OGV Renewables - Issue 06

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MORAY MELHUISH – FOUNDER OF ANNET CONSULTING Dear Readers, Welcome to the latest edition of ‘OGV Renewables Magazine’ where we explore the changing landscape of renewable energy and the ongoing energy transition. In this issue, we are thrilled to welcome Xodus as our front page partner and you can read their thoughts on the most important renewable summit so far, COP28, on pages 4 and 5.

The world is at a pivotal juncture in its energy history, with an urgent need to combat climate change and transition from fossil fuels to clean, sustainable energy sources. This energy transition is an unfolding story of innovation, determination and collaboration, one in which renewable energy takes centre stage. It is a narrative that involves government, business, and individuals working hand in hand to shape a brighter, greener future.

In this issue, we have the privilege of sitting down with Mark Munro - Chief Investment Officer at the Scottish National Investment Bank where we find out how they are deploying capital to help Scotland address the impending climate emergency, as well as Alex Leddy - Commercial Director of Intervention Rentals, who discusses how his organisation is diversifying away from the traditional Oil and Gas industry to offer decarbonisation solutions to their client base as well as targeting new sectors. Finally, we were delighted to speak to Dr. Alfonzo Martinez Senior lecturer in Chemical Engineering at the University of Aberdeen who is helping to facilitate the ‘Just Transition’ mandate by helping a variety of organisations with research across a plethora of different renewable sectors.

We also have articles relating to the latest news across Wind, Hydrogen & CCS, Geothermal and Electrification as well as analytics from Westwood Global Energy Group, project information from the EIC and contract wins from Infinity Partnership.

Warm regards,

Moray Melhuish WISH TO CONTRIBUTE TO OUR NEXT PUBLICATION?

Contact us to submit your interest daniel.hyland@ogvenergy.co.uk

Having now had time to take stock on COP28, there was one takeaway that, for me, stood head and shoulders above the rest. At the landmark event in Dubai, more than 125 countries pledged to triple the world’s installed renewable energy capacity before the end of the decade.

It is a bold but welcome target and if those at the top can get the language around this correct, it has the potential to be the most meaningful commitment since the Paris Agreement.

Credit here must go to industry bodies like the Global Renewables Alliance that have long been pushing for such an ambitious goal, one that will unlock the investment and skills needed to deliver the energy transition.

For our part, we were proud to have had a hand in connecting relevant stakeholders at the event, inspiring the conversations necessary for progress.

For many, these discussions on the floor at COP28

Even in the most developed economies though, the

will have been familiar; they are ones that we within

‘usual’ renewables roadblocks remain – permitting,

industry have been having for years. But it is wholly

soaring interest rates, supply chain bottlenecks and

reassuring that these issues and ambitions are now

grid connections to name but a few. But many of the

being elevated to a global and political level – we are

more pressing issues go deeper than this. We live in

no longer preaching to the choir.

trying times where the social legitimacy and licence

“If we’re to make this triple up ambition a reality, then we need the structures in place to spur investment on a scale never seen before.”

to operate for energy projects has never been under more scrutiny.

Scepticism is seeping into the renewables space and there is still much to do as an industry to shift public perception and garner support for this triple up agenda. Key to this will be demonstrating the social value of economic projects and it is great to see the Crown Estate putting this concept at the heart of the latest Celtic Sea leasing round. It is already a major focus for us at Xodus and we have been doing a lot of

While events like COP are invaluable for focussing

work, alongside X-Academy, to support our clients.

minds, the hard work starts now as we begin what will be another crucial year in the battle against climate

Ironically though, one of the biggest breakthroughs for

change. If we’re to make this triple up ambition a

the renewables sector was made far closer to home –

reality, then we need the structures in place to spur

Allocation Round 6 of the UK Government’s Contracts

investment on a scale never seen before. Roughly 4GW

for Difference scheme. One developer described it to

of new renewables capacity a day will need to be added

me as being like “10 Christmases come at once” and

globally, up to the end of the decade, with £8 trillion

it is great to see a quick and pragmatic rebound in

capital expenditure for generation assets and £4 trillion

strike prices. If the UK is to hit its 2030 offshore wind

for transmission. These are daunting figures, but the

ambition, we will need to award a mammoth 22GW

years ahead of us must be about delivery not debate.

across the next three rounds.

Of course, contributions from countries will vary and

Last year, many countries learnt some renewables

it’s likely that India and China will deliver on the target

lessons the hard way, but changes have been

and some. Things will be tougher for those yet to gain

implemented and that should give the wind industry

a foothold in renewables; to this end the UAE deserves

every reason to be upbeat.

big plaudits for leading on a $30 billion investment fund to provide a helping hand. It was also great to see our friends at the Net Zero Technology Centre use COP28 to unveil ‘Technology Without Borders’ – a world first initiative to bridge the net zero energy technology gap between nations in the Global North and the Global South.

Jamie MacDonald, Xodus Head of Offshore Renewables

FIBRE OPTIC TRAINING

for the onshore, offshore and renewables markets

RCP - Instrumentation and Control System specialists have made significant investment in fibre optic equipment such as fusion splicing machines, mechanical splicing kits, fibre optic ovens, optical power meters, optical microscopes and polishing equipment to terminate and test fibre optic cables, connectors junction boxes and patch panels to a very high standard.

In 2021 a dedicated fibre optic workshop was set up at our Blackburn facility to provide fibre optic training to the onshore, offshore and renewables markets.

Fibre Optic Training includes Fusion Splicing of single mode and multimode cables using Fujikura fusion splicers, construction of bespoke fibre optic cables and connector sets, construction of circular plug/socket connectors for hazardous area use. ATEX/IECEx zone 1 connectors, cables made up with pre-potted glands and tails to facilitate ease of fitment to drilling platforms, rigs offshore and renewable assets.

Mechanical splicing – Corning and Huber + Suhner connectors, ST, SC and LC, insertion loss and cable loss measurements, testing connectors and cables for insertion loss and return loss.

OTDR testing using Fujikura machines.

The format of the course starts with the theory of Fibre Optics. Safety when using Fibre Optics, FO cable selection and connector types.

Stripping fibre optic cables and preparation including the use of fan out kits, the use of fibre breakout boxes and fibre optic plug socket connectors and an understanding of loss budgets for fibre optics.

Delegates will learn how to manually splice using a Corning Kit with ST, SC and LC connectors. They will learn how to measure insertion loss of splices, connectors and cables. The delegate will use a fibre optic power meter. There will also be an introduction to fusion splicing.

The training course consists of both theoretical and practical elements with approximately 75% of the course being practical exercises where the delegates get to practice the skills taught.

By the end of the course each delegate will be able to identify different types of fibre cable for use on/offshore, select the correct type of cable and connector for the application in hand, prepare and manually splice a connector onto a fibre optic core(mechanical splice), test the integrity of the connector and measure the insertion loss of the cable or cable system.

The delegates will be able to fault find and repair fibre optic cables and connectors, prepare and splice a connector onto a fibre optic core known as fusion splicing.

The course material can be created bespoke to a company’s specific requirements. The course runs over 2 days.

A certificate of competence will be issued to the delegate's employing company on successful completion of the course.

RCP provide the following site services on or offshore Fusion Splicing of single mode and multimode cables – Fujikura fusion splicers, Construction of bespoke fibre optic cables and connector sets, Mechanical splicing – Corning and Huber + Suhner connectors, ST, SC and LC. Construction of bespoke fibre optic cables and connector sets – Insertion loss and cable loss measurement, testing connectors and cables for insertion loss and return loss.

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RenewableUK members are enabling a just transtion to a net zero future. Focusing on continuous improvement around the three pillars of our Just Transition Tracker - People, Place and Planet These inspiring companies are a true showcase of the best that our industry has to offer.

WAYS TO MAKE YOUR EVENT MORE ENVIRONMENTALLY FRIENDLY Aberdeen Science Centre recently took delivery of an electric vehicle, thanks to £39,500 funding from the Just Transition Participatory Budgeting Fund.

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he branded van will be used to take the climate conversation on the road. It will provide the perfect vehicle to explain climate change and also includes graphics to explain the benefits of switching to an electric vehicle and the resulting reduction in the STEM charity’s carbon footprint.

This new arrival got the Aberdeen Science Centre events team thinking about sustainability and what could be done to reduce the impact of events on the environment.

There are many elements to consider when it comes to ensuring your event is sustainable.

Erin Flett, head of business development at Aberdeen Science Centre, recommends that event organisers should incorporate sustainability throughout their event plan.

Food miles are a way of attempting to measure how far food has travelled before it reaches the consumer. They take into account where food has come from, and the distance it has travelled. The resulting impact on the environment is measured in terms of pollution.

To counter this, many of us try to choose foods with low food miles when doing our weekly shop, so why not apply the same principle to events?

Incorporating food from a local supplier not only showcases what the region has to offer but also ensures an event’s food miles are kept as low as possible.

At Aberdeen Science Centre, our in-house catering options are provided by Grub Fresh Food. They pride themselves on using the brightest and best local suppliers to create delicious food for event delegates to enjoy,

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Erin Flett, head of business development at Aberdeen Science Centre

with more than 50% of their menu coming from local suppliers and a further 25% from Scottish suppliers.

Well-known Aberdeen staples including The Bread Maker and McWilliams butchers are among Grub Fresh Food’s local suppliers.

Taking this approach, and choosing to use local suppliers wherever possible, means that food miles associated with Aberdeen Science Centre are kept as low as possible.

It also means that event delegates get to enjoy delicious, local food and drink including mouthwatering cakes from The Bread Maker.

Global news

“It is not enough to think about our environmental impact in isolation, for example, just when thinking about our own habits at home. Rather we need to promote wider sustainable behaviour and in doing so reduce our impact on the environment."

Also think about the waste that your event might generate. Food miles are not just associated with getting food to the consumer, they also accumulate when food waste is disposed of.

Keeping tight control of your numbers and catering accordingly can help to reduce unnecessary waste.

Another tip is to ensure that any disposable food packaging used at your eventis compostable.

Similarly, consider choosing local suppliers to provide any additional support that is

needed, whether that is using local resources or buying in services. Making local choices, where possible, promotes responsible environmental behaviour and also supports the local economy and business community too.

One final point to consider when running an event is whether it should also be live streamed. Doing so can reduce unnecessary travel and potentially opens the event up to a wider audience too.

It is not enough to think about our environmental impact in isolation, for example, just when thinking about our own habits at home. Rather we need to promote wider sustainable behaviour and in doing so reduce our impact on the environment.

Based on Constitution Street near Aberdeen beach, ASC is home to almost 65 interactive exhibits, allowing people of all ages to discover topics including Space, Energy, Life Sciences, Engineering, and more.

Aberdeen Science Centre offers exclusive venue hire as well as room hire for corporate, social and private events. For more information visit: aberdeensciencecentre.org/venue-hire SCAN QR CODE FOR MORE INFO

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Offshore wind Your partner in the energy transition Optimizing the performance of your offshore wind assets to generate and transmit clean power efficiently and sustainably. abb.com

Wood to support one of the world’s largest offshore wind to grid connection projects

Wood, the global consulting and engineering company, has been awarded a contract by Dragados Offshore, to deliver engineering design and provide regulatory support for the development of three 2GW convertor stations that will transfer offshore wind power to Germany's power grid. These projects will be executed by Dragados Offshore, Spain in partnership with Siemens Energy.

The three offshore high voltage direct current (HVDC) platforms, each the size of a European football pitch, 65 metres above sea-level in the German North Sea, will individually gather and convert 2GW of power generated from offshore windfarms for connection to the onshore transmission grid. The renewable power generated will satisfy the electricity needs of around four million people in Germany.

John Day, President of Oil, Gas & Power Projects at Wood, said: “Building on our

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strong engineering heritage and long-standing relationship with Dragados Offshore, we are delighted to be partnering with them on this world-leading project, helping to deliver one of the largest offshore wind to grid connections.

“An integrated energy system is critical to maintaining energy security while achieving the world’s net zero ambitions. This project is a significant step in creating the scale and infrastructure required to secure both. Our technical expertise will ensure successful

project delivery as we design and deliver future renewable energy systems.”

“We are glad to welcome Wood as our engineering partner on these hallmark projects that will shape Europe’s energy transition”, says Jeroen Poppe, VP Global Business Development of Dragados Offshore.

This project will be delivered by Wood’s experts in the UK, India and Spain, leveraging Wood’s offshore energy expertise to design a low-carbon future. 

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Petrofac, Hitachi Energy, to deliver Nederwiek 1 Petrofac and Hitachi Energy will deliver Nederwiek 1, a Dutch transmission station which forms part of TenneT’s 2GW Programme.

