Low Carbon Pulse - Edition 16

Please click here for the previous Edition of Low Carbon Pulse. Please also click here and here for the first two articles in the Shift to Hydrogen Series (S2H2): Elemental Change series.

A PDF version of this article is available for download below.

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As the dust settles after the Leaders' Summit, some reflections:

Edition 15 of Low Carbon Pulse provided a summary of the key outcomes from the Leaders' Summit. As the dust settles, the following key themes have emerged and appear to be here to stay:

• the role for coal is diminishing, and this appears likely to continue absent technological change;
• each country needs to set intermediate GHG emission targets, and for this purpose to increase Nationally Determined Contributions (NDCs), and amend them formally under the Paris Agreement;
• solar and wind renewable energy will do most of the heavy-lifting to decarbonise energy use, but renewables will not be sufficient, hydrogen and negative GHG emission initiatives are needed too, and are needed quickly; and
• action on methane (CH₄) is required, with landfill contributing at a level not previously understood, and CH₄ is arising from sources and to an extent not previously understood, including decommissioned oil wells.

EU confirms 55% reduction in GHG emissions by 2030 in new Climate Law:

Edition 5 of Low Carbon Pulse reported that on December 10, 2020 agreement had been reached on an EU-wide GHG reduction target of 55% by 2030 (55 by 30), compared to 1990 levels. The 55 by 30 was less than the 60% by 2030 that the European Parliament preferred.

On April 21, 2021 the EU Commission welcomed the provisional agreement on the European Climate Law reflecting 55 by 30. While 55 by 30 has grabbed the headlines, the European Climate Law also addresses what is needed to achieve net-zero GHG emissions by 2050. The Climate Law imposes limits on the extent to which carbon credits may be counted towards the achievement of GHG reductions. This may be expected to an area for continued development overtime.

EU President Ursula von der Leyen is reported to have said: "I am delighted that we have reached an agreement on this core element of the European Green Deal. Our political commitment to becoming the first climate neutral continent by 2050 is now a legal commitment."

On formal approval of the provisional agreement by the EU Parliament and Council, the European Climate Law will enter into force. It is understood that the EU will introduce climate legislation in June 2021 for the purposes of reworking the regulatory framework so that it is aligned with achieving of 55 by 30.

See: Commission welcomes provisional agreement on the European Climate Law

Germany accelerating:

In the context of acceleration of GHG emission reductions, the German Parliament has decided to increase the rate at which Germany tenders for the installation of solar photovoltaic, and off-shore wind, capacity, by increasing the capacity to be reverse auctioned from 1.9 GW to 6 GW for photovoltaic, and from 2.9 GW to 4 GW.

See: Germany expands capacity in wind, solar power auctions

UK enshrines 78% by 2035 in law:

On April 20, 2021, the UK Government published the UK's Sixth Carbon Budget (covering 2033 to 2037). In line with the recommendations of the Climate Change Committee (see Edition 5 of Low Carbon Pulse), the UK Government has confirmed that it will legislate the reduction of GHG emissions to 78% of 1990 levels by 2035 (78 by 35), with the legislation to become law by the end of June 2021.

The UK is half-way to achieving net-zero GHG emissions by 2050 (see Low Carbon Pulse Edition 12). Achieving 78 by 35 will take the UK to the three-quarter mark on its road to achieving the reduction in emissions necessary to achieve net-zero by 2050.

As part of 78 by 35 the UK Government is addressing GHG emissions arising from international aviation and shipping. This is a welcome move, again indicating that the UK is at the forefront of GHG reduction policy setting.

See: UK enshrines new target in law to slash emissions by 78% by 2035

PRC progressing to double-digit renewable energy:

On April 19, 2021 is was reported that the PRC planned installation of solar and wind renewable energy capacity during 2021 that will increase to 11% the total electrical energy consumption that the PRC derives from solar and wind.

This represents progress towards achieving President Xi Jinping's commitment to source 25% of total electrical energy consumption from non-fossil fuel sources by 2030, consistent with achieving peak GHG emissions by 2030. National Energy Administration (NEA) draft plan released on April 19, 2021 indicates that this level of increase will be required in each of the next five years such that by the end of 2025 16.5% of total electrical energy usage will be derived from solar and wind resources, with the balance of electrical energy derived from other non-fossil sources, including hydroelectric and nuclear.

The NEA draft plan was open for consultation until April 25, 2021. It will be interesting to follow the finalisation of the NEA plan. It is to be expected that the NEA plan will be updated to reflect over more ambitious objectives.

