As we head towards a decarbonized energy future, it’s becoming more and more clear that energy storage systems will form not just building blocks, but be part of the very foundation that future will rest on.

Batteries are making headway in power generation. For example, close to Antioch, California, a town not far from San Francisco, a 720MW gas-fired plant named Marsh Landing has so far relied on diesel engines to ensure it could perform a black start in case of a power outage. But soon, that’s going to be a thing of the past.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

Currently, the plant is being equipped with a customized battery storage system by Siemens Energy. It supports up to three attempts to restart the power facility on an expedited basis, and it also reduces emissions over its traditional back-up systems.

Doing so doesn’t make Marsh Landing an exception: today, there are numerous plants around the world taking advantage of using batteries for carbon-free black-start capabilities.

This black-start capability is just one benefit among many. As the share of renewables keeps increasing, energy storage systems will be essential to balance fluctuating energy supply, grid stability, and 24/7 availability of renewable power.

However, not all energy storage solutions are created equal, as they will play different roles. For example, batteries serve a different purpose than rotating grid stabilizers, which in turn fulfil different functions than thermal energy storage or green hydrogen.

If we look at these different energy storage systems more closely, we don’t just get an impression of the variety of those systems: we gain insight into the shape of our future energy system.

Batteries

Let’s first focus on batteries. A rather mature technology, currently, they are not only well suited for black-start capabilities: they economically solve a variety of issues that arise when trying to decarbonize.

Batteries support carbon-free energy production, as they address the volatility of renewable energy sources by storing energy when it’s available in abundance and providing it when there’s a shortage.

They are also flexible, allowing fast supply of energy when needed; and they are plannable and reliable. Additionally, batteries help power producers avoid curtailment, a mostly involuntary reduction of energy output.

Likewise, they make energy arbitrage feasible – storing energy when it is cheap and selling it when prices are high. In combination with renewables such as wind farms, battery storage helps manage power depending on current needs.

And large offshore vessels and drilling platforms use it to minimize the use of diesel generators, as well as to reduce CO2 and NOx-emissions.

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However, we have not yet unlocked the full potential of batteries. In the coming years, batteries will be able to help virtually expand grids (by providing and consuming electricity) and managing grid congestion.

That, in turn, allows companies to flexibly handle the increase in energy demand. For industrial assets, batteries will enable peak shaving by supplying electricity demand during peak hours.

That is not to say that there aren’t open questions. First, today’s batteries have limited capacity, meaning they can provide power for only a few hours, and, over time, they degrade.

Second, there is the continued usage of rare elements in the production of batteries, raising environmental issues as well as concerns over the dependency on countries supplying them.

But through continued research, rare elements should become less important. This goes along with the importance of finding ways to either reuse or recycle batteries – and developing new battery concepts such as metal-free flow batteries which may achieve longer discharge periods.

Overall, batteries are one option among many, and the potential shortcomings of one solution are easily matched by others, such as rotating grid stabilizers, thermal, or hydrogen storage.

Rotating grid stabilizers

As the need for power from renewable sources increases, fluctuating power is not the only concern for power generation.

Another important challenge is that with less conventional synchronous power generation, grid frequency is getting more sensitive due to the reduced number of rotating machines.

Grid operators are already faced with the challenge of providing sufficient system inertia of synchronous generators with high rotating masses to avoid black-outs due to fast frequency and voltage drops.

Rotating grid stabilizers (RGSs) solve this challenge, as they provide additional system inertia and short circuit power to the grid – and they actually do so at critical grid locations worldwide today.

A typical RGS system consists of a synchronous condenser and a flywheel. The flywheel stores energy as rotational energy. As soon as the grid frequency drops, the flywheel responds, resulting in balanced and more stable grid frequency.

The task of the synchronous condenser is to connect the flywheel to the electric grid and thus help stabilize the grid.

This way, RGSs also enable the grid to handle fluctuating renewable infeed. As they release no emissions, they are as environmentally sound as the energy that feeds them. And they are cost-efficient, as their lifetime ranges from about 30 to 40 years.

Additionally, by replacing the system inertia that is currently being supplied by fossil power plants, RGSs enable a share of renewables of up to 100%. Another benefit they provide is the repurposing of conventional power plants which otherwise might be phased out, re-using their infrastructure, and offering a second life for these assets.

Thermal storage

Thermal energy storage supports decarbonization by handling another important building block to a future energy system: heat. It makes use of heat produced by renewable energy or captured from waste heat or exhaust gas, ranging in discharge duration from mid-term to long-term storage.

Thermal energy storage improves a plant’s efficiency as well as its operational flexibility, and also increases the energy yield.

A great variety of heat storage media are available, such as liquids like molten salt and pressurized water, or solids like stone, steel, concrete, or sand. Thermal energy storage also feeds thermal energy across sectors back into various processes and makes them more flexible, in heating as well as cooling applications for buildings or industrial processes.

Also, renewable electricity can be fed into thermal storage via resistive heating, helping to decarbonize heat production and to balance availability and demand for thermal energy.

So, the potential is undoubtedly great. Heating and cooling, for example, are Europe’s largest energy consumers, using more energy than mobility or electricity sectors.

Green hydrogen

Now let’s turn to green hydrogen – produced via the electrolysis of water with electrical energy from renewable sources, meaning it´s completely free of CO2 emissions.

Green hydrogen will enable long-term storage that, in combination with other storage solutions, allows the efficient coupling of all sectors of the economy. It’s an excellent solution for long-term energy storage, particularly in hydrogen pipeline and cavern storage networks.

With the ongoing build-up of a pan- European pipeline network and with sufficient cavern storage to be built up by 2050, it will enable seasonal power-to-power storage on a large scale.

Re-electrification will be realized in H2capable gas turbines, engines, or fuel cells to provide security of electricity supply; in periods of low renewable energy supply, for example, when there is lack of wind.

Compared to the other storage solutions mentioned thus far, hydrogen also enables other applications. It can be used directly as fuel for mobility or as a feedstock for various industries. Via synthesis with carbon dioxide, it can be converted into synthetic, sustainable e-fuels such as e-methanol, e-methane, e-diesel, e-jet fuel, or other carbon-based chemicals.

That’s not to say there aren’t challenges. One is the present cost of producing hydrogen, another the current lack of infrastructure for producing, distributing, and storing hydrogen.

But these aren’t permanent roadblocks. Transportation costs can be significantly reduced by using existing gas infrastructure. Also, production cost can be cut by upscaling industrial processes.

So, in short, the potential is great. Estimates are that sector coupling via hydrogen has the potential to reduce primary fossil energy consumption by 50% even while power demand grows by 25%.

Long-duration solutions

While the picture drawn above gives a rough idea of the essential role energy storage systems will play in our energy future, today the idea of energy storage is mainly associated with batteries, which store energy only for short periods of time.

That’s why next to green hydrogen, other long-duration energy storage systems should be mentioned.

There is pumped hydro, globally the most widely deployed bulk energy storage solution, which has been used for millennia. It produces energy when stored water flows downhill and is capable of supplying reactive power when there is an imbalance in the grid.

Compressed air energy storage is a mechanical storage solution that offers a reliable, cost-effective, and long-duration energy underground storage solution at grid scale. It’s especially attractive in areas where geography does not support pumped hydro, but large caverns are available.

