Energy, Oil & Gas Issue 212

BIGGER

and better

The path being taken by independent power producer West Burton Energy, as it pursues a vision to triple its current base

Cyber security

The age of IoT further increases the risk of cyberattacks on utilities Issue 212 - 2023

Renewables

Is it time to start taking options such as tidal energy more seriously?

Artificial intelligence

This technology could help transform North Sea oil and gas prospects

Delivering Sustainable Innovation

in Investment Casting

Discover how Hitchiner is innovating with sustainable practices.

hitchiner.com/green-goals

HMC-012-B Sustainability Full Page Ad Design A04.indd 1

7/8/22 11:09 AM

Welcome

CEO Andrew Schofield Group COO Joe Woolsgrove Creative Consultant Tom Vince Data & Insights Director Jaione Soga

H

Editor Libbie Hammond Assistant Editor Mary Floate

ello and welcome to the January issue of Energy, Oil & Gas. This month’s magazine includes features on cybercrime, renewables and artificial intelligence, as well as a case study that looks at a thermal control project.

Cyber security especially is coming to the fore as something that utilities and energy businesses must keep at the top of the agenda. Threats are coming from both outside and inside – thankfully there are many ways to counter these, but it takes the right systems and processes. The article from Alastair MacLeod, CEO at Ground Control on page 10, offers more details.

Our renewables feature from Stuart Murphy on page 14 looks at the current UK strategy and highlights the lack of a scalable renewable energy strategy. Stuart thinks it’s time to consider other renewable sources such as hydrogen and tidal power. What do you think?

Content Editors Alex Caesari, Danielle Champ, Annabelle Crook, Steven Dobinson Editorial Administrator Amy Gilks, Afiya Lucombe-Davis Creative Lead Lee Protheroe Managing Art Editor Fleur Daniels Art Editors Paul Gillings, David Howard, Charlie Protheroe Artwork Administrator Rochelle Broderick-White Sales Director Alasdair Gamble Project Directors Philip Monument, Joy Francesconi Head of Content Management Adam Blanch Project Managers Lewis Bush, Natalie Griffiths, Jo-Ann Jeffery, Ben Richell Content Managers Johanna Bailey, Mark Cowles, Jeff Goldenberg, Wendy Russell, Richard Saunders, Kieran Shukri Media Sales Executives Mike Berger, Jessica Eglington, Will Gwyther, Reid Lingle, Sam Surrell

Libbie Hammond, Editor LH@finelightmediagroup.com

General Manager Florida Division Ryan Finn Social Media Co-ordinator Rosie Clegg IT Support Iain Kidd Administration Natalie Fletcher, Rory Gallacher, Ibby Mundhir

BIGGER

and better

The path being taken by independent power producer West Burton Energy, as it pursues a vision to triple its current base

© 2023 Finelight Media Group Corporate Head Office Cringleford Business Centre, 10 Intwood Road. Cringleford, Norwich NR4 6AU U.K.

Cyber security

The age of IoT further increases the risk of cyberattacks on utilities

Renewables

Is it time to start taking options such as tidal energy more seriously?

Our cover story in this issue shares insights from Chris Elder, CEO at West Burton Energy.

Chris and his team have ambitious growth plans for the business.

Turn to page 62 to learn more.

Artificial intelligence

This technology could help transform North Sea oil and gas prospects

Issue 212 - 2023

T: (312) 854-0123 T: +44 (0) 1603 274130

Follow energy, oil & gas magazine at @EOG_magazine

www.energy-oil-gas.com

energy-oil-gas-magazine

US Office 2240 West Woolbright Road, Suite 402 Boynton Beach. FI 33426 T: (561) 778-2396

Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Finelight Media Group, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

energy-oil-gas.com

1

Contents

Inside

this issue

6

18 2

Case study

Artificial intelligence

22

Business energy

10

Cyber security

14

Renewables

energy, oil & gas magazine

26

40

Mining

Exclusive Feature Energy Pool

30

Digital transformation

34

Equipment

46

Intercontinental Terminals Company

energy-oil-gas.com

3

Contents

4

56

Praj Industries

74

IMTT

68

Nola Oil Terminal

energy, oil & gas magazine

62

Cover Story West Burton Energy

80

WUN H2

Clean energy

champion

6

Case study

In a project designed to deliver precise temperature control, Raven SR partnered with industrial technology company Watlow

T

he 2015 Paris Agreement has forced many countries to present long-term strategies and Nationally Determined Contributions (NDCs) to reduce emissions. One strategy is to transform waste into usable fuels and Raven SR is a clean fuels company dedicated to achieving this. However, the company uses a process that requires high temperatures and precise control to maintain efficiency and cost-effectiveness. To streamline Raven SR’s energy transformation process, industrial heating technology company Watlow provided extensive expertise in thermal system design, as well as Industry 4.0 control.

As a clean fuels company, Raven SR transforms municipal solid waste, organic waste and methane into high-quality, clean hydrogen and synthetic fuels. These synthetic fuels are Fischer-Tropsch synthetic fuels, meaning that they are produced from a gas-to-liquid polymerization technique that converts carbon monoxide and hydrogen into liquid hydrocarbon fuels that can act as substitutes for petroleum products.

At the heart of Raven SR’s processes is a CO2 reforming process that changes mixed feedstock and organic waste into products in an environmentally-friendly way, without the need for combustion. As a result, no emissions are produced - only clean hydrogen and fuels as output.

The work done by Raven SR is a crucial step in achieving clean energy and greater energy independence. Not only does its process create fuel from waste that would otherwise end up in a landfill, but its products can also

be created locally and delivered directly to gas stations in the region without the need for long-distance transportation or pipelines.

The challenge Although combustion is not used as part of Raven SR’s technology, precise thermal control plays a huge part in driving an efficient and safe process. There is already a clear connection between the operational targets that Raven SR is putting forward and the thermal content of the system. At higher temperatures, it’s possible to achieve 99.9 percent target output, a level of efficiency that also makes the process more cost effective. Achieving the high temperature requires running heaters at their maximum capacity for extended periods of time.

However, those heaters are difficult to replace if something fails. As a result, not only is precise control of temperature needed, but the entire system also needs to be monitored for any signs of a problem, or for indications of degraded performance.

The power of a complete thermal system Watlow, which has manufactured electric thermal systems for 100 years, provides a breadth of expertise that helped Raven SR to solve its challenge, by designing a comprehensive thermal system from start to finish.

The full thermal system provides an extraordinary range of temperature control through different components. This includes the high-temperature MULTICELL™ heater, energy-oil-gas.com

7

which offers three major advantages over other insertion heaters. These are extreme process temperature capability, independent zone control for precise temperature uniformity and loose fit design for easy insertion and removal. The proprietary design of MULTICELL™ heaters with integrated thermocouple sensors, provides a ‘thoughtful’ zoning and control approach, delivering precise control within the three dimensions of the reactor.

Watlow also connected the system to other sensors for gas composition, flow and pressure. Using the WATCONNECT® control panels, comprising temperature and process controllers, it could monitor all thermal and electrical characteristics to ensure proper process stability for the application. Lastly, it’s the connected architecture that makes this system whole.

The Internet of Things (IoT) ‘box’ is at the heart of the system and includes 8

hardware for connectivity, syncing data from eight F4T® controllers with control loops across our WATCONNECT® panels.

Connectivity to the cloud via a cellular router allows further routing of data to other applications and devices, while a Human Machine Interface (HMI) screen displays the total state of the system at any time using a custom-designed dashboard. These features allow for near real-time data logging and monitoring of system output.

Applying Industry 4.0 This particular project is a great demonstration of Industry 4.0 at work. At a minimum, Industry 4.0 involves a physical layer of interconnected devices, but advanced cases also use a simulation layer that models and predicts the behavior of a system as it unfolds over time.

The sensors, controllers and connectors lay the groundwork for such a system, an

Case study

important function of which provides a foundation for predictive and diagnostic analytics. One of the chief principles of Industry 4.0 systems is to gather granular data for better system operation while avoiding unnecessary maintenance cycles. For example, if a system can be monitored and studied in real time, it is possible to look for the indications of a potential part failure, allowing engineers to proactively fix or replace the part.

Over time, this data can also be used to understand system wear and part longevity, allowing engineers to have better insight into maintenance cycles and system inefficiencies — prolonging system lifespan.

Watlow’s sensors, control architecture and dashboard all work together to allow Raven SR’s engineers to capture data and use it proactively to keep system efficiency and uptime as high as possible.

Transforming waste into fuel is one of the most significant ways to become resource efficient and contribute to the Paris Agreement’s targets. Companies like Raven SR are key in driving this, but without thermal systems that encompass Industry 4.0 technology, the efficiency of these crucial processes becomes limited. ■ Watlow www.watlow.com www.ravensr.com Watlow is a global industrial technology company that uses its world-class engineering expertise, advanced thermal systems and manufacturing excellence to enrich everyday life. Many of the world’s leading companies leverage its technology in vital applications such as semiconductor processing, environmentally-friendly energy solutions and lifesaving medical and clinical equipment, to name a few.

energy-oil-gas.com

9

Staying ahead of

cybercriminals Why the utilities sector must mitigate threats from outside and within

By Alastair MacLeod

U

tilities represent part of the critical national infrastructure in the UK, and are prone to cyber threats, even in peacetime.

Foe, and believe it or not, friends, are constantly gnawing away at network weaknesses to determine resilience and potential holes.

This digital battlefield is being fought in myriad ways - from disruption to enterprise systems that underpin a utility company’s

10

commercial and human operations, to more malign intervention of operational technology, designed to inflict severe disruption to civil society.

The ‘AcidRain’ malware attack in February 2022 caused severe, prolonged disruption to operations on a mass scale. The attack wiped out Viasat’s KA-SAT broadband service’s satellite modems, impacting thousands in Ukraine and further across Europe. The 1997 UK floods caused wholesale loss of clean water

Cyber security

supply in a number of regions, and in 2021, a cyberattack forced operator Colonial Pipeline to temporarily shut down 5,500 miles of pipeline.

