Geir Tuft

The impact of energy transition for energy users For several years now we at WBD have conducted an energy transition survey to capture information about current trends and concerns affecting business leaders across multiple jurisdictions. This year we are extending the survey to invite responses from energy users, as well as suppliers, to provide our clients and contacts across the manufacturing sector and a range of other sectors the opportunity to comment collectively on how energy transition is having an impact on strategy. Please take 5 minutes to complete the survey using the link below. Please also share the survey with your own network, so the data we collate is representative of a broad cross section of industries. https://ow.ly/xHjJ50SmoBb The results of the survey will be published later in the year. #WBDEnergyTransition #EnergyTransition #NetZero #Survey #pointofviewlikenoother

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Partner's News The Energy Hubs – Fill the Backbone report by Hydrogen Scotland member Net Zero Technology Centre highlights the emerging opportunity to export green hydrogen from Scotland into the expanding hydrogen market in Europe. Economic modelling indicates that a 10 GW scale Energy Hub in Scotland producing green hydrogen from floating offshore wind could produce hydrogen for £3.90/kg. To capitalise on this opportunity, Scotland will need to develop strategic Energy Hubs in time to meet this growing demand. https://lnkd.in/gPJgp5SC

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Carbon Capture and Storage (CCS) technology pretends to reduce CO2 emissions by capturing carbon dioxide at its source and securely storing it underground. However, its implementation faces challenges such as being stupid, high costs, technical hurdles, and the lack of a reliable revenue stream, Its promises are rediculus, CCS technology for fossil fuel projects consistently underperformed expectations, with projects more likely to fail than succeed. The technologies one success has been delaying the contraction and stranding of fossil fuels with scientifically impossible promises and wasted time and money. #energytransition #ccsbs

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It seems the most likely route forward for the gas industry for transition in the short term is back to its roots in industrial use. The big push for establishing the gas industry came from industry, notably clients of Boulton and Watt, aware of the work of William Murdoch (a B&W employee) who wanted to more safely and effectively light their factories. Murdoch provided these plants and industrial gas lighting spread quickly across Britain. However more industrial uses were found early on, such as soldering. Industrial gas did not need to be a rich in illuminating compounds if not used for lighting and many industries adopted a low grade gas called Producer Gas for industrial purposes, it was primarily composed of #hydrogen and carbon monoxide, with other inert components. There was a whole system in the West Midlands that provided Mond Gas (very similar to Producer Gas) entirely to industrial customers. This industrial fuel gas was used for many years, with many factories operating their own gas plants, gradually switching to a cheaper and easy mains gas supply. With the switch to natural gas in the 1960's and 70's industry had to follow suit (a guide for this shown in the photograph) and natural gas became a much more popular fuel for industry, it also replaced coal and oil and greatly improving air quality as a result. At present industry seems to be the obvious market to decarbonise with hydrogen should it be available at the right volume and cost. Most industrial burner processes have previously been used with more complex Town Gas so modification would be possible to hydrogen. There will be clusters which can provide demonstration projects at scale, however as it was in the 1960's most industrial users are still on the same networks as domestic and commercial users of gas, providing a future challenge. #gas #history #heritage #energytransition

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There’s no doubt that the UK has serious ambition when it comes to clean energy. But right now, gas remains the biggest single source of power in the grid, with a share varying between roughly 25% and 40%. \ A gas-powered CHP system could actually mean lower fossil fuel consumption than electrified heating – but CHP providers need accurate data to prove it. Our latest blog for CHP providers explains how you can make the sustainable business case for CHP, using accurate, half-hourly data: #CHP #GasPoweredCHP #ElectrifiedHeating #ReduceEmissions #HalfHourlyReporting

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Dedicated Energy Hubs Needed to Transform Scotland into Leading Hydrogen Producer   The Net Zero Technology Centre (NZTC), has today [27 June 2024] launched its ‘Energy Hubs: Fill the Backbone’ report, providing recommendations that will help scale Scotland’s hydrogen production potential and establish itself as a leading exporter of green hydrogen through the development of large-scale energy hubs. 🔽 Find more info in comments below 🔽 #EnergyHubs #Scotland #HydrogenProduction #CleanEnergy #RenewableEnergy #GreenHydrogen #OilandGas #RenewableEnergy #GreenEnergy ⤵️ Click Follow on our page to keep up to date with energy news ⤵️

