) has warmed since the 1970s and extremely likely that human influence is the main driver. It is virtually certain that human-caused CO2 emissions are the main driver of current global acidification of the surface of open ocean. There is high confidence that oxygen levels have dropped in many upper ocean regions since the mid-20th century … "
The warming of oceans has given rise to "warmer spots" (or "ocean blobs") in certain areas. The Journal of Climate has noted that there are ocean blobs east of New Zealand in the south Pacific ocean, and that human influence has contributed to these ocean blobs (at least in part). Areas of the ocean covered by the blobs is now 1.5OC warmer than 40 years ago, and areas surrounding the blobs are 0.2OC to 1OC warmer.
These increased ocean temperatures have resulted in warmer winds, which in turn have affected rainfall in Chile. These impacts may impact activities that Chile wishes to undertake as part of its energy transition, with possible impact on water availability for any hydrogen production, hydroelectric electrical energy generation, and negative GHG emission initiatives.
Edition 25 of Low Carbon Pulse reported that the Orca project, a new direct air capture and storge (DACS) facility, is commencing operation in Iceland. Orca, owned by Climeworks (a Swiss corporation), will capture up to 4,000 tpa of CO2 from the atmosphere, and store the captured CO2 underground.
In the context of the next section (headed CO2 use), CO2 captured by the Orca DACS is captured only, it is not to be "stored" in any medium or to be used to produce any product. Mr Jon Gernter, in YaleEnvironment360 (published on August 25, 2021), considers the Orca DACS project in context and in detail.
On August 26, 2021, Climeworks announced that it had signed a 10 year carbon dioxide removal purchase agreement worth USD 10 million. To the knowledge of the author of Low Carbon Pulse, this is a world first.
As Swiss Re notes: "Both the length of the term of 10 years and the total value of USD 10 million are so far unmatched in the voluntary market for this type of high-quality carbon [dioxide] removal, sending an important to demand signal to developers, investors and other buyers".
See: Swiss Re and Climeworks launch partnership by signing world’s first ten-year carbon removal purchase agreement; Climeworks and leading risk knowledge company Swiss Re sign the world’s first and largest 10-year purchase agreement for direct air capture and storage of carbon dioxide
On August 25, 2021, it was announced that Talos Energy and Carbonvert had been successful in their bid for the planned 225 to 275 million tonne capacity CCS project in the Texas Gulf Coast. Given the scale of the CCS project, this is an exciting development for CCS in the US and globally.
See: Talos Energy selected as winning bidder for carbon capture and storage site; Carbonvert website
On August 31, 2021, it was announced that Hyundai Heavy Industries and Korean National Oil Corporation have developed an off-shore platform to allow the storage of CO2 in sub-ocean floor geological structures.
See: Hyundai Heavy develops offshore carbon dioxide storage platform
Later in 2021, the fourth article in the S2H2 series will be published, entitled, CCS and CCUS. Ahead of that publication, and more generally, it seemed appropriate to start to map the uses of CO2, and to frame some of the building blocks of CCS / CCUS, and the terminology that is used.
Edition 25 of Low Carbon Pulse reported, with enthusiasm, on the greening of the iron and steel sector (under HYBRIT's Clean Steel on the road). The cement and concrete industry gives rise to a greater mass of GHG emissions than the iron and steel industry: between 3,500 to 4,000 billion tonnes of GHG emissions arise each year from the production of cement.
In an article in Fast Company, Mr Mark Wilson provides an overview of the possible storage of CO2 in concrete. This concept will be considered in the August Report on Reports (in the summary of the CUR) as the Appendix to Edition 27 of Low Carbon Pulse.
On September 3, 2021, EDF Renewables North America (part of leading global energy company, EDF) and Clean Power Alliance (CPA) signed a 15 year power purchase agreement in respect of renewable electrical energy supply from the 300 MW solar project and a 600 MWh BESS (Desert Quartize Solar-plus Storage or DQS+S project). The DQS+S project is located in Riverside Country, California on Federal land of the Bureau of Land Management (BLM), the BLM having designated this area as a Solar Energy Zone and Development Focus Area. CPA is expected to commence off-take for its customers in Los Angeles and Ventura counties in February 2024.