The contract award is the second project under a US$14bn, multi-year framework agreement with TenneT to expand offshore wind capacity in the North Sea. The project is to be executed under a standalone contract, with Petrofac’s portion valued at around US$1.4bn.

Nederwiek 1 comprises several high-voltage direct current (HVDC) offshore grid connection systems, each with a transmission capacity of 2GW. Under the six-project framework agreement, Petrofac will undertake the engineering, procurement, construction, and installation (EPCI) of offshore platforms and elements of the onshore converter stations.

Meanwhile, Hitachi Energy will supply its HVDC converter stations, which convert AC to DC power offshore and DC to AC onshore.

Petrofac’s and Hitachi Energy’s teams have already collaborated closely on the preparatory works, reserving production capacity for multiple platforms and HVDC technology, and initiating the detailed design process for the first platform, the Ijmuiden Ver Alpha.

Petrofac has secured the performance guarantee required for the Ijmuiden Ver Alpha contract.

Van Oord completes Baltic Eagle foundation installation

The Group remains in active discussion with credit providers and its clients to secure the guarantees required for other new contracts in its portfolio, it said.

design and execution that will be central to the ‘design one, build many’ philosophy of the 2GW Programme.

Additional projects within the TenneT’s 2GW Programme are expected to be awarded at approximately six-month intervals.

"By aligning ourselves with TenneT’s objectives, we are creating a blueprint for the rapid deployment of large-scale infrastructure projects crucial to Europe’s energy transition."

These are the grid connections landing at Geertruidenberg or Moerdijk (Nederwiek 3) and Eemshaven (Doordewind 1 and Doordewind 2). The sixth project, the German connection LanWin5, will be connected near Rastede, Germany.

Niklas Persson, managing director of Hitachi Energy’s Grid Integration business, said: "As a pioneering technology and market leader, we are delighted to collaborate to deliver our HVDC solution for Nederwiek 1, combining world-class energy and digital systems.

John Pearson, chief operating officer for energy transition projects at Petrofac, said: “We have been collaborating with our partner Hitachi Energy, and client TenneT, on the first project, Ijmuiden Ver Alpha.

"Our strong collaboration with Petrofac, based on an agile business model, scalable solutions and synergies among projects, allows us to join forces and support TenneT in its ambition to accelerate offshore wind deployment in the North Sea, granting European citizens more sustainable and reliable power." 

"The award of Nederwiek 1 continues our focus on the standardisation and harmonisation of

The wind turbine foundations were completed

by Van Oord with the installation of the transition pieces.

Van Oord performed the installation in two campaigns with Spliethoff’s Brouwersgracht and Jumbo’s Fairplayer.

Recently, Van Oord’s cable-laying vessel Nexus successfully completed the installation of the inter-array cables.

Van Oord has successfully completed the installation of all 50 foundations and inter-array cables for Iberdrola’s 476MW Baltic Eagle offshore wind farm.

These cables are used for connecting the offshore wind turbines and transmitting electricity.

Earlier this year, heavy-lift installation vessel Svanen (pictured) installed the monopiles off the coast of Germany

The termination and testing works of the IAC are in full swing and are expected to be completed in the first quarter of 2024.

Trencher Dig-It - a remotely-operated vehicle – buried the inter-array cables to the required depth.

The Dig-It has been customised to ensure that it can handle the challenging soft soil conditions in the Baltic Sea.

The Baltic Eagle offshore wind farm is located in the German Baltic Sea, 30 kilometres northeast of the island of Rügen.

Iberdrola’s Baltic Eagle offshore wind farm will deliver renewable energy to 475,000 households while reducing carbon emissions by nearly 1 million tonnes annually.. 

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UK REVIEW UK PLEDGES TO ACCELERATE GREEN GROWTH

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he UK has recently vowed to support continued investment in renewables and earmarked funding for clean energy manufacturing in a bid to boost Britain’s technologies and capacity generation that are expected to

Storage (CCUS) deployment, ensuring that the government’s world-leading clean energy deployment continues at pace and remains on track to meet the government’s energy security and net zero ambitions,” according to the statement.

face in accessing the grid. New measures are expected to cut grid access delays by 90 percent and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure, the Chancellor noted.

help deliver the net zero target.

In addition, to further speed up the UK’s world-leading offshore wind deployment, the government will bring forward legislation to provide the Crown Estate with borrowing and wider investment powers as soon as parliamentary time allows, which will help to unlock a further 20-30 gigawatts (GW) of new offshore wind seabed rights by 2030.

“Taken together these planning and grid reforms are estimated to accelerate around £90 billion of additional business investment over the next 10 years,” he added.

Autumn Statement Vows To Boost Renewables The government will support continued investment in the UK’s renewable generation capacity, Chancellor of the Exchequer Jeremy Hunt said in the Autumn Statement at the end of November.

The government will legislate for a new investment exemption for the so-called Electricity Generator Levy (EGL), under which new projects for which the substantive decision to proceed is made on or after 22 November 2023 will be exempt from the EGL. The levy will end as planned on 31 March 2028.

“The government has also set out the parameters for the next renewables Contracts for Difference auction round, increasing the maximum price that can be received, and will shortly publish further details on growing hydrogen and Carbon Capture, Usage and

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The UK government is currently working with The Crown Estate to bring forward additional floating wind in the Celtic Sea through the 2030s, which could see an additional 12 GW of generation deployed, alongside the 4.5 GW round due to open soon, with the potential to deliver £20 billion of direct investment from deployment in the area.

“This Autumn Statement will boost investment to support the government’s clear plans to deliver net zero and energy security objectives.

UK firms are ready to supply vital goods and services to the new global green economy, maximising growth opportunities through the transition,” the Chancellor said.

The government also aims to address the long delays clean energy projects currently

“To get Great Britain building and to deliver energy security and the net zero transition, the government will remove barriers to investment in critical infrastructure by reforming the UK’s inefficient planning system and speeding up electricity grid connection times,” the Autumn Statement says.

RenewableUK welcomed the measures for accelerating green growth in the Autumn Statement.

“There’s a strong focus in Chancellor’s Autumn Statement on accelerating green industrial growth. His announcement on permanent full expensing will provide a much-needed degree of long-term certainty for investors in green technologies, helping to make the UK an attractive destination for investment in clean energy projects and manufacturing,” RenewableUK’s Chief Executive Dan McGrail said.

global news 13 investment in new manufacturing facilities.

This will not only enable us to supply projects in UK waters but also to export our world-class offshore wind products and services globally, where they are already in great demand.”

Boost for Offshore Wind Following a flop in the offshore wind auction earlier this year, the government increased in November the maximum price for offshore wind projects in its flagship renewables scheme, the Contracts for Difference (CfD) auction.

Dan McGrail, RenewableUK’s Chief Executive

“The decision to extend tax relief on freeports from five to ten years will help us to revitalise coastal communities by encouraging new investment in offshore wind manufacturing, including factories servicing innovative floating projects. Industry estimates that overall the offshore wind supply chain could boost the UK's economy by £92bn by 2040,” McGrail added.

“We look forward to further key announcements such as the publication in March of more details on next year’s CfD auction which we hope will secure a record annual amount of new clean energy capacity”.

In a response to the statement, Offshore Energies UK (OEUK) chief executive David Whitehouse said, “The Chancellor hit the right notes today, now we must fully orchestrate our approach to making the UK an irresistible place in which to invest and innovate. The decarbonisation of our economy is one of the greatest challenges of our time, but we must also seize its opportunities.”

“The UK’s offshore energy industry has the skills, people and supply chains we must nurture to build a UK business-led energy transition. Today’s statement helps to give businesses the right conditions to invest in these critical components of our low carbon future and drive UK growth,” Whitehouse added.

Support for UK Clean Energy Manufacturing A few days ahead of the Autumn Statement, the UK government announced £4.5 billion in funding for British manufacturing to increase investment in eight sectors across the UK. The funding will be available from 2025 for five years, providing industry with longer term certainty about their investments, the government said.

As part of the multi-billion-pound funding, the government has committed £960 million for a Green Industries Growth Accelerator to support clean energy manufacturing.

The Green Industries Growth Accelerator investment is designed to support the expansion of strong, home-grown, clean energy supply chains across the UK, including carbon capture, utilisation and storage (CCUS), electricity networks, hydrogen, nuclear power, and offshore wind.

“GIGA will enable the UK to seize growth opportunities through the transition to net zero, unlocking private investment, protecting jobs and creating new ones, and leveraging impact across the wider supply chain,” “This will enable the UK to seize growth opportunities through the transition to net zero, building on our world-leading decarbonisation track record and strong deployment offer,” the government said.

“GIGA will enable the UK to seize growth opportunities through the transition to net zero, unlocking private investment, protecting jobs and creating new ones, and leveraging impact across the wider supply chain,” according to the Autumn Statement.

The maximum strike price has been increased by 66% for offshore wind projects, from £44/MWh to £73/MWh, and by 52% for floating offshore wind projects, from £116/ MWh to £176/MWh ahead of Allocation Round 6 (AR6) next year.

In the Allocation Round (AR6) next year, offshore wind will also be given a separate funding pot in recognition of the high number of projects ready to participate.

“Today we have started the process of our latest Contracts for Difference auction for renewables, opening in March next year.

We recognise that there have been global challenges in this sector and our new annual auction allows us to reflect this,” Energy Security Secretary Claire Coutinho said.

RenewableUK welcomed the higher maximum price in auctions and its Chief Executive Dan McGrail said that the next clean power auction could attract record investment in offshore wind.

“With intense international competition for investment in renewables, we welcome the strong commitment to the sector shown

by Government today, which demonstrates that the UK is intent on remaining a global leader in offshore wind, as well as innovative technologies like floating wind and tidal stream,” McGrail commented.

“There is the potential for the Government to attract a record level of private investment in offshore wind projects next year, with at least ten projects likely to be eligible, able to power 8.5 million homes each year and reduce the UK’s need for gas by 39%.”

The auction framework is a significant step forward to secure record amounts of private investments in offshore wind, according to RenewableUK.

Commenting on the announcement of the Green Industries Growth Accelerator, the CoChair of the Offshore Wind Industry Council (OWIC), Richard Sandford, said:

“Although renewables haven’t been immune from the recent rises in financing and supply chain costs which all major infrastructure projects have faced, they remain the lowest cost means of generating new electricity,” McGrail said.

“The measures announced by the Government today will help us to scale up the UK’s offshore wind supply chain faster in the face of unprecedented international competition for

“Even at these new prices, there is still no cheaper way to meet the UK's rising electricity demand and increase our energy security.”

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EUROPEAN REVIEW EUROPE TAKES STEPS TO SUPPORT NET-ZERO ENERGY INDUSTRIES

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he European Union has taken steps to ensure Europe’s competitiveness in global clean energy manufacturing as the industry has struggled to keep pace with supportive legislation in the United States and increased competition from lower-cost products from China.

In recent weeks, the European Commission and the European Parliament advanced proposals and legislative packages aimed at supporting the wind power industry and boosting Europe’s global position in the manufacturing of clean energy technologies necessary to reach the EU target of net-zero emissions by 2050.

Europe is also considering measures to reduce its dependence on China in critical minerals supply and procurement of components for solar PV installations and wind farms.

European Wind Power Action Plan At the end of October, the European Commission unveiled its European wind power package, setting out immediate actions to support the domestic wind power industry.

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The European Wind Power Action Plan aims to “ensure that the clean energy transition goes hand-in-hand with industrial competitiveness and that wind power continues to be a European success story,” the European Commission said.

According to the Commission, achieving the recently agreed EU target of at least 42.5 percent renewable energy by 2030, with an ambition to reach 45 percent renewables, will require a massive increase in installed wind power capacity with expected growth from 204 gigawatts (GW) in 2022 to more than 500 GW in 2030.

The action plan is focusing on six key areas.

Those include acceleration of deployment through increased predictability and faster permitting. The EU added a record 16 GW of wind power installations in 2022, up by 47 percent increase compared to 2021. Despite the record new installations, there are still well below the 37 GW per year required to achieve the EU 2030 target for renewable energy, the Commission says.

As part of the efforts to accelerate wind power deployment, EU Member States are encouraged to enhance the visibility of the project pipeline through wind pledges,

transparent auction schedules, and long-term planning. Finally, the Commission will support the necessary build-out of electricity grids with a Grids Action Plan later this year.

Another priority area in the wind action act is to improve auction design with well-designed and objective criteria which reward higher value-added equipment and ensure that projects are realised fully and on time.

The Commission will also facilitate access to EU financing, notably through the Innovation Fund, while the European Investment Bank (EIB) will make de-risking guarantees available.