Moreover, the hostile intervention in Ukraine has led to the disabling of energy - in this case, wind farms.

Ultimately in the age of IoT, where machines in the home, commerce and throughout industry are given an identity and the ability to communicate, this risk is only set to increase.

Countering the threat According to IBM, the Energy industry ranked fifth in overall data breach costs in 2021, and security in the utilities sector brings with it additional considerations: it is a highly regulated industry where breaches can be prohibitively costly by any other industry’s standards. Moreover, costs associated with ransomware or cyberattacks can quickly escalate.

Between 2020 and 2021, there was a reported ten percent increase from energy-oil-gas.com

11

$3.86 million to $4.24 million per data breach incident. Then there is the length of time it takes to discover a breach; often the longer the breach goes unnoticed, the more expensive and/or disruptive the incident. And finally, there are the fines incurred from regulatory bodies. All that, before we get on to reputational damage.

Cyber security is already top of mind for many utility firms and thankfully there are many ways to counter these threats; starting with recognizing this inherent vulnerability and embedding a culture of awareness that shapes more secure behavior, processes, and system design.

using the latest IP technology – securely operating within public networks or operating via secure, private networks. Private networks, and dedicated hubs, such as those within a TSAT satellite system, maintain a vital air gap between telemetry and control, and open public networks. Enterprise systems on the other hand are often routed through internet protocols, are inherently more visible and therefore exposed. Ideally then, SCADA and telemetry data will not be mixed with enterprise traffic. Secure separation helps ensure this data doesn’t fall into the wrong hands.

Securing networks

As IoT becomes more embedded in industry day-to-day, it becomes vital that all devices and local networks associated

Risk increases when or if data is exposed to the open internet, which is why utilities must leverage control 12

The here and the now

Cyber security In our recent paper, ‘Data’s journey in shaping digital transformation in Utilities, and what it all means’, we examine how data has been a catalyst for digitalization among companies within the utilities sector, and how outages and supply interruptions result in huge financial burden and penalties for the supplier, and severe (often prolonged) disruption for consumers.

Which brings us back to the beginning; being aware of the risks, including an acceptance that they may come from closer to home than one might at first think, is as critical as the data that needs protecting. ■ For a list of the sources used in this article, please contact the editor. with a grid carry technology and software to protect them.

One such way is SD WAN technology (software defined, WAN) which keeps data locked from the outside world. This technology also ensures consistent application performance and resilience by automatically steering traffic in an application-driven manner based on business intent, security protocols and WAN architecture.

One of the benefits of telemetry data is its relative size. Because telemetry data requires less bandwidth than much of the traffic going over an enterprise system, it can be more difficult to trace.

Primary bearers and platforms will need to have alternatives and backups in place though, which means satellite, LTE, 4G/5G solutions.

Alastair MacLeod www.groundcontrol.com/en/ Alastair MacLeod is CEO at Ground Control. Established 20 years ago in 2002, Ground Control uses satellite and cellular technology to connect people and things, particularly within hard to reach, remote areas - from wind farms to fishing fleets and first responders to forestry workers.

Ground Control designs and builds its own hardware covering the entire spectrum of connectivity requirements, with manufacturing facilities in the UK, and in the United States.

The company’s long-term partnerships with airtime providers such as Inmarsat and Iridium mean that it has access to the most competitive and comprehensive airtime plans, taking full advantage of their service evolutions in ways that make Ground Control’s customers’ challenges easier to solve.

energy-oil-gas.com

13

CLOSING the gas gap Revisiting our renewable strategy is a must

By Stuart Murphy

14

Renewables

2

022 shone a spotlight on the fragility of the European energy market and raised important questions about our overreliance on gas. Currently, fossil fuels are an integral part of our energy mix, natural gas primarily, and we need them to provide consistent Base Load power (the minimum amount of electricity required to keep the lights on).

We are drowning in a worldwide energy crisis and it’s largely because we can’t stop using fossil fuels. Unfortunately, unless you have a Base Load renewable energy system, you will never get rid of fossil fuel, no matter what anybody tells you. Simply put: it’s impossible.

However, it’s not too late. 2023 presents a fresh opportunity to recalculate our energy

strategy to fill in the infrastructural gaps currently being pumped full of gas. We must get over our fossil fuel addiction if we are to stand a chance at meeting net-zero goals and providing our planet with muchneeded relief from global warming.

The current renewables market Until we take a long hard look at our current energy mix and find a way to diversify our strategy, global warming isn’t going anywhere.

Renewables made up around 36 percent of our electricity generation in Q3 of 2022, mainly wind and solar energy. With a wind capacity of over 20 GW and 5 GW for solar, you would think we are on track to meet 2035 net-zero targets… sadly, you’d be sorely mistaken.

energy-oil-gas.com

15

Our renewables strategy focuses on intermittent wind and solar energy, but no matter how great our generation capacity, we are still completely dependent on the weather. Only recently we saw a ‘wind drought’ from November 27th to December 18th 2022. During this time, gas and coal were running at maximum, peaking at 25 GW on the coldest days.

In terms of support from nuclear capacity, there was no forward planning whatsoever, as output was just 3.9 GW on November 27th and took 18 days to reach its peak of 5.9 GW during one of the coldest spells of the year, where we also had to rely on five-to-seven GW of imported power to prevent power outages.

These droughts are a troubling indication of an emerging global phenomenon known as ‘Global Stilling’, which is causing 16

wind-related power in Europe to be unpredictable, and we are starting to lean on gas and coal to fill the Base Load gaps.

Our strategy moving forward So, what plans have we seen to improve the situation? In short, very few. The UK Chancellor’s 2022 autumn budget announcement highlighted our commitment to carbon capture technology, nuclear and offshore wind. We’ve also previously seen proposals to increase offshore wind capacity to 40GW by 2030 and expand solar capacity. Similarly, the government intends to more than triple our nuclear capacity over the next three decades.

This is all very well, but the intermittency issue remains. Fundamentally, nuclear can’t be adjusted around wind and solar, so to provide Base Load power you’d need a far greater

Renewables number of new plants than the government is promising. Nuclear is also very expensive, slow to build and accompanied by all sorts of environmental issues concerning waste disposal. As for carbon capture, instead of shoveling money into catching carbon, why not stop producing it in the first place?

The UK conservative Government aims to decarbonize the energy industry by 2035, but we are yet to see a credible plan of action to achieve this.

Interestingly, there have been trickling signs of ambitions to revive onshore wind, which since 2015 has been faced with challenging consent processes. As it stands, only 11 percent of local authorities across England have areas designated for renewable developments. If our government removes stringent building requirements for onshore wind, we could see a boost in renewable capacity, but it’s still intermittent. Ultimately, it doesn’t solve the clean Base Load conundrum.

Demand for more efficient solutions To date, our government has not been able to deliver a scalable renewable energy strategy to achieve its goals. We are still naively banging the same wind and solar drum, expecting a different result - the very definition of insanity.

We continue to rely on liquefied natural gas imports to meet energy demands while we boast about our (unreliable) wind power capacity. We must take a broader look at other renewables to help fill the gaps left by gas if we are to phase out fossil fuels.

Other budding initiatives like hydrogen and tidal power have seen significant improvements in recent years, paving the way for another path to Net Zero 2035. Recently, we’ve even seen advances in nuclear fusion power. I want to make clear that I’m not knocking wind, solar and nuclear, but the fact is that we need to invest in as many solutions as possible to stand the best chance at tackling climate change before the situation gets completely out of hand.

Wind and solar are at a point where they are relatively inexpensive to scale and are currently our go-to solutions however we are running out of time and need to take other options seriously.

Tidal range energy, in particular, has shown promise, although this potential Base Load renewable isn’t being talked about by governments today. It is so far behind wind and solar in terms of funding, and it’s about time this changed. As a consistent force of perpetually available energy it’s a no brainer and needs to be harnessed without delay.

No silver bullet Of course, there is no one-size-fits-all solution to the ongoing energy crisis, and we certainly aren’t going to beat climate change overnight. Time is short, but if we take other renewables like tidal energy more seriously and have the tenacity to invest now, before it is too late, we might just stand a chance at hitting our ambitious net-zero targets.

We are passing up a huge chance with a Base Load renewable like tidal on our doorstep, and cannot afford to keep putting all our eggs in the wind, solar, nuclear baskets.

We must continue to raise awareness of alternative energy sources and encourage investments in our future, today. There is no time to waste, and everything is at stake. ■ For a list of the sources used in this article, please contact the editor.

Stuart Murphy www.tidalpower24.com Stuart Murphy is Inventor and founder, TPGen24. TPGen24 is the next leap forward in renewable energy as the first system to generate green Base Load electricity 24/7, 365 days a year using the power of our planet’s tidal ranges. It is a refreshingly simple, turbine-loaded, lagoon system with small-impact, low-maintenance and highyield renewable power plant which can perpetually produce green energy for centuries to come.

energy-oil-gas.com

17

Ambition into

action

18

Artificial intelligence

New North Sea licensing will benefit from next-generation geoscience, writes Owen Lee

I

ncreasing concerns over global energy security and UK domestic supplies have raised the prospect of a significant expansion of oil and gas activity in the North Sea, and placed a premium on turning potential into production in the shortest possible term.

Up to 130 drilling licenses could be awarded under plans expected to be unveiled by the UK government, with accelerated timelines key to making the sort of impact on cost and security that is required from an energy sector already facing unprecedented challenges.

energy-oil-gas.com

19

And while traditional development trajectories between license and production have in the past run for up to 20 years, thanks to new technologies, and improved methodologies, that number is expected to diminish in the years ahead.

Artificial intelligence (AI) is one of the most powerful tools available to an industry seeking to meet these increasingly urgent policy and customer demands; and geoscience, so crucial to oil and gas, is an area where AI is already changing the rules of the game.

Game-changing Seismic interpretation represents a critical element of oil and gas exploration, development and production but has been challenged in recent years to accelerate results, improve accuracy and reduce risk while maintaining high levels of safety.