See: EDF Renewables North America and Clean Power Alliance Sign Power Purchase Agreement for Solar-plus-Storage Project
Edition 21 of Low Carbon Pulse reported on the anticipated development of a Green Hydrogen project in Egypt. On August 24, 2021, Siemens Energy announced its plans to develop a hydrogen project of export scale and capacity. The first stage of development is 100 MW to 200 MW of electrolyser capacity. This progress follows the signing of a letter of intent by the Egyptian Electricity Holding Company (EEHC) and Siemens Energy at the start of 2021.
See: Siemens Energy supports Egypt to develop Green Hydrogen Industry
On August 27, 2021, it was announced the ENEOS Corporation (leading hydrocarbon importer and refiner into Japan) is teaming with Origin Energy (one of the three big integrated energy companies in Australia) to undertake jointly a study of the hydrogen and hydrogen-based energy carrier supply chain starting at the Origin Energy Green Hydrogen facility at Gladstone, Queensland, Australia and terminating at the ENEOS refineries in Japan. It is understood that ENEOS is considering the use of Green Hydrogen to produce methylcyclohexane (MCH). The accompanying diagram (included in the link below) with the ENEOS announcement contemplates that hydrogen will be transported as MCH (see the first article in the S2H2 series for background).
See: ENEOS Begins Joint Study with Origin for Development of a Japan-Australia CO2-free Hydrogen Supply Chain in Queensland
On August 30, 2021, it was announced that H2 Energy Europe (a Swiss corporation) is to develop a 1GW Green Hydrogen production facility in Esbjerg, Denmark.
See: Ministry of Foreign Affairs of Denmark website; H2 Energy Europe website
On August 31, 2021, it was reported that MMEX Resources Corporation had secured tenure in respect of additional land in Texas to allow it to continue to progress with the development of its Blue Hydrogen and Green Hydrogen projects.
See: MMEX Resources Corp. Advances Sites for Hydrogen and Clean Energy Projects August 2021
On August 30, 2021, The Guardian reported that Bruichladdich Distillery, located on the isle of Islay, has set itself the target of progressing to NZE by 2025 using Green Hydrogen.
Edition 11 of Low Carbon Pulse reported on STAMP. On September 2, 2021, it was reported that Senator Charles ("Chuck") Schumer has continued his support for STAMP and its precincts with the creation of the WNY STAMP Campus as the next global hub for clean energy industries.
On August 25, 2021, Rio Tinto (world leading mining company) announced a partnership with Sumitomo Corporation (leading Japanese corporation and infrastructure investor) to develop a pilot project to produce hydrogen, as part of the Gladstone Hydrogen Ecosystem.
The pilot project is to be located at Rio Tinto's Yarwun alumina refinery, Gladstone, Queensland. Edition 20 of Low Carbon Pulse (under Rio Tinto studies use of hydrogen in alumina refinery) reported on Australian Federal Government funding for a study in the use of hydrogen. As noted in previous editions of Low Carbon Pulse, hydrogen is a likely replacement for natural gas used in the calcination process inherent in alumina refining. This is exiting news and continues the narrative that the mining industry is the quiet achiever in GHG emission reductions and progress to achieving NZE.
See: Rio Tinto and Sumitomo Corporation to assess hydrogen pilot plant at Gladstone’s Yarwun alumina refinery
Previous editions of Low Carbon Pulse have noted moves by a number of alumina and aluminium producers "to green" their production processes. On August 11, 2021, Australia's largest aluminium smelter owner, Tomago Aluminium, announced that it is to procure electrical energy from renewable sources from 2028. This decision will displace the use of electrical energy currently sourced from coal-fired sources.
On August 30, 2021, it was reported widely that Dr Andrew Forrest, AO (founder of Fortescue Metals Group (FMG)), has outlined the next steps that the FMG (including Fortescue Future Industries (FFI)) intends to take: "The really big steps for the creation of the steel delivered to customers to be decarbonised has to be the first one – create green iron ore".
A key part of taking "the really big steps" is the decarbonisation of activities undertaken at mine site (and the mining fleet used at site), including to extract iron ore, to haul iron ore to rail, to haul iron ore by rail to port, and the loading and unloading of iron ore, and activities associated with this, and, of course, the use of renewable electrical energy. On August 30, 2021, it was reported that off-road haul trucks at FMG mine sites had started to test the use batteries to power and to propel those trucks.