And finally, ETES (Electric Thermal Energy Storage) by Siemens Gamesa Renewable Energy enables long duration storage by using electricity to heat volcanic stones to temperatures of 600°C and higher.

The stored heat can be converted back into electricity using a steam turbine.

All in all, it is these long-term solutions that will make a decarbonized energy system robust and sustainable. Solutions for longer duration storage – with the exception of pumped hydro – still have to become known more widely and accepted by the market. But as the share of renewables increases, the need for storage systems will become not just a building block for sure, but part of the very foundation our energy future rests on.

ABOUT THE AUTHOR

Hans Maghon is Head of Energy Storage at Siemens Energy

The post Not all storage solutions are created equal appeared first on Power Engineering International.

“I find living in the Orkney Islands very inspiring. It allows you to glimpse into the future, to see how we can make energy transition work.”

So says Neil Kermode, managing director of the European Marine Energy Centre (EMEC), about what it feels like to live on Orkney, an archipelago off the northeastern coast of Scotland that is not only home to EMEC, but to a myriad of energy research and innovation projects.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

With electric vehicles to the left, tidal energy turbines to the right and 750 domestic wind turbines in between, Kermode describes the island home of EMEC as the place we’re all going to go. “It’s encouraging to see there’s a way of making this all work.”

Established in 2003, EMEC Ltd is the world’s first facility for demonstrating and testing wave and tidal energy converters – technologies that generate electricity by harnessing the power of waves and tidal streams in the sea.

The centre offers purpose-built, open-sea testing facilities for prototype technologies. They operate two grid-connected, accredited test facilities where larger prototypes are put through their paces, as well as two scale test sites where smaller scale devices, or those at an earlier stage in their development, can gain real sea experience in less challenging conditions.

EMEC then and now

Kermode explains that EMEC began at the turn of the century. People had been interested in the concept of capturing the power of the sea for a few decades by this point.

The UK government was keen to kickstart a marine energy industry in the UK, and they agreed that a test site – which could act as a catalyst for economic development, supply chain development, and innovation, would be the best way to do so.

They concluded that Orkney would be the perfect home for a marine energy test centre.

Says Kermode: “We’re on the national grid, the sea bed slopes reasonably fast, and has reasonably large port infrastructure.

“EMEC allows people with devices and technical kit to come and plug onto the ends of our wire. It’s the easiest possible way to get their kit into the water.”

EMEC is trying to demonstrate what works and what doesn’t work in a way that makes a positive difference. Kermode explains: “Firstly, Orkney removes itself from being a part of the problem by decarbonising what it’s doing and secondly, we try to find ways that are replicable, driving development and warning others of potential pitfalls.”

“People want to see that things are happening and feel a sense of hope about our current situation.

“If we think it’s all going downhill, it’s soul destroying. If you know people are trying to develop this tech, there are jobs and careers to be had, families to be raised – you’re inspiring people to make change. You can’t threaten them to change – it doesn’t stick. That’s what EMEC is trying to do. Inspire change.”

Green hydrogen

Since 2013, Orkney has generated over 100% of it’s electricity demand from renewables, however the grid connection to Orkney is limited as it was not designed to feed industrial quantities of power from the islands into the national grid.

So a few years ago, EMEC started looking at different options to store locally-generated renewable power to ensure Orkney could take full advantage of its renewable potential.

This led to EMEC setting up an onshore hydrogen test centre adjacent to its Fall of Warness tidal test site.

“Our substation takes the energy from the tides to the hydrogen system, electrolyser, compressor, storage and then transports it to other locations.”

EMEC, together with project partners, is exploring hydrogen generation from tidal and wind energy and using it in different test scenarios.

Hydrogen is being used to run a fuel cell to cold-iron ferries and as gas in electric cars with hydrogen fuel cell range extenders. EMEC is also looking to use hydrogen in heating at local schools, and investigating projects using hydrogen in a CHP unit at the airport to supply heat and power to the airport.

There is also a parallel stream looking at how hydrogen can be used for aviation, using hydrogen in a plane to decarbonise flights to and from the island.

Maturing tidal power

Marine energy hasn’t always received attention and has generally remained in the shadows of offshore wind.

Kermode states that it simply hasn’t reached critical mass, but it will come. “There is a massive amount of oceanic space out there that we can put this into once we have cracked the technology”.

Kermode identifies how the tidal energy sector is evolving…

Recognising the importance of maintenance on tidal energy equipment: Initially, there was a tendency to build the system and let it run as engineers didn’t understand the enormity of the technical ask. Now, people recognise that it will take more maintenance initially, until systems can be developed requiring less maintenance.

Succeeding at surface mounted equipment: Projects have gone to the surface rather than underwater. Kermode highlights that initially, it was important to get the equipment underwater and out of sight so shipping could continue unhindered. However, the technical requirements are larger than initially thought, which means it will take longer to get it under water.

The turbine sizes are maxing out at about +-2MW: “We won’t see the same growth scale curve as with offshore wind, although I don’t think we’ll need to. Size might be limited by the depth at the sites or the scale of the available ports to handle turbines.”

The industry has seen that this type of turbine technology works: When Kermode began working at EMEC, the focus was on how to make it work. Now however, it’s about how to make it better and cheaper.

Kermode emphasises the need for patient impatience. “This kit is technologically not that complicated, but we are working in an environment we don’t necessarily understand, in terms of corrosion and fatigue. We need to be patient in terms of how long it takes to get this working, but we need to be impatient in terms of keeping at it.”

Kermode denies marine energy is niche as there are numerous island applications around the world. In terms of some offshore installations, turbines could keep running costs lower.

Also, for island nations and small communities using diesel generators, tidal and wave energy could demonstrate a clear use case.

However, Kermode stresses that deploying marine energy technology in any environment will help other solutions develop and come to the fore. “It’s not about one technology, it’s about using them all collaboratively for the best outcome.”

For now, EMEC works closely with other other test centres around the world to share lessons learned, standards and best practices.

Also, EMEC is on a mission to overcome some post-Brexit finance challenges and regain the confidence of government.

“It’s not just about finding the cheapest technology; it’s about getting government to make smart investments to speed up decarbonisation.”

“We want to rebuild the excitement around marine technology through demonstrable progress, but temper that with the realities that this takes time.”

EMEC plans to support the deployment of tidal turbines and wave machines, and explore additional electrolysis to generate more hydrogen.

“Electrolysis out at sea will become necessary, on land in a high salt environment to test that,” says Kermode.

EMEC also has plans to delve into hydrogen derivatives and synthetic fuels, a trend that Kermode believes will be sizable.

To really spur development of the marine energy sector, Kermode stresses the importance of collaboration. There is no longer time to develop one technology solution at a time. “Marine energy is right in the core of the multi-faceted attack we will need to make on decarbonising our energy system as a whole.”

The post Orkney: Turning the tides to renewables appeared first on Power Engineering International.

For well over a century, the world’s power grids were built on a centralized basis. Electricity took a linear path from power stations with large rotating generators, over transmission and distribution lines to consumers. This worked well, especially as utilities and network operators had a deep understanding of their systems and how to operate them to ensure continuity of supply.