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Rarely have i seen a popular press article on energy which is so comprehensive. No prizes for guessing if similar work would get published in the murdoch press. To summarise the article’s correct outlook on hydrogen and green gas: Is hydrogen green? Yes it can be but most often isn’t. Grey and brown hydrogen still dominate commercial hydrogen supplies (latter being my own research). Is green gas readily available? Effectively no. Whilst biogas and synthetic green methane are being made neither are readily available to use in one’s home or business, unless one has seriously big dollars to spend. Can gas piped into your home and business ever be green? Technically yes, however any assessment of cost-effective, safe decarbonisation concludes this is unlikely a good idea. Hydrogen is being “shandied” into existing fossil gas pipelines but the maximum is ~20% (due to pipes being incompatible) providing only 5% to ~8% CO2e reduction from fossil gas. Importantly, 100% greenH2 within gas pipelines is extremely unlikely due to the need to replace most pipes (massively expensive) and replace almost ALL existing gas machinery/appliances. GreenH2 and green fuels have been buzzwords for some time. Having worked in this space in recent years the simple facts are thus: What about biogas? Biogas is fantastic; a way to convert waste organic matter into green gas (methane), which whilst still producing carbon upon combustion, is preventing methane from leaking directly. Recall that unburnt methane is 20 to 80 times worse than carbon dioxide depending how you cut the number. Can’t hydrogen and green fuels solve things? Truly green biofuels are a waste-by-product and are not estimated to be available in sufficient scale to make a substantial dent in our decarbonisation task. Green hydrogen is nice, however every greenH2 joule requires 1.2 to 1.5 joules of renewable electricity (at best) to produce it. Even theoretical electrolyser efficiency won’t bring this below around 1.1 joules. Meaning if we have green electricity, we should just use it, given it’s ease of transport compared to a combustible gas which leaks through steel pipes and changes their very composition whilst doing so (hydrogen). Given the carbon intensity of green hydrogen and it’s challenges in storage and transport, objective assessments agree there is a hierarchy of uses for this expensive fuel. Namely, focusing on hard-to-decarbonise sectors such as heavy transport, aviation and heavy industry. Using green hydrogen or biogas for cooking is a bit of fun but given the ready availability of induction cooktops…. Well, i shouldn't have to spell it out. Like too many things in our modern economy, just follow the money.

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“French #nuclear giant scraps SMR plans due to soaring costs, will start over” Giles Parkinson - Jul 2, 2024 “The French nuclear giant EdF, the government owned company that manages the country’s vast fleet of #nuclearpowerstations , has reportedly scrapped its plans to develop a new design for #smallnuclearreactors because of fears of soaring costs.” “The French investigative outlet L’Informé reported on Monday that EdF had scrapped its new internal #SMR design – dubbed Nuward – because of engineering problems and cost overruns. It cited company sources as saying EdF would now partner with other companies to use “simpler” technologies in an attempt to avoid delays and budget overruns.” “The federal Coalition says it can have the first SMR up and running by 2035, but no SMRs have been built in the western world, and none have even got a licence to be built.” “The closest to reach that landmark, the US-based NuScale, abandoned its plans after massive cost overruns and push back from its customers, who refused to pay high prices.” “The EdF plans appears to have run into similar problems. Its potential customers, the European energy companies Vattenfall, CEZ and Fortum, wanted guarantees that the SMRs would not have a #levelisedcostofenergy of more than €100 a megawatt hour ($161/MWh) and EdF decided that that was not possible.” https://lnkd.in/e_cMfpfb? Source- original post Read all my posts #MariusPreston

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ENGLAND & WALES - NOT IN MY BACK YARD. SCOTLAND – OIL & GAS AND RENEWABLES PLEASE. THE CONTRADICTION OF NET ZERO PUBLIC OPINION. Energy Voice has just published an article detailing a U.K. public opinion poll regarding the British people’s attitude to energy provision and net zero. For me the results of the poll are unsurprising. There’s a division in opinion between those who are acutely aware of the economics of energy and those who are not. More than 50% of Brits favour putting a ban on new licences for oil and gas exploration in the North Sea. However, 75% of Scots back North Sea Oil production. 60% of Brits and more specifically 62% of Scots want to move ahead with net zero efforts. My inference from the survey is, those who are more informed of the situation back the #oilandgas industry, while the less aware (and less economically impacted) look towards clean air and the narrative du jour. The people of Scotland understand the economic benefits of North Sea oil and of the potential benefits to their country and workforce of transitioning to #renewableenergy. One statistic which particularly caught my eye was the following: ‘A majority of respondents (58%) would also prefer politicians to agree on a cross-party approach to tackling climate change and think the issue should sit above short-term politics.’ The British public has a better idea of how to solve the energy provision quandary than British politicians. I’m sure we’re all shocked about that!