See: Fortescue Future Industries website; Fortescue Metals Group website
On September 1, 2021, Caterpillar announced that it was on target to deliver electrical energy generation solutions using 100% hydrogen by the end of 2021. At the moment, Caterpillar generation solutions allow for the use of 25% hydrogen and 75% natural gas blended fuels.
See: Caterpillar to Expand Hydrogen-Powered Solutions to Customers
Edition 25 of Low Carbon Pulse reported that (under HYBRIT's Clean Steel in the road) SSAB delivered the "first fossil-free steel in the world" to Volvo Group from the HYBRIT mill, using HYBRIT technology. On September 1, 2021, SSAB announced that it is to partner with Daimler's Mercedes-Benz to introduce fossil-free steel to the production of vehicles. As a reminder, HYBRIT is a shortening of Hydrogen Breakthrough Ironing Making Technology, developed jointly by LKAB, SSAB and Vattenfall.
See: SSAB to deliver fossil-free steel to Mercedes-Benz
On August 25, 2021, it was announced that BlackRock, Inc. has taken an interest in JOLT Charge. JOLT Charge plans to develop up to 5,000 battery recharging stations across Australia. In addition to taking an interest in JOLT Charge, BlackRock is to provide up to USD 72 million in development funding.
See: BlackRock Australia website
It was the plan to include a feature on giga-factories in this Edition 26 of Low Carbon Pulse. Given the weight of other news, this feature will be include in Edition 27 of Low Carbon Pulse. Also Edition 27 of Low Carbon Pulse will include an update on charging and refuelling infrastructure.
Edition 14 of Low Carbon Pulse reported on research revealing a better understanding of the benefits of larger wind turbines. During the week beginning August 23, 2021, MingYang Smart Energy announced the development of the MySE 16.0-242 (My Mega). As the full name suggestions, the MyMega is colossal: a 16 MW capacity, 242 metre (794 feet) wind-turbine, with each blade 118 metres (387 feet), with a sweep of 46,000 m2.
The resulting output from the dimensions of the My Mega is a wind-turbine capable of providing renewable electrical energy to 20,000 homes if it is operating at capacity. Allowing for the fact that the My Mega will not operate at capacity at all times, it is stated that it will generate 80 GWh of electrical energy per year.
The resulting benefit of the use of My Mega (and, no doubt other, yet larger, off-shore wind turbines) is that the cost of off-shore wind projects will continue to fall. As reported previously in Low Carbon Pulse, the capital costs of off-shore wind fields is higher than other forms of renewable electrical energy (and non-renewable sources) translating into USD 120 per MWh cost profile, before funding support, direct or indirect. These costs are falling.
As noted in Edition 19 of Low Carbon Pulse (under Wind round-up), larger structures than the My Mega are being contemplated, including the Wind Catching System or Windcatcher. On August 23, 2021, the Wind Catching System was back in a number of news feeds, it being reported that development is proceeding. At the risk of repeating earlier reporting, the Windcatcher comprises 300 metre framework with around 120 turbines.
As with the My Mega, it might be expected that Windcatcher will result in lower electrical energy costs, and as such make off-shore wind more competitive with other sources of electrical energy, or in any event allow an energy cost that will result in a reduction in the level of funding support required from Government.
See: Leading innovation: MingYang Smart Energy launches MySE 16.0-242, the world’s largest offshore Hybrid Drive wind turbine
On August 23, 2021, it was reported widely that Kansai Electric Power (Kansai EPCO) and RWE Renewables (RWE), both leading energy corporations (and RWE a leading off-shore wind field player), agreed to undertake jointly a study of the feasibility of large-scale floating off-shore wind field development.
For both Kansai EPCO and RWE, there is clear alignment with policy settings in Japan, the ability to leverage RWE's experience and know-how elsewhere, and, ultimately, to allow development of off-shore floating wind field capacity at a cost that reflects utility rates of return.