“A fair and competitive international environment” is another key area of the wind power plan.

“The Commission closely monitors possible unfair trade practices which benefit foreign wind manufacturers and will continue to use trade agreements to facilitate access to foreign markets, while promoting the adoption of EU and international standards for the sector,” it said.

Industry engagement and skills partnerships for renewable energy are the other priorities of the wind power plan.

global news 15 The action plan is an immediate response to the current challenges in the European wind industry—insufficient and uncertain demand, slow and complex permitting, lack of access to raw materials, high inflation and commodity prices, unsupportive national tender design, increased pressure from international competitors, and risks to the availability of a skilled workforce, said Maroš Šefčovič, European Commission Executive Vice-President for European Green Deal.

Kadri Simson, European Commissioner for Energy, commented, “The Competitiveness of clean technologies report is quite clear – in some sectors Europe is falling behind.”

“Dependencies are intensifying,” Simson noted.

“Europe does not have the intention of scaling down its decarbonisation ambitions, so it must also act to reduce its dependency on imported technologies, which will come with both economic and security risks,” the EU energy commissioner added.

Industry welcomed the wind power package. The Wind Power Action Plan will strengthen Europe’s wind energy industry, the

The so-called Net-Zero Industry Act sets a target for Europe to produce 40 percent of its annual deployment needs in net-zero technologies by 2030, based on National Energy and Climate Plans (NECPs), and to capture 25 percent of the global market value for these technologies. The Act is also intended to deal with the challenges in scaling up manufacturing capacities in these technologies.

Solar photovoltaic and solar thermal technologies, onshore wind and offshore renewable technologies, and battery/storage technologies are included in the technologies the act aims to promote. The legislation also sets a target that the EU should be able to store at least 50 million tonnes of carbon dioxide (CO2) by 2030.

The new regulation will also aim to support the development of the skills needed for the clean energy industries at EU and local levels.

The act is part of the European Green Deal and should provide the basis for an affordable, reliable, and sustainable clean energy system.

This will in turn increase the competitiveness and resilience of the EU’s industry, according to the bloc.

WindEurope association said.

“This is good for jobs and growth – and for Europe’s energy security. As Ursula von der Leyen said in her recent State of the Union speech, the future of Europe’s clean tech must be made in Europe.”

Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden, and the European Commission – welcomed the wind power plan and pledged to actively engage in its implementation.

technologies needed for decarbonisation.

“It is with a sigh of relief that we share that the European Parliament has endorsed the European PV Industry’s stance on the Net Zero Industry Act,” the association said.

Electrification Manifesto The Electrification Alliance, comprising nearly a dozen industry associations in Europe, unveiled in October a new ‘Electrification Manifesto’ urging the European Commission to fast-track the electrification of Europe. The Manifesto calls for a dedicated Electrification Action Plan in the first 100 days of the

Electricity accounts for 23 percent of all the energy consumed in Europe, while all modelling shows the rate of electrification will need to reach 58 percent to 71 percent by 2050 for Europe to deliver a resilient and climate neutral energy system, according to the manifesto.

The 10 Energy Ministers of the North Seas Energy Cooperation (NSEC) –

The European Parliament backed at the end of November plans to boost Europe's NetZero technology production by adopting its position on legislation intended to bolster Europe’s manufacturing output in

The criteria ensure that no more than 50 percent of the net-zero technology part of the tender shall originate from third countries that are not signatories of the World Trade Organization Agreement on Government Procurement (GPA), “practically meaning the reduced import from China after the implementation of the NZIA,” the ESMC said.

The industry calls on the Commission to set a target of 35 percent electrification of final energy use across the EU by 2030, add an electrification indicator to the National Energy and Climate Plans to measure progress, and take concrete action to accelerate electrification.

“The new actions on finance, auctions and permitting will speed up the development of wind farms. And crucially they’ll help Europe’s wind energy supply chain deliver the equipment for that.” Dickson added,

Net-Zero Industry Act

and auctions.

incoming European Commission’s mandate.

“The Wind Power Package is a game-changer for Europe’s wind energy industry,” said WindEurope CEO Giles Dickson.

“NSEC ministers will take action to increase visibility and predictability for the entire supply chain by enhancing coordination, including cooperation on ports infrastructure, access to raw materials, pipes and cables,” the ministers said in a joint press release.

But the European Solar Manufacturing Council (ESMC) welcomed the inclusion of prequalification criteria for public procurements

The SolarPower Europe association described a proposal in the act for pre-qualification criteria on local content as “one ugly turn.”

The local content in pre-qualification would mean that “technologies that are partially produced outside Europe are not even allowed to bid into public auctions,” according to SolarPower Europe.

“This is a red flag for the solar sector and for those committed to the EU’s energy security and climate goals,” Dries Acke, Policy Director at SolarPower Europe, commented.

The EU’s electrification efforts are falling short, the associations say. So, to advance direct electrification, the EU needs to accelerate the build-out of renewables, at least double today’s investments in the optimisation and expansion of electricity grids, and support a rapid uptake of electrified end-user applications like electric cars and trucks in transport and heat pumps in heating.

“Electrification will play a crucial role in the next decades to deliver an efficient, secure, decarbonised and integrated energy system,” European Commissioner for Energy, Kadri Simson, said.

“Electricity will become our main energy carrier by 2040, and we need to ensure that both the market conditions and infrastructure will push the transition forward.”

Renewable News SPONSORED BY

renewable PROJECTS map

16

Energy projects and business intelligence in the energy sector

renewable projects SPONSORED BY

www.eicdatastream.the-eic.com

The EIC delivers high-value market intelligence through its online energy project database, and via a global network of staff to provide qualified regional insight. Along with practical assistance and facilitation services, the EIC’s access to information keeps members one step ahead of the competition in a demanding global marketplace.

The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally.

It is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe.

The EIC provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today.

RENEWABLE PROJECTS 8

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Offshore Wind Farm Baltic Power POLAND PKN Orlen & Northland Power $2.5bn A 1,140MW offshore wind farm located 23km north of Choczewo and Leba, featuring 76 turbines with 15MW individual capacities. A number of major contracts have been finalised: EPCI contract for two offshore substations with Bladt Industries and Semco Maritime; TFK and JDR for the inter-array and onshore export cables; Vestas for its V236-15.0MW units; and 76 transition pieces from Smulders. An RFI has been issued for a tender for O&M services for the wind farm.

www.ogv.energy - Issue 6

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Offshore Wind Farm West of Orkney UNITED KINGDOM TotalEnergies, RIDG & Corio Generation

$4.5bn Development of a 2GW offshore wind farm in Scotland. The site secured development rights as part of Crown Estate Scotland's ScotWind leasing round and could deliver renewable power to the Flotta Hydrogen Hub. Offshore planning consent has been submitted to Scottish Ministers, shortly followed by the onshore planning request - making this the first ScotWind project to apply for consent.

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Offshore Wind Farm Anmado Island (Phase I & II) SOUTH KOREA Equis Funds Group $1860m Construction of two offshore wind farms totalling 224MW (Phase I) and 304MW (Phase II) located 4km west off Anma Island. Following the completion of the EIA in July, the following preferred contracts were awarded: SK Ecoplant for the transportation and installation of the jackets; LS Cable & System for the submarine cables; Taihan Cable and Solution for inter-array cables; HBA Future Energy for the offshore substation; and EEW KHPC for the pin piles.

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Offshore Wind Farm Coastal Virginia USA Dominion Energy $9.8bn An offshore wind project located off the coast of Virginia, with an output of approximately 2.6GW. The project will be developed in three 880MW phases with Siemens Gamesa’s turbines. The US Bureau of Ocean Energy Management has approved the final record of decision for the project.

Installation of the monopile foundations will start during the spring of 2024..

renewable PROJECTS map 17

Photographer: David Gray/Bloomberg

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Offshore Wind Farm Hai Long 2 & 3 TAIWAN Northland Power

Floating Offshore Wind Farm Provence Grand Large FRANCE

$6.9bn

EDF Energies Nouvelles

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Construction of a 1,044MW offshore wind farm around 45km-70km off the Changhua coast off Changhua county in water depths of 35m to 55m. Following securing FID in September, UK Export Finance have provided guarantee for $476 million (EUR436 million) in financing for the project. This guarantee is part of a larger project finance package exceeding GBP3 billion, supported by over 15 lenders.

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Hunter Transmission Line Project AUSTRALIA Energy Corporation of NSW (EnergyCo)

$500m Construction of a 115km transmission line through the Hunter Valley, designed to deliver at least 5GW of additional wind and solar power from the renewable energy zones created in the New England and CentralWest Orana regions. The project represents the first phase in the plan to build two 500kV transmission lines in the area. EnergyCo will engage with local communities over the next 18 months to refine the details.

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$250m

Construction of an 878MW hydroelectric power dam in Namibia. The power generated would be sold to Namibia and Angola in equal allocations.

The governments of Angola and Namibia have revised the capacity of the hydropower plant to 878MW from 600MW. The project is expected to reach financial close in Q4 2025.

Construction phase planned to commence in Q1 2026, with operation slated for Q2 2031.

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Amaila Falls Hydro Power Plant GUYANA

Saoirse Wave Energy Project (Western Star) IRELAND Simply Blue Energy & ESB International

$1.5bn

Development of a 24MW floating offshore wind farm located 25km south of Fos-sur-Mer on France's Mediterranean coast, 17km off the coast of Port Saint Louis du Rhône. The project features 3 x 8MW floating vertical axis turbines installed on tension leg platform (TLP) sub-structures. All turbines have been installed, with commissioning for France’s first floating wind farm in Q1 2024.

Kotamobagu Geothermal Power Plant INDONESIA

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Government of Namibia

$236m

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Baynes Hydro Power Plant NAMIBIA

Development of a 30MW wave energy array located 4km off the coast of Co. Clare. It forms part of a hybrid development with the Western Star floating wind farm and will be based on CorPower Ocean's point absorber wave device concept. ESB has joined the project in a 50:50 joint venture for shared resources and expertise. Operations is scheduled for the late 2020’s.

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Chenderoh Floating Solar Farm MALAYSIA

Pertamina Geothermal Energy (PGE)

Government of Guyana

TNB (Tenaga Nasional Berhad

$840m

$100m

$50m

Construction of a 165MW hydro power plant in west central Guyana, on the confluence of the Amaila and Kuribrong rivers. The powerhouse will feature 4 Francis turbines and one Pelton turbine for auxiliary power. The country is intending to reissue a request for proposals, after receiving interest from several companies.

Construction of a 30MW floating solar farm located at the Chenderoh Reservoir on the Perak River in Malaysia. TNB is inviting to bid for the tender to engineer, procure, construct, and commission (EPCC) the plant. The deadline for proposal submissions is set for 8 December 2023.

A project involving a geothermal power plant to be built at the Kotamobagu geothermal area in North Sulawesi Province. The area is estimated to have up to 410 MW of geothermal power potential. The first phase of the project will have a capacity of 80MW. Chevron Corporation is set to collaborate with PGE and Mubadala Energy to explore the geothermal potential.

PROJECTS MAP SPONSORED BY

18

Podcast interviews

MARK MUNRO, Chief Investment Officer - The Scottish National Investment Bank Interview by Moray Melhuish – Founder of Annet Consulting, an Offshore Wind and Subsea Specialist

We set out to find the people truly leading and innovating in the energy transition. And today we've got somebody who's undoubtedly doing that. Each of the leaders we meet on the show has their own role to play. I'm delighted to have on the show today another leader, with an essential but slightly different role in the energy transition.

They say money makes the world go round and it's no different with the energy transition. My guest today has got nearly 20 years banking experience across credit, risk and reporting, business banking, project management and energy finance.

After a 12 month internship at Deutsche Bank, Mark joined Bank of Scotland, latterly Lloyds Bank, as a graduate trainee. He spent 2012 and 2013 in Houston, Texas, focused on US energy clients. And for the last 15 years, he's been specialised in energy finance, primarily to independent oil and gas companies in the North Sea with Lloyds Bank, Commonwealth Bank of Australia, and most recently with DNB Bank.

Mark joined the Scottish National Investment Bank in early August 2021 as Executive Director for the Net Zero mission, and he's now the Chief Investment Officer. I'm delighted to welcome to the show Mark Munro of the Scottish National Investment Bank.

Mark, first of all, can you give us an overview of the bank, its footprint and its activities?

The Scottish National Investment Bank was vested three years ago and it's Scotland's mission led development bank. We're capitalised with £2billion over 10 years and we've been created to address the grand challenges facing Scotland.