Also it is understood that the PRC Ministry of Ecology and Environment is to require any corporation seeking approval for the development of a cement plant, coal-derived chemical product plant or coal-fired power station, chemical or petrochemical plant, iron and steel mill, or non-ferrous metal facility (including any aluminium smelter) to do so on the basis of a carbon-emission reduction plan consistent with the PRC achieving peak GHG emissions by 2030. The implication of this requirement should be that corporations seeking approval will have to do so on the basis of the use of low, lower or no GHG emission feedstock and fuel sources. It is reported that NEA has mandated grid connection to achieve the consumption targets.

See: China to bring solar and wind power generation to 11% of total electricity use in 2021; Aluminium, cement makers are under pressure to help China achieve carbon emission goals

TOTAL momentum continues:

On April 20, 2021, it was announced that TOTAL Eren had signed a memorandum of understanding (MOU) with Province Resources, to undertake a feasibility study so as to develop in joint venture the HyEnergy Project in the Gascoyne Region of Western Australia, being in reasonably close proximity to Carnarvon: see Edition 11 Low Carbon Pulse for a description of Province Resources' HyEnergy Project.

The HyEnergy Project is part of a broader Province Resources play within the Gascogne Region, in which Province Resources is also developing its industrial minerals project (Gascoyne Mineral Sands Project).

The Western Australian Government supports the renewable energy and future fuels industry in Western Australia in all its forms. Edition 8 of Low Carbon Pulse reported on the Oakajee Strategic Industrial Area project being promoted by the WA Government, which may include up to 1.25 GW of solar and 270 MW of wind renewable energy, including for hydrogen production. The Oakajee Strategic Industrial project tender process is ongoing.

See: Total Eren teams up with Province for Australian green hydrogen project

Larry Fink and Bill Gates – critical mass on Path to Net-Zero

Previous Editions of Low Carbon Pulse have reported on the perspectives of Mr Larry Fink and Mr Bill Gates in respect of net-zero and climate change, each a founder of an epoch defining corporation. These two titans have recently gotten together to compare notes on net-zero, and then shared them.

As ever, their discussion is succinct (at just under 2 minutes) but punchy, as they convey the fundamental responsibilities within economies and across the global economy:

• Mr Fink notes "[addressing climate change is] not an easy task, but .. across the board capital is moving, and is going to move very rapidly … Every hydrocarbon company in the US is now focussed on this, whereas three / four years ago they weren’t … we are making change, making more rapid change, because of Bill and other people are expressing the need for change."
• Mr Gates notes that while in future the bulk of emissions are going to arise from developing countries: " … the responsibility to innovate rests entirely on the [developed] countries, particularly on the US …. We will not solve climate change without driving down dramatically [the costs of GHG emission reduction to make] it economic for the middle income countries who are not responsible for historic emissions [to act both on climate change while] dealing with more basic needs."

US marks the need for progress to 2035

Having determined to achieve net-zero GHG emissions from electrical energy by 2035, the US has now determined to target the achievement of 80% clean power by 2030 (80 by 30).

Critical to these ambitions is the analysis that the transition to clean power at this rate will not increase the cost of electrical energy or give rise to grid integrity and stability issues (each of these issues was identified as key in Edition 7 of Low Carbon Pulse).

The 80 by 30 target cannot be achieved at the current rate of transition to renewable electrical energy – new policy settings are needed to accelerate the development of renewable electrical energy capacity. Director of Electricity Policy, at Energy Innovation, Mr Mike O'Boyle, considers that: "An ambitious federal Clean Energy Standard … is perhaps the most consequential climate win we could hope for from [the Biden Administration]. Clean electricity is the lynchpin of decarbonisation, and there is no time to wait".

On the Road (or charging) with John Kerry and Jennifer Granholm:

The US Department of Energy has USD 40 billion available in its load program for the transition to clean energy.

In an interesting, and mixed, metaphor, US Energy Secretary of Energy, Ms Jennifer Granholm has commented: "I am ready to rev those engines back-up so that we can spur the next generation of innovation and deployment". The focus of the loan program appears likely to be on battery and fuel cell technology, including BEV and FCEV.

In answer to the question posed by the immortal Jack Kerouac: "Whither goest thou, America, in the shiny car in the night?" Increasingly the answer will be: "Nowhere, I am going home to recharge!"

Japan continues to progress

• Following the announcement of the increase in Japan's Nationally Determined Contribution (NDC) under the Paris Agreement at the Leaders' Summit (see Edition 15 of Low Carbon Pulse), it is apparent that Japan is now deliberating on how best to set policy so as to achieve a reduction of 46% in GHG emissions by 2030 (46 by 30). It is reported that the Renewable Energy Institute considers that the revised NDC is achievable if Japan is able to increase its proportion of total consumption of electrical energy to 45% by 2030.
  