See: Kansai EPCO and RWE team up for floating offshore in Japan; Kansai Electric Power press release
On August 23, 2021, it was reported that the Danish Energy Agency (DEA) has opened a technology agnostic tender (TAT) for renewable electrical energy. This is the third TAT for DEA. A total of €162 million is available to support the developments of hydropower, solar, wave and wind (on-shore and off-shore) in this TAT round. The support is provided under a contract for difference (CfD) model. Under the DEA's CfD model, successful proponents will have the benefit of a fixed settlement price for 20 years under the CfD. Responses to the TAT have to be submitted by October 22, 2021.
Proposals for off-shore wind field development may be made in respect of the developments of areas identified by the proponent on an unsolicited basis. As will have been apparent from previous editions of Low Carbon Pulse (most recently in Edition 23 of Law Carbon Pulse in respect of ScotWind Leasing Scheme, under Deadline for applications for ScotWind passes) it is usual for proponents to bid in respect of areas identified by Government, not by proponents. In this unsolicited proposal model, any proponent that identifies an off-shore area on an unsolicited basis that is successful will be granted a permit to undertake a feasibility study.
See: Danish Energy Agency website
On August 25, 2021, it was reported widely that the Port of Virginia in Virginia in the United States, has leased part of its Portsmouth Marine Terminal to Dominion Energy (DE) for the purposes of the development of the 2.6 GW Coastal Virginia Off-shore Wind (CVOW) project. Currently, DE has two turbine off-shore wind pilot projects.
In early 2020, Virginia enacted the Clean Economy Act (CEA). The CEA targeted the development of off-shore wind, with 5.2 GW of capacity to be installed by 2034, with the longer term target of 100% carbon free electrical energy generation by 2045.
On August 26, 2021, it was reported that Marine Scotland had opened a consultation process to identity new areas and sites within which to locate further off-shore wind capacity for oil and gas and decarbonisation projects. It is understood that the period of consultation will close on October 20, 2021. For information, the following is the link to the Sectoral Marine Plan for Off-shore Wind for Innovation and Targeted Oil and Gas Decarbonisation (INTOG).
Edition 4 of Low Carbon Pulse reported on the plans of the state of New South Wales, Australia, to promote the development of renewable electrical energy in five areas the across the state. One of those areas was the New England region of the state (NEREZ), designated nominally to be the location of up to 8 GW of new renewable solar, wind and battery storage facilities.
On August 26, 2021, NSW Energy Minister, Mr Matt Kean, stated that expressions of interest were received from over 80 interested entities in respect of the opportunity for new solar, wind and energy storage projects within the NEREZ. Without hyperbole, Mr Kean said: "The overwhelming response shows that is a once in a generation opportunity to attract enormous investment into regional areas, cementing NSW's renewable energy future".
As noted in previous editions of Low Carbon Pulse, the states and territories of Australia continue, with the private sector, to make progress towards the achievement of NZE (see Edition 6 of Low Carbon Pulse under Australian States and private sector). In contrast, the Australian Federal Government has yet to introduce policy settings aligned with the achievement of NZE.
On August 31, 2021, offshoreWIND.biz reported on the Off-shore Wind Market Report (US OWF Report) (prepared by the Department of Energy, National Renewable Energy Laboratory). The US off-shore wind field pipeline for projects now stands at 35.324 GW of developments at various stages, including 15 projects at permitting stage. The increased activity is a function of lower offshore development costs, the action of the US Federal Government, and commitments at US state-level. Eight US states have targets for off-shore wind field development, with those targets totalling 39.298 GW of installed capacity by 2040.
On September 1, 2021, Shell Overseas Investment B.V. announced it has combined in joint venture with CoensHexicon Co. Ltd, with Shell a 80%, CoensHexicon, a 20%, equity participant, to develop and then to operate the 1.4 GW Ulsan OWF project (the MunmuBaram Project). It is understood that the MunmuBaram Project plans to apply for the Electricity Business Licence (EBL) during this month, September 2021.
On September 2, 2021, the Australia Federal Energy Minister, Mr Angus Taylor, tabled in the Australian Federal Parliament legislation to unlock investment in offshore wind-fields around Australia. This is an exciting development in the Australian context.
Within state waters around Australia, a number of off-shore wind field projects are under development and being planned (for example, see Editions 19 and 17 of Low Carbon Pulse).