Geoteric, AI seismic Interpretation specialist, has proven that all these goals are achievable. The technology is perfectly positioned to provide the fast-track necessary for a new generation of North Sea assets.

Geoteric’s proven solutions are fast and easy to use, with a low training threshold and seamless integration with third-party end-toend systems; supported by a track record of reducing fault interpretation time by up to 95 percent, producing best-inclass results with immediate impact.

For projects, that means an accelerated development cycle enabled by evidencebased decisions. It also translates into higher quality drilling targets with a greater chance of success, reduced costs and rig downtime.

In the context of mature regions such as the North Sea, AI can also add value to data sets built up over the last 50 years – maximizing the returns on existing and historic seismic investment without the delays associated with re-processing and re-shooting to secure fresh data.

20

AI seismic interpretation in action AI has already been proven even in the most challenging seismic data. INEOS, for example, acquired multi-azimuth and angle stack seismic data in the Danish North Sea. The clastic and carbonate geology was complicated by a shallow gas cloud seriously deteriorating the seismic response.

It would have been impossible to manually interpret the multiple data sets required to better understand the target zone quickly and without imparting any human bias.

However, thanks to AI in the shape of Geoteric AI Fault Interpretation, INEOS secured – in just two weeks – a highly-detailed structural framework, across multiple volumes, with unprecedented accuracy. The end result was more informed field development and well planning decisions as well as mitigated risks and reduced uncertainties.

Artificial intelligence transfer into a third-party modelling software for the next stage of the project workflow.

The operator was able to optimize well paths, reduce shallow hazard risk and avoid drilling difficulties along the complex lateral wells.

Forging a new path

Cut to the chase bpx Energy faced challenges of a different nature in an unconventional play in the Eagle Ford and Permian basins. Detailed and accurate interpretation from a 100,000 square kilometer survey area was necessary to avoid faults in the overburden, and to stay in the sweet spot while geosteering, targeting naturally fractured areas to maximize production.

Rather than the years it would take using traditional interpretation methods, the results were delivered by Geoteric AI Faults in days, providing updated reservoir models based on a full volumetric fault interpretation in challenging data.

Geoteric’s Automatic Fault Surface Extraction tool enabled a rapid one-click extraction of all fault surfaces for seamless

New licenses in the North Sea, as promised by the UK government, can progress from prospect towards production in record time to meet the energy security demanded by policy and consumers.

These are powerful impacts: a reduction in interpretation time of 95 percent, from years to as little as days; fast-track turnaround on specific packages of crucial work; improved results that increase the chance of drilling success, reduced rig downtime and optimize the economics of field development.

And of course, the application of AI also reduces uncertainty while improving health and safety, reducing overall project risk.

Crucially in the net zero age, environmental impact of field development is lessened.

Speed and certainty, accuracy and dependability, trust and understanding – this is what can be achieved with AI, and what will transform the timelines and prospects of North Sea oil and gas in the decades ahead. ■

Owen Lee www.geoteric.com Owen Lee is SVP Global Sales & Marketing at Geoteric. For over 30 years, Geoteric has expanded what’s possible in the world of geological interpretation. Used across the globe, its innovative software, leveraging artificial intelligence allows interpreters to combine their knowledge with the best possible image.

Geoteric enables a more detailed understanding of the subsurface, no matter the application. It is proud to be playing a part in the journey to Net Zero and helping customers make better geological decisions for a more sustainable tomorrow.

energy-oil-gas.com

21

POWER

POTENTIAL Could businesses hold the key to a zero-carbon energy system asks Anthony Ainsworth

22

Business energy

F

or more than a year, the UK energy market has experienced a period of unprecedented volatility, with the resulting high wholesale prices impacting all businesses. Policymakers have now put short term plans in place to offer some relief from rising energy costs, including the Energy Bill Relief Scheme (EBRS), announced in September 2022, which provides support for businesses for the next six months.

However, this begs the question of ‘what’s next’? Clearly, a longer-term and more sustainable approach is needed to help businesses reduce energy demand and limit their exposure to the global markets.

The good news is that many businesses are already taking control of their own energy future. Many of these are doing so by investing in sustainable on-site generation. In fact, in our Business Energy Tracker report, which launched earlier in 2022, more than a quarter (27 percent) of respondents said they are planning to invest in this measure to combat energy risk.

It’s easy to see why; it not only provides businesses with a route to lower energy costs, increased self-sufficiency and reduced dependency on the grid, it also helps reduce emissions.

But, looking beyond this, it could also enable them to play a crucial role in decarbonizing the UK’s energy system by reducing our dependency on imported natural gas, resulting in lower costs and greater energy security.

This could be a future where businesses become central to a changing, decarbonized and decentralized energy system that is powered by renewables.

How? This is something our latest report - The Future of Energy: The critical role of business in a zero-carbon world - investigated. energy-oil-gas.com

23

“

...we believe that this modelling provides a compelling case for policymakers to encourage more businesses to be part of the 2035 zero-carbon system

Via Imperial Consultants, we commissioned Dr Gabriel D. Oreggioni from Imperial College London to provide his own independent opinion and conduct scientific modelling on the future potential of sustainable on-site generation technologies, including wind, solar photovoltaic (PV), battery storage, biogas and biomethane.

The report assesses whether they could feasibly replace the electricity generated from imported natural gas by 2035. It was based on the projection from the Climate Change Committee’s Sixth Carbon Budget that, by that date, the UK would require 16 TWh of power from imported natural gas.

The scenarios explored in the report show that by 2035: l On-site wind capacity within commercial and industrial facilities could reach between six and 29 GW l Installed roof-top solar PV could account for 6.5 GW l Biogas power generation could be up to 16 TWh l Hydrogen and biomethane injection could be close to 33 and 7.5 TWh, respectively 24

“

Towards a businesspowered future?

In addition, the report predicted that having more business-generated power will lower energy costs, with the overall levelized cost of electricity for the proposed options ranging between £49 and £261/MWh, lower than the wholesale prices we’ve seen recently. Crucially, it will also support the net zero ambition, with emissions savings of up to 6.7 MtCO2/year.

It also shows that businesses who are investing in sustainable on-site generation technology now will reap significant benefits, by futureproofing their operations, cutting energy costs and reducing exposure to volatility in the marketplace. Over time, the report shows that energy invoices for all businesses have the potential to be reduced, by doing their bit to help balance the grid and increase energy security.

In short, the power generated by businesses has the potential to revolutionize the status quo and set the UK on the path to decarbonization and energy independence.

Unlocking the power potential of business What this report shows is that businesses really do have the power to shape our energy future.

Business energy However, achieving this requires policy and incentives to support it, such as incentives for hydrogen injection and tax deduction for equipment purchases, which could further encourage businesses’ involvement in energy production.

Businesses will also need to adapt - and have support to do so - for example, modifying production schedules to make use of renewable intermittent electricity generation surplus and to ensure they can better integrate with their surrounding communities.

However, what we wanted to demonstrate was the potential.

And, we believe that this modelling provides a compelling case for policymakers to encourage more businesses to be part of the 2035 zero-carbon system and contribute to the national agenda of energy independence and Net Zero both now and in the future. ■ For a list of the sources used in this article, please contact the editor.

Anthony Ainsworth Anthony Ainsworth is Chief Operating Officer at npower Business Solutions. As one of the UK’s largest energy suppliers, it can draw on an in-depth understanding of the energy marketplace and of business energy needs to create solutions that are both innovative and practical. npower Business Solutions already works with more than 20,000 businesses across a range of industries.

The Future of Energy: The critical role of business in a zero-carbon world, can be downloaded: https://npowerbusinesssolutions. com/future-of-energy

energy-oil-gas.com

25

SHIELD A product developed for the US military is now protecting mining equipment from corrosion

C

orrosion is a leading cause of tool and equipment degradation, downtime, repair, and early replacement in both surface and underground mining.

Degradation can occur for reasons such as external atmospheric attack (on structural steel and concrete), erosion-corrosion (in the crushing/ grinding circuit and slurry lines), high temperatures, and aggressive solutions (within process streams).

At mine sites, conditions can quickly corrode tools like pickaxes, hammers, chisels, and shovels, as well as surface mining equipment such as trucks, dozers, excavators, and blasthole drills.

Corrosion can also rapidly compromise underground mining equipment such as scoops, loaders, haulers, shuttle cars, crane lifts, and even ventilation systems critical for life support.

The harsh mining environment makes it difficult to sufficiently lubricate and protect tools, equipment, and electronics from

corrosion. Exposure to moisture, condensation, salt, and extreme wear and tear often accelerates corrosion, leading to failure and extended downtime. Internal components, electronics, and wiring are also susceptible to corrosion and electrolysis, which can compromise function and lifespan.

In response, industry professionals are turning to a unique anti-corrosion protectant, cleaner, and lubricant called StrikeHold®. The spray was originally developed to preserve and maintain US military weapons and heavy equipment for use in some of the harshest working conditions in the world. Today it is used to protect mining tools and equipment, including circuit boards, electrical circuits, and metal components in corrosive environments while improving electrical continuity and contacts. The spray not only protects the wide range of mining equipment comprised of such components, but also extends its usable life.

▶ The harsh mining environment makes it difficult to sufficiently

lubricate and protect tools, equipment, and electronics from corrosion 26

Mining

energy-oil-gas.com

27

An anti-corrosion protectant, cleaner, and lubricant like StrikeHold is designed to waterproof components and can be used on mining equipment that is already wet in the field

The use of StrikeHold has the potential to largely eliminate the effects of moisture, corrosion, and electrolysis in mining equipment. The micro barrier that it forms on components is so complete that an electrical charge cannot be passed from the metal into water. It also improves electrical performance by cleaning and protecting contacts and internal parts, including circuitry and connections. The anti-corrosive protectant sprays on clear or applies wet and dries in place.

The protectant is designed to waterproof components and can even be used on mining equipment that is already wet in the field. Because it has a specific gravity greater than water, when applied to a wet surface it penetrates to the hard exterior, pushes water from the surface, and coats the area.