  It is understood that part of these deliberations centre around reducing the time taken to obtain approvals for renewable energy projects, in particular for wind projects, on-shore and off-shore. As flagged in Edition 14 of Low Carbon Pulse, the Government appears intent on expanding the use of solar on roof-tops and elsewhere (including use of floating solar), and the development of geothermal renewable energy capacity located within national parks.
  
  See: Japan to Tackle Red Tape to Boost Renewable Energy

• On April 28, 2021 is was announced that the Japanese Government (The Ministry of Economy, Trade and Industry, or Meti) has proposed the allocation of USD 3.4 billion (¥ 370 billion) to support the development of hydrogen technologies over the next decade. This allocation would be funded from the ¥ 2 trillion fund pledged by Japanese Prime Minister, Mr Yoshihide Suga in Q4 of 2020 (see Edition 5 of Low Carbon Pulse).
  
  See: Japan to subsidise hydrogen technology development

Dial-up climate control:

There are a number of theories about the impact of achieving net-zero, for example, first, climate change is baked-in / locked-in, and will continue for some time after net-zero is achieved, or secondly, climate change will slow and cease after net-zero is achieved.

The second of the two theories has long represented the preferred science based assessment, and the theory is locked-in to the Paris Agreement. The second theory does not however mean that climate change will be reversed quickly: lower average global temperatures are likely to arise over the long term.

To accelerate lower global temperatures, GHG emissions need to be removed from the atmosphere using negative GHG emissions initiatives, thereby reducing the level of GHG emissions present in the atmosphere. To a number of commentators, on the stabilization of GHG emissions in the atmosphere, at least in theory, it will be possible to control GHG emissions, and the level of climate change.

See: Explainer: Will global warming ‘stop’ as soon as net-zero emissions are reached?

CCC / CCUS round-up:

• As reported in previous editions Low Carbon Pulse, Equinor, TOTAL and Shell are developing the Northern Lights Project (see Edition 2 of Low Carbon Pulse), and Pale Blue Dot Energy (wholly-owned subsidiary of Storegga) in joint venture with Harbour Energy and Shell, is developing the Acorn Project (see Edition 14 of Low Carbon Pulse). In addition, BP and Chevron have developed strategies for storage projects.
  
  To this list can be added ExxonMobil, having formed a low carbon business unit to commercialize CCS / CCUS technology, with a reported USD 3 billion to be invested by 2025.
  
  See: Has Exxon Mobil turned over a new, green leaf?
• Ahead of the Leaders' Summit, it was widely reported that ExxonMobil proposed the development of a USD 100 billion CCS / CCUS storage hub close to Huston, Texas (Huston Hub). If developed as proposed, the Huston Hub would capture 50 million tonnes of CO₂ each year from refineries and petrochemical facilities along the Huston Ship Channel. While ExxonMobil is not proposing direct Federal funding for the Huston Hub, it is seeking tax incentives to allow the development of technology or by the introduction of a carbon price, or both (see Edition 9 of Low Carbon Pulse).

Hydrogen storage:

In Edition 13 of Low Carbon Pulse, the HYBRIT project was outlined. On April 7, it was reported that SSAB, LKAB and Vattenfall have commenced the development of a cavern storage facility to store Green Hydrogen produced for use at the HYBRIT green steel mill.

As noted in other editions of Low Carbon Pulse, the use of cavern storage for Green Hydrogen will provide the means to produce Green Hydrogen (or Blue Hydrogen for that matter), and to store it, providing both inventory for the facility at which it is used, and energy storage. Also as hydrogen infrastructure networks develop, surplus inventory may be sold or traded, and dispatched.

See: HYBRIT: SSAB, LKAB and Vattenfall building unique pilot project in Luleå for large-scale hydrogen storage investing a quarter of a billion Swedish kronor

E-fuel / Future fuel round-up:

• On April 20, 2021 a 1,000 MW Green Hydrogen project was reported to be under development consideration at the deep-water port of Baton Rouge, Louisiana, located on the Mississippi River. It is reported that Gron Fuels is to make a USD 9.2 billion investment in a renewable fuels energy complex (BRRFP) that will produce Green Hydrogen, renewable diesel, sustainable aviation fuels and feedstock for bio-plastic production. The BRRFP will use biogenic CCS / CCUS to store CO₂ emissions arising from the fuels and feedstock derived from fossil fuel and any other carbon intensive fuels. A final investment decision is expected in 2021.
  