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This is not a “super sexy” topic… 👇 It does not gain headlines on media... But it is VERY VERY important, not only for the energy sector, but for trade, industry and more in general for economy. As too often forgotten, the petrochemical industry is THE BACKBONE of global economy, being essential to the production of clothing, tyres, detergents, fertilisers, and countless other everyday products. And what happens in the sector is a sort of seismic shift.     Once again, the big character of such story is China. Because what #China is doing might have massive implications on multiple sectors. The move of  the country in petrochemicals is unprecedented in the history, as in just 5 years  “China is set to add as much production capacity for ethylene and propylene – the two most important petrochemical building blocks – as presently exists in Europe, Japan and Korea combined” - to us the words of IEA colleague that made a specific commentary on this few months back – available here: https://lnkd.in/eUDcEqbc).   If from an energy lens this hugely impacts dynamics on the oil sector, what is even more relevant is the positioning of the country in a sector so strategic for the economy as a whole. The “business” model of #China is quite consolidated: learn, develop and deploy at massive scale, often leading to overcapacity that floods the markets creating a dominant position. The examples in this sense are several and everything suggests this might be the case for petrochemicals industry too.   An interesting point is that while all the eyes are on China’s leading position in the manufacturing of many emerging technologies – from electric vehicles to solar panels; from batteries to critical minerals – the Asian giant is moving fast to take the lead also on a very traditional industry that – for the time being and maybe still for a while – will remain essential across the entire global economy.   Not a detail at all… . #energy #data #oilgas #investment #leadership #future #innovation  

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Are blue hydrogen and CCUS key to Scotland’s climate conundrum?: Scotland finds itself in the decarbonisation spotlight and, as befits its pivotal role in UK energy, everyone is having their say. #gasworld #industrialgas

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🐣 Which came first?? Here’s your weekly dose of S&P Global Commodity Insights #EnergyCents and this week Hill Vaden and I got to speak to #Hydrogen & Low #Carbon expert Brian Murphy about how governments are striving to stimulate #investment in clean hydrogen supply & demand. And! What are implications of recent hydrogen-directed policy in the United States and Asia? How are business models responding to the uncertainties of evolving subsidies? As ever check it out wherever you get your podcasts from.. enjoy Energycents@spglobal.com 🔗link in comments

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Carbon Clean welcomes a new report by the Carbon Capture and Storage Association, bp and ECITB. The report provides insights and recommendations to address the future of green jobs in the UK, including the critical skills gaps and opportunities in the #CCS sector. Key highlights include the pivotal role of CCS in industrial #decarbonisation and the safeguarding of existing heavy industries, significantly contributing to the future of the UK economy. This includes: ✅ The CCS industry doubling down on what works well for addressing skills challenges, including investment in STEM outreach, apprenticeships and vocational training. ✅ Enhanced place-based coordination of skills activity within CCS clusters, combined with wider cross-government policy enablers around the deployment of CCS, to maximise impact across the UK. ✅ Continued certainty from government on CCS policy and investment. The employment opportunity is also clear. Jobs within the wider CCS sector, including the deeper supply chain and associated cluster projects, could peak at ~15,000 direct roles by 2030. Read more below. ⬇️