Since the cleaner has anti-static properties, dust, dirt, and grime do not adhere to it in the natural environment. Dust blown onto a treated surface blows off cleanly with wind 28

or rain, leaving the coating intact. For this reason, the protectant and cleaner is used on hundreds of solar lighting fixtures along a coal mine roadway in Brisbane, Australia.

“The dust raised by the wind, passing vehicles, and coal trucks was very problematic for the solar panels,” says Daryl Bancroft, General Manager, StrikeHold Australia. “Once the panel is coated with the shield-like, completely dry film seal, it’s protected, and moisture, sand, dust, and dirt don’t stick to it. This eliminates a lot of preventative maintenance.”

He notes that for the mine site application the coating is also applied to printed circuit board assemblies for protection against moisture and corrosion.

“StrikeHold prevents moisture from getting into the electronics or componentry and provides continued dry lubrication. It stops the dust and other particles that attack the running gear, including circuit boards,” says Bancroft.

Mining

Since the StrikeHold compound has anti-static properties, dust, dirt, and grime do not adhere to it in the natural environment, but blow off cleanly with wind or rain

Bancroft says that his company is working with an underground mine in Western Australia to prevent corrosion of excavator alternators using the protectant. “The alternators in large excavators can erode and fail quickly due to accelerated corrosion. This caused excessive downtime since the excavators had to be towed away for repair and alternator replacement at high cost,” says Bancroft.

“As a form of preventative maintenance treatment, a dispenser could spray StrikeHold every hour or so to keep the alternator corrosion free. This could save thousands of dollars per mining machine in downtime and repair costs, and there are hundreds of machines running 24/7,” he adds.

When moving components require dry lubrication, the compound is also effective.

The fast-acting, penetrating compound cuts through rust and dirt, quickly getting into metal parts to reduce excessive friction. The lubricant contains syntheticbased additives that act like microscopic

ball-bearings to minimize friction, facilitate maintenance, and improve operation.

As surface and underground mines seek greater productivity in brutal settings, getting the most out of their tools, equipment, and labor requires superior maintenance procedures that protect the investment and enhance long-term output. Mine maintenance managers that utilize easy to apply compounds that safeguard against corrosion and electrolysis will have an advantage in the field and marketplace. ■ StrikeHold www.strikehold.com.au A unique anti-corrosion protectant, cleaner, and lubricant, StrikeHold prevents rust and electrolysis in mining tools and equipment while improving electrical function. The spray was originally developed to preserve and maintain U.S. military weapons and heavy equipment in some of the world’s harshest working conditions.

energy-oil-gas.com

29

On the

agenda

30

Digital transformation

Two places utility companies should focus when taking the core to the cloud

By Markus Bechmann

“

complexity far eclipse the sophistication of those from the ‘good old days’ (from the utility’s perspective) when a customer’s data profile included a meter number, billing address, and not much else. What’s less obvious is that, for these and other new business models that will be critical utilities’ long-term success, core processes must also make the cloud transition. There are lots of reasons for this, but let’s focus on just two of them: billing systems and distribution-related solutions.

As with core billing systems, taking distributionrelated solutions to the cloud can be a stress-inducing process

“

C

ustomer service portals have been the focus of utilities’ cloud transition, and for good reason.

The polished usability of Amazon and its ilk have raised the userexperience bar. Just as pressing is that, for climate-related, economic, and geopolitical reasons, customers are increasingly producing their own renewable energy, so they’re buying less power from utilities.

Utilities are making up for lost revenue by positioning themselves as one-stop shops for all things powerrelated. They’re doing that by offering bundles of products and services to help customers comparison shop, purchase, finance, install, and service various combinations of solar panels, heat pumps, battery boxes, electricvehicle (EV) charging ports, energy efficiency measures, and more.

This is a sea change, and it’s obvious that the cloud-based customer experience solutions capable of managing such

If you can’t bill…

Whatever their limitations, legacy utility billing systems can deal with more than a meter number and a billing address. But even ones energy-oil-gas.com

31

capable of managing a few pricing tiers based on seasonality or usage are rarely up to the task of mixing and matching various hardware and service solutions into products designed for different customers.

And if you can’t bill, you can’t bundle.

At the same time, utility leaders rightly worry about the risks of moving to the cloud their proven, robust on-premise transaction processing and billing systems.

These are mission-critical systems at utilities selling electricity, gas, and water to thousands or even millions of customers.

A digital transformation that enables dynamic product and service bundling inevitably introduces risk. That risk must be minimized at the core, and one way to do that is to recognize that, while core systems may enable competitive differentiation, they don’t drive it. Billing and similar core processes should operate in the cloud as they have for years: based on industry standards perhaps 32

adjusted at the margins at a particular utility. The caveat here is that a core cloud billing solution must support new products that customer-solution apps plugging into an open cloud platform can offer.

Tackling intermittency On the distribution side, while transmission operators are known for their second-bysecond knowledge of the state of their systems, the same doesn’t hold true closer to end customers. Distributed generation is pushing more and more intermittent renewable power into the distribution grid even as electric vehicle (EV) sales – which introduce potential demand spikes not seen since air conditioning gained popularity a half century ago – skyrocket. Utilities must manage loads in a much more complex environment, and doing so will require the collection and management of enormous amounts of data. As EV penetration climbs

Digital transformation from about one percent of the US fleet today to the majority of it in the coming decades, utilities must dynamically manage demand to avoid grid-crushing demand spikes as commuters arrive home and plug in at roughly the same time. Vehicle-togrid technology that lets EVs act as battery packs to flatten daytime demand spikes will similarly depend on real-time intelligence that’s only feasible in a cloud environment.

In addition to load balancing and dynamically managing an increasingly complex delivery system, cloud-based systems operating on unified datasets lend themselves to machine learning and analytics for optimizing customer offerings.

One imagines future scenarios in which artificial intelligence-powered solutions predict usage patterns; dynamically assemble portfolios of hardware, service, and software solutions based on individual customers’ energy-related expenditures; present bundles of varying ambition and cost to those customers, and then price and bill based on subscription- or even outcomebased models. Such a vision involves endto-end cloud integration from supply-chain partners on through to customers.

As with core billing systems, taking distribution-related solutions to the cloud can be a stress-inducing process.

And similarly, the vastly advanced capabilities of these solutions – combined with the scalability, ease of innovation, and other advantages of the cloud – makes this move a wise one.

For the advantages of end-to-end cloud integration to materialize, utilities’ core processes must follow customerservice trailblazers to the cloud. There will be risks, but one can minimize them by understanding that most of a utility’s competitive differentiation happens at the edge. Proven, secure core processes can move to cloud and then be strategically enhanced on an innovation platform to

support the creativity and innovation utilities will need to thrive in the future – while keeping the lights on today. ■ For a list of the sources used in this article, please contact the editor.

Markus Bechmann www.sap.com Markus Bechmann is the Global Vice President for Digital Strategy of SAP’s utilities business unit. SAP is the world’s largest provider of enterprise application software. It helps companies of all sizes and in all industries run better by redefining ERP and creating networks of intelligent enterprises that provide transparency, resiliency, and sustainability across supply chains.

SAP’s end-to-end suite of applications and services enable its customers to operate profitably, adapt continuously, and make a difference worldwide.

energy-oil-gas.com

33

CLEAN

delivery Designing a high-performing filtration system – whatever the circumstances

By Tim Nicholas

34

“

Equipment

A uniform airflow through the filter bank is essential to minimize the pressure loss, and to ensure the filter efficiency and filter life are optimized

“

S

ometimes it makes sense to reuse existing gas turbine equipment and associated filtration system at another site – but it is important that a filtration solution is designed for the specific, real-world environment in which it is installed. So, how can you be sure of an efficient, reliable, and effective solution when the system moves to a new site?

From time to time, the change in energy markets can demand projects to be delayed or cancelled. This can come from government policy change or even a lack of resources available, such as natural gas.

When asked to adapt an existing system to be used at a different location – this requires experience and deep understanding of all elements of the filter house and the unique site conditions, along with the flexibility to re-engineer a successful solution.

While reusing existing equipment offers significant cost savings, it also presents some difficult engineering challenges.

One of the first issues to address when reusing a system is its footprint. While parts of the filter house may remain the same,

a change to environmental conditions will likely require adjustments to be made to the filtration other equipment, such as water removal systems, may need to be installed.

There is much to be considered in the design of the inlet filter house and this all needs to be engineered to fit into the existing footprint. The move from a dry dusty area, to one with higher moisture and rainfall will require new systems to handle water and humidity to prevent sudden system blockages. Is the installation near the sea? If so, it needs to be designed to handle salt, which is hygroscopic in nature and will quickly move between solid, sticky, and liquid states in the presence of moisture. Are different filtration stages required to deal with volumes of dust and sand? Will a pulse system be required to periodically clear filters in high dust regions, and has this been configured to ensure continued, reliable operation? Does access for maintenance require a change to walkways, and has the aerodynamics of the overall air inlet flow been designed and modelled to optimize GT performance?

energy-oil-gas.com

35

CFD simulation of the ducting aerodynamics downstream a filter house

Why are aerodynamics so important?

GTs consume huge volumes of air and, especially for smaller or highly compact GT packages, suboptimal aerodynamics can affect efficiency, power output, and overall reliability. A uniform airflow through the filter bank is essential to minimize the pressure loss, and to ensure the filter efficiency and filter life are optimized. The overall design of the filter house should encourage an even distribution of flow across the whole filter array. If the flow is not optimized, the operation of the filters and the GT itself will be compromised. Why is this? If a system has been designed to operate with 500 filters, for example, but an uneven air flow means only 400 are being fully utilized, these 400 filters are doing the work designed for 500. This can result in pressure loss, shorter filter life and, potentially, lower filter efficiency.

To ensure good aerodynamics throughout the GT inlet, requires consideration for layout and elevation. Sharp angles and 36

transitions that are not smooth will affect air flow. Even prevailing winds and the location of external structures need to be considered: if the air inlet is positioned next to a wall, it is inevitably going to reduce air flow efficiency. If the filter house is installed low down, the filtration system may suck up dust from the ground. If it is situated near sources of emissions, this will attract additional particulates that will need to be handled by the system.