  See: Koch units sign on to green hydrogen project slated for Louisiana
• On April 21, 2021 it was reported that the Eni / HitecVision joint venture (established to develop green energy projects in Norway and the broader Nordic market), Vaar Energi (70% Eni, 30% Hitec Vision), will take supply natural gas to allow Vaar Energi to develop a gas-to-ammonia (G-t-A) plant in northern Norway. Vaar Energi has the option to develop either G-t-A plant or a liquified natural gas liquefaction facility.
  
  See: Groundbreaking gas-to-ammonia plant on cards in Norway's far north
• On April 21, 2021 the Australian Federal Government announced A$ 275.5 million funding for the development of four hydrogen hubs over five years, and A$ 263.7 million for CCS / CCUS projects over the next decade.
  
  See: Federal government commits a further $275m to regional hydrogen hubs, devotes similar sum to controversial technology
• On April 22, 2021 it was reported that the Baofeng Energy Group had commenced operation of its 200 MW solar powered hydrogen electrolyser facility in Ningxia Hui. This is the world's largest installed electrolyser.
  
  See: Chinese company starts commissioning 'world's largest solar-powered hydrogen' project

Hydrogen from waste … feedstock near to production and destination:

While production has yet to commence commercially, on April 27, 2021, Hyzon Motors Inc (Hyzon) and Raven SR LLC (Raven SR) agreed to develop jointly up to 100 waste-to-hydrogen production hubs (3 Hs) across the US, and globally. Hyzon and Raven SR say that the waste-to-hydrogen production facilities will produce renewable hydrogen at costs comparable to grey hydrogen.

It is estimated that 100 waste-to-hydrogen hubs could convert over 5,000 tonnes of waste a day into hydrogen: each waste-to-hydrogen hub is stated to be able to process 50 tonnes of waste a day to yield production of 4.5 tonnes of renewable hydrogen a day using Raven SR's propriety technology that derives hydrogen-rich syngas from organic matter: the technology is stated not to involve combustion or catalytic conversion. It is understood that the steam reforming process comprised in the Raven SR technology uses rotary kiln technology, in the absence of oxygen, thereby avoiding oxidation (i.e. combustion). As with other rotary kiln technologies, temperature control is key to avoid ash or slag arising, and in so doing producing biocarbon (and capture CO₂ and CO arising) and synthetic biogas. The Raven SR technology while proprietary combines proven technologies.

The renewable hydrogen will be available at point of production, with fuel cells being used by garbage collection vehicles (GCVs) and heavy goods vehicles (HGVs). For Hyzon this avoids reliance on third party development of hydrogen refuelling infrastructure (HRI) and third party supply of hydrogen to the owners and operators of its FCEV GCVs and HGVs.

The waste-to-hydrogen hub at landfill model is highly prospective:

• Hyzon co-founder and CEO, Mr Craig Knight, said: "Hyzon aims to be one of the first companies to supply our customers with a hydrogen fuel cell truck, including our own garbage trucks, at a total cost of ownership [TCO] parity with diesel-powered vehicles".
• Raven SR co-founder and CEO, Mr Matt Murdock, said: "Our planet produces over 5.5 million tonnes of municipal solid waste and 16.5 agricultural waste every day. Theoretically, if we convert all this waste, we could produce over two million tonnes of renewable hydrogen per day – enough to satisfy over 25% of total global oil demand".

See: EGEB: Up to 100 US waste-to-hydrogen hubs will power heavy-duty trucks

Prospectively, the implications of waste-to-hydrogen hub networks are significant because:

1. The wide spread use of hydrogen hubs co-located with existing wastewater and landfill facilities offers feedstock for the production of hydrogen close to demand in urban environments;
2. While waste-to-hydrogen hubs remain to be developed, their development would:
   
   • divert waste from landfill achieving reduction or avoidance of the need to landfill that waste, and the surface and sub-surface benefits that arise from diversion, and reduction or avoidance of GHG emissions arising from putrescible waste in landfill; and
   • in using wastewater and waste as feedstock for hydrogen production, reduce GHG emissions arising from extraction, production and use of energy carriers produced from fossil fuels.

High Vis Hyzon:

In separate transactions:

• TOTAL Carbon Neutrality Ventures has invested in Hyzon Motors, Inc.
  
  See: Total Carbon Neutrality Ventures invests in Hyzon Motors
• NEOM has signed a memorandum of understanding (MoU) with Hyzon Motors, Inc and Modern Industrial Investment Holding Group for the development of a FCEV assembly facility in Neom (FCEV Plant). It is reported that the FCEV Plant will be sized to assemble 10,000 FCEV a year.
  