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🚂 A historic moment! 🚂 This was the last ever coal delivery to a British power station on 28th June! One of the most significant contributors to UK's decarbonisation has been the switch from coal to gas for producing electricity. This was a huge industry transformation that happened far faster than anyone predicted, predominately because of policy changes that made gas significantly cheaper than coal. On 30th September the UK's final coal-fired powerstation Ratcliffe-on-Soar in Nottinghamshire is scheduled to close, having originally been commission in 1967. This perfectly underlines a two things for me... 1️⃣ Rapid Progress is Possible 🔜 If you had told people 15-20 years ago that the UK would have completed weaned ourselves off coal for electricity generation by 2024, they would have laughed and told you to be realistic. When the right policy and incentives are aligned, rapid change is not only possible, it's inevitable! Future generations will talk about things like the USA's Inflation Reduction Act as being a watershed moment in accelerating our transition off all fossil fuels. 2️⃣ Long Term Planning Is Critical 🗓 This coal power station was planned 57 years ago. Energy infrastructure must be planned with a long term lens, otherwise you risk stranded assets that cease to be useful in a changed economy. As made clear by the IEA, we should not be licensing ANY new oil and gas exploration or development for exactly this reason - we won't need it 30-40 years from now. So this is a celebration-worthy milestone that I hope we can see repeated in other countries (particularly China) and indeed in phasing out all fossil fuels in favour of a cheaper, cleaner, healthier world powered by renewable energy. Onwards! ⏩️⏩️⏩️ #CoalTrain #FossilFuels #Decarbonisation #NetZero #RenewableEnergy #Transition #Coal #CleanTransition

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This is such an important message for our energy sector. The reality is that there is no going back; we can’t put the cap back on private sector investment and can’t go back to loading up the country balance sheet while the rest of the world is creating competitive markets.

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I sat next to a hedge fund analyst at a dinner in London recently who mentioned off-hand that he was looking at floating offshore wind. I'd never heard of it. "Wait, *floating* offshore wind? How on earth does that work?" He started to explain it to me, and to his credit, sat there answering stupid questions from me for half an hour. "How on earth is it anchored to the seabed?" "Aren't the turbines less efficient if the platforms are wobbling about?" "What about tides and storms?" "How do you get power back to shore?" "By what factor does this technology increase UK wind reserves?" "What are the implications if it's in international waters?" "Could pirates come and slash the cables and just tow the whole thing away?" "Would your hedge fund be willing to fund such a clandestine 'scrap collection' venture in the open seas?" Truly one of the most fascinating things I've seen in the renewables sector in a while. https://lnkd.in/ejR9NkmU

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How do Renewable Liquid Gases contribute to decarbonising heating in off-gas grid Britain? Find out from Duncan Carter, our Head of Corporate Affairs, in this article on PoliticsHome: https://lnkd.in/eMSYswYi  

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Companies from Everfuel to Nel Hydrogen have been decoupling their hydrogen production and refuelling businesses. It makes good commercial sense for multiple reasons which is why at Element 2 we didn’t get involved with hydrogen production. Here's why this strategy is so effective: 🚀 **Focus and Specialization**: By creating distinct entities, each business can concentrate on its core competencies. One can advance electrolyser technology while the other enhances refuelling infrastructure, driving innovation and efficiency in both areas. 💡 **Market Dynamics and Investor Interest**: Different parts of the hydrogen market attract varied investor interests. This separation allows investors to choose their focus, whether it's hydrogen production or refuelling infrastructure, leading to better-targeted investments and potentially higher valuations. 📊 **Financial Performance and Burden Reduction**: Decoupling underperforming segments can improve overall financial health. For example, shedding the refuelling business can relieve pressure on sales and margins, allowing the production side to aim for profitability and stronger financial performance. 🤝 **Strategic Flexibility and Partnerships**: Independent companies can forge more effective partnerships within their domains. Refuelling businesses can collaborate with automotive manufacturers and governments, while production businesses can partner with energy producers for tailored growth strategies. 📜 **Regulatory and Policy Adaptation**: Separate entities can navigate regulatory landscapes more efficiently. A refuelling company can focus on infrastructure-specific approvals and subsidies, while a production company can tackle regulations related to hydrogen generation and distribution. 🔧 **Operational Efficiency and Risk Management**: Streamlining operations through separation enhances efficiency and allows better risk management. Challenges in one business won't directly impact the other, making each more resilient and adaptable. In summary, decoupling hydrogen refuelling from production not only enhances strategic and operational focus but also attracts targeted investments and improves financial metrics. This structure sets both businesses up for growth, innovation, and increased market confidence. #Hydrogen #RenewableEnergy #Innovation #BusinessStrategy #Sustainability #EnergyTransition

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