Whether a new filtration system or for the repurposing an existing one, while experienced filtration engineers may be able to assess risk areas, good Computational Fluid Dynamics (CFD) simulation is an essential tool for highlighting problem areas. It will help ensure all components of the filter house are interacting correctly and enable different solutions to be considered to optimize the system for both performance and cost. This can be especially vital in

Equipment

Reconfigured filter house design for higher moisture and rainfall conditions

studying the options available in an existing footprint and give insight into how GTs and their inlet house will perform in their realworld conditions. The aim is to have no nasty surprises once the system is running!

and ingenuity to ensure reliable, predictable protection of the GTs. If the inlet filter house is designed correctly, operators can achieve optimum GT efficiency and extend system life and availability, while reducing overheads. ■

Summary The design of an inlet house for a GT installation requires in-depth understanding of the complex issues presented by different real-world environments and the interaction of different components required to ensure a maintainable, longlasting, high performing solution.

There are occasions when it makes sense to repurpose an existing system and significant cost savings can be made. However, the engineering challenges to optimize the performance of such a solution should not be underestimated. It requires significant experience, a company that can work closely with site engineers, and deliver the flexibility

Tim Nicholas www.parker.com/gtf www.parker.com parkerhannifin.com Tim Nicholas is PowerGen Market Manager, Gas Turbine Filtration Division, Parker Hannifin. With more than 50 years of experience delivering innovative solutions for gas turbine inlet filtration and monitoring fleet-wide performance data, Parker’s Gas Turbine Filtration Division provides a full range of inlet systems and filters engineered to help customers meet their operating goals. Parker Hannifin is a Fortune 250 global leader in motion and control technologies.

energy-oil-gas.com

37

Exclusive Feature

Pooling resources

40

Energy Pool ▼ Olivier Baud, Founder

and President of Energy Pool

Energy Pool’s founder cites the factor to be tamed if we’re going to save the planet

T

he birth of Energy Pool (EP) came in 2009, at a revolutionary time within the electrical energy market in France. The country’s electricity transmission system operator had just been separated from EDF, and was left without the requisite capabilities to manage the peaks in the population’s consumption. An issue that Olivier Baud, Founder and President of EP, viewed through a lens littered with industrialists not participating in electricity curtailment measures. At this time, he was still a Chairman at Pechiney SA, one of the world’s largest consumers of electricity. As he became more aware of the new business models and technologies presenting themselves as solutions to this growing problem, he saw an opportunity to make a change.

“Today, we are a smart energy manager of complex systems,” Olivier opens. “Electricity is no longer our only mainstay, we also focus our attention on gas, and green gas in particular.

In concrete terms, we develop and operate solutions for optimizing energy consumption. energy-oil-gas.com

41

Exclusive Feature

Smart energy management We provide consultancy services for countries and large cities, and help with the design of the requisite systems and asset management as well. We are global, whilst being non-existent on the market, by which I mean we are able to use any of the tools and market mechanisms at our disposal.

We know how to control the storage, 42

consumption and production of hydrogen, and make it available to any country’s electricians, suppliers and producers, whilst taking any local requirements into consideration. We currently manage six gigawatts of generation and consumption in more than ten countries worldwide and, with an overall team of 200 people, we turnover around €50 million.”

“

Energy Pool

...we are aiming to solidify our position as the world leader in smart energy management of complex systems, and to be a major player in the energy transition

“

reorganization of EP, to shift its focus onto three new verticals, on top of the Flexibility operator which is the historical core of the business. Software and microgrids is the first, with contracts for the instrumentation and management of island microgrids, such as those it has won in the Morbihan, New Caledonia and Tonga islands. The second is the Active Factory, an energy transition enabler designed to support industrial companies through the decarbonization process. This is achieved by transforming processes through electrification or hybridization of electro-intensive assets.

Finally, the last is strategic consulting, which assists companies and public authorities in tracking energy regulations and defining energy supply strategies.

Tailored support

In July 2022, EP bought back the last of its shares still held by Schneider Electric, a strategic partner with whom the company joined in 2010 to speed up its international growth. This purchase has made the business the largest independent player in the world of energy consumption optimization solutions and the management of complex electrical systems. This year has also seen the

“We feel that mentalities are changing in the face of climate change,” states Olivier.

“This is already progression from just a few years back, but this is still only the beginning.

Succeeding in this energy transition will require a collective effort for the long term, we all need to change our habits to drastically reduce global CO2 emissions. This issue is one of civilization, which technology can only be partly responsible for fixing.

Even in countries, like France, we should not be hiding behind the fact that we only emit energy-oil-gas.com

43

Exclusive Feature one percent of the world’s CO2 emissions, one percent is already too much! It’s only by investing in a profitable decarbonization model that we can hope to encourage emerging countries to follow our example.

“We are leading the French market, as the pioneers of demand response that have been perfecting our know-how for over ten years.

Our expertise is recognized by our customers, on account of our product and services range being far larger and more technically advanced than that of our competitors. With the development of our three new verticals, we are able to tailor a unique package of support to any customer, from consultation to operations. A prime example, with regard to our core ‘flexibility’ business, is our project in Côte d’Ivoire in partnership with the Ivorian Electricity Company (CIE). Here we are responsible for the implementation of

44

demand response across over 100 industrial sites, making it possible to avoid rotating load-shedding and blackouts, in the event of an overload of the electricity network.”

Groundbreaking solutions In terms of its physical footprint, EP has operation centers in France, Turkey and Japan, as well as offices in Germany, Spain, Ivory Coast and the Netherlands – more so catered to its specific activities within those countries. The operation centers have been instrumental in the development and testing of the company’s Energy Management System (EMS), Power Management System (PMS) and Distributed Energy Resource Management System (DERMS): its three secret weapons. These one-of-a-kind solutions allow users to monitor, forecast, aggregate, optimize and control their generation,

Energy Pool consumption and storage assets, all whilst accessing new revenue streams from alternative energy reserves and markets.

The business has three major investments currently either in development, or the pipeline, all generally focused around supporting its further expansion. Firstly, there has been a recruitment drive of over 30 world-class experts to join its business expertise center, bolstering its capabilities to support a larger customer base. Next, the company has been reinvesting capital across its entire footprint to aid in the overall acceleration of its international expansion. Finally, EP has created a twin of its IT system to run through simulations of potential scenarios in order to optimize the services it is able to offer to its customers.

Going forward, Olivier states that EP will become a ‘mission company,’ with

the creation of a foundation within which the majority of the company’s capital will be held. As he concludes: “We have a program called Ambition 2030, which is driving us to better ourselves by thirty times, by 2030.

In doing so, we are aiming to solidify our position as the world leader in smart energy management of complex systems, and to be a major player in the energy transition. It is not a financial goal fueled by profit, but a moral and societal obligation to utilize all of our skills and passion, in the service of the noble cause that we call our profession.” ■

www.energy-pool.eu/en

energy-oil-gas.com

45

Connecting

the globe

Intercontinental Terminals Company exhibits strategic prowess in the management of 19 million barrels of storage worldwide

46

Intercontinental Terminals Company

energy-oil-gas.com

47

▲ ITC Pasadena

F

ounded in 1972 as a joint venture between Mitsui & Co Ltd, Company USA and a private owner, Intercontinental Terminals Company (ITC) spent the first 30 or so years of operations growing its footprint in the US. Other than a further acquisition of 180 acres of land for its Pasadena location, the business has focused on expanding its existing capacities and international reach since the mid-noughties. In 2010, the ITC-Rubis Terminal Antwerp,

48

which is a joint venture between ITC and Rubis Terminal, opened offering storage and transportation services for petrochemical liquids and liquified gases. ITC now has four facilities in its portfolio: Deer Park and Pasadena in Texas, for petrochemicals and finished petroleum products, Baton Rouge in Louisiana, and ITC-Rubis.

Establishing two bases on the Houston Ship Channel, one at Port Allen on the Mississippi river and another in one of Europe’s largest

Intercontinental Terminals Company seaports, was by no means a happy accident.

Today, ITC is wholly owned by Mitsui & Co Ltd Company USA and describes itself as a growth-oriented terminal services company, strategically positioned internationally across key market hubs. With a combined operating capacity of approximately 19 million barrels at its four locations, the business is not only one of the largest storers of Methanol in the world, but also one of the most premium in the services that it offers.

“In essence, our day-to-day business is leasing storage tanks and providing logistics services to our customers,” states Brent Weber, Chief Executive Officer. “That is the core business of ITC. We offer all modes of terminal services including marine services for barge and vessel, rail cars, tank trucks, and pipelines. For example, our Pasadena terminal is currently 100 percent dedicated to finished petroleum products, with the

capacity to hold 6.8 million barrels and move 20 million, in-and-out, every month.

This can also include gasoline blend stocks, diesel, jet fuel, and finished gasoline for the largest producers and traders in the world.

“ITC Pasadena is heavily connected to pipeline networks including both the Colonial Gasoline pipeline and the Explorer pipeline, with the former travelling 5500 miles up the eastern seaboard and the latter through the Midwest to Chicago. On account of our infrastructure, ITC Pasadena is responsible for loading out a great deal of the gasoline for export to foreign countries all over the world, roughly 20 large vessels each month.

We are pipeline connected to some of the largest refineries in the Gulf Coast.”

ITC Deer Park has been hugely successful in the Methanol industry as well, which Brent cites as the consequence of an initiative devised by the company’s previous

energy-oil-gas.com

49

ITC Deer Park

50

“

Intercontinental Terminals Company units are built the same way.

What sets ours apart at ITC Deer Park are the dedicated dock lines from each tank to multiple docks at the facility, which is unique in the business.

“In other words when a customer leases a tank, they have their own dock line to multiple marine outlets instead of just one that’s shared by multiple tanks and possibly multiple clients’.