  See: Hyzon Motors, NEOM and Modern Group Plan to Collaborate on Hydrogen-Powered Vehicle Value Chain

Wind round-up:

• Off-shore wind off the Republic of Ireland is highly prospective. In addition to the "Green Atlantic @ Moneypoint program" (see Edition 14 of Low Carbon Pulse), over 24 investigation applications have been received over the last eight months, and over 50 in the last 24 months for off-shore wind field developments.
  
  To allow easier off-shore wind field development, the Irish government continues to develop new legislation (in the form of the Maritime Area Planning Bill) to address current uncertainties and the long term development timelines for projects, so as to allow certain regulation and workable timelines: the new legislation will provide an integrated one-stop planning approval and consent process.
  
  See: Ireland’s New Legislation to Ease Offshore Wind Development
• In Edition 14 of Low Carbon Pulse research from LUT, Finland was reported. On April 19, 2021 the result of a survey undertaken by the Lawrence Berkeley National Laboratory was reported, and is broadly consistent with the LUT research. The headlines are that the cost of wind energy will reduce by up to 35% by 2035, and by between 37% and 49% ahead of 2050. The survey considered on-shore and off-shore, fixed bottom and floating wind capacity.
• Oceanex Energy has announced plans to develop:
  
  • 7.5 GW of off-shore floating wind projects off the coast of New South Wales to respond to the projected decommissioning of coal-fired electrical energy generating capacity in that State; and
  • 2 GW of off-shore wind projects off the coast of Western Australia.
  
  See: Oceanex eyes massive 10GW of offshore and floating wind farms in Australia
  
  Pilot Energy Limited was reported in Q3 of 2020 to be undertaking feasibility of an off-shore wind field off the coast from Geraldton, Western Australia. (The Pilot Energy news arose before Edition 1 of Low Carbon Pulse.)
  
  See: Pilot Energy to Take Full Control of Australian Offshore Wind Project

• On April 22, 2021, Acciona received approval to develop the 1 GW MacIntyre Wind Farm Precinct in the Cement Hills district of the Darling Downs region of Queensland, Australia. The Karara Wind Farm forming part of the MacIntyre Wind Farm Precinct, is to be developed in partnership with CleanCo Queensland, the Queensland Government's low emission electrical energy generator.
  
  See: Wind farms to generate power and jobs for the Southern Downs

• Edition 5 of Low Carbon Pulse outlined the NortH2 Project. The NortH2 Project involves the development of 10 GW of offshore wind field capacity. The renewable electrical energy generated will be used to power offshore electrolysers, with the Green Hydrogen produced to be transported to shore by a hydrogen pipeline.
  
  On April 26, 2021 Shell, RWE, Gasunie and Gascade announced signature of a declaration of intent (DoI) in respect of the AquaDuctus project to transport up to 1 mtpa of Green Hydrogen produced in the North Sea directly into northern Europe from 2035. The Green Hydrogen delivered by the AquaDuctus project into northern Europe will make use of the other hydrogen infrastructure development planned.
  
  Recent editions of Low Carbon Pulse have detailed the level of infrastructure development planned in northern Europe: Edition 12 outlined the HH-Win network, Edition 13 outlined the Clean Hydrogen Coastline initiative and the Lacq Hydrogen Project, and Edition 14 recounted the Get H2 consortium's plan to establish a hydrogen supply chain across northern Europe, the Engie and INEOS plan to develop the first hydrogen co-generation plant, and the HYPOS initiative.

• Continuing the news in respect of infrastructure development and repurposing in northern Europe, on April 27, 2021 a technical pre-feasibility study was published in respect of the repurposing of existing gas infrastructure to allow the transportation of green hydrogen from Holstebro, Denmark to Esbjerg, Germany. The study has been undertaken by Energinet and Gasunie Deutschland.
  
  See: Energinet and Gasunie publish pre-feasibility study on hydrogen infrastructure

• On April 26, 2021, Orsted (the global leader in off-shore wind field developments) and Enefit (a leading utility and having the largest wind portfolio in the Baltics) signed a Memorandum of Understanding to develop a business jointly that aims to be the leading off-shore wind developer in the Baltic region.
  
  See: Ørsted and Enefit form partnership to deliver large-scale offshore wind in the Baltic

• On April 26, 2021 it was reported that six consortia have been selected to progress to the next stage of the tender for the award of the 1 GW offshore wind field development 33 km off the Cotentin Peninsula, Normandy (Cotentin Wind Field). The off-shore wind field will be France's eighth, and the fourth using the application and competitive dialogue tender process. On ultimate selection of the preferred proponent, the Cotenin Wind Field is to be fully developed by 2028. By 2028, France will have around 12.4 GW of offshore wind field capacity either installed or under construction, being both fixed-bottom and floating – see the final item in this section.
  
