Energy Transition Update

ThisWeekinFM's guest writer, Daniel Lynn, brings you more stories on the energy transition from around the world to provide a better understanding of the current levels of action and investment being undertaken by national governments and large companies to decarbonize international energy supplies. 

UAE

The UAE will attempt to gain a 25% global market share of low carbon hydrogen by 2030 and has set aside $163 billion to be invested in carbon neutral energy. Investment includes two green hydrogen plants, one of which is currently under construction. The plant under preliminary construction is a result of collaboration between three companies: German energy multi-national - Siemens Energy, the Dubai Electricity and Water Authority (DEWA) and Expo 2020 Dubai. This new plant will be located in Dubai and create green hydrogen using solar panels.

France

- The French government has announced their intention to work closely with the UAE in developing green hydrogen projects. This announcement coincides with a French governmental declaration to incorporate hydrogen into its national fuel options in the coming years. Major progress has been made in the constriction of Saint-Nazaire offshore wind farm. As of spring 2022, the wind turbines will be installed offshore and gradually employed into service. Wind farm capacity will produce annual electricity consumption for 700,000 people.

- A pilot project with ArcelorMittal Mediterranee, a subsidiary of steel giant ArcelorMittal, will substitute current hydrogen use and help decarbonise high-performance electric steel production needed for the electric vehicle industry.

- Genvia has also agreed to work with Ugitech, part of Swiss Steel Group, to demonstrate the technical relevance and performance of hydrogen as a clean source of energy for a reheating furnace to replace natural gas.

- Another prominent project will focus on introducing hydrogen to the cement sector. It is partnering on this initiative with cement group Vicat SA; Hynamics, a hydrogen subsidiary of EDF and EDF research.

UK

- UK giant BP has coalesced with two UAE energy companies – Andoc and Masdar in an effort to decarbonize its own business operations as well as to undertake national hydrogen investment plans in both countries (UK & UAE). The companies aim to introduce an initial energy capacity of 2 GW to green hydrogen hubs across the UK and UAE. Future developments in technological refinement will enable capacity to rise to 5 GW.

- UK oil company Shell is in the process of forming multiple hydrogen alliances across numerous industrial sectors spread throughout the world. It is involved in H2Accelerate, a collection of companies that have combined resources to create the conditions for a large-scale rollout of hydrogen trucking infrastructure across Europe. Working together with Daimler AG, IVECO, OMV and Volvo Group, H2Accelerate aims to prove the viability of hydrogen for heavy duty in Europe over the next decade.

- Shell is working on the delivery of the world’s first liquefied hydrogen carrier. The Suiso Frontier, was launched in 2019 and undertook its maiden voyage on 24^th December 2021. The ship will act as a demonstration pilot case for potential large-scale distribution of hydrogen between Australia and Japan. 

- A Dutch bus company has begun fuelling their buses with hydrogen from Shell at a newly built hydrogen station.

Saudi Arabia

- A green hydrogen plant will be constructed in the new $500 billion mega city of Neom which will sit across the border of Egypt and Jordan. Once constructed the city is to be powered entirely from renewable energy. The plant will cost $5 billion and will manage a capacity of 4 gigawatts. The plant will possess the capability of producing 650 tonnes of hydrogen per day.

- One other huge hydrogen project being pursued by Saudi Arabia is the idea of using the Jafurah gas field to produce mass-amounts of blue hydrogen. The $110 billion Jefurah gas field will donate a sizeable percentage of gas which will then be used to convert to blue hydrogen for export. Within 22 years the project is hoped to provide a net income of $8.6 billion for the government as well as boosting gross domestic product by $20 billion annually. 

- Saudi firm the Modern Industrial Investment Holding Group and Intercontinental Energy, an Australian green hydrogen manufacturer have combined recourses to explore the development of green hydrogen and other alternative fuel sources.   

- State owned Saudi oil company Aramco, the world’s largest exporter of oil, has signed multiple preliminary agreements which will enable the acceleration of green hydrogen and other green fuels.

- Saudi Arabia’s energy minister Abdulaziz bin Salman expressed an interest in exporting green hydrogen to European countries through a constructed pipeline if the economics can be justified.

Qatar

- Alongside the UAE, Saudi Arabia and Oman, Qatar is part of a collection of oil rich states that are collaborating in order to attract $44 billion of investment towards hydrogen projects operational by 2030.

- State owned oil company, Qatar Energy has also signed an agreement with UK oil and petrol multinational Shell, to work on hydrogen projects inside the Metropolitan area of London, specifically the transport network. Although no figures are available both parties have agreed to enter joint future investment ventures across the UK.

USA

- Air Liquide plans to invest nearly 60 million U.S. dollars (approximately 50 million euros) to construct, own and operate onsite plants and systems at a new manufacturing site in Phoenix, Arizona, in support of this new agreement. Operations and supply are expected to start in the second half of 2022. Air Liquide has announced a long term agreement to supply ultra-high purity hydrogen, helium, and carbon dioxide to one of the world’s largest semiconductor manufacturers.

- Southwest Gas Holdings Inc. is preparing to pilot hydrogen blending in natural gas infrastructure. The company which distributes gas in Arizona, California and Nevada  is partnering with Arizona State University and the University of Nevada Las Vegas to launch two hydrogen blending pilot projects.

Article written by Daniel Lynn, Editor, Good Publicity | Published 16 February 2022