We are always looking to sign new commercial deals and partner with good companies to help make everyone successful

“

leadership team. Some years ago, ITC leadership saw an opportunity to develop the Deer Park facility on a hub concept that involves storing customers’ similar product lines in the same terminal, thus making it easier for them to conduct business together. As a result of its superior infrastructure and logistics, the enterprise has attracted the continued custom of some of the sector’s key players.

The Deer Park site handles gases and liquid chemicals, such as Methanol, aromatics, and ethanol, as well as petroleum products like gasoline, distillates and we also store base oil and lubricants. “Here at the headquarters in Deer Park we offer a range of tank designs,” Brent says. “We have some of the traditional fixed roof storage tanks, a collection of internal and external floating roof tanks, and pressure vessels for handling LPG. In our industry, most of the storage

energy-oil-gas.com

51

▼

ITC Pasadena

“The system differs at Pasadena on account of its specialization in finished petroleum products and being built for purpose. However, due to it being a newer terminal with more up-to-date technology, we are able to move product at an extremely

52

fast rate. We have roughly enough land to build another four million barrels of storage at ITC Pasadena, and we are actively marketing that this project commercially. We are always looking to sign new commercial deals and partner with good companies to help make

Intercontinental Terminals Company everyone successful. Similarly, at Deer Park, we have around two million barrels of land that we are marketing for expansion.

Besides generating further commercial interest with this excess of over six million barrels in total, we are always looking to grow the business through acquisitions, alongside efficiency and throughput.”

When it comes to sustainability, companies within the terminal business have a uniquely large impact on the green initiatives of the industry’s customer base.

“Our clients who are producers and traders of chemicals, gases and fuel, are required to focus on scopes one, two and three when it comes to emissions. Although scopes one and two are directly linked to the client’s own activities, scope three refers to the emissions created by their supply chain and logistics operations.” As Brent details further: “We are part of our customers’ scope three

emissions as they move product through our terminals, so our focus is to reduce our emissions as much as possible in order to be a greener terminal for the environment, ourselves and also our loyal clients.

“We have implemented a three-phase approach: ‘transition’ into ‘reduction’ and ‘offset,’ across our four key de-carbonization areas: natural gas, electricity, gasoline and diesel. We recently installed solar panels on our new headquarters building which provides 30 percent of the electricity. In August 2021 we went into the renewable energy credit market as we achieved a 100 percent offset for our electricity consumption. In tackling our gasoline and diesel usage we have optimized our fleet by partially transitioning to electric alternatives and removing unnecessary combustion engine vehicles. Our consumption of natural gas is the largest emissions base that we are

energy-oil-gas.com

53

Intercontinental Terminals Company

working on, as we are regulated by law to use flares and thermal oxidizers in our processes, but even this has been reduced by 40 percent by new equipment and optimization.

“Our line of work is generally laborintensive, meaning it requires a lot of manpower and a huge emphasis on safety,” Brent concludes. “Safety is our first core value and one of five core values of ITC, with the other four being: honesty, integrity,

54

dedication and respect, which collectively are the foundations of our working culture. Our employees make ITC successful, so as CEO, the biggest task for me recently has been looking into our benefit programs, compensation structure, and employee development programs to improve retention and employee benefits.

One of ITC’s strategic objectives over the next five years is to be the preferred employer among all terminal companies on the Houston Ship Channel. Our goal is to store and move our customers’ products as safely and efficiently as possible, but within that, our number one goal is to always ensure that nobody gets hurt in the process.” ■

www.iterm.com

green The future is

Utilizing its cutting-edge technologies, Praj Industries continues on its mission of creating a sustainable future

56

Praj Industries

F ▲ CEO, Shishir Joshipura

rom humble beginnings as a supplier of ethanol plants, Praj Industries (Praj) has spent the past three decades developing into a leading global industrial biotech company, recognized as India’s most successful company in the field of bio-based engineering technologies. Praj has developed a wide-reaching international presence, serving customers in over 100 countries and across all five continents. As one of its core driving philosophies, the company prioritizes the acceleration of sustainable energy transition, developing and deploying innovative technology solutions based on the principle of a circular bioeconomy.

Since the establishment of the business, Praj has focused on the environment, energy and agriprocess industries, offering a range of sustainable

energy-oil-gas.com

57

“

Sustainability is our core business philosophy, and we strive to create a balance between people, planet and profit in all of our endeavors

“

58

Praj Industries

solutions for bioenergy, high purity water, critical process equipment, breweries and industrial wastewater treatment. CEO, Shishir Joshipura sheds light on the company’s decision to focus its innovative contributions within these sectors: “We firmly believe that mainstreaming the bioeconomy, a knowledge economy that uses renewable, bio-based resources to produce food, energy and technological solutions, will help curb pollution caused by the consumption of fossil fuel derivatives to a large extent.” He continues: “Our Bio-Mobility and Bio-Prism services are the mainstays of Praj’s contribution to the global bioeconomy.” Customer centricity is the hallmark of Praj’s growth story that is evident from repeat orders that it continues to secure from its key customer around the world.

Around 80 percent of the ethanol produced globally is used as vehicular fuel, representing an increasing demand for the development

of cleaner fuels and a commitment to reducing global dependencies on crude oil. The Bio-Mobility platform offers global technological solutions for the production of low carbon renewable transportation fuel, both in liquid and gas form, across all modes of transportation including onroad, air-based and marine vehicles. Praj’s sustainable aviation fuel technology will play a significant role as the global aviation industry develops transitional strategies for net zero flights. Furthermore, the BioPrism portfolio comprises technologies used to produce renewable chemicals and materials as alternatives to materials derived from fossil sources, facilitating the process of carbon recycling. These renewable materials can be applied across a range of industries, being used to produce sustainable products including tires, paints, cosmetics and packaging. energy-oil-gas.com

59

Developing technologies The company specializes in first and second generation (1G and 2G) ethanol production and has developed its patented Enfinity technology, which is capable of processing lignocellulosic feedstock for the production of advanced biofuels. Putting this technology to use, earlier in 2022 saw the unveiling of Asia’s first 2G ethanol bio-refinery at IOCL’s Panipat complex, with Praj acting as technology licensor and EPCM partner on this landmark project. This plant is capable of processing 0.2 million tons of rice straw annually which will be used to generate around 30 million liters of ethanol. The benefits of this ground-breaking project include eliminating around 32,000 MT of CO2 per year, the creation of around 1500 jobs and addressing the major challenge of stubble burning related pollution. It is hoped that the success of this plant will create more opportunities for similar advanced biofuel projects, which will help to achieve India’s long-term goal of energy independence by 2047.

60

Innovation lies at the heart of Praj’s growth strategy and the driving force behind this is Praj Matrix, the company’s in-house R&D center which was established in 1989. The state-of-the-art, governmentcertified facility is engaged in developing a range of renewable fuels and chemicals, boasting a portfolio of over 300 national and international technology patents. The company’s expertise across the value chain helps it to maintain a competitive edge, placing itself at the forefront of developing new technologies based on the needs of current and future markets. The company has a range of exciting new developments in the pipeline to add to its impressive innovation portfolio. This includes technologies which can process a variety of new feedstock such as cotton stalk and bamboo to produce new biofuels, as well as working on the production of new bioplastics and valueadded co-products such as bio bitumen which can be applied in road construction and bio-manures for organic farming. Praj utilizes its experience in process engineering, manufacturing and project management to

Praj Industries integrate these new technologies, in addition to providing operations, maintenance and life-cycle management services, which adds value for its customers.

Creative problem solving In addition to its technological innovations and achievements, Praj’s success is equally underpinned by a commitment to sustainability and social responsibility. As Shishir Joshipura explains: “Unquestionably people are our most prized asset and a major differentiator as they are totally committed to the bigger cause of sustainability and the company’s vision of making the world a better place.” He continues: “Sustainability is our core business philosophy, and we strive to create a balance between people, planet and profit in all of our endeavors.” The company demonstrates its commitment to this philosophy through a number of people-focused initiatives, such as programs, competitions and awards, which are designed to encourage creative problem solving and innovative thinking within the company. Furthermore, Praj has incorporated a number of green initiatives into its own operations with the company headquarters utilizing a number of sustainable techniques such rainwater harvesting, water recycling and renewable solar-powered energy. Since 2004, the company has been furthering its support of the environment, women’s healthcare and skills-based education through its CSR initiatives and is currently focused on developing a comprehensive net zero plan for the future of the company. As a part of its sustainability program, Praj’s ESG initiatives are aptly captured as “BioeconomySustainability Assured” and a comprehensive Net Zero plan is being developed.

Over the years, Praj has received numerous awards and recognitions in a range of different fields, demonstrating the trailblazing success of the company. Praj has achieved numerous global accolades,

including being recognized as the second hottest company in the global biofuel economy for 2021, receiving the Golden Peacock Eco-Innovation Award in 2019 and Chairman Dr. Pramod Chaudhari receiving the prestigious George Washington Carver Award for Innovation in Industrial Biotechnology and Agriculture, William C Holmberg Award for Lifetime Achievement in Bioeconomy. The company’s successful business performance demonstrates the increasing demand for its sustainable solutions and customer services around the world. As energy transition continues to play a pivotal role in our battle against climate change, Praj looks set to achieve its goal of becoming the global leader in providing solutions for a sustainable tomorrow. ■

www.praj.net

energy-oil-gas.com

61

Cover Story

and better West Burton Energy’s CEO discusses acquisitions, expansion and the future and current climate of the UK’s energy industry

O

riginally built and commissioned by EDF in 2013, West Burton B is a highly flexible and efficient, 1300 megawatt (MW), combined-cycle gas turbine power station located in Nottinghamshire.

The plant has been operated by West Burton Energy (WBE) since its acquisition from EDF by EIG, a US-based institutional investor, in August 2021. The facility, and its adjacent 50MW, half-hour Battery Energy Storage System (BESS) commissioned in 2018, operates within the UK electricity wholesale market, selling the power it generates back to EDF to be sold on to end users. The station is one

62

of the most modern gas plants in the UK, as well as one of the most efficient. In its production of electricity, it burns less gas and releases fewer CO2 emissions than many of its competitor plants.