The grand challenges facing Scotland is a climate emergency, the growing inequality across society, and the demographic change. It's obviously maybe 30 or 40 years ago we had quite a wide base supporting a much smaller older population.

www.ogv.energy - Issue 6

In a very short period of time, it's essentially been inverted and that distills down into three missions, which have been set for the bank.

achieve, and Scotland has been, I would argue, a hotbed of solutions when it comes to the climate emergency and the transition.

One is to support that journey to net zero by 2045. We have a places mission, which reflects the inequality grand challenge, and that's about regenerating and building Scotland's communities and providing an opportunity for Scotland's people.

Our demographic grand challenge distills down into a renovation mission, which in a lot of ways builds on the strengths of Scotland's universities and tries to create 21st century industries in Scotland to reflect that smaller base support and older population.

The bank is a patient capital provider. We can invest in debt, equity, and into funds. We have an ability to invest between 1 and 50 million pounds, and the intention is that we're complementary to existing debt and equity providers.

We see a lot of opportunities. In three years, we are now touching 1000 investment opportunities and somewhere between a third and a half of that is within our net zero mission. A lot of it comes into the bank through the positioning that we take with conferences through our social media.

By being patient capital, what I mean by this is that when it comes to debt, we may take a longer tenor than the traditional providers of debt. We may be a junior or provide mezzanine financing and when it comes to equity we can have a longer investment horizon than the sort of three to five years, which may be traditional.

We may take a five, seven, possibly a 10 year investment horizon. It's providing consistency, in the capital structure and in support of technology growth. I would mention the bank that does have two returns on capital, so we're not a grant provider. We are a commercial investor, but we also have an impact return that we seek.

When it comes to equity, we are a minority investor, so by that we want to be below 49%. I don't think anyone wants to be on the government balance sheet, if they can help it, and all the requirements that come.

I mentioned the bank invested three years ago. In those three years, we've invested just over £460m, and that's been alongside £750m. So, quite a significant undertaking within that period. And we have 29 assets across Scotland within our portfolio.

The bank's an impact investor. One of your missions is to address the climate emergency. How do you go about finding these investments?

There's two ways, obviously a lot comes to us.

We've been quite public in what we're trying to

But also we're also out in the market and we've got a really fantastic group of people and my own background is energy related, so there'll be a lot of: "Hey Mark, here's an opportunity. Does this chime with the bank?" Then we start the conversation from there, but Scotland's got a lot of solutions that are being looked into and it means the bank's getting access to a lot of these.

Can you give us some examples of the investments that have been made by the bank?

Let me start with an infrastructure investment, it was important that we help sort of push Aberdeen South Harbour over the line. For those who are unaware that Aberdeen South Harbour is an extension. The Aberdeen North Harbour, the original, is a busy place, but it's hemmed in by legacy issues.

The Harbour board undertook, 13 years ago now, to build out and reclaim some of the land in the sea, and that is to be able to position the Harbour for bigger vessels and for things like energy transition. It also sits adjacent to what will become the energy transition zone in Aberdeen.

We're also invested in tidal energy. We have equity and debt investments within two tidal energy companies, which are hugely interesting, and we're invested in a subsea battery provider, which tries to support the intermittency of offshore wind and other technologies.

Of what you've got to invest, you mentioned two billion pounds.

Where's it come from?

It comes from the Scottish government. The two billion is capitalised over 10 years. We've also had an additional capitalization of £25m in this financial year, which is related to the Just Transition Fund, which was a fund announced two

Podcast interviews 19 or three years ago for £500m, and it is focused on the northeast of Scotland.

We do have ambitions to raise third party capital, which would enable us to invest further into the bank's missions. But I would reiterate that of the £460m invested, we've alongside £750m of private capital. So, I think quite a strong public to private ratio within those three years.

Mark, the first minister announced recently that the Scottish government would be investing £500m in the offshore wind supply chain over the next five years. Can you tell us a little bit more about that?

I don't have all the details, but we're aware that there's £500m allocated for that supply chain and I'm delighted. We have spent some time establishing what the supply chain capability is for offshore wind, primarily floating, but that doesn't say we will miss any opportunities when it comes to fixed.

What I hope is that we will have capital to invest now we've identified some priority areas, some critical infrastructure is required and that's around the ports and harbours, and we do not have enough capacity and capability within Scotland.

That's something that must be addressed in the coming 3 to 5 years, because what we don't want is to miss the opportunity and when the contracts start to be awarded we're not wanting the developers to have to select somewhere else. We're looking at working with the ports and harbours across Scotland who will be able to fulfill the requirements for offshore wind.

We're also focused on manufacturing; we want to increase the manufacturing capability. It could be blades, it could be towers, it most likely will be cables as well. These are the types of areas that I believe we have the knowledge and capability, but we just need to be able to make that investment and we will make that investment.

There are a lot of good advisors out there and it is worth investing in an advisor earlier and working alongside them.

What advice would you give yourself if you could go back to you maybe leaving or choosing university?

We're going more than a couple of decades now.

I would say always be open to learning and be aware that the learning doesn't always just come from those above. It can come from peers, it can come from potential junior or new colleagues, it can come from the investee companies that we're working with.

As much as I need to enjoy what I'm doing, I think a driver of that is that I'm learning. If I get to the point that I'm no longer learning, then I'm not sure that role or that institution is the right one for me. I would always say you need to be open minded and be ready to learn.

And also, have a bit of agility. My career has been through a few cycles or through a few different institutions. I've gone through various journeys themselves and that's meant that I've had to be flexible in the journey that I've taken.

four investments that are female led, so that's either CEO or chair. We also seek to have diversity across our boardroom, so where we're invested, we will push for that diversity of thought and experience across the management teams - that is only a good thing.

The bank's board has a requirement to be 50/50 male/female, and it is. That then sort of filters down through our team, so across each of the different levels within the investment team, we're at least 40, if not 50 percent, in terms of male/female, and then there's other protected characteristics which are represented within the bank's team. We are in excess of where the industry is.

What's the bank doing to encourage the development of young talent?

The bank absolutely encourages. We were at Offshore Europe a few months back, and I was so delighted that we had younger people coming up to the bank stand and asking how they can come

In our last episode, we met the Energy and Environment Minister for Scotland, Gillian Martin, and she left this question for you. How are you going to encourage young people to go into your industry, and in particular young women?

Yeah, it's an area of focus for myself as a bank CIO and increasing the number of female allocators.

There's been a dearth in terms of female allocators and what that's also had an impact through is to the amount of capital that's allocated to female led businesses, and it's something that I'm adamant we will change. The bank currently has

and work with the bank and we work hard on it.

But the bank's missions really chime with the younger people. The world doesn't need capital to make the changes that are required, and the fact that the bank has these missions that we are seeking to deliver means that it just attracts young people. Then the way in which we build the culture within the bank then means that there's an additional draw and that is about being passionate, about working as a team and being inclusive. Then we will provide opportunities to younger people.

Do you have any advice for businesses that are going to be contacting you through the website?

Firstly, understand who you are and the strengths and the weaknesses of the management teams - it's really important. Also be cognizant that the management teams may change over the course of an investment, so where there's gaps, it doesn't need to be addressed on day one, we can address that through the investment process and thereafter.

The second is to know your market. Really know your market and be agile as well. It's not trying to force your product into a market.

The third, and we could spend a long time on this, but what I will say around is it has thoughtfully considered assumptions. I see too many space shuttle launches when it comes to things like revenue and very little cost, and being cash flow positive within three days of a product launch. I'm not saying come with something that's going to take 25 years either, but let's just be considerate of those assumptions when it comes to the information.

watch full interview www.ogv.energy/play

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20

podcast interviews

ALex leddy, Commercial director, intervention rentals Interview by Moray Melhuish – Founder of Annet Consulting, an Offshore Wind and Subsea Specialist

On Let's Talk Transition we set out to meet the people and companies truly innovating and leading the energy transition. We're joined by a leader responsible for his business's journey from oil and gas into the lower carbon sectors.

We have Alex Leddy, Commercial Director for Sustainability at Intervention Rentals.

Alex, can you introduce yourself and your company, please?

I am the Commercial Director of Sustainability for a company called Intervention Rentals. Intervention Rentals have been around for about 18 years now. We started out as a supplier of drilling and well service flow equipment, which would be the flow iron at surface for drilling companies, vessel companies and drilling related operators, and we've diversified into other drilling related oil service provisions such as pump spreads, metering, monitoring, wellhead services and pressure equipment.

What can you tell me about the sort of footprint and size of your business?

We have a base in Lunan, south of Montrose.

That's where the main operational base is, and we vary from around 40 to 50 personnel. I'm here in Westhill where the project and sales offices are.

We've also just opened a base in Saudi Arabia and we've opened a base in the UAE as part of our expansion plans.

How do you see your services fitting in with the energy transition?

We've been working in the decom plug and abandonment and gas carbon sectors so far, and we've been supplying our customers with our equipment, which is fairly agnostic. It really doesn't care where it goes, but what we've been doing is supporting the renewable sector and the low carbon sector for a couple of years now.

As a management team, we sat around and we thought about how we could extend our low carbon footprint because it was a journey that we needed to go on. We realised that we had to move to the next level, not just to move into markets, but to do the right thing for the right reasons.

The very first thing that we did was come up with an iron management service, which is a way of looking after other people's iron on their behalf

www.ogv.energy - Issue 6

that cuts down on road haulage, it cuts down on extra logistics, it reduces carbon in the supply chain, and it allows us to store, manage, recertify, recalibrate, paint, understand and manage the logistics on their behalf, so that there is not pieces of equipment flying backwards and forwards.

By collating and controlling that equipment, we managed to remove quite a significant amount of carbon on behalf of our client off the roads.

How does that fit in with the renewables industry?

We are working towards a plan at the minute to reduce our greenhouse gas emissions, to get verifications on scope one, two, and three. And we're looking to move to an environment full of behaviours and procedures that allows us to be as carbon neutral and negative as possible.

That's for one specific reason, and that reason is that if we want to be taken seriously as a company that functions in the renewable sector by introducing green technologies, we need to walk the walk and prove that we're serious about it. By starting to remove carbon on our customers behalf, to go through the greenhouse gas emissions protocols and to get accredited that we are as low carbon as possible we will then have the credibility to introduce green technology. It is a journey, we have started it and it's going well so far.

Can you tell us about Green Hydrogen and your involvement in that?

Our Managing Director is Phil Scott, who was my VP at Halliburton, and through his network he has access to a company in the United States who uses thermal harvesting technology to create green electricity. We're now working with the RGU Head of Engineering and Head of Computer Science, through the Knowledge Transfer Program, to get our technology in partnership with the thermal harvesting in the United States to be hooked up to various technologies, battery technology, electrolyzer technology, grid technology to prove it in this market and this country, to make sure that we can prove that we go from thermal energy, kinetic energy to free energy. It's a very exciting process and I'm really excited to be involved in it.

Why is it important for small businesses in oil and gas to transition into other industries, including renewables?

I think everyone knows now that the oil industry can be seen as deeply unpopular in some places. It's also very cyclic, and it's becoming a little bit more

competitive in certain markets. As I mentioned earlier, we want to do the right thing for the right reasons, which is helping the planet, sustaining the organisation, sustaining the planet for a long time.

We've analysed whether it's wind and wave or solar, or waste energy, waste heat that we want to get into. We've started the journey of analysing, improving technologies before we go straight in to try and commercialise something that might not be ready for this region.

The traditional industry for Intervention Rentals was oil and gas, and of course, that is an industry that is currently booming. How easy is it to get focus on diversification in the energy transition when your core market is so busy?

Internally, the management team decided this years ago. We decided to move into this market years ago, and it was the right time to do it. We have had all the support internally that we would ever need and the support externally from the trade bodies, the talking shops, the network groups, as well as certain key players, the Halliburton's and the Schlumberger's of the world have been really supportive. It's been almost a frictionless journey to decide to do it and then get our ideas out there and practically attempt it.

If you had the stage at COP28, and the opportunity to address the world leaders, what issue would you raise?

The thing that annoys me about the COP process, and it's the only thing that annoys me about the COP process, is accountability.

I would want to see which countries are being held accountable to the promises or the non promises that they have made or not made. It looks like some countries are using legalese or diplomatic processes to get out of making any statement or commitment.

I would like to know who that is, and I'd like to know what provocation that they're making, because it has to be achieved by everyone. Scotland's a small country, we can only do so much, but I'd like to know what the bigger countries are doing. I want them to be held accountable. That's just me.

Alex, why does the energy transition matter to you?

Again, we have to do the right things for the right reasons. I spent 27 years of my life getting

podcast interviews 21 hydrocarbons out of the ground through my career in the oil industry.