In recent years, the need to decarbonize power production and integrate large levels of renewable energy has forced networks to evolve. That means the future grid looks very different (see Figure 1).

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

Large fossil fuel plants are now being replaced by renewable energy, usually wind and solar power. This has resulted in a dramatic reduction in the amount of spinning mass, otherwise known as kinetic reserve, that plays a vital role in preserving the frequency stability of the grid.

The power industry is actively seeking ways to restore this reserve. That is why attention is turning to the well-proven technology of synchronous condensers (SCs). These large rotating devices provide the physical inertia to deliver instantaneous support that maintains stability irrespective of the upstream network voltage or frequency.

How do synchronous condensers make grids more resilient?

A synchronous condenser is not a motor: it does not drive anything. It is not a generator since there is no prime mover. Instead, it’s a large rotating electric machine, deployed traditionally to produce reactive power, balancing out highly inductive loads, like electric motors.

Historically, the typical users of SCs were electrical utilities and heavy industries that operate transmission, distribution or industrial power grids. However, the changing nature of grids, and concerns over the loss of inertia, have stimulated new interest in SCs. This is because they can mimic the operation of large generating plant by providing an alternative source of spinning inertia to stabilize the grid. As large rotating machines, SCs can both supply and absorb reactive power, delivering voltage support and dynamic regulation.

A major advantage of SCs is that they are a very cost-effective and reliable way to maintain power quality. They provide the fault current protection essential for the strengthening of a weak grid. This is a key enabler for the increased grid penetration of renewables.

SC ratings

ABB supplies SCs in ratings up to 80MVAr of reactive power and 3-15kV system voltage. Higher outputs are reached by using several units in a standardized module concept. This configuration offers better redundancy and availability compared to one large unit.

SCs are tailored on the basis of network studies for the specific location where grid support is needed. This enables the creation of pre-designed SC packages that are easy to transport, install, commission and integrate. They are small or medium sized units that can be strategically sited for optimal results – providing an ideal decentralized solution to increase grid strength and stability.

SC installations

As an example of the possibilities offered by SCs, two ABB units have been installed as an integral part of the Darlington Point Solar Farm (see Figure 2). They help stabilize the local power grid as the penetration of renewable energy increases in a critical area of New South Wales. The project commenced operation in August 2020, and with a projected annual output of 685,000MWh it is the largest solar farm connected to Australia’s National Electricity Market.

Another example is that ABB is working on a project to supply an SC to SEV, the main power producer and the only distributor in the Faroe Islands, an archipelago in the North Atlantic, about halfway between Norway and Iceland.

The 53,500 people who live in the Faroes already gain around 50% of their electricity from renewable energy sources – mainly hydropower and wind. By 2030, they aim to derive all their electricity from green energy.

To maintain grid stability as wind power increases and an older thermal power plant is taken offline, SEV is installing an SC at the 6MW Porkeri Wind Farm on Suðuroy, the southernmost island of the archipelago.

The unit, manufactured at ABB’s specialized factory in Sweden, is scheduled to be up and running in the beginning of 2022. The SC, together with battery energy storage, could enable 100% of the island’s demand to be met with wind energy at times with good wind conditions.

High inertia SCs

In February 2021, ABB was awarded a contract by Statkraft, Europe’s largest renewable energy producer, to design, manufacture and install two high-inertia SCs for the Lister Drive Greener Grid Park in Liverpool, England. The innovative project will play a key role in stabilizing the local grid to handle more wind and solar power. This will help the UK’s National Grid meet its target of operating a zero-carbon electricity system by 2025.

The project will be the first ABB project anywhere in the world to feature a high-inertia configuration. This couples a 67MVAr SC with a 40-tonne flywheel that increases the instantaneously available inertia by 3.5 times.

Phoenix hybrid synchronous condenser system While SCs are a well-established concept, the technology is continuing to develop. For example, SP Energy Networks is working with the University of Strathclyde and the Technical University of Denmark to deliver the world’s first hybrid-synchronous condenser (H-SC). The H-SC’s two main physical components are a traditional SC and a power electronic static compensator (STATCOM). The STATCOM’s role is to absorb or inject fast reactive power, which helps during transient stability issues or for active filtering. The SC provides inertia, fault current support and reactive power.

The H-SC is undergoing trials at Neilston 275kV substation near Glasgow to evaluate how it can inject or absorb energy into the network to maintain the voltage within the required limits. In effect, it will provide spinning reserve over a few seconds until other resources such as a battery energy storage system (BESS) or a reserve generator can be brought online.

SCs will grow in importance

The increasing grid penetration of renewables and decommissioning of fossil fuel power plants is changing the nature of electricity networks. There is a growing need for networks to be supported by decentralized solutions that ensure grid stability and resilience. Synchronous condensers can be deployed to strengthen weak networks in remote areas. Their advantages include inertia support for frequency stability, fault level contribution and voltage regulation – all functions that are challenging to achieve only by using power electronic systems.

To illustrate the need, the two SCs in Liverpool will provide a total of more than 900MWs inertia. Currently, the UK has around 220GWs. That means Lister Drive will provide about 0.5% of the UK’s total inertia.

While that contribution seems small, as more traditional generation plants are decommissioned and renewables are added, SCs will play an increasingly important role in maintaining grid stability for the UK. This pattern is likely to be repeated globally, as SCs have already helped reinforce power networks in Australia, Canada, and Scotland. The expectation is that network operators worldwide will adopt SCs in ever-increasing numbers as the urgency to decarbonize electricity production gathers momentum.

More info: new.abb.com/motorsgenerators/synchronous-condensers

ABOUT THE AUTHOR

Heikki Vepsäläinen is President of ABB’s Large Motors and Generators Division. He holds a masters degree in electrical engineering from the University of Technology, Helsinki.

The post Synchronous condensers put vital spinning inertia back into decarbonized power grids appeared first on Power Engineering International.

While today’s power generation equipment is powered predominantly by fossil fuels, the outlook for the future of power generation is overwhelmingly clear.

In the not-so-distant future, these systems must produce clean energy from sustainable sources to comply with the target of the Paris Agreement to keep global warming below 1.5 degrees Celsius.

We believe the way humans use power must become climate neutral. For us, that transition is both a societal imperative and the greatest commercial opportunity of our time.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

That is why we, the Power Systems business unit of Rolls-Royce, are positioning ourselves and our products for a more climate-neutral future by aiming to cut greenhouse gas emissions by 35% compared to our 2019 level by using new net zero products and technologies.

This near-term target plays a significant role in the overall Rolls-Royce Group ambition to achieve net zero by 2050 at the latest.

Key to this mission is our strategy to boost sales of eco-friendly energy and propulsion systems, which we view as growth opportunities for our business.

To make as big an impact as possible in the fight against climate change, the first priority of Power Systems is to realign our mtu product portfolio towards sustainability, which is where we currently see the largest potential for reducing emissions.

Our teams have already made considerable progress by testing lower carbon alternative fuels and developing advanced engine designs to further increase fuel efficiency.

We are also pioneering breakthrough technologies to decarbonize the complex, carbon-intensive sectors in which we operate and power sustainable economic growth.

Decarbonizing the powertrain

Rolls-Royce’s mtu liquid-fuelled engine portfolio in power generation, which will be able to run on sustainable synthetic fuels from as early as 2022, plays a large part in reaching our goal.