  (Edition 9 of Low Carbon Pulse reported on the tender process being used: application, competitive dialogue phase and ultimate selection of preferred proponent.)
  
  See: France Reveals Normandy Offshore Wind Tender Finalists

• On April 27, 2021 H2 View reported on projects being undertaken by the UK's five natural gas network operators, Cadent, National Grid, Northern Gas Networks, SGN and Wales and West Utilities. The projects being undertaken go to the achievement of Point 2 in the UK Government's Ten Point Plan (Driving the Growth of Low Carbon Hydrogen) in a form consistent with the blueprint unveiled at the Energy Networks Association in January 2021. (The Ten Point Plan was published in November 2020.)
  
  See: In focus: Transitioning the UK’s gas networks to hydrogen

• On April 30, 2021 France announced the commencement of an application and competitive dialogue tender process in respect of up to 270 MW of off-shore floating wind capacity to be installed off the Brittany coast.
  
  As is the case with the Cotentin Wind Field, this tender process is under the Programmation pluriannuelle de l'energie (Multiannual Energy Program), under which France is seeking to contract for the development of 8.75 GW of off-shore wind field capacity by 2028.
  
  See: France Launches Floating Offshore Wind Tender

Solar and wind the way forward to net-zero:

• In a widely reported study that solar and wind resources globally have the potential to generate 5,800 Peta watt hours (PWh) of electrical energy. In 2020 the total electrical energy consumption globally was estimated to be 27 PWh (or stated in more usual terms 27,000 TWh). These statistics are contained in a report from thinktank Ember-Climate.
  
  The report notes that Australia remains "the lucky country": "With vast renewable potential and a low population, [Australia] is well positioned to become the battery of the world". Africa, Australia and Russia, with huge land-mass, are well-placed too use on-shore renewable energy sources, as opposed to off-shore facilities.

• On April 22, 2021 plans to develop a 3,800 km submarine high voltage direct current (HVDC) interconnector were outlined by Xlinks: the plan is to transmit renewable electrical energy from 10.5 GW of installed onshore solar (7 GW) and wind (3.5 GW) capacity in Morocco to the UK, making land-fall at Alverdiscott, Devon (England) and Pembroke (Wales). (See the final piece (headed Interconnection) in Edition 3 of Low Carbon Pulse for key financial modelling issues arising on use of interconnectors of over 3,500 km in length.)
  
  See: Submarine cable to connect 10.5 GW wind-solar complex in Morocco to the UK grid

Solar round up:

• On April 28, 2021 it was reported that roof-top solar in Western Australia was responsible for matching over 65% of load across Western Australia's primary grid (the Southern West Integrated System or SWIS) during early Saturday afternoon on March 13, 2021. This was a new record in Western Australia. As reported in previous editions of Low Carbon Pulse, in Australia the record levels of renewable electrical energy usage tend to occur at times of low to lowest market prices and times of low or lowest load.
• On April 30, 2021, it was reported that the wonderfully named Solarduck (Dutch floating structure specialist) has developed a smaller scale floating structure capable of hosting photovoltaic solar and electrolyser facilities. The floating structure is an integrated PV and electrolyser platform that is designed for use on inland water ways.
  
  See: Offshore floating PV platform unveiled in the Netherlands

Land Transport round-up:

• On April 20, 2021 it was reported that Hyundai Rotem has unveiled its "K-hydrogen tram". While the "K-hydrogen tram" is continuing development, it is expected that Hyundai Rotem will commence commercial production of the tram in late 2023, early 2024. The City of Changwon (where the tram is being developed), plans to use tram on its light rail network by 2030.
• On April 21, 2021 it was announced that Chevron and Toyota have signed a memorandum of understanding to develop and to build-out fuel cell infrastructure, including working together to take advantage of policy settings that allow the development of hydrogen refuelling (HRI) infrastructure development, and the transportation and storage of hydrogen.
  
  See: Chevron, Toyota announce alliance on hydrogen technology

• Belgium, Germany, Portugal and Spain are developing and testing a zero-emission train prototype. Toyota Motor Europe is to supply Fuel Cell modules for use in the prototype. The power and propulsion system in the prototype is a bi-modal drive system combining electrical energy from overhead supply with a Fuel Cell power pack that work independently of the overhead supply.
  