We all thought back in the day that it was a really good thing to do. It's like everyone needs fuel and we'll have a job forever. Then something happened and it was literally eyes being opened to 'oh hang on a minute, we can't be doing this forever.'

Just prior to lockdown, I got involved with green technology and I swapped whatever small amount of knowledge and experience I had and dedicated it to that. For the past six or seven years, I've been involved in green technology and the green process. It really excites me and it's something that I feel good about doing.

Alex, what makes a good leader in the energy transition?

To me, leadership is a behaviour, whether it's energy or not. Leadership can come from anyone.

Whether it's picking up the hammer that you've just seen everyone step over or making sure that somebody's okay. No matter where you are in the organic realm, leadership is a behaviour for me. However, to answer the spirit of the question, I think I've got passion for the project, I've got compassion for the people that I work with who want to help me go on with that. And I think it's the right place at the right time for us to do something.

What's your philosophy of success for the company? How do you define success in the business?

watch full interview www.ogv.energy/play

I want to keep everyone safe. I want to keep everyone employed. I want to keep everyone engaged with the plan. And the plan is to save the planet one carbon atom at a time.

How do you define success for yourself, Alex?

I guess the twee answer would be I want to be the best father, husband, brother, son, coach that I can be, but that is the truth, that's not necessarily a lie. Success for me is to leave a legacy at home, leave a legacy here and then try not to bump into furniture and mess things up too much.

Alex, in each of our episodes, we ask our guest to set a question for our next guest without knowing who they're going to be. The last episode we recorded was with the Chief Investment Officer of the Scottish National Investment Bank, Mark Munro, who left this question for you.

and support services, but I know we're finding it difficult to find the properly qualified people offshore.

I think the people that are referred to in the question are still in the oil industry. The oil industry left an awful lot of people underwhelmed by the industry when the crash happened and they left the industry and didn't come back.

I think for me, one of the most frustrating things is just that lack of transferability of qualifications between oil and gas and offshore wind specifically.

Where are the skills gaps that need to be addressed most urgently in the energy transition?

I was talking to some business owners fairly recently and it centred around the fact that they're been asked to retool and retrain their workforce to move into non-oil and gas renewable technologies, whether that's wind, waves, solar, or whatever. But no one's paying for that, and the rates are smaller if they go to renewables. There's a reluctance to retrain, retool, reshape, and reposition to move into this direction when it's not certain that the market is quite there yet.

I can only answer this subjectively, but we are looking at gaps in our labour force, specifically offshore. We find it a little bit difficult to get the amount of people that we require for operations

Is it the fact that there's no talent there for the industry, or is it the fact there's no industry there for the talent yet? I would flip the question.

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22

podcast interviews

DR. ALfonso Martinez, Senior Lecturer in Chemical Engineering at University of Aberdeen Interview by Moray Melhuish – Founder of Annet Consulting, an Offshore Wind and Subsea Specialist Hi there and welcome to episode 24 of the Let's Talk Transition Podcast. I'm Moray Melhuish, one of the principal consultants at Annet Consulting. If you want to grow your business in the energy transition and need support with strategy and market entry Annet Consulting can help. Just get in touch and let us find out how on let's talk transition.

On Let's Talk Transition, we set out to meet the people truly leading and innovating in the energy transition.

So far, we've met industry leaders from global energy transition, trade bodies, leaders from the offshore wind, wave and hydrogen sectors.

But we've not yet touched on the role that academia has to play. So let's sort that.

My guest today is a senior lecturer in chemical engineering from the Just Transition Lab at the University of Aberdeen. Welcome to the show, Dr. Alf Martinez.

Hi, thank you very much, thank you for inviting me.

Can you introduce yourself and the role of the Just Transition Lab, please?

Yes. I have been working in the School of Engineering for the last ten years in Aberdeen and we recently joined the Just Transition Lab which is an interdisciplinary lab. We've got colleagues from very different schools like the School of Law, Geosciences, Engineering, and Computer science.

We push for social equality as well as for technical development and energy transition, which is a very important part of the transition.

That's interesting. You're not actually in Aberdeen today, are you?

No, I'm not. I'm actually in central Illinois.

Great. And can you tell us a little bit about that?

Yes. This is a research secondment we are doing at the moment. I came in with the family, so it was a great experience for all of us. We're doing some microscopic studies with some of the materials that I developed in the lab previously,

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so it’s exciting. It's my first time in the States and everything feels really big.

Thinking about the Lab - tell us a little bit more about it and particularly how it is supported.

Well, we're self-supported in a sense that we are part of the University and Assembly research group. We need to find our own resources and we apply for funds and collaborate with companies and particularly with associations because it's really a social science. To me it is a great experience because us engineers are like scientists; We tend to be in isolated fields just working on our materials in our labs. It comes to a point when it's really important to look into the impact of everything we do. And these days, if you're applying for big grants to public or even private investors, they really investigate the impact.

For me, this is a great learning experience.

What we're looking at is, for example, what are the different consequences of these projects for the energy decision, how we engage with communities, how we make it more democratic so that the decisions are taken by everyone, not just for the few.

It’s also a very important message to send across because at the end of the day, we need to get everyone involved in the energy transition.

Of course. Is the team behind you a big one?

A few of us form the executive committee, the group that started everything. We may be about six or seven, but we are open to any associates that want to work with us either inside or outside of the university. I joined after it was first formed and seen the Lab open up. Since then we've seen an overwhelming response from our colleagues who want to know more about us because they know that it's an important issue.

Since you're a chemical engineer, can you take us through some of the research that's ongoing in the energy transition?

What sort of impact do you anticipate?

Of course. When we mention the lab, everyone thinks about energy generation. Starting with wind, there's a lot of research done into improving the efficiency of the turbines. We investigate the system integrations, look at the grid capacities but also consider other energy carriers like hydrogen, which is my focus area.

My research involves studying new materials for hydrogen transport, better electrolysers to get hydrogen from water and naturally the issue of storage capacity of hydrogen.

It’s a busy field of studies. Right now I think connectivity and energy production along with the storage issues are some of the most important topics.

Of course we can’t forget the market – we want to open the hydrogen market to the customer by driving the price down on new technologies. As it happens most of the big projects in this space are subsidized and there will come a point when they need to be self-sustained.

Obviously there's a lot of interest in the energy transition just now, especially in hydrogen. If the businesses want to engage with you and the Lab, how do they get involved?

As we know the universities, and the University of Aberdeen in particular has been very attached to the energy sector through oil and gas. The easiest way to connect with us is by reaching out to the university. There are also mechanisms around smaller projects that we advertise that might be of interest. We also organize different networking events and we have a new dean for engaging with companies.

Our marketing area is very active as well, trying to find business partners. But I think nothing beats a direct form of contact so you can just contact us or participate in one of our events that we try to hold regularly.

Do you think there's more that universities have to offer in the energy transition?

Definitely. Starting with reskilling and education, we need to play a key role, this is one of the main priorities for us. It's important to reskill the people who have been working for years in an industry that is changing and then getting ready for the new technologies. There are papers that suggest that 90% of the skills that people already have in the North Sea are useful and employable for new technologies. But we also need to think about the new generations.

It's crucial that young people feel the need to get involved in the energy transition. There’s a lot of disinformation going on these days, and we need to ensure they know what is really going on.

Meaning, even if they don’t want a career in the

podcast interviews 23 energy industry, they can take informed decisions about their lives.

In terms of the student body – have you seen a change over the last few years? Do they want to participate in the courses and the research?

Pretty dramatic, I would say. Ten years ago I started teaching a course on renewable energy and we started with six or seven students. Now our cohort is 150. We have the renewable energy engineering built into our curriculum and that includes other schools such as, the Geosciences School and the computing school. We even have a Masters programme on energy law as well. Since some of these are online courses, we have interest from around the globe. The numbers everywhere are steadily growing so that is an exciting time for the university.

You mentioned the research in the hydrogen field. That’s a very polarising issue for some people in terms of its potential. Can you talk us through why you think hydrogen matters for the energy transition and how you foresee it making an impact on our society?

Hydrogen is as important as any other kind of energy. It has great potential if we can solve the storage for the long term. It's a way in which we can buffer the power that we got from renewable sources. And since the barrier of entry is pretty low, it means that even small communities can have their own sustained hydrogen system, so we are one step closer to democratising the energy generation.

But I do understand the debate, and I think it's good to have it. I've been involved in in several kind of workshops and interviews when I was grilled, because some people get really emotional about hydrogen. Truth is, it will not be the answer everywhere in the world. But, you know, as a nation we need to push for a hydrogen economy because we have the wind resources and we've got the technology. And most importantly we've got the companies that can sustain this large infrastructure changes that are required.

Every time I visit Aberdeen, I'm reminded of the energy transition because of the bus network, the already quite extensive bus network running on hydrogen already.

Yes, it's just the sort of magic of Aberdeen being so pioneering. We can ride a hydrogen double-decker, that technology is already here. The hydrogen production plan which feeds the whole fleet, is 15 minutes walk from the University of Aberdeen.

It’s a great example of how the new energy can benefit everyone.

So why does the energy transition matter to you personally? And what makes a good leader in th energy transition?

Personally, I find it really exciting to work in the energy area. I think it's just the right thing to do as, we’ve been wasting many years on inaction. We must take matters into our own hands because otherwise you've seen what's happening in the COP. We have political U-turns and there's so much fluctuation when we really need people working on the environmental issues continuously, regardless of the politics.

Yeah. And you know, why is it so important for universities to focus their resources on the transition?

Because we are devoted to the society; academic institutions are the focal point of progress and welfare. At UoA we have our 2040 strategy with the five interdisciplinary themes and they're all based on trying to progress our societies and help our citizens.

The energy transition requires has so many interdisciplinary aspects like the social impact, the economic advantage, the energy security aspect and also the environmental. Universities are a perfect venue to facilitate this with a lot of people working in different areas that mix up very well and collaborate, so it’s only natural we can make it happen.

It’s interesting that our university is 525 years old and has a history of involvement in all sorts of aspects of change. It's great to see it's still leading on such important areas as the energy transition.

Thinking about oil and gas - What's the role that oil and gas companies need to take in the energy transition?

I think we need to integrate everyone as we need every single resource we can access. At the Lab we actually work with businesses that have been close to oil and gas traditionally, and it's really good to see them supporting and in some cases leading, the projects. BP is one of the of the main partners of the hydrogen energy hub in Aberdeen, together with with the Aberdeen City Council.

We've got a couple of PhDs that are sponsored by Totalenergies, and we work very closely with Shell who are colleagues of us in AREG. They all need to take responsibility for the transition, and they are definitely helping. I think their effort is crucial as they already have the infrastructure in place, the know-how and all of their facilities to enable energy transition.

But there needs to be a process. It would be great if these resources could be transferred so that the small companies, consultancies and engineering companies can participate as well. We cannot switch off oil and gas tomorrow, unfortunately, and as it stands, we will require legacy energy sources at least for the next couple of years to enable this transition.

The drilling industry has learned a huge amount from oil and gas and geothermal energy, of course, needs drilling. And the hydrogen sector, of course, needs to be able to manage gases and understand the metallurgies and a lot of that over the past years has been driven by the oil and gas industry.

That's right. It’s a great example of how you could reskill your technology. We are looking into depleted gas fields to re-inject CO2 from producing blue hydrogen. But we are also looking into some of these fields to inject hydrogen for storage purposes.

The hydrogen molecule is four times smaller than the natural gas methane molecule. We have a lot of challenges in terms of leakages and kind of structural integrity and compression factors, but we have the skills already. The formula is here, we just need to change the parameters and then readjust.

watch full interview www.ogv.energy/play

24

wind energy

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Cerulean Winds signs Exclusivity Agreements for trio of UK floating wind sites

Cerulean Winds, the UK green energy infrastructure developer, has signed three floating wind Exclusivity Agreements as part of Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.

Together these Agreements pave the way for the creation of the North Sea Renewables Grid, a basin-wide green power generation and transmission system that will supply energy to oil and gas assets, helping the sector to hit emissions reduction targets.

At the same time the multi-billion pound project will provide early opportunities to the domestic floating wind supply chain.

Cerulean is already in the process of putting the necessary contracts in place to deliver the North Sea Renewables Grid, and the project is progressing through the development phase.

Dan Jackson, co-founder and director, Cerulean Winds, said: “This is a huge milestone in the creation of the North Sea Renewables Grid and we are incredibly grateful to Crown Estate Scotland for their support as we move to the next phase in delivering floating wind at an unprecedented scale in the UK. “FEED work will begin in earnest with our Tier 1 delivery consortium setting up the packages of supply chain contracts in 2024 that will allow us to build out this development. To support this, we are also investing in new

www.ogv.energy - Issue 6

Scottish offices and in advanced talks with local ports and yards.