In the past, the development focus for traditional internal combustion engines (ICE) was on improving efficiency and increasing power density. In recent years, the focus has changed to the decarbonization of the powertrain.

While many propulsion-related discussions of today’s engines are centred on the high volume of engines produced for the automotive industry, certain technology advances in the on-highway market have been and will be transferred and innovated into the off-highway market.

Fuel efficiency improvements and exhaust emission reductions of ICE have made significant steps over the past few years and will continue to do so.

However, those alone will not be enough to reach our 2030 goal, which is why new technologies must be developed and deployed, which will gradually replace conventional fossil-fuelled ICE.

Besides continuous fuel efficiency and emissions reduction efforts for fossil-fuelled ICE, we feel the following technological principles have the most leverage for emissions reduction:

• Usage of combustion engines with sustainable, non-fossil fuels, such as synthetic fuels or e-fuels often referred to as Power-to-X; fuels like eDiesel, eHydrogen and HVO; and also second generation bio-fuels.
• Enable our mtu natural gas engine fleet to run on hydrogen blending in a transition period and to be modified to run on 100% green hydrogen as soon as it is available. This is also a sustainable solution for CHP applications. Additionally, fuel cells running on 100% green hydrogen can play an important role in combination with renewables and Power-to-X.
• Hybrid, decentralized power stations with a combination of the aforesaid green energy producing units, renewable energies such as solar power and battery storage systems. These microgrid solutions can be operated on or off-grid and play a significant role in the energy transition with a very decentralized and autonomous approach.

For a specific example, new generations of our mtu Series 2000 and Series 4000 engines will be qualified to run on second generation bio-fuels and on e-fuels.

These engines are used in energy supply, as well as in commercial shipping, heavy land vehicles, passenger trains and in yachts.

Development engineers are also working on engines powered by hydrogen and methanol, as well as on concepts for decentralized Power-to-X systems.

Sustainable solutions

Beginning in 2025, new technologies that Rolls-Royce’s Power Systems division has been developing, such as CO2-free fuel cell systems, will be used in power generation solutions – from balancing energy for compensating fluctuations in the public grid to continuous power and the provision of emergency power in locations such as hospitals and data centres.

Sustainable solutions that are already featured in our portfolio for decentralized, environment-friendly power solutions – such as battery energy storage systems, hybrid propulsion systems for marine and rail applications, and microgrids – will continue to advance.

For our standby power applications, which can encompass several hundred gigawatts of installed capacity around the globe, a sustainable solution must include the installed fleet. This is where eco-friendly fuels will be essential.

For new standby power installations, ultra-fast-start hydrogen engines or fuel cells will be an option, once the hydrogen infrastructure is in place.

For continuous power generation and peak shaving, the use of natural gas units with a transition from hydrogen blending to 100% hydrogen, even for combined heat and power, are reliable options. Plus, hybrid offerings and microgrids can reduce greenhouse gas emissions following the same transition into hydrogen power.

Even today, natural gas-powered combined heat and power/combined cooling heat and power units can reduce greenhouse gas emissions significantly compared to actual power generation by coal, HVO or single-cycle natural gas power stations.

Of course, to what extent these efforts will become reality depends on several drivers to be in place, such as sustainable finance standards, market framework regulations such as CO2 price or CO2 emissions limits, a global alignment on standards, and the energy supply chain, including the availability of infrastructure.

We are preparing for a technology mix of ICEs and electrical and strongly believe that battery systems will play an increasingly important role in all our applications. Especially in combined technology solutions, batteries will allow us to cope with the inherent peak demands in the public grids.

Impactful milestones

As a specialist for propulsion and energy solutions, Rolls-Royce is aiming for impactful milestones with its efforts.

To put things in perspective, our Power Systems products sold in 2019 before the pandemic will generate some 109 million tonnes of greenhouse gases over their service life in the field – almost double that emitted by the Greater London region every year. That results in our company having a lot of leverage in terms of lowering emissions.

Beyond ourselves, however, policymakers play a vital part here as well: to put in place stable framework conditions for sustainable energy solutions in the areas of industry in which we operate, thereby providing clear incentives to participate in the changeover to sustainable products.

And no individual company, sector or technology has all the answers. While we see a momentum in the market and our customer base, the willingness to deploy new sustainable technologies is very different across different customer groups.

Regulatory frameworks and policies are major drivers, but equally important is the individual interest of major industry players.

Therefore, technological change will not happen simultaneously across all segments – it will occur at various rates as each industry grapples with its own energy transition.

There is no doubt that there will be several twists and turn on the path to net zero. It may not even be that everyone takes the same path. Regardless of the route, we are committed to support the society to move into a greener future for all of us.

ABOUT THE AUTHOR

Andreas Goertz is Vice President of Power Generation at Rolls-Royce Power Systems.

The post Power generation for the next generation appeared first on Power Engineering International.

Since the beginning of the year, several cyberattacks have directly impacted the utilities sector.

We’ve seen water treatment plants attacked, plus oil pipeline systems. These attacks clearly indicate the dangers that await organisations operating in this sector.

The online systems of critical infrastructure organisations are valuable targets for hackers, both because of the mass disruption caused when successful and the high ransoms earned in the aftermath – which can spiral into the millions.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

With the convergence of IT and OT systems, there has been an exponential growth of IoT devices, which has heightened the concern over the digital security of these systems.

In fact, global management consultancy firm McKinsey states the challenges faced by the utilities sector are unique and not found in other industries, making the situation even more challenging.

Some within the cybersecurity industry may have thought the global pandemic would have slowed the number of ransomware attacks, but cyber criminals have shown no mercy, targeting essential services that are heavily relied upon like hospitals, schools and critical national infrastructure (CNI).

As seen with recent attacks, ransomware was the method used to exploit systems. But why? Because it’s cheap to deploy, has a high success rate, and many organisations that suffer a ransomware attack will likely pay the ransom to avoid having systems down for a significant period of time.

Those lacking the expertise or resources to handle the necessary demands of security need external services and advice.

Cybersecurity threats like ransomware can no longer be ignored and the latest wave of attacks should be the wakeup call for the utilities sector to take cybersecurity more seriously.

On the offensive

Given that malicious actors are continually evolving their tactics to steal sensitive data, intellectual property and other digital assets, utility companies would benefit from an offensive approach to cybersecurity.

For instance, by leveraging threat intelligence, organisations can better understand their attackers, their methods, why they are attacking, and what assets they are most likely to focus on. This can help security professionals make decisions based on data-driven insights to prepare, identify and prevent a cyberattack – decisions that can potentially save millions of dollars.

Business executives can also use threat intelligence to gain insight into business risks, discuss with other team members where to focus attention, and make business decisions regarding where to allocate funding for security purposes.

Furthermore, organisations can create and manage their own threat intelligence feeds with the ability to filter potential threats based on specific markets or geographical locations to flag patterns of interest that can be actioned.

Threat intelligence adds an additional layer of resilience to utilities and is an integral part of understanding the inner workings of networks, systems, processes and applications within the company.

Risk-based security

As mentioned, the convergence of IT and OT has now become a reality, with CNI providers utilising technology to reduce overall costs while still being efficient.