Chris Elder, Chief Executive Officer, took his post in January 2021.

As he expands further, regarding the site’s capabilities: “The West Burton B gas plant is extremely flexible. From starting it up to achieving its minimum load, it only takes around an hour, and we’re able to provide a wide range of load profiles to National Grid, the system operator as well as offering services, such as frequency response and voltage support, with ease.

West Burton Energy

energy-oil-gas.com

63

Cover Story

“

Our vision is to have around five gigawatts of generation in operation, construction and development by 2026, about triple our base today

“

64

Despite the scheduled closure of its sister site in March 2023, West Burton A – a coal-fired power station that is still owned

by EDF – WBE has plans to expand its energy facilities at the existing site. It has already submitted a planning application to construct a 500MW, two-hour BESS with the ability to power over 300,000 homes during peak electricity demand periods. “We are very positive about this technology. As more wind and solar plants are commissioned and built, there will need to be a low carbon source of flexibility and storage alongside existing gas plants,” he continues. “We have secured a grid

West Burton Energy connection and hope to receive our consent to build the project next year. We have a really good base of local support from our surrounding communities, and people are keen on the idea of us developing an energy park. This battery is slightly different from its existing 50MW counterpart, which is in place largely to provide grid services and support. The 500MW project, once built, will displace more of the expensive gas generation during peak periods of demand. The batteries will charge up overnight, whilst the prices and demand are lower, and will then be discharged when these both rise in the evening.”

Powering up The majority of the battery storage systems currently in operation in the UK are 50MW or less, due to the time and costs associated with obtaining the necessary planning

permissions. However, with recent regulatory changes, companies are now able to build larger projects by securing local planning consents only. This has presented the chance for developers such as WBE to consent larger sites which will benefit from economies of scale in terms of the grid connection costs and associated land and infrastructure.

This increasing scale reflects the trend seen for other renewable technologies.

For example, the first offshore wind farms commissioned in the UK were typically around 100MW capacity, whereas today the larger offshore sites can be over 3000MW. The owner of WBE, EIG, is keen to pursue further low carbon opportunities in the UK power sector. Chris cites its involvement as being a positive influence on WBE: “EIG is an investor that is solely focused on the energy sector, bringing with it a wealth of industry knowledge and expertise. It has a

energy-oil-gas.com

65

66

West Burton Energy successful track record of deploying capital across the world, such as its founding of Harbour Energy back in 2014 – the largest listed independent oil and gas company in the UK. We’ve had a really solid 15 months with EIG, since it acquired West Burton. It has created an excellent platform from which we can pursue future acquisitions and development opportunities.”

In Chris’ opinion, there are three key contributing factors to the high power prices that consumers are experiencing this winter. Firstly, gas prices for this winter which have fluctuated between five and ten times higher than the historic norms, hence the increase in the cost of producing power for gas generators. This isn’t helped by the second issue that he raises: the UK’s reliance on imports from France to bolster electricity needs throughout the winter months. The level of imports this year has been much lower as the ageing French nuclear fleet in France has produced much less electricity than it normally would.

Finally, the volatility of commodity prices generally means parties such as WBE are selling less electricity in advance than in previous years due to the high credit and transaction costs which arise from this volatility. This means that there are fewer sellers than there are buyers of electricity on a forward basis pushing up future prices.

volume in the existing gas plant, without significant upgrades. The other pathway is retrofitting post-combustion carbon capture, with which we think we should be able to capture up to 90 percent of our carbon emissions, before transporting them to storage sites in the North Sea. “Our vision is to have around five gigawatts of generation in operation, construction and development by 2026, about triple our base today,” he concludes. “We want to be a successful and flexible generation and storage business. That’s where we see our core strengths with the team we inherited at the West Burton site and our hires since then. There is so much opportunity right now in the UK and Europe, and with our nimble and courageous team, we are confident that our vision is achievable.” ■

westburtonenergy.com

Carbon capture “It’s difficult to predict what’s going to happen next, if only I had a crystal ball,” Chris muses. “Going forward, as a management team, we are absolutely committed to the net-zero path in the longer term and we recognize that we need to employ carbon abatement strategies to get there with our gas station. The two pathways that we already have in mind, for our existing gas plant, include burning green hydrogen, as opposed to methane. We’re confident that we can burn up to 20 percent hydrogen by energy-oil-gas.com

67

Opportune placement Nola Oil Terminal’s Chief Operating Officer, Christian Amedee, discusses the ongoing development of the $930 million terminal on the Mississippi River

68

Nola Oil Terminal

C

hristian Amedee, Chief Operating Officer at Nola Oil Terminal (Nola), recognized a niche for a liquid terminal capable of efficiently storing and transferring petrochemical products into large vessels for export. Founded in 2010, Nola was originally permitted as a ten-million-barrel fuel oil terminal and storage facility. Postfoundation years saw dramatic changes to the industry though – the US lifted the ban on crude oil, and the Panama Canal expanded, allowing larger vessels into the Gulf of Mexico. Nola adapted to handle multiple materials, including crude oil and refined products. Christian obtained the first petrochemical permit in 42 years in lower Plaquemines Parish, making Nola the first fully permitted large industrial facility since Alliance Refinery was built in 1971. energy-oil-gas.com

69

“

Offloading of materials and other construction services seems to be growing, so we are expecting a good combination of both this year. It’s looking like 2023 is going to be a great year for us

“

70

Christian has since worked tirelessly and surrounded himself with skilled professionals to get the project operating.

“Nola is still under construction, but we are very excited to have completed phase one of the project and be generating revenue,” he begins. The first of two phases has seen the construction of two deep water ship docks and one hybrid barge ship dock, and has been completed on time and within budget. These two Suezmax size docks are the only two of its kind ever permitted on the river. “Larger ships mean larger cargos, which results in higher profits and increased savings on shipping,” says Christian. This is especially true for Nola, as its dock is double the size of others on the river and able to load one million barrels of oil onto a single ship.

Nola Oil Terminal

Breaking strategic ground Nola occupies a unique position on the Mississippi River. “Historically, the majority of oil-related facilities and refinery complexes are on the upper part of the river, but it is now pretty congested, with little space for new industry to come in,” explains Christian.

“That’s why there’s huge growth in the Port of Plaquemines, and it has been a pleasure to be part of the industrial development there. The Army Corps of Engineers is building a 100-year, storm-event protection levee in South Plaquemines, which I believe was the catalyst for the land rush in Plaquemine’s Parish over the last five years. Plus, it has strategic advantages – closer to the Gulf of Mexico and the river is both wider and deeper – so it really is the last of the untouched strategic ground.”

Early in the construction of the terminal, Christian noticed a potential opportunity to utilize the southern portion of the property for construction services. He explains: “We have been assisting two other industrial facilities in construction related services. I had permitted a conveyor system for offloading aggregate, originally for our own usage to keep trucks off the highways and increase safety. But this conveyor system came into demand with the industrial complexes around us, and we’ve been moving millions of tons of aggregate through this system for our own purposes and for our neighbors.” Prior to this, trucks had to make 50-mile trips to deliver aggregate, but Nola is supporting local construction by being the most accessible port on the river and providing energy-oil-gas.com

71

72

Nola Oil Terminal safer solutions. “Nola gives its users the ability to transport via marine and offload within a few miles of the sites, which simultaneously minimizes overall trucking costs and increases safety. Also, it greatly mitigates the liability associated with truck traffic on local state highways. It was a great opportunity for us to generate some revenue whilst still under construction. It’s a great foundation to start developing the tank farm on the northern end, working our way south, and put the extra acreage to use before we can develop it ourselves,” adds Christian. Nola has dedicated around half of its land to construction services and is already bringing in 300,000 tons of aggregates and limestone every month. It has also recently brought in 125,000 tons of Portland cement for two local plants.

offload cargo directly. This will double our efficiency and eliminate extra handling of the material, so we’re very excited to get construction of the platform underway.”

Moving forward, Christian concludes that, “the upper portion of the property will continue its oil related buildout. Offloading of materials and other construction services seems to be growing, so we are expecting a good combination of both this year. It’s looking like 2023 is going to be a great year for us!” Thinking further ahead, he proposes: “I think the construction related business will start to decline in around five years’ time. The tank farm will then start to move south and eventually will have the full ten-million-barrel terminal with docks and connecting pipelines in operation.” ■

www.nolaoil.com

In the pipeline The second phase of the project, which started at the beginning of the year, includes the construction of another barge dock, as well as large scale landbased storage facilities. The storage facility aims to achieve a capacity of up to ten million barrels with onsite blending, storage, and transfer amenities. However, the success of the construction services during the first phase of the project has resulted in an additional objective for the second – to increase the efficiency of offloading construction materials. Nola plans to do so by constructing a large vehicular platform, more conveyors, and various associated landside infrastructure.

“Right now, we’re having to somewhat double handle the heavy cargo with two different crane systems, but we are building a 65-by-500-foot platform that will allow us to drive the truck right up to the ship and energy-oil-gas.com

73

Greener and cleaner A renewable energy revolution is underway at IMTT

74

IMTT

I

nternational-Matex Tank Terminals – better known as IMTT – is a name that’s been synonymous with petroleum in North America for more than 80 years. These days, the company is leading the way with a ‘greener and cleaner’ revolution in the oil and gas industry.

While petroleum is still very much part of the picture, IMTT is focusing heavily on energy transition and improving support and logistics for greener fuels – with a focus on renewable diesel and feedstocks, sustainable aviation fuels and cleaner marine fuels.

It’s a slick transition for the bulk liquid storage company, and also a smart response to the ever-increasing demand for low-carbon energy solutions and sustainable fuels.

“In the next three to five years, we will have upwards of 60 to 65 percent of what our business would consider ‘greener and cleaner,’” says Carlin Conner, Chief Executive Officer of IMTT. “When we bought the business two years ago it was probably 30 to 35 percent.