“The oil and gas industry is required for UK energy security for years to come but must fulfil its decarbonisation commitments. The North Sea Renewables Grid will be a vital cog in achieving that, while also setting the pace for other floating wind farms to follow.”

Independent analysis has shown that Aspen, Beech and Cedar – the three sites that will form the North Sea Renewables Grid – are expected to deliver over £10 billion combined in Gross Value Added (GVA) for the UK. Across the development, construction, operational and maintenance phases the project is expected to create over 5,000 jobs in Scotland, with first power being targeted for 2028.

In the coming decade hundreds of floating turbines will be installed in waters off Scotland and the UK, and ensuring local companies realise maximum economic value from these projects will underpin a successful energy transition.

Crown Estate Scotland’s INTOG round, the results of which were announced in March, was split into two halves – one for larger projects linked to oil and gas infrastructure and one for smaller scale innovation initiatives.

Humza Malik, Cerulean board member and CEO of Frontier Power, added: “Key to the North Sea Renewables Grid’s development has been its ability to dovetail transmission with generation. This is a significant milestone and huge credit must go to Crown Estate Scotland for their shepherding of the process.

“This project will deliver vast benefits to the Scottish and UK offshore wind supply chains and - alongside our contractor consortium - we are already in advanced talks with strategic suppliers.

“We all know that green jobs will be the future of the energy industry, and the North Sea Renewables Grid will have a big hand in delivering this long-awaited boom.”

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26

wind energy

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Marine & Tidal 27

TIDAL STREAM ENERGY IS ESSENTIAL FOR THE UK TO MEET NET-ZERO GOALS

By Gordon McIntosh, Director of AREG, Chairman and Director of Aberdeen International Associates and Chairman of QED Naval

T

he UK is the world leader in tidal stream energy development with 10MW of installed energy, which a London School of Economics (LSE) report says is half of all installed capacity globally in 2023. And despite being ranked the fifth most specialised tidal technology developer in the world, based on patenting activity, we risk losing out to other countries if we don’t see more focused investment.

Following the disappointing result for offshore wind in the Contracts for Difference (CfD) Allocation Round (AR5), with no bids submitted, little has been said about the unexpected positive result for the tidal stream industry. It won over double the expected capacity with 53MW allocated to 11 projects in Wales and Scotland.

The CfD result was largely due to there being no offshore wind projects, which meant tidal stream projects mopped up £18m extra funding on top of the AR5 ringfenced allocation of £10m. The money would have gone to the lowest-cost technology in the auction if there had been any bids i.e., floating offshore wind.

Although a positive result for the tidal stream industry, it shouldn’t be second best to offshore wind for budget allocation. Both technologies need investment if we are to reach net zero by 2050 in the UK and 2045 in Scotland.

We must focus on tidal stream energy, alongside offshore wind, and other sources of renewable power, which are all needed to decarbonise our energy system and require investment to be nurtured and grow. According to the Office for National Statistics electricity generation from offshore wind increased by 715% between 2009 and 2020, which was undoubtedly due to government support in the early days of its development. With the potential to follow a similar path, the tidal stream industry requires similar investment.

Tidal stream energy is produced by using technology to capture kinetic energy from fast-flowing water driven by predictable tidal currents, which are created by the constantly changing gravitational pull of the moon and sun on the world’s oceans. This predictability makes tidal energy an extremely valuable resource to the UK for energy supply and export.

It is available in abundance here with tidal stream resources largest in areas where

such as Nova Innovation, Orbital Marine, HydroWing, and QED Naval, the company I am chairman of.

The supply chain is very important. We can do most of the production and manufacturing of the technology to produce tidal stream energy in the UK, and this would be very exportable, especially to diesel-dependent economies.

We are already seeing companies such as Nova Innovation exporting tidal technologies to Canada.

Gordon McIntosh Director of AREG, Chairman and Director of Aberdeen International Associates and Chairman of QED Naval

the speed of the currents is amplified by the funnelling of the local coastline and seabed, for example, in narrow straits and inlets, around headlands, and in channels between islands such as Orkney, Shetland, and the Channel Islands as well as Anglesey in North Wales and the Inner Hebrides around Islay and Jura.

Providing power that is not intermittent, like wind and solar, tidal stream could meet 11% of the UK’s current annual electricity demand according to a study led by Plymouth University. With wind only available 60% of the time, we need other sources of power to develop a sustainable future energy mix and fill the gaps.

Although lagging behind the wind industry with more costly and less mature technology, tidal stream energy is a growing renewable resource with the potential to contribute to long-term economic growth in the UK, supporting net zero goals, and improving energy security. ORE Catapult estimated that 14,500 new jobs could be created by the tidal stream industry by 2040.

We are in a position to be a first mover in tidal stream energy with some of the best tidal stream resources in the world, and innovative technologies. According to ORE Catapult, this includes 22 active technology developers

There is a strong research base here to further develop the technology and Oxford University recently announced it will lead an ambitious £7m project to help deliver scalable, affordable, and sustainable tidal stream energy, alongside Edinburgh and Strathclyde universities.

AREG member, The European Marine Energy Centre (EMEC), has played a huge role in the development of tidal stream technologies as the world’s first and leading facility for demonstrating and testing wave and tidal energy converters.

Cross-border projects such as the €48.4m Tidal Stream Industry Energiser (TIGER) have been building partnerships to develop new technologies, test and demonstrate them around the Channel region, to make a stronger, cost-effective case for tidal energy as part of the France/UK energy mix.

With 71% of the earth’s surface covered by the ocean, it’s hardly surprising that the UK is among several countries with high hopes for tidal stream energy. Canada, France China, Japan, and the US are all considering the potential for tidal stream as a low-carbon source of power.

To ensure we do not let this opportunity slip away investment is needed now to advance innovation, drive down costs, and develop the UK supply chain so that we do not miss out like we did with offshore wind.

AREG supports all forms of renewable energy and technologies to reduce emissions and helps its members take advantage of renewable energy opportunities.

To stay up to date with AREG events and find out more about membership, contact info@aberdeenrenewables.com

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hydrogen & CCS

Major boost for hydrogen as UK unlocks new investment, jobs and progress towards net zero Eleven new production projects will invest around £400 million up front over the next three years, growing the UK’s green economy.

More than 700 jobs to be created, representing the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe.

“These eleven major new hydrogen projects across the UK will create over 700 jobs and deliver new opportunities from Plymouth in England to Cromarty in Scotland.”

Minister for Energy Efficiency and Green Finance Lord Callanan said:

New certainty for industry as government sets out hydrogen ambitions, including future production, transport and storage rounds.

“Today’s funding commitment represents a monumental step forward in helping producers to deliver a fuel of the future today, backing businesses to go greener.

Over 700 jobs will be created across the UK in a world-leading hydrogen industry from the South West of England to the Highlands of Scotland, backed by £2 billion in government funding over the next 15 years.

“This will be essential to achieving our net zero targets, and will benefit people across the UK with the job and investment opportunities that this funding will bring.

Energy Security Secretary Claire Coutinho today (Thursday 14 December) announced backing for 11 major projects to produce green hydrogen – through a process known as electrolysis – and confirmed suppliers will receive a guaranteed price from the government for the clean energy they supply.

This represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe, helping to place the country at the forefront of this emerging industry. Unlike blue hydrogen, which is formed using fossil fuels and capturing the carbon emissions, green hydrogen is made by using renewable energy to split water – helping provide cleaner fuel for energy intensive industries and transport.

In return for this government support, the successful projects will invest over £400 million in the next three years, generating more than 700 jobs in local communities across the UK and delivering 125MW of new hydrogen for businesses including: Sofidel in South Wales, who will replace 50% of their current gas boiler consumption with hydrogen at their Port Talbot paper mill.

InchDairnie Distillery in Scotland, who plan to run a boiler on 100% hydrogen for use in their distilling process.

PD Ports in Teesside, who will use hydrogen to replace diesel in their vehicle fleet, decarbonising port operations from 2026.

Energy Security Secretary Claire Coutinho said: “Hydrogen presents a massive economic opportunity for the UK, unlocking over 12,000 jobs and up to £11 billion of investment by 2030.

“Today’s announcement represents the largest number of commercial scale green hydrogen production projects announced at once anywhere in Europe.

www.ogv.energy - Issue 6

“And we’re not stopping there with a new, second round of funding now available for producers to apply for, so they can develop the next round of projects and build on this success.”

Today’s funding represents the most significant step in scaling up the UK’s hydrogen economy to date – speeding up progress towards the Government’s ambition to deploy up to 10GW low carbon production capacity by 2030.

Ministers have also today opened a new second round of funding that companies can apply for to support their projects and published a production roadmap, which sets out the government’s plan for future allocation rounds in 2025 and 2026. This includes ambitious plans to boost hydrogen capacity up to 1.5GW across these rounds, and award funding to projects to

help deliver up to 4GW of CCUS-enabled, or blue, hydrogen and 6GW of green hydrogen by 2030 - giving businesses the confidence they need to invest in the UK. Ministers have also announced their decision to support hydrogen blending in certain scenarios – subject to an assessment of safety evidence and final agreement.

Currently, less than one per cent of the gas in distribution networks is hydrogen. Under proposals, hydrogen could be blended with other gases in the network as an offtaker of last resort, working to reduce costs in the hydrogen sector by helping producers, and to support the wider energy system.

Hydrogen blending may help achieve the UK’s net zero ambitions, but would have a limited and temporary role as the UK moves away from the use of natural gas.

Ministers have decided not to proceed with a hydrogen trial in Redcar, as the main source of hydrogen will not be available. The government recognises the potential role of hydrogen in home heating and will assess evidence from the neighbourhood trial in Fife, as well as similar schemes across Europe, to decide in 2026 whether and how hydrogen could help households in the journey to net zero.

hydrogen & CCS 29

UK allocates more than £2bn of subsidies to 11 green hydrogen projects in first auction round A total of 125MW of projects will receive about $12 per kg for 15 years The 125MW of winning projects under the first Hydrogen Allocation Round (HAR1) will receive a strike price of £241/MWh over a period of 15 years, with the exact subsidy from the government depending on the natural gas price under a Contracts for Difference-style scheme.

With the MWh figure referring to the higher heating value of hydrogen (39.4kWh/kg), each MWh represents 25.4kg of H2, giving an effective strike price of £9.49 ($12) per kg.

Developers will only start receiving these subsidies once projects start producing hydrogen, but more than £90m has already been allocated from the separate Net Zero Hydrogen Fund to support their construction.

The winning projects are shown below:

Claire Coutinho, UK energy secretary

A second Hydrogen Allocation Round (HAR2) for up to 875MW of green hydrogen — “subject to affordability and value for money” — has also been announced this morning by the government.

This will help the UK “achieve our aim of up to 1GW of electrolytic hydrogen production projects to be in operation or construction by 2025”.

And in a new “Hydrogen Production Delivery Roadmap”, also unveiled today, the government announced plans to allocate up to 750MW in both the third and fourth allocation rounds (HAR3 and HAR4) in 2025 and 2026, respectively.

These will be followed by further annual rounds in 2027, 2028 and 2029, with the sizes of those tenders still to be determined.

A total of 17 projects entered final negotiations in HAR1, two withdrew and four were rejected.

“We encourage all projects who have not been successful in HAR1 to consider applying in HAR2 with more competitive proposals,” says the Department for Energy Security and Net Zero (DESNZ).

Lord Callanan, minister for energy efficiency and green finance, stated: “Today’s funding commitment represents a monumental step forward in helping producers to deliver a fuel of the future today, backing businesses to go greener.

“This will be essential to achieving our net zero targets, and will benefit people across the UK with the job and investment opportunities that this funding will bring.

“And we’re not stopping there with a new, second round of funding now available for producers to apply for, so they can develop the next round of projects and build on this success.”

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30

geothermal

GEOTHERMAL SPONSORED BY

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We have operated and excelled in the most challenging environments, from testing, logging wellheads and surface pumping to extremes of temperature and pressure across drilling and production environment, we understand what it means to be tested. Intervention Rentals are ready for Geothermal

Geothermal Engineering plans to produce the UK’s first zero-carbon lithium Geothermal Engineering Limited (GEL), a UK-based geothermal power company, is set to deliver the first commercial quantities of zero-carbon lithium in the UK. in context, this would have been 94% of the LCE needed to supply the 267 000 new Battery Electric Vehicles (BEVs) registered in the UK in 2022.