This has elevated the concept of industry 4.0 with Internet of Things becoming synonymous with this sector. Yet, with the rise of connected devices within these environments, the attack surface has also expanded, putting OT systems in jeopardy.

Traditional security methods are becoming obsolete, especially for legacy systems within the CNI environments; and this is presenting a challenge for security teams to effectively secure the entire perimeter.

A lack of visibility has been highlighted as a key issue as blind spots in the defences are continually being exploited.

Many fail to realise that technology investment alone will not guarantee total protection against cyberattacks. Businesses and security teams need to look beyond technology and should incorporate risk and resilience into the equation.

A step in the right direction involves taking a risk-based approach to security and identifying, focusing and prioritising specific areas of risk to remediate. This targeted approach can help security teams focus their attention on the biggest vulnerabilities and issues that can impact the most critical areas of the business instead of spreading themselves thin by trying to fix everything across the entire network.

Incorporating a risk-based approach that harnesses threat intelligence will help organisations adjust the balance of their security-risk appetite, while having the ability to fully understand their adversaries. There is no one-size-fits-all to cybersecurity: it doesn’t exist.

Therefore, business decisionmakers and security professionals need to be singing from the same hymn sheet in order to accurately determine security strategy and budget to help the organisation evolve with the ever-changing threat landscape.

ABOUT THE AUTHOR

Theresa Lanowitz is Director of AT&T Cybersecurity

The post Proactive measures to cyber-secure utilities appeared first on Power Engineering International.

Poland is the third most coal-reliant country in the world. Traditionally, climate and energy policies have been led by a right wing and conservative government, creating a challenging and at times tense landscape for transition.

However, the winds of change are blowing and there seems to be consensus within the country that coal is no longer the answer and transition to cleaner energy is the only option.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

There are several key factors driving this shift. Firstly, the county is running low on domestic coal supply. With coal production falling, Joanna Maćkowiak-Pandera explains that Poland can no longer cover demand with domestic good quality coal.

Maćkowiak-Pandera is founder and leader of Forum Energii – the first energy transition think tank in Poland – where she focuses on European energy and climate regulations, electricity markets and renewable energy sources.

Another important factor highlighted by Pandera is the growing awareness of Polish society that renewable energy is healthier and less polluting.

Winter air quality is poor with at least three million houses being heated with coal in single furnaces.

Michał Motylewski, attorney-at-law, is a managing counsel in Dentons’ Warsaw office and a member of the Warsaw Energy and Natural Resources practice team. He suggests that this social awareness is bringing Poland to a point of no return.

“Poland is at a crossroads with its overall awareness of the economic, environmental and social issues that result from being dependent on a such a climate-adverse fuel.”

Adding fuel to the Polish energy debate is the rising price of carbon, making electricity production from coal simply unaffordable.

Pandera highlights that coal power plants are extremely old, with more than 70% of plants over 30 years old and extremely inefficient. She adds: “It no longer makes any sense to modernize them. So the challenge is understanding how to fill this coal gap with clean resources.

“According to our modelling, in the next nine years we should phase out 23GW of coal because it will be highly unprofitable. So it’s a challenge.”

As Poland faces and embraces energy transition, the dichotomy is clear. Poland has access to standards, best practices and funds through the European Union.

On the other hand, it’s a fast developing sector and there is uncertainty amongst decision makers concerning how to best deal with these novel challenges.

Policymakers and citizens alike are asking: How do we live, operate and prosper?

Motylewski suggests that the answers to Poland’s questions lie in a thorough policy framework. “In terms of regulation and policies, if you don’t develop a comprehensive policy, and you don’t make an effort to drive it, no matter how hard it is, there will always be a major bottleneck, a backlog, something stopping you from delivering.”

Fit for 55

Over the past ten years, Poland has started to realize the need for renewables. In 2019 the concept of a European Green Deal developed which would ensure climate neutrality by 2050.

Motylewski notes: “This is when it dawned on everyone that to get there by 2050, we actually need to have some deliverables, something of which we can say: We are doing this right.”

Fit for 55 is Europe’s most comprehensive attempt at regulation and provides an inclusive roadmap to achieving decarbonisation. It will require a paradigm shift in Poland and throughout Europe, and will also require common effort for the common good: a new form of capitalism.

Pandera and Motylewski highlight the challenges and opportunities associated with this ambitious piece of legislation. One of the biggest challenges is the extension of the ETS to non ETS sectors, which will include carbon pricing in buildings and transport.

Carbon pricing in general could be politically controversial if not dealt with in a fair manner. Ensuring fair redistribution of the cost of the energy transition within society is important, as increasing energy poverty must be avoided.

Motylewski says: “This is about a new model of society and reducing inequalities. We need to overhaul the entire system in Poland.”

Integration of developing renewables is another key challenge. Flexible technologies must be utilized to integrate renewables and give impetus to the digitalisation and automation of the power sector, ultimately increasing security of supply.

However, to achieve this, good, smart projects are needed, something which is currently lacking in Poland.

In contrast however, massive opportunities are to be found in terms of electrification of heating and transport, the inclusion of green gases such as hydrogen, and also in developing a bio methane supply chain through tapping into the country’s significant agricultural potential.

The prosumer market is also becoming very popular. “We have over 20,000 companies now operating in the market, which developed over only a few years. Deployment is increasing 200% annually,” says Pandera.

Poland is investing in a diversified energy mix and with it comes a greater diversity of market participants. Financial institutions and asset managers are becoming conscious of and preparing for new investment landscapes.

Competence centres are being developed to assess investment opportunities, and effectively shape financial policy to facilitate financing at different levels.

A just transition

As with any country heavily reliant on coal and shifting to cleaner energy sources, the question of how to ensure a just and fair transition is high on the agenda.

Pandera explains that Poland had several bad experiences in the early 1990s, when many workplaces, and plants collapsed overnight, and regions and people were left to recover on their own steam. The open pit mines are a symbolic void and the trauma has left a scar.

In order to overcome this sensitive history, open discussion with the decision makers to formulate a clear path is important. New projects delivering new jobs are needed. International partners, new technologies, and good ideas will drive transformation and help avoid the mistakes of the early 90s.

“In terms of the EU’s Just Transition Fund, we are advising on how to plan revitalization and looking at new kinds of jobs needed for the region. Coal is the biggest employer in the region and once it’s closed down, then the question is how to keep the unemployment rate low,” says Pandera. Motylewski suggests: “We must encourage international cooperation and encourage everyone to bring solutions to the table, using the funds available to reduce the risk, encourage investment decisions and deliver.”

Both Motylewski and Pandera agree that Poland’s coal intense regions have the resources to ensure this transition is successful. Skilled workforces and local infrastructure mean there is a solid base from which to start.

Testing ground

Poland is a good testing ground for energy transition. As fast growing economy, it shares struggles with other countries in terms of infrastructure and grid development to accommodate growing renewables.

Investing in grid resilience, automation and digitalisation, as well as utilizing the data to increase network efficiency will be a priority now.

Seeing how the country develops and delivers on this will provide a comprehensive blueprint, suggests Motylewski, on how best to connect resources and offtakers, how best to integrate clean energy and how best to decarbonize heating and cooling. The transition is giving rise to new innovation from the ground up.