The use of Federal waters for off-shore wind farm developments might be expected to increase further the level of investment, including for the purposes of the development of hydrogen production capacity.
On August 25, 2021, Solar Power World, reported that during the first half of calendar year 2021, over 90% of new utility-scale electrical energy generating capacity in the US was solar or wind. The reporting is based on data from the monthly Energy Infrastructure Update from the Federal Energy Regulatory Commission (FERC): FERC reports 5.279 GW of new solar installed capacity and 5.617 GW of new wind. Renewable energy now represents 25.1% of the total available installed generating capacity in the US.
Editions 2 and 3 of Low Carbon Pulse reported on the planned development of the 10 GW capacity solar photovoltaic project at Newcastle Water Station (Solar Station), Powell Creek, within the Barkly region of the Northern Territory, Australia. The capacity was then increased to 14 GW. The Solar Station is to export renewable electrical energy via a high voltage direct current cable (Australia-ASEAN Power Link) of 3,800 kms in length from Darwin to Singapore (with a 750 km high voltage transmission network to carry the electrical energy from the Solar Station to Darwin). Edition 18 of Low Carbon Pulse reported on the development of a photovoltaic panel factory.
On August 22, 2021, it was announced that Sun Cable (Singapore based renewable energy company) plans to increase the installed capacity at the Solar Station, and to install a Big BESS (with 33 GWh of storage).
See: Sun Cable website
In the August 26, 2021 edition of pvmagazine, Mr Philip Wolfe has updated his solar atlas detailing the largest solar power stations in the world. In 2019, when the solar atlas was first published, there were no solar power stations with over 1 GW of installed capacity.
On August 31, 2021, it was reported widely that during the first half of calendar year 2021, 1.36 GW of utility-scale solar photovoltaic capacity had been installed in France.
On August 31, 2021, it was reported widely that during the first half of calendar year 2021, 2.8 GW of solar photovoltaic capacity was installed in Germany, with a further 430 MW installed during July.
Edition 22 of Low Carbon Pulse reported that the CEO of the Australian Energy Market Operator (AEMO), Mr Daniel Westerman, was anticipating that Australia was moving towards a 100% of load across the grid that it operates being matched by dispatch by renewable electrical energy.
On August 31, 2021, AEMO's Electricity Statement of Opportunities (ESOO Report) contemplates that "there could be up to 100% instantaneous penetration of renewables as certain times of the day throughout the year by 2025". Supporting this outcome, the ESOO Report anticipates that a further 10 GW of large-scale utility solar and wind capacity will be installed by 2025.
On September 2, 2021, it was reported widely that a world record low bid USD 0.01332 kWh had been successful in the current renewable electrical energy reverse auction process being run by the Chilean National Energy Commission. Also it reported that SolarReserve bid USD0.0399 / kWh using concentrated solar power (CSP) technology.
See: SolarReserve website
While some commentators and battery electrical vehicle (BEV) manufacturers have dismissed the use of fuel cell technology (FCT) for automobiles, this does not mean that automobile manufacturers are not progressing with the development of vehicles using FCT (FCEVs):
This said, it remains likely that BEVs will tend to be preferred in the daily drive market.
In addition to the A.P. Moller – Maersk news (see under A.P. Moller – fleet of foot above), over the last two weeks there has been some interesting news across the Ports and Shipping sector as follows:
Edition 18 of Low Carbon Pulse reported on the development of a vessel to carry compressed CO2.
As noted above (under CO2 use), one of the key technologies that needs to be developed to facilitate the development of CCS (and to a lesser extent CCUS) is the development of a vessel that can transport CO2 in compressed / pressurised or refrigerated form.
On August 24, 2021, it was reported widely that Global Energy Ventures Limited has submitted vessel specification engineering and drawings, stability analysis and tank design calculations to the American Bureau of Shipping (one of the foremost international vessel classification societies) for Approval in Principle (AIP). An AIP provides an expert assessment of the basis for development of a vessel.
Edition 23 of Low Carbon Pulse reported on the proposed development of a FCT powered and propelled ferry for the Bay Area, San Francisco, California. It is understood that the 70 foot, 75 passenger, ferry is close to completing testing and trialling at Bellingham, Washington, and that it will be launched in the Bay Area in the fall.