The current production of lithium in Europe is far below what is needed to meet the expected demand for electric vehicles, with most of the lithium being supplied by refineries in China. The onshore or EU delivery of lithium is becoming a pressing issue for automotive manufacturers like VW, Ford and Jaguar Land Rover as the ‘rules of origin’ deadline, approaching in 2024, will require 60% of battery packs to come from the UK or Europe, else manufacturers will face fines from regulators.

“We are extremely excited by the high concentration of lithium that we Ryan Law, CEO of Geothermal Engineering Ltd

Very recent tests have shown that the geothermal fluid within the deep geothermal wells already drilled at United Downs in Cornwall contained around 340 parts per million (ppm) of lithium, which makes it amongst the highest concentration of lithium found in any commercial geothermal lithium project in Europe.

GEL's primary geothermal business of providing baseload geothermal electricity and heat produces a naturally hot geothermal brine from which lithium can be sustainably extracted onshore in the UK as a by-product.

Utilising zero-carbon geothermal power to fuel the extraction process will avoid the

www.ogv.energy - Issue 6

have found in our geothermal wells in

water hungry evaporation ponds or carbonintensive quarrying and extraction processes in the huge open-cast mines that are currently used to mine the majority of lithium produced today.

GEL aims to produce around 100 tpa of Lithium Carbonate Equivalent (LCE) in late 2024 which will be ramped up to at least 1000 tpa from this site as early as 2026. The company already has planning permission for two other geothermal projects in Cornwall and aims to rapidly expand production to over 12 000 tpa in the UK by 2030. This is enough to produce around 250 000 electric vehicle batteries for an average sized car. To put this

Cornwall, as it will enable us to produce meaningful quantities of lithium without damaging the environment.

Ryan Law, CEO of Geothermal Engineering Ltd, stated, “We are extremely excited by the high concentration of lithium that we have found in our geothermal wells in Cornwall, as it will enable us to produce meaningful quantities of lithium without damaging the environment.

Our ability to produce both zero-carbon lithium and zero-carbon baseload power will provide a foundation for the electric car market to be truly sustainable in the UK. The importance of our projects is now being recognised by the Government with recent grant funding

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geothermal 31

awards and secure contracts for the electricity we produce. This is helping us to secure the further investment required for a rapid roll out of projects to enable the UK to reach its ambitious targets.

Cornwall is in a unique position in hosting these significant lithium and geothermal reserves. We hope that establishing Cornwall as a significant hub for lithium-related activities alongside its exciting geothermal potential, new job

opportunities, and significant economic growth will be brought to the region.”

Jason Cheng, CEO and Co-Founder of Kerogen Capital, commented: “The high concentration of lithium found at United Downs underpins GEL’s potential to fulfill a significant portion of the UK’s lithium demand. It is an extremely exciting and significant development. Securing the production of domestic zero-carbon lithium

will be crucial to the UK’s energy transition, as the demand for batteries for applications such as EVs and grid scale storage continues to grow. We look forward to supporting GEL during this next phase of growth.”

GEL was recently awarded £1.8m by the Automotive Transformation Fund (ATF) Scale up Readiness programme. These funds will be used to fund the 100 tpa units.

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ELECTRIFICATION

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Verlume - Delivering on company mission with significant growth in 2023

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erlume, a specialist in clean energy system integration, intelligent energy management and energy storage, is fulfilling its mission to deliver clean energy to challenging locations and make things possible today that were impossible yesterday. With an increasing headcount and sales growth in 2023 across several markets including offshore wind, subsea monitoring, and offshore charging, the company has increased its orders booked ten-fold year on year and is on target to deliver a 400% increase in revenue for the financial year.

Following recent successful demonstrations of the company’s technology and securing significant commercial sales, the Verlume team is growing to further deliver on its mission. Verlume’s highly skilled team now has 30 dynamic professionals from a range of technical backgrounds from electrical, electronic, software and mechanical engineering to wider business functions such as project management and HR. There are 7 roles currently open within

the business.

In terms of sales, the business won a significant contract from RWE, one of the world’s largest offshore wind developers and operators. Verlume will partner with RWE to engineer and integrate Halo subsea battery energy storage systems, incorporating Axonn intelligent energy management technology. These will be deployed within the 760MW wind farm OranjeWind in the Dutch North Sea. Verlume’s subsea energy storage and Axonn solutions are intending to explore the applicability of these technologies for system integration for scalable and flexible demand of energy, to match the supply profile of an offshore wind farm.

Additionally, Verlume secured a contract to supply three of the ‘Charge’ battery systems for bespoke subsea monitoring applications.

Charge is Verlume’s compact, rechargeable battery solution which provides reliable and safe energy in challenging locations to enable long duration seabed monitoring

for stationary systems. Verlume has also developed a business stream for rental systems and has started building the first rental Charge systems, following receipt of the first rental order for this solution.

The company is also developing offshore charging stations powered by renewable energy for wind farm maintenance vessels and autonomous underwater vehicles. Two separate demonstration projects for these systems are scheduled for 2024.

The Renewables for Subsea Power (RSP), a joint industry funded project, connecting a Halo underwater battery system supplied

by Verlume with Mocean Energy’s Blue X wave energy convertor to prove the concept of using renewables to power subsea equipment has been extended from 4 months to 12 months following the onboarding of several additional participants into the joint industry project.

Richard Knox, Chief Executive Officer at Verlume said: “These recent contract wins demonstrate the success of our strategy and continued growth at pace, in line with our company mission.

“We are excited to begin our journey in the offshore wind sector with RWE at OranjeWind and see this as a key growth market, both from the larger energy storage use cases, as well as the potential to decarbonise operations and maintenance activities. Thank you to the team at RWE for their support to date.

Richard, Knox, CEO, Verlume

www.ogv.energy - Issue 6

“We are also experiencing a strong pipeline of enquiries for our Charge offering and are delighted to be supplying units for sale, as well as developing the rental market. With a sales order book that is still growing, we are looking forward to further milestones for the business in the rest of the financial year.”

Please get in touch if you would like to discuss how we can deliver the valuable missing link that can reduce your carbon footprint at info@verlume.world

innovation & technology

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The future of nuclear fusion energy: An overview of market drivers,challenges and R&D opportunities

T

he UK government believes that nuclear energy is the only practical low-carbon solution for delivering enough energy to meet the fundamental demands of consumers in a way that also provides energy security.

In December 2022, there was a landmark breakthrough in fusion energy technology when a laboratory in the US was able to release more energy from fusion than was used in creating the reaction. This net fusion breakthrough has been the catalyst for the private sector to speed up the technology's commercialisation. An in-depth article from McKinsey suggested that the recent technological advances in fusion had brought the dream of a zero-carbon power grid into touching distance, with their research suggesting that it could be the most dominant source of affordable and clean energy for Europe by 2050.

Delivering fusion as a flexible source of clean energy is not without its challenges - not least of which being that there’d need to be a breakthrough in both plasma physics and materials science, along with other complex engineering and political hurdles.

Despite technological challenges and some societal objections to nuclear, the opportunities are immense - making fusion energy an area of intense research and development (R&D) across a diverse range of sectors, including manufacturing, fusion materials, application (including energy production, space propulsion, and medical), renewable energy, waste treatments, and heating and cooling systems.

In this article, we look at the forces propelling R&D in nuclear fusion, examining what’s driving the market, including technological advances, policy support and the drive to decarbonise the grid. We also look at the barriers to progress, such as high funding costs and the risks associated with fusion.

Nuclear fusion energy market drivers The potential of a reliable, clean, and virtually limitless energy supply from a nuclear fusion-powered grid is too compelling for any government to ignore. As such, a consortium of world governments including the EU, China, and the US are working to deliver advancement in fusion technology.

Nuclear energy is seen as cheaper than fossil fuels based on the Levelised Cost of Electricity (LCOE), which is the discounted lifetime cost of building and operating a power plant. Despite the high upfront costs of building nuclear power plants, the World Nuclear Association describes nuclear energy as more economic than fossil fuels based on a low discount rate for operating costs that takes into account the long life of nuclear fuel, as well as other advantages such as contributing to decarbonisation, security and reliability.

Photo by Lukáš Lehotský

The UK’s aim is to diversify the energy mix and increase resilience against supply disruptions, reducing the dependence on imported fossil fuels to increase energy security and cut carbon emissions. Its focus has been to invest in nuclear energy projects, including Small Modular Reactors and Advanced Modular Reactors. They’ve also initiated the STEP programme, aiming to generate net electricity from fusion reaction, to construct a prototype fusion power plant within the country by 2040.

Fusion energy also aligns with the carbon reduction targets set by the UK government and international agreements. The UK government plans to invest up to £650 million until 2027, in addition to £126 million announced in November 2022 to support nuclear fusion R&D programmes This trend shows a growing recognition of the role of fusion in driving economic growth, job creation, and cutting-edge industry development.

Industry blockers Despite the potential rewards, the path to nuclear fusion energy faces several significant hurdles, such as• Cost and funding • Technical complexity • Materials • Public perception • International collaboration • R&D opportunities for nuclear fusion energy • Material science and engineering • Sustainability • Design • Plasma confinement and stability • Magnet technology • Power conversion • Fuel

Supporting nuclear fusion energy development Nuclear fusion, with its potential for providing limitless, clean and secure energy, could hold the key to a sustainable future. At Leyton, we're proud to work with innovative businesses pioneering advancements in this groundbreaking sector. With funding key to success, our R&D experts help these businesses identify qualifying spend for tax credits, often working on complex projects to effectively reduce their tax liability and free up significant funds for further innovation.

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contracts

contract awards SPONSORED BY

Infinity Partnership: Your Partner in Business Infinity Partnership is an award-winning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service.

www.infinity-partnership.com

Infinity has been a five-time winner at the British Accountancy Awards and has been a three-time finalist at the Scottish Accountancy Awards in recent times.

Wood to support one of the world’s largest offshore wind to grid connection projects

The three offshore high voltage direct current (HVDC) platforms, each the size of a European football pitch, 65 metres above sealevel in the German North Sea, will individually gather and convert 2GW of power generated from offshore windfarms for connection to the onshore transmission grid. The renewable power generated will satisfy the electricity needs of around four million people in Germany.

John Day, President of Oil, Gas & Power Projects at Wood, said: “Building on our strong engineering heritage and long-standing relationship with Dragados Offshore, we are delighted to be partnering with them on this world-leading project, helping to deliver one of the largest offshore wind to grid connections.

“An integrated energy system is critical to maintaining energy security while achieving the world’s net zero ambitions. This project is a significant step in creating the scale and infrastructure required to secure both. Our technical expertise will ensure successful project delivery as we design and deliver future renewable energy systems.”

Photo By Nicholas Doherty

Wood, the global consulting and engineering company, has been awarded a contract by Dragados Offshore, to deliver engineering design and provide regulatory support for the development of three 2GW convertor stations that will transfer offshore wind power to Germany's power grid. These projects will be executed by Dragados Offshore, Spain in partnership with Siemens Energy.

“We are glad to welcome Wood as our engineering partner on these hallmark projects that will shape Europe’s energy transition”, says Jeroen Poppe, VP Global Business Development of Dragados Offshore.”

This project will be delivered by Wood’s experts in the UK, India and Spain, leveraging Wood’s offshore energy expertise to design a lowcarbon future.. 

Vestas secures 186MW wind turbine order in Finland Danish wind turbine maker Vestas has secured an 186MW wind turbine contract from the Nordic energy company Ilmatar.

The order was placed by the Nordic company after reaching a final investment decision for the wind energy project, which is located in Pahkakoski in the municipality of Ii, 60km north-east of Oulu, Finland.

Ilmatar Energy CEO Juha-Pekka Weckström stated: “This is a big investment decision that we are very proud of. We know that more renewable energy is needed and despite the changing economic circumstances the green transition needs to continue.

“Pahkakoski wind farm is proof that Ilmatar continues to be courageous in its investment decisions to build renewable energy in the Nordics.

www.ogv.energy - Issue 6

“We are very pleased to be co-operating with Vestas in this project. The co-operation between two Nordic companies, who want to enable a more sustainable future, has been smooth and effective.”

Vestas will be delivering and commissioning 30 V162-6.2MW wind turbines.

contracts 35 RWE wins two German onshore auction deals begin in winter 2024/2025, while the old hardware will remain on the grid for as long as possible.

After commissioning, the wind farm will be 22.8MW and generate green electricity for around 18,000 households.

Out of an advertised quantity of 2087MW, 167 bids were submitted with a total bid volume of 1981MW, according to the Federal Network Agency.

In this round, the Federal Network Agency only had to exclude two bids from the procedure due to formal errors. As a result, 165 bids were accepted. The contract volume amounted to 1967MW, meaning 6377MW was awarded in 2023, almost twice as much as in 2022 (3225MW), the Agency said.