  See: Toyota Motor Europe to supply fuel cell modules for train prototype

• Around April 20 2021 there was wide spread reporting that the Wrightbus double-decker bus, procured by FirstGroup plc and Aberdeen City Council, had completed 100,000 miles of operation. Operation of the fleet of 15 buses started in January 2020. Aberdeen City Council produces the Green Hydrogen, the energy carrier used to power and to propel the buses. Re-fuelling of each bus with hydrogen is reported to take around 10 minutes, with 25 kg of Green Hydrogen reported to power and to propel a bus over 250 miles.

• On April 23, 2021 there was wide spread reporting of the arrangements for the development and testing of a hydrogen switching locomotive from diesel to FCEV: the California Energy Commission provided grant funding to Sierra Northern Railway and GTI to allow the design, installation and integration of hydrogen fuel cell technology to replace diesel power and propulsion.
  
  See: Sierra Northern Railway and GTI receive $4m for hydrogen switcher locomotive

• Staying in California, on April 27, 2021 it was reported that one of the major Japanese banks, MUFG Bank, has concluded a corporate loan with FirstElement Fuel (a developer based in California) to allow FirstElement to finance the expansion of hydrogen refuelling infrastructure (HFI). For MUFG Bank this is a first. Also it is reported that JBIC (the Japanese policy bank) provided funding. The funding provided to FirstElement is intended to support increased sales of Toyota and Honda FCEVs in California, the most developed market for FCEVs globally.
  
  See: Japanese bank finances US hydrogen fuel network

• Also in April 2021 it was reported that Sasol and Toyota Motor Corporation are to pilot the use of FCEVs to power and to propel HGVs along South Africa's main road freight corridor.
  
  See: Sasol and Toyota South Africa Motors form green hydrogen mobility partnership

There is a continued narrative, some may say growing narrative, around the use of Fuel Cell technology – including the headline that 25% of total energy consumption could be supplied by hydrogen from renewable sources by 2050. This narrative has been added to by the narrative arising from the Hyzon / Raven SR joint venture to develop 100 hydrogen hubs. As noted, the Carbon Tracker / Ember think-tank study has provided food for thought in respect of the scale of renewable resources. The study also notes that renewable energy could displace the use of fossil fuel for the generation of electrical energy by the mid-2030s.

Shipping news forecast:

• The World Bank Group has published a report entitled Potential of Zero-Carbon Bunker Fuels in Developing Countries, published on-line on April 23, 2021. In identifying green fuels – ammonia and hydrogen – "as the most promising zero-carbon bunker fuels within the shipping industry at present", the World Bank says that "Liquefied natural gas (LNG) … is likely to play a limited role in the decarbonisation of the shipping sector, and countries should avoid new public policy [settings that support] LNG as a bunker fuel … and continue to regulate methane emissions to put shipping on a [Paris Agreement] aligned GHG emissions trajectory."
  
  Global Director of Climate Change at the World Bank, Ms Bernice Van Bronkhorst identifies the broader benefits of ammonia and hydrogen: "Not only [do] zero carbon bunker fuels help decarbonise shipping, but they can also be used to boost domestic infrastructure needs and chart a course for low-carbon development more generally".
  
  See: Ammonia and hydrogen are key to decarbonising maritime transport, says World Bank report

• At the Singapore Maritime Technology Conference (SMTC) Shell's Global Head of Shipping, Mr Grahaeme Henderson addressed directly the World Bank report. Mr Henderson noted that: "LNG is the lowest emission fuel available at scale in the shipping sector today. It has no clear rival in this regard. … The [shipping] sector cannot afford [simply to wait] for [the development of] alternative fuels [including ammonia and hydrogen]".
  
  For corporations like Shell, commitments to the reduction of GHG emissions are taken seriously: ultimately it aims to achieve net-zero GHG emissions, across Scopes 1, 2 and 3, through the reduction of GHG emissions across its reservoir to bowser supply chain is fundamental, including the reduction in GHG emissions arising from shipping. This does not mean that the use of LNG bunkers is the beginning and the end of transition for Shell: the progress towards net-zero GHG emissions is iterative and requires change, it is not immutable.
  
  Consistent with this theme, the Chief Responsible Investment Officer for the Church of England Pensions Board, Mr Adam Matthews, said that: "Given Shell's progress as a result of engagement and leadership's commitment to continue meaningful on the remaining areas of the Climate Action 100+ benchmark (see Edition 13 of Low Carbon Pulse for Climate Action 100+), the Church of England Pensions Board is likely to vote in support of [the Shell] Energy Transition Strategy" (see Edition 14 of Low Carbon Pulse).
  