On August 26, 2021, it was announced that later in 2021 a cargo vessel journey between two Norwegian ports. The cargo vessel with be piloted remotely - it will have no crew. The cargo vessel is powered and propelled by electrical energy stored in batteries. The thinking behind the development of the cargo vessel is to displace road freight from the Norwegian road system, thereby reducing congestion and GHG emissions.
On August 27, 2021, Mitsubishi Shipbuilding (part of Mitsubishi Heavy Industries (MHI)) announced that it has partnered with TotalEnergies (global leading international energy company) to undertake a feasibility study for the development of a liquified CO2 (LCO2) vessel.
As noted above , the development of this technology is required to allow scaling-up of the CO2 storage, transport and use. As Vice President at TotalEnergies, Mr Bruno Seihan noted: "[LCO2] vessels will be key to accommodate the expected surge in transported CO2 volumes for geological storage triggered by the acceleration in net zero carbon targets worldwide and to meet world industrial emitters needs [for carbon storage]".
On September 2, 2021, MHI announced that the cargo tank system to be mounted in the LCO2 vessel had been granted Approval In Principle (AIP) from the French Classification Society, Bureau Veritas. As noted above, an AIP provides an expert assessment of the basis for development. This is exciting news, and again illustrates the pace at which the private sector is making progress in the development of technologies needed to progress to NZE.
On September 2, 2021, it was announced that the North Lights Project (see Editions 2 and 20 of Low Carbon Pulse) had contracted with Technip Energies to supply CO2 loading arms. CO2 loading arms are required to take CO2 (captured and stored) and to load that CO2 on the CO2 carrier.
On August 30, 2021, the Methanol Institute (MI) called for maritime policy makers to adopt a well-to-wake approach to accounting for fuel use. Well-to-Wake emissions (life-cycle emissions) are the sum of upstream (Well-to-Tank) and downstream (Tank-to-Wake) emissions. The current a Tank-to-Well approach is regarded as placing the burden of decarbonisation on shipowners.
The use of standardised accounting for fuel use is regarded as a key element of decarbonisation of the shipping industry: the standards would provide measurement and monitoring of CO2, CH4, and N2O GHG emissions, from Well-to-Wake, and as such place the burden / focus across the fuel chain.
On September 1, 2021, it was announced that Crowley Maritime Corporation (CMC) and Shell NA LNG, LCC, have concluded a long-term time charter under which CMC will build a new LNG Bunker Barge, 416-foot-long barge (LBB). The LBB will provide LNG bunkers to LNG-fuelled ships that call at port on the US East Coast.
See: Crowley and Shell to Build and Charter Largest LNG Bunker Barge in US
On September 2, 2021, it was announced that funding support will be provided by the Government of Norway (through the Norwegian Green Platform Initiative) for the development of an Ammonia Fuel Bunkering Network (AFBN).
The AFBN will provide new solutions for ammonia bunkering allowing receipt of ammonia from barges, ships and trucks, in compressed / pressurised or refrigerated state. It is contemplated that both shore-based and floating solutions will be provided. There are nine partners in AFBN (detailed in the link below).
See: Ammonia bunkering technology company Azane Fuel Solutions and project partners receives public funding for World’s first green ammonia bunkering terminal
Edition 27 of Low Carbon Pulse will include a round-up of news items on the aviation and airports industries.
As noted above, at the end of future editions of Low Carbon Pulse, reports that have been reviewed for the purpose of that edition of Low Carbon Pulse will be listed, by organisation, title / subject matter, and link.
ORGANISATION | TITLE / SUBJECT MATTER |
---|---|
BloombergNEF | New Energy Outlook |
The Met Office (Royal Metrological Society) | State of the UK Climate in 2020 (2020 Report) |
DNV | Energy Transition Norway 2020 (DNV Report) |
Office of Energy Efficienty & Renewable Energy | Off-shore Wind Market Report (US OWF Report) |
Australian Energy Market Operator | Electricity Statement of Opportunities Report (ESOO Report) |
H2Accelerate | Expectations for the fuel truck market |
The author of (and researcher for) 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.