“We may have small, local initiatives, but if you add them up, you get an effect of scale that serves a large industrial area, and serves a large city. You can profit from that. This open minded approach should be promoted in different parts of the world.”

Pandera emphasizes that if Poland can manage energy transition, everybody will manage it. However, the country must adjust its signal to the world. The Polish narrative is changing and utilities are divesting in coal assets and deciding on coal phase-out plans. This is the message that must be conveyed.

Motylewski adds: “Energy transition is the biggest opportunity in Poland, and this is also a lesson for anyone who looks at challenges and asks: What can I do about it? Can I manage that challenge? In Poland we answer: Yes you can.”

The overriding consensus throughout the discussion is that in order to achieve the energy transition in Poland, all industries must stay focused, be open to change and use the ample resources at hand. This, coupled with a handful of courage, will see significant social and economic change: change that will secure a healthier planet for future generations.

For more details on Poland’s Fit for 55 commitments, listen to Enlit Europe’s ‘Energy Transitions’ podcast:

The post Poland and the race to 55 appeared first on Power Engineering International.

Do oil and gas have a future? It’s the question that seems to be on everyone’s lips, particularly in the lead up to COP26 this year.

To give you the short answer: For now, yes they absolutely do have a future.

This might not be what a lot of people want to hear as they warn the climate crisis is growing. However, the simple fact is that the world must have energy, and renewables just aren’t ready to make oil and gas completely redundant. Yet.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

With the best intentions in the world and all of the fantastic progress we’ve made in recent decades moving towards sustainable low-carbon alternatives, there is no quick fix. The change from oil and gas to green energy simply cannot be an immediate change.

The idea that we can have oil and gas one day, then replaced by wind and solar power the next is a fantasy. The truth is the move to renewable energy is a transition that will take time, not a switch or a magic click of the fingers.

By understanding that the energy transition means we will be needing oil and gas around for some considerable time, we can focus our efforts on supporting oil and gas companies to transition faster, rather than simply condemning them as ‘bad for the planet’ and hoping they will go away.

They won’t. Because right now we can’t function without them. Unfortunately, fusion and green hydrogen energies are still a long way away from being scalable and affordable.

Energy security

It all comes down to energy security. In fact, it’s the main consideration in the continued use of hydrocarbons. The International Energy Agency defines energy security as the uninterrupted availability of energy sources at an affordable price, and describes it as a priority goal now and in the future.

Disturbances to energy systems have the potential to cause severe and chaotic impacts on society and the economy, limiting development in both and justifying the high concern around energy security.

This is because energy infiltrates every aspect of our lives, even those that seem so far removed from the energy sector.

Every vehicle we drive, every light we turn on, every item of clothing we wear and every electronic device we use is available to us because of the energy industry. And right now, whether we like it or not, it’s also largely because of oil and gas.

Of course we hope to change this heavy reliance on hydrocarbons. However it’s important to remember that our reliance on energy and power is growing everfaster, as society becomes increasingly electric.

This means on our journey to achieve net zero, energy security will only become more important. The good news is that undoubtedly the shift to clean energy will help to improve energy security across the world as natural resources become scarce.

Developing and adopting green energy low-carbon technologies will boost technological innovations and protect against technological uncertainty. This will in turn enhance energy security – it will just take some time to get there.

Digital transformation

Time is what the experts are increasingly warning us that we are running out of. The climate crisis looms and we must transition faster.

Easier said than done of course when much of the world’s energy infrastructure is built for fossil fuels. So how do we speed up the energy transition?

Digital transformation is key here. However, in order to see a real impact, this must be a sea change – a full industry wide digital transformation.

We need to break down the barriers of reliance on outdated processes and old technologies that are inefficient, using and wasting huge amounts of valuable energy through disparate systems and controls.

Deploying more low-carbon systems and modern technology capable of learning, like AI, will help to connect distributed teams delivering tomorrow’s office as a hybrid hub, maximising the benefits of remote work and immediately increasing energy efficiency.

The benefits of digitalisation come into play through work management automation tools that optimise business processes and therefore the energy services as well as combatting the challenges these energy companies face such as development and productivity.

The digital methodology and innovation to replace the old with new and improved technology is already out there, but unfortunately the sense of urgency is still lacking.

So, to put it bluntly for companies that aren’t yet convinced they need to make their contribution: Digital transformation is the only way oil and gas businesses will successfully transition and continue to operate effectively in the future. The key question then is: How can we help hydrocarbon businesses transition to clean energy?

Transitioning oil and gas

Investing directly in low-carbon tech is certainly one way to drive the innovation we need to support a full digital transformation, but achieving a lasting, green future also demands a total shift in thinking and attitude.

This happens to be something the younger, digitally-enabled generation are perhaps more adept at and so energy companies need to focus on attracting this up and coming green talent to help create and manage the new systems and technology we need.

But the negative image of oil and gas poses a challenge to recruitment. Association with the energy sector is no longer an attractive prospect to young, green talent eager to change the world; yet oil and gas must remain a part of the energy equation for years to come as the industry and the world works its way through the energy transition.

As it is imperative that companies do recruit for the success of the energy transition, they need help to attract and retain this new talent.

Specialised green talent recruiting software is an excellent place for businesses to start. It can offer a fast way to access or find new talent, as well as allowing companies to post ads for specific green projects, search for rated talent and engage freelancers.

Recruitment is already challenging and lengthy, but platforms like this can help to source some of the resources required to find the best green energy talent available.

Another way to attract and retain new talent is through the adoption of remote, flexible workplace systems, that embrace the gig economy.

The next generation of workers is looking for an attractive work environment without frustrating processes and slow decision making. They won’t hesitate in taking their time and skills elsewhere if such an environment is not available, regardless of employment status. In a nutshell, businesses need to adapt to a new way of working or lose out.

The gig economy revolution is founded on a fundamental shift in the way companies engage with talent and manage their work, underpinned by the digital transformation.

Technology is driving teams to work smarter, not harder, and will be a great benefit to a business’s green credentials in the longer term, therefore making them more attractive to prospective employees. Similarly, by embracing technology, employers and gig workers can see the benefit of a more flexible way of working, allowing access to a global green talent pool that is no longer restricted by geography.

ABOUT THE AUTHOR

James McCallum is co-founder of work management automation platform Proteus. He will be taking part in the next episode of the ‘Green is the New Black’ webcast series, which examines the intersection between the oil & gas industry and renewables.

The post Do oil and gas businesses have a future? appeared first on Power Engineering International.

Since the process began in June 2020, to the application closing date in July this year, ScotWind Leasing (ScotWind) has been an auction that the entire wind industry has kept a keen eye on.

With 75 different applications emerging, there are many big players with their sights set on the Scottish offshore wind market.

The competition is intense and international players – including supermajors – are eager to get a strong foothold in the Scottish market.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

And while sites could be home to projects of up to 10GW of offshore wind, naturally there will be many who lose out at the end of this auction.

The ScotWind process has seen several major twists and turns. In response to the substantial amount offered during the Round 4 UK leasing, Crown Estate Scotland (CES) paused the tender to review the process in consideration of, amongst other things, the cost cap being applied to the fees for the seabed lease.

On 24 March, CES published a review of the regulations which saw the maximum fee per km2 of seabed rise ten-fold from £10,000 to £100,000.