RWE has been awarded two contracts in the latest German onshore wind auction.

being the exception to the rule."

RWE will build its Aldenhoven wind farm on recultivated areas of the Inden opencast mine in the Düren district.

With a total output of 34.2MW, the six turbines will be able to generate enough green electricity to supply around 24,000 households per year after commissioning in 2025.

The bid values of the successful bids range between 5.88 ct/kWh and the maximum permissible value of 7.35 ct/kWh.

As early as the first quarter of 2024, the RWE team will start building the path and setting up the construction site. RWE's Lasbek wind farm is located in the Hamburg metropolitan region, in the district of Stormarn in Schleswig-Holstein.

The two largest bids were again for sites in Schleswig-Holstein (416MW, 42 awards), Lower Saxony (312MW, 25 awards), North Rhine-Westphalia (309MW, 31 awards), followed by Mecklenburg-Western Pomerania (222MW, 16 awards).

"I would like to thank our development team as well as the authorities involved at both locations.

The company will dismantle the existing six turbines with a total capacity of 10.8MW and replace them with four more powerful machines.

Federal Network Agency president Klaus Müller said: "The fact that the contract volume in 2023 is twice as high as last year gives me hope.

"With their speed and the approval of a wind farm within just over a year, they show that faster approval procedures can go from

RWE's planners will benefit from the experience gained in other repowering projects: new construction is scheduled to

"In order to achieve the expansion targets, the trend of a significant increase must continue."

The company will build and operate another wind farm in North Rhine-Westphalia and one in Schleswig-Holstein, after successful bids to the Federal Network Agency.

After commissioning in 2025, the 10 turbines will be able to produce enough green electricity to cover the needs of around 42,000 households. RWE Renewables Europe & Australia chief executive Katja Wünschel said: "I am delighted that with the new wind farms we are setting the next building blocks for the energy transition in our home market of Germany.

At 7.31 ct/kWh, the average, volumeweighted bid value is just below the maximum value and very close to the previous round's average of 7.32 ct/kWh.

Hughes Subsea provides ROV services to Vattenfall’s Kent Offshore Wind Farms subsea inspection work on three of the company’s UK offshore wind farms.

The contract covered general visual inspection (GVI) and 3D photogrammetry of Cable Protection Systems (CPS) and cableends using the VALOR Observation class ROV on Thanet, Kentish Flats and Kentish Flats Extension offshore wind farms, located in UK waters near Ramsgate.

The work scope was part of Vattenfall’s ongoing operations and maintenance program to ensure the optimal performance and reliability of its offshore wind assets.

Hughes Subsea Services, a brand in OEG Renewables Subsea Division, recently supplied ROV services to Vattenfall for

Hughes Subsea deployed the VALOR ROV, equipped with advanced sensors and cameras, to capture high-resolution images and 3D models of the cable infrastructure, from the bellmouth to the cable burial point.

The data will be used to assess the condition

and integrity of the cables and components, as well as to identify any potential issues or risks.

Simon Mclauchlan, Project Manager at Hughes Subsea, said, “We are delighted to have completed this contract for Vattenfall, which demonstrates our expertise and capabilities in the offshore wind sector. We successfully delivered high-quality subsea inspection services for their Kent wind farms. This contract also showcases the versatility and performance of our VALOR ROV, which can operate in challenging environments and provide accurate and reliable data for our clients.”

Hughes continues to provide tailored and sustainable subsea solutions to leading energy operators, wind farm developers and offshore service companies in the UK, Europe, Asia Pacific and Americas. x

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Stats & analytics

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Westwood Global Energy Group Westwood Global Energy Group are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.

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The Netherlands vs Belgium: Who will win the battle as Northwest Europe’s leading hydrogen import hub?

In 2022, the EU unveiled its REPowerEU plan that set a target for 10Mtpa of domestic hydrogen production and 10Mtpa of hydrogen imports by 2030. This represented a significant increase from the original 5.6Mtpa target set by the preceding ‘Fit for 55’ package. REPowerEU was aimed at rapidly reducing the EU’s dependence on Russian fossil fuels following the war with Ukraine.

Given this ambitious target, several countries have announced import initiatives.

With significant growth expected in hydrogen demand in Northwest Europe, the Netherlands and Belgium announced ambitions to become hydrogen import hubs for Europe – not just for their own domestic needs, but also for neighbouring EU countries. The question is: can they deliver?

The Netherlands and Belgium’s combined import targets can meet up to 62% of the EU’s 10Mtpa

but this also depends on Germany, which is likely to be another key importer in Northwest Europe. Germany intends to be a large consumer of hydrogen and has set a 10GW hydrogen production target for 2030. In its revised hydrogen strategy, the German government states it expects the majority of hydrogen demand to be met by imports from both EU and third-party countries. Germany is progressing plans to import hydrogen in the form of ammonia into Wilhelmshaven and receive hydrogen via pipeline from its EU neighbours.

Sufficient risk remains in the Netherlands’ and Belgium’s hydrogen project pipelines, potentially necessitating hydrogen imports to meet their own domestic needs.

The Netherlands and Belgium rank as Europe’s 2 nd and 8 th largest emitters, respectively. Both countries have large energy-intensive industries to decarbonise. Despite a strong pipeline of hydrogen projects, particularly in the Netherlands, there remains sufficient risk to suggest that not all announced projects will be realised, in which case domestic hydrogen production may be insufficient and imports required to meet each country’s decarbonisation goals.

For instance, the Netherlands announced 12.5GW of hydrogen capacity (blue and green) to come online by 2030, which is 2-3x larger than the country’s 3-4Mtpa 2030 target. If the project pipeline were fully realised, then clearly this target could be easily met; however, Westwood believes there is sufficient risk to suggest that not all the announced capacity may come online.

Figure 1: Hydrogen Import Targets For 2030 – The Netherlands and Belgium Vs EU. Source: Port of Rotterdam, Port of Amsterdam, Port of Antwerp-Bruges and REPowerEU.

The Netherlands announced hydrogen import targets for 2030 at two of its largest ports – Rotterdam (4.6Mtpa) and Amsterdam (1Mtpa); the target at Rotterdam increases to 18Mtpa by 2050.

Belgium has a much smaller import target of 0.6Mtpa, which will be centred around its Port of Antwerp-Bruges. Despite this seemingly conservative target, the country stands ready to take the necessary steps for the promotion of hydrogen today, as highlighted by its early adoption of its Hydrogen Act ahead of the EU. Belgium’s potential can be expanded in the future, especially if it develops its pipeline to connect with southern Europe (i.e. the Iberian Peninsula) as part of the European backbone initiative, which is the country’s longer-term ambition.

Nevertheless, these two countries together could supply up to 62% of the EU’s 10Mtpa hydrogen import target for 2030, leaving a 3.8Mtpa gap to be supplied from other countries.

This suggests there is adequate demand for both the Netherlands and Belgium to play a central role,

www.ogv.energy - Issue 6

Figure 2: Westwood’s Project Certainty Assessment of The Netherlands’ Hydrogen Production Capacity Pipeline Vs Country Target. Source: Westwood analysis.

Figure 2 is taken from Westwood’s Hydrogen Project Certainty analysis, in which a project is assessed using a consistent set of criteria to ascertain the risk – and therefore likelihood – of a project reaching final investment decision (FID).

Projects are categorised as ‘Probable’ (low risk), ‘Possible’ (moderate risk) or ‘Risked’ (high risk).

Stats & analytics Our analysis suggests 3Mtpa of projects are ‘Probable’ by 2030. If considering a 4GW target, an additional 1GW of project capacity would still need to be commissioned. This increases to 5GW if the Dutch government ratifies the 8GW target that has been proposed for 2032.

72% of the Netherlands’ 12.5GW pipeline are green hydrogen projects and mostly coastal; of this, 92% require power from offshore wind.

Therefore, meeting the country’s offshore wind target will be crucial to meeting its hydrogen target. While Westwood expects that the Netherlands will largely meet its offshore wind target, energy demand for electrification is likely to compete with energy for green hydrogen projects. If the green hydrogen projects cannot secure the required electricity at an adequate cost, hydrogen projects may struggle to reach FID. In this scenario, hydrogen imports can bridge any shortfall in production and keep the country on track towards reaching its decarbonisation goals.

Both countries are expanding critical infrastructure to enhance their hydrogen import capabilities.

The Netherlands targets first hydrogen imports (in the form of ammonia) from 2024, with large-scale imports to follow in 20272028 and imports for Europe from 2030.

Belgium aims to begin importing hydrogen from 2027 and be connected to Germany from 2028.

To accommodate these targets, the Netherlands and Belgium have initiated plans to build the required infrastructure (i.e. ports and pipelines).

To transport hydrogen from the ports to consumers both locally and abroad, an extensive pipeline network is required. The Netherlands intends to repurpose 85% of its existing onshore 12,000km gas pipeline for hydrogen (15% will be newbuild). In Belgium, Fluxys has 4,100km of existing gas pipelines and intends to commission 100-160km of new/repurposed pipeline for hydrogen.

It should be noted that not all countries are equal in terms of their capabilities to deliver on their stated hydrogen targets. For example, the US has strong support from the Inflation Reduction Act and $7bn of funding has been allocated to the development of seven regional hydrogen hubs, which makes achieving their 10Mtpa 2030 target more likely. In contrast, Brazil has announced an ambitious target of 350Mtpa from offshore wind and 6.9Mtpa from nuclear in its draft hydrogen plan yet has no offshore wind farms along its coastline and only one nuclear power plant in operation – thus, it is more questionable whether Brazil can achieve its proposed target.

Nevertheless, the Netherlands and Belgium are taking proactive steps towards securing and developing a diverse set of trade partnerships.

The Netherlands and Belgium have funding packages to support hydrogen imports.

Despite the potential to import hydrogen from countries with relatively low-cost supply, subsidies are still required to support hydrogen production since it is more expensive than fossil-based alternatives, as is the funding to help pay for these capital-intensive developments. The Netherlandsearmarked €300m from its €35bn national Climate Fund to subsidise the cost of hydrogen, while Belgium earmarked €10m to fund port infrastructure development.

Figure 3: The Netherlands' and Belgium's Proposed Port Infrastructure Developments for Hydrogen.

Source: Port of Rotterdam, Port of Antwerp and Westwood analysis.

The Netherlands and Belgium are well-positioned to become key hydrogen import hubs.

According to both countries’ hydrogen roadmaps, early hydrogen imports will be consumed domestically, particularly for industrial decarbonisation; however, both roadmaps have set targets for an increase in hydrogen imports specifically for Europe. There is a strong opportunity for the Netherlands and Belgium, which benefit from being located geographically nearby Germany, and as previously noted, has a large hydrogen import requirement. Both countries have specified Germany as a key target country for its hydrogen imports and are expanding their infrastructure to supply Germany and other European destinations from the late 2020s.

The Netherlands and Belgium each host one of Europe’s two busiest ports – Rotterdam and Antwerp. These ports have existing infrastructure that can be leveraged and/or repurposed for the import and distribution of hydrogen and its derivatives, including terminals, gas processing facilities, storage tanks and access to an extensive pipeline network that links into demand centres located both locally and further afield.

The pipelines of both countries will initially link their domestic industrial clusters but also include plans to link into neighboring EU countries from the mid-to-late 2020s.

Currently, the Netherlands and Belgium are beginning to implement their plans to prepare their respective infrastructure to receive and distribute hydrogen imports. The next question is: where should the hydrogen come from? Countries with abundant, low-cost energy – be it in the form of natural gas or renewables – can be sources of competitive hydrogen supply. Forming partnerships with these countries is fundamental to a viable import strategy.

Both countries have announced partnerships with a diverse range of potential low-cost hydrogen suppliers.

The Netherlands announced partnerships with 10 potential hydrogen supplying countries, while Belgium announced seven.

Apart from Canada, all the partner countries have announced targets for either hydrogen production or price.

In conclusion, the EU’s 10Mtpa hydrogen import target is ambitious and meeting this will require the capabilities and collaboration of many partner countries. The Netherlands and Belgium have an excellent opportunity to leverage their existing infrastructure, but the amount of investment and development still required is both costly and risky given the hydrogen market’s nascency. Both countries are backed by government support, detailed roadmaps, a healthy pipeline of project and infrastructure developments, financing and promising partnerships, all of which should support their ambitions to become Northwest Europe’s leading hydrogen import hubs.

This insight and project certainty assessment is excerpted from Westwood’s pending hydrogen country reports, which form part of Westwood’s new Hydrogen solution, coming soon. For more information or to speak to a specialist, please contact sales@westwoodenergy.com.

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