  See: Shell defends LNG, shipping ‘cannot afford simply to wait for alternative fuels’

• On April 26, 2021 it was announced that Royal Dutch Shell is conducting a feasibility study in respect of the use of fuel cells for ships. This is reported as being a first step for Shell. The feasibility study is reported to be taking place in world shipping hub, Singapore, and will include tests involving the installation of an auxiliary power unit on a vessel currently used as a ro-ro carrier.
  
  For the purposes of the study and tests, Shell is working with SembCorp Marine Ltd, and LGM Marin (a wholly-owned subsidiary of SembCorp). Shell Shipping and Maritime Asia Pacific and Middle East General Manager, Mr Nick Potter, said: "We see fuel cells and hydrogen as a promising pathway to decarbonising shipping and working with partners in this way will develop our understanding of this critical technology".
  
  This news item illustrates the iterative nature of progress towards net-zero.
  
  See: Royal Dutch Shell to test hydrogen fuel cells for ships

• The International Maritime Organisation (IMO) is lobbying governments for the introduction of a global regime to provide a carbon price for the international shipping industry. The advantage of a global regime is that it provides a level playing field for all participants in the international shipping industry.
  
  The international shipping industry is responsible for up to 2% of total global GHG emissions: if the international shipping industry were a country, it would be the world's sixth largest emitter of GHGs by mass.
  
  As outlined in Edition 13 of Low Carbon Pulse, the imposition of a carbon price allows investment decisions to be taken on that basis of a low or lower or no carbon technology options. The initiative by the IMO is most welcome, but may be regarded as likely to take some time to align countries consistently.
  
  See: Climate change: Shipping industry calls for new global carbon tax

• It has been reported that Maersk Mc-Kinney Moller Center for Zero Carbon Shipping and Lloyd's Register Maritime Decarbonisation Hub are to undertake an assessment of the safe use of ammonia as a bunker fuel. It is reported that AP Moller-Maersk, MAN Energy Solutions, Mitsubishi Heavy Industries and TOTAL are all committed to the development of best practice safety practices and guidelines for use of ammonia.
  
  See: New coalition for safe ammonia bunkering

Treeing-off – carbon-credit and carbon-offset roundup:

• Basic principles: Previous editions of Low Carbon Pulse have logged the likely increasing scrutiny of the use of carbon offset mechanisms, critically going to the core of the matter are two issues:
  
  • carbon-offset mechanisms do not reduce GHG emissions, rather they allow GHG emitting activities to continue to be undertaken applying the theory that another activity is removing an equivalent mass of CO₂ from the atmosphere;
  • carbon-credit schemes may not, and for many commentators do not, achieve the carbon sequestration modelled, with countries and states allowing greater carbon-off-setting in respect of a greater mass of CO₂ emissions than are actually sequestered by carbon credit schemes.
  
  It has been reported that certain countries and states have overcounted or overestimated the mass of CO₂ absorbed by trees, and other means of sequestrating CO₂.
  
  As a result of these issues, there is an increasing need to formulate and to apply international standards for modelling the benefit of carbon-credit schemes, and to allow for the modification of models to reflect the actual benefits.
  
  According to a recent study from Nature Climate Change, there is a 5.5 billion tonne discrepancy between the mass of CO₂ sequestered under carbon-credit schemes and the actual sequestration of CO₂ achieved. As reporting obligations for corporations become stricter, it is likely that the private sector will respond to insist on greater accuracy, but the use of international standards for modelling will allow boards of corporations, and investors in those corporations, to draw greater levels of assurance.
  
  See: The math isn’t adding up on forests and CO₂ reductions

• Role of carbon-credit schemes and carbon-offset mechanisms: There is a role for carbon-credit schemes and carbon-offset mechanisms, but ultimately the vast majority of the activities that give rise to GHG emissions need to be decarbonised. As is evident, there are not sufficient trees to absorb GHG emissions arising. The planting of new trees and the preservation of land-mass and returning land-mass to uncultivated use, will assist, but it is not answer.

• World Economic Forum:
  Recent World Economic Forum reports:
  
  • indicate that human activities, critically, land-clearance is actually contributing to net GHG emission rather than resulting in a reduction; and
  • outline the plans of Panama to restore lost rainforests by 2050 by reforestation of 1 million hectares.
  
  Further a World Economic Forum report is worth a read: "Why we can't afford to dismiss carbon offsetting in a climate crisis".

Net-zero round-up:

• Amazon continues to blaze a trail making it now the largest purchaser of renewable energy globally.
  See: Amazon is now the top corporate buyer of renewable energy in Europe
• ANA moving to net zero by 2050.
  See: ANA aims for carbon neutrality by 2050

Author: Michael Harrison, Partner