Now, as all parties wait with bated breath for the results, the industry has a chance to look at the challenges arising for all parties involved in the process. These include hurdles such as how CES will differentiate between the bidders and how developers can then marry higher lease costs with high development costs in the tricky, submerged terrain of the Scottish seas.

While it is abundantly clear that the Scottish seabed offers great potential to the UK wind sector’s role in the energy transition, there are some immediate challenges that need to be overcome in order for the Scottish offshore wind sector to succeed over the long term.

But as we’ll see, innovation is likely to be the key weapon in the armoury when it comes to breaking down barriers to development.

The differentiation challenge

With a strong contingent of financially secure consortiums among the bidders for the seabed, we can expect the cap to be maxed in multiple instances.

Although this may appear to be a bonus for CES, in truth it is another challenge to their decision-making process.

If the bids are not noticeably different in the scoring mechanism, and if many applicants have bid the maximum, then using price offered as a deciding factor becomes impossible.

Assessing how applicants are proposing to invest in their supply chains could be one way of doing this. In addition to increasing the maximum fees earlier this year, CES also raised the threshold of the Supply Chain Development Statement commitments from 10% to 25%.

This means that greater portions of supply chain spend for the projects being proposed had to be dedicated locally.

The bidders have shown a keen awareness of this. BP’s “transformational bid” includes harnessing an online portal that they have created to engage local Scottish workers. The BP-EnBW team also promises entry-level energy transition roles and to re-skill hundreds of oil and gas workers, graduates and technicians.

This bodes well for the local supply chain and presents exciting opportunities for the economy in Scotland and other parts of the UK. It also offers another means through which CES can seek to differentiate applications, but they could be back to square one in terms of deciding who receives licences if all the bids feature a similarly strong dedication to the local supply chain.

In making their decisions CES will follow a strict set of 45 questions that each bidder must answer. Depending on the quality of the submission and the meeting of the criteria for these questions, the bidder is awarded a banding.

In a few of these bands a further points scoring mechanism is applied; this numerical score in a few bands may well be the only differentiating criteria.

Challenging waters

While selecting successful bidders is a challenging task in itself, all of the truly hard work will lie ahead, even once this part of the process is complete.

Developing wind farms off the Scottish coast will be rewarding, given the abundance of natural resource, but it won’t be easy.

With deep waters reaching around 600m or in some cases 1km, there are additional technical challenges and therefore additional costs involved to execute projects to the highest standard.

Furthermore, the complex geography and topography of the land across the 8,600km2 of lease bed on offer create a challenging landscape on which to build. These added complexities may result in increased development costs that will accompany these already costly investments in seabed leases. And developers will be building out a new area of offshore wind in the midst of an international tug of war for resources.

The global success of the wind industry means that raw materials, original parts, and the vessels that can be used to transport or assemble them are in high demand. Developers will have to navigate this difficult combination – which could see their development costs soar over the coming years amid rising prices for raw materials.

But evidently, many are keen to accept the challenge, confident that Scottish wind projects will deliver strong returns. And with advances in technology at every stage of the project’s life, difficult development conditions are becoming easier to overcome.

Scotland’s floating wind prospects

Scotland has the opportunity to become a leader in commercial-scale floating offshore wind, and this is clearly not lost on the bidders.

Equinor’s bid is specifically for a floating offshore project, whilst Shell and Scottish Power Renewables have promised the world’s first large-scale floating offshore wind farm in the north-east of Scotland.

Several other consortiums also boast experience in floating wind, including Ideol and Marubeni.

Scotland’s position in floating wind development has already been established, through projects like Equinor’s 30MW Hywind, which made Scotland the first nation to host a full-scale floating offshore wind farm.

If CES has its eye on experience in this sector, particularly when it comes to making Scotland a big name in this burgeoning technology, the success of Hywind will not go unnoticed.

The development challenges of the landscape could be countered with the potential of floating wind, creating a hotbed of development.

However, it is worth noting the project sizes of floating wind. With these projects being typically smaller, we may see an interesting landscape of multiple smaller developments emerge out of this tender, should CES drift favourably towards the applications that are proposing floating solutions.

Global skills shortage

Scotland is likely to feel the bite of a skills shortage that is currently, and is forecast to continue, impacting the global wind industry.

There is an international shortage of engineers with the requisite skills, demonstrated by the US requiring more than 44,000 workers in order to meet its targets, and the UK is feeling the strain, too.

A combination of factors is contributing to make the sourcing of workers across the industry, from project managers to engineers, even more difficult.

Competition is rife – especially with the pace at which projects are being built out across the world – and the number of qualified people leaving the established European industry for more lucrative or interesting projects in the US or Asia is growing.

This is a big challenge to the green transition, and something that the whole industry needs to grapple with.

A few initiatives have been suggested in recent years, such as retraining oil and gas workers, but this alone will not be enough. It will take time for experience to build, and a consistent, united effort to give individuals the resources and training they need to move into the industry.

Looking forward

Deep waters, tricky topography and high demand across the world for skills and resources make for a difficult landscape for the ScotWind applicants to navigate. We will only reach that point once CES has completed the process of selecting applications – which will by no means be easy.

But, huge in scale and ambition, ScotWind is going to present us with a sequence of challenges and questions over the coming months and years that the industry has to face all over the world.

Yet with the prospect of a mass rollout of floating wind projects and suggestions of significant investment into UK supply chains and skills, it seems that the energy industry is looking to combat all of these challenges in Scotland with innovation.

ABOUT THE AUTHOR

Gary Bills is Regional Director for EMEA at K2 Management

The post Bravehearts chase Scotland’s offshore wind prize appeared first on Power Engineering International.

A feasibility study is underway in South Africa to explore how to create hydrogen hubs through expedited innovation and public private collaboration.

ENGIE Impact is conducting the study, which is being led by Nicolas Lefevre-Marton, managing director of Sustainability Solutions, and project director Vincenzo Giordano.

ENGIE Impact is the sustainability advisory arm of ENGIE and according to Nicolas Lefevre-Marton, “greases the wheels of implementation, as it were, to drive decarbonisation”.

This article was originally published in Power Engineering International 4-2021.

Read the mobile-friendly digimag or subscribe to receive a print copy.

In terms of decarbonisation, South Africa certainly needs to move from ambition to action. The country’s power sector has been dominated by coal and plagued by blackouts since 2005 due to supply shortages.

Policy uncertainty and antiquated business models have also hindered progress and thwarted investment.

However, the tides are changing. In 2021, the government announced the private sector could build their own power plants of up to 100MW, removing the current bottleneck at the National Energy Regulator of South Africa and leading to an acceleration of investment in power.

Furthermore, in March 2021, an agreement was signed between South Africa’s Department of Science and Innovation, South African National Energy Development Institute, platinum producer Anglo American, ENGIE Impact and clean energy solutions provider Bambili Energy to conduct a feasibility study into several hydrogen hubs in an economic and transport corridor.

This collaboration follows the launch of the South African Hydrogen Society Roadmap in 2020, aimed at integrating hydrogen into the economy by capitalising on the country’s platinum resources and renewable energy potential to revitalise and decarbonise key industrial sectors.