“But it’s important to appreciate that we are dealing with percentages and it doesn’t mean we are shrinking the legacy petroleum business. We are managing that side of the business still – and there is still lots of demand for legacy petroleum. The increase in percentages is really a function of new investment in the green space.”

energy-oil-gas.com

75

Carlin Conner, Chief Executive Officer of IMTT

“

We will continue to work hard, to continue to grow our greener and cleaner share of the business and continue to transform IMTT...

“

76

Headquartered in New Orleans, Louisiana, IMTT is an industry leader in the handling and storage of bulk liquid products from its 17 terminals across North America.

Those bases handle everything from petroleum and biofuels to commodity and specialty chemicals, alongside vegetable and tropical oil products for its many customers which include refineries, chemical manufacturers, and distributors.

Creating cleaner road fuel IMTT has developed a strong reputation for supporting the renewable road fuel market with mass storage of products including renewable diesel, biodiesel and ethanol. The

IMTT company’s huge success in collaborating with customers has recently led to two major expansion projects – each worth over $100m – that will handle renewable diesel feedstocks in addition to supplying renewable diesel to the market.

The first project, which is now live, involves tankage, rail facilities, and two pipelines. IMTT receives renewable diesel feedstocks that it delivers to the renewable diesel plant. The plant then returns renewable diesel, which is distributed to the market.

Carlin continues: “In the meantime we have also announced a very similar project at our Geismar facility, which is upriver from New Orleans, where we have contracted with Chevron/ REG to receive and handle renewable diesel feedstocks produced at their plant.

We will then deliver the feedstock via

energy-oil-gas.com

77

pipeline to their renewable diesel plant and we will receive finished renewable diesel back for distribution to the market.

“Both of these projects are backed by long term contracts, and both are completely in the renewable space, basically taking rendered fats and vegetable oils as feedstocks and creating a cleaner diesel that can be used on the road.”

But the growth and development at the Geismar terminal doesn’t stop there. IMTT is also building out its methanol tankage and pipelines to expand its existing relationship supporting Methanex, the world’s largest producer and supplier of methanol. In addition to being a chemical used for everyday products, including plastics, paints, and construction materials, methanol is also a clean energy source used to fuel everything from cars and trucks to ships and boilers.

Adding tanks, increasing storage, installing new pipelines, and making new connections: it’s all happening at IMTT. As 78

such, it’s no surprise that the company is serving an increasing number of customers operating in the ‘cleaner and greener’ space.

With an array of large capacity terminals in major US and Canadian markets, IMTT fully intends on leveraging its footprint to continue growing on the energy transition front. At the moment, the company is involved in preliminary discussions that may result in exciting new logistics infrastructure being built on the Mississippi River which could potentially be used in the production of another low carbon energy source – blue ammonia.

Safety first It is expected that there will be opportunities along the line for Asian and European renewable energy firms to support the development of blue ammonia production, and IMTT has the logistics, infrastructure, and facilities available to help make these clean fuel ambitions a reality.

“We believe it’s a win-win,” says Carlin.

“Obviously the environment benefits from that,

IMTT and playing a significant part in tackling climate change. But what is the vision for IMTT for the next five years?

“More of the same,” insists Carlin. “We will continue to pursue energy transition projects. Our brand name around this is ‘greener and cleaner’. We will continue to work hard, to continue to grow our greener and cleaner share of the business and continue to transform IMTT from a legacy petroleum business to a company that is servicing all sorts of new, clean and exciting fuels in energy.

“As always, we want to thank our employees. None of this is possible without the fantastic roster of employees – and it’s everyone from the operating floor all the way through to headquarters. We have a great group that is focused and loyal, creative, smart, and committed.” ■

www.imtt.com and we also believe industry benefits as well.

As with everything we do, we have to do it right – and we have to do it in conjunction with our communities. That to me is about education, as well as standing up for what we believe.”

It’s all about forward progress with IMTT, and the company has come a long way in various other areas of its operations.

Historically, the organization’s safety record was “unacceptable,” according to Carlin. Before the company was bought and he became Chief Executive Officer two years ago, huge strides had already been made to create a culture that puts safety first and foremost.

Nowadays, Carlin and his management team are extremely proud that IMTT’s safety record is ten times below the industry standard in terms of incidents. The aim is now ‘destination zero’ where processes are so effective that future years can go by with no health and safety incidents taking place at all.

More exciting projects are in the pipeline for 2023 around energy transition energy-oil-gas.com

79

80

WUN H2

Carbon-zero

collaboration How WUN H2 is uniting heavyweight industry players in the production of green hydrogen

W

UN H2 is the operating company of a venture between Siemens Financial Services, the gas trading company Rießner-Gase and the utility company, Stadtwerke Wunsiedel (SWW). The project, to build one of the largest green hydrogen production plants in Germany, started approximately three years ago, and was officially inaugurated and ready to produce green hydrogen in September 2022. Today, up to 1350 tonnes of green hydrogen can be generated annually from renewable solar and wind power in the Wunsiedel Energy Park.

Hydrogen is generated by an electrolyzer with a total capacity of 8.75 megawatts. energy-oil-gas.com

81

“

Another challenge is in achieving an affordable price for green energy.

The markets are very volatile at the moment

“

82

As Dr. Philipp Matthes, Joint Managing Director, explains: “The Wunsiedel plant includes a two-step compression system up to 500 bars. There is 500-bar storage and a filling station on-site. The intention is to have the hydrogen collected by trucks and delivered to local and regional, commercial and industrial customers.

Additionally, the hydrogen can be distributed via a pipeline to a neighboring Combined Heat and Power (CHP) facility that provides process heat for wood pellet production. These currently run exclusively on natural gas, but we have the option to substitute significant amounts of the natural gas with our hydrogen to enable the decarbonization of these processes. Thirdly, there will be a hydrogen refilling station for trucks and commercial vehicles This option will be implemented by spring 2023 and enable the decarbonization of the mobility sector.”

WUN H2 Hydrogen is a key technology to energy transition. The innovative approach in Wunsiedel will enable greater independence from the grid. Dr. Thilo Rießner, Joint Managing Director, explains: “The electrolyzer produces a current that splits water into hydrogen and oxygen. If the electricity is produced by renewable sources, such as solar or wind, the resulting hydrogen is also considered to be renewable.

“We have always needed hydrogen, and have had to source it from elsewhere, usually from big chemical plants, and not always without difficulty. As a family-owned, medium-sized industrial gas company, we wanted a new source of hydrogen: one that is renewable. We encountered the project in Wunsiedel between SWW and Siemens, and the concept developed from there.”

Philipp continues: “This shareholder concept brings together Siemens, the

big technology provider incl. its Financial Services arm, the sales partner with the gas knowhow, and the municipality to anchor all the local factors.” As such, the Wunsiedel green hydrogen project serves as a model for production. However, it is not without its challenges.

Philipp explains: “The biggest challenge is the lack of a regulatory framework for green hydrogen in Europe. There is the Renewable Energy Directive II which is currently under discussion with the European Union, but is yet to be implemented into law. This is primarily because there is currently no global trade in this product, and no industry or regulatory body has taken the step of providing an express standard or definition. Without one however, it is difficult to approach potential customers.

In the absence of regulatory standards, what constitutes green hydrogen will

energy-oil-gas.com

83

“

In roughly ten seconds, we can fully power the plant up or down, and react really quickly to changes in energy production

“

84

WUN H2

need to be contractually agreed between the buyer and seller. At the moment, customers cannot be reassured of the real value of green hydrogen. That is one of the biggest problems. It prevents securing long-term contracts, without which it’s practically impossible to plan strategically.

It makes everything challenging for the bankability of the project. That said, we have nevertheless been able to secure a nonrecourse project finance scheme, which to our knowledge is a first, at least in Germany, maybe even Europe and worldwide.

Siemens Financial Services played a key role here with its capabilities to combine the technical world with financial expertise.”

Thilo continues: “New technology brings considerable uncertainty; banks prefer established market technologies. It was a challenge to secure this non-recourse finance from UmweltBank, which while exclusively financing ecological loan projects, did still rely solely on projected cashflows.

“Another challenge is in achieving an affordable price for green energy. The markets are very volatile at the moment.

A Power Purchase Agreement (PPA) is a long-term agreement between a renewable developer and a consumer for the purchase of energy. While they may have guaranteed good prices in the past, it’s very difficult to secure them at today’s prices.”

Building flexibility In terms of the project’s future-proofing strategies, the Wunsiedel plant was designed to enable growth and an increase in production to up to 17.5 megawatts. This would be no mean feat, however, and will require sufficient off-take and compression system capacity. Philipp continues: “Part of our plan is to extract the waste heat produced by the electrolysis process and deliver it to neighboring facilities for their use. Furthermore, we aim to use the oxygen that is being produced. Due to its current energy-oil-gas.com

85

WUN H2

low value however, the concept is still in development. It will be much easier to implement once we’ve doubled the size of the facility, as we’ll have a greater quantity to sell. The plan at the moment is to include oxygen in a nearby waste water facility’s processes to enable more energy efficiency.

This will tie in with the overarching aim of WUN H2 which is to utilize all value streams: hydrogen, oxygen and heat.”

One of the main drivers for WUN H2 is to build up flexible energy loads by converting the available renewable energy into storable hydrogen, making it available for applications in mobility and industry. This is especially useful when, on sunny and windy days, more energy from renewable sources is produced than needed. As Thilo explains: “In roughly ten seconds, we can fully power the plant up or down, and react really quickly to changes in energy production.”

While the Wunsiedel plant is one of the biggest today, when contemplating 86

future energy needs and hydrogen production, it’s unlikely to remain so, as the region is not a big metropolitan area, and in terms of what more can be achieved, there are limitations.

That said, from a broader shareholder perspective, its impact is likely to be vast if the approach is replicated and implemented by other municipalities.

Looking forward, Thilo concludes that “the main thing is to ensure stable and reliable production. Then, of course, when everything is running smoothly, we can proceed to the next step and increase our output. The market is relatively new, so there are very few experts, and those experts are still learning. It will take some time to embed the knowledge that’s needed to ensure seamless operations for the future.” ■

www.wun-h2.de