Mapping the hydrogen hubs

The first step of the feasibility study is for ENGIE Impact to identify tangible project opportunities to build hydrogen hubs in this key economic and transport corridor.

The project’s objective is to identify up to three hydrogen hubs – zones with a high concentration of hydrogen demand, with access to green hydrogen – acting as a hydrogen ecosystem.

Lefevre-Marton explained that ENGIE is working to identify concrete short term opportunities to develop hydrogen, while looking at the notion of a hub.

The team also wants to understand how to foster a demand and supply dynamic in the same geographical area to improve economics and business case, identify the policy actions needed to make this project materialise and create a coalition dynamic to generate interest from different actors.

A public private affair

Vincenzo Giordano makes it clear that the South African hydrogen hub is a great example of how to bring public and private actors together to develop a large scale hydrogen project that will ultimately boost the local economy.

Said Giordano: “On this type of project, the number one lesson is that you don’t develop a hydrogen economy all by yourself – collaboration is at the heart of this.

“It’s all about creating the right ecosystem of actors to create the demand for hydrogen, then the supply side can develop.

“Of course, when you are creating something new, there is always a bit of resistance. However, public and private actors seem to be considering this project with a positive mindset, having recognised that they need each other and that no one can do it alone.”

The feasibility study and collaboration with Sanedi and DSI is creating a vision, and is something that people and organisations can buy in to, explains Giordano.

“The interviews are being conducted with a variety of industrial and mining companies; and in fact, even sugar cane companies are expressing interest as they can produce surplus renewable electricity from biomass and contribute to producing hydrogen. “These interviews, together with quantitative assessments will provide a way of prioritizing applications”.

Even though an exact timeline from government is currently unclear, all stakeholders, private and public alike, are showing a strong appetite and looking to get this project off the ground as soon as possible, especially in light of South Africa’s goal to halve its emissions by 2030.

South Africa’s platinum potential

According to Lefevre-Marton, hydrogen is of strategic importance to South Africa’s energy landscape.

In his 2021 State of the Nation address, President Cyril Ramaphosa made it clear that the hydrogen economy presents an opportunity for South Africa to leverage its platinum resources to develop a domestic hydrogen economy valued at up to $10 billion per year, and to tap into export potential of $100 billion per year.

Platinum is a key component in the manufacture of electrolysers, which creates a clear and positive reinforcement loop within the hydrogen supply chain.

It is due to the available platinum resources that the proposed hydrogen valley will stretch approximately 835km from Anglo American’s Mogalakwena platinum mine near Mokopane in Limpopo province in the north of South Africa, along the industrial and commercial corridor to Johannesburg and to the south coast at Durban.

The hydrogen valley will therefore be anchored in the metals-rich Bushveld geological area.

Within the valley, ENGIE is exploring off-grid renewable assets connected directly to the electrolysers to combat one of the main challenges in the area: the lack of electricity and grid reliability.

In the Mogalakwena mining area, a dedicated green hydrogen electrolyser will be established next to the mines to drive decarbonisation, and ensure power is readily available.

Industries in the mix

Mining giant Anglo American is already investing in the development of hydrogen-powered fuel-cell mine haul trucks and sees the regional Platinum Group Mines (PGMs) industry as central to such a hydrogen valley, with PGMs playing an important role both in Polymer Electrolyte Membrane (PEM) electrolysis used to produce hydrogen at scale and in fuel cells themselves.

In terms of hydrogen applications outside the mining sector, the study is also focusing on the feasibility within transport and along freight corridor. “Logistics and mobility are viewed as low hanging fruit and will achieve decarbonisation objectives relatively quickly,” says Giordano.

ENGIE is therefore hosting conversations with the mobility sector, such as heavy duty truck companies, port operators, mining vehicle companies, rail operators, and bus manufacturers.

Public buildings and data centres, the chemical sector, iron and steel, cement and aluminium companies are also included in the study.

Giordano says: “We are considering opportunities for the valorisation of hydrogen and derived alternative fuels both in the domestic market and for export.

“On the export side, it is important to consider which SA ports would be more suitable for export.

“In our study we are looking into the potential of the Richards Bay port to serve as an export hub, but there are other ports outside the perimeter of our H2 valley that could be good – or better – alternatives; such as Saldanha Bay, Ngqura, Boegoebaai. Investigation is ongoing.”

Currently, the plan is to ensure a number of pilots are fully functional by 2030 and from there, other activities will be developed.

Hubs around the world

The hub concept, although deployed somewhat differently around the world to accommodate regional requirements, can be seen as a kind of hydrogen development blueprint.

Lefevre-Marton explains that all these pilot projects study the economic potential for hydrogen hubs in a given region.

They are all co-funded by public and private actors, thereby emphasising the common theme of collaboration.

He adds: “These hubs offer two main merits; namely, ensuring sufficient demand to allow economies of scale and build supply and demand in close proximity, thereby avoiding unnecessary transport costs, which makes it more competitive”.

Currently, ENGIE Impact is working on hydrogen pilots around the world, such as in Portugal, for a single hub of more concentrated industrial actors, as well as investigating industrial clusters in the UK.

Hydrogen’s vision

The advantages of these hubs are salient, especially in decarbonising hard-to-abate sectors; however, some countries are notorious for having sticky legislative frameworks that are a challenge to navigate.

“Ultimately, the vision created by the study is used to align the government and private sector by showing all actors the commercial and environmental opportunities,” says Giordano. “Policy adjustments become possible when governments understand the benefits.”

Lefevre-Marton makes the comparison to the renewables growth over the past decade. When renewable energy first began to gain momentum, naysayers were common and regulations were restrictive.

However, as the LCOE went down, regulations shrank and renewable energy became ubiquitous.

“It’s not an easy process: it requires heavy investment to get the costs down – as was seen in the development of the renewables industry. However, once you start gaining momentum, it will speed up”. He adds that the hydrogen hub pilot projects will encourage more rapid growth of hydrogen innovation and adoption, causing a development leapfrog that renewables could have only dreamt of.

The post South Africa’s hydrogen hub: A corridor of opportunity appeared first on Power Engineering International.

Read the full, mobile-friendly digimag

Fifty shades of green

How many shades of green can you name? Probably quite a few – and you wouldn’t even be close to the final number that exist in the natural world, never mind those that are man-made.

There are shades of green in the energy world too, because decarbonisation is less a destination and more a journey: how far down the road on that journey you are will signify your green credentials.

In this issue of PEi, against the backdrop of the Green Deal and a so-called (and much-hoped-for) Green Recovery, we look at various forms of power generation on the ‘green’ spectrum. Our experts discuss the energy transition path for gas engines; the latest developments in marine energy; ambitious plans for a hydrogen ‘corridor’; and a new frontier for offshore wind.

We also dissect how a gradual abandonment of coal should be carried out in two regions of the world that are still heavily dependent on the ‘black stuff’: Poland and Asia.

And we discover what oil and gas majors need to do to move with the clean energy tides.

All of these technologies are a different shade of green – you can decide what’s emerald, mint, lime, etc. However, all are on the decarbonisation colour palette that will gradually paint the picture of a net-zero landscape.

Hope you enjoy the articles.

Kelvin Ross
Editor, Power Engineering International

The post Power Engineering International Issue 4 2021 appeared first on Power Engineering International.