Equinor Is Counting On Tax Breaks With Plans For North Sea Oilfield
The title of this post, is the same as that, of this article in The Times.
These paragraphs outline the project.
Norway’s state-owned oil company is pushing ahead with plans to develop Britain’s biggest untapped oilfield after confirming that it stands to benefit from “helpful” tax breaks introduced alongside the windfall levy.
Equinor could lower its windfall tax bill by as much as £800 million in the years to come thanks to investment relief if it develops the Rosebank field, according to Uplift, a campaign group.
Rosebank, to the west of Shetland, could cost £4.1 billion to develop and may account for about 8 per cent of British oil output in the second half of this decade, producing 300 million barrels of oil by 2050.
Equinor said yesterday that it hoped to take a final investment decision on the field by next year and to start production by 2026. It has applied for environmental approval from the government.
Needless to say Greenpeace are not amused.
We Have Both Long Term And Short Term Energy Problems
In the UK, energy is generally used as electricity or gas and to power industry and transport.
Electricity
In the long term, we need to decarbonise our electricity production, so that all our electricity is produced from zero-carbon sources like nuclear, solar, tidal, wave and wind.
- As I write this, our electricity production is around 26.8 GW of which 62 % is coming from renewable sources.
- Surprisingly around 45 % of the renewables is coming from solar. Who’d have ever thought that in an predominantly-grey UK?
- As we have committed to around 50 GW of wind power by 2030 and the 3.26 GW Hinckley Point C will be on stream by the end of the decade, the long term future of electricity production looks to be fairly secure.
- It would be even more secure, if we added around 600 GWh of storage, as proposed in Highview Power’s Plan To Add Energy Storage To The UK Power Network, which would be used as backup when the sun doesn’t shine and the wind doesn’t blow.
It looks to me, that our long term electricity problem is capable of being solved.
For the next few years, we will need to rely on our existing gas-fired power stations until the renewables come on stream.
Gas
Gas could be more of a problem.
- I wouldn’t be surprised to see a lot of resistance to the replacement of natural gas for heating, cooking and industrial processes.
- Natural gas is becoming increasingly difficult to source.
- As I said in the previous section, we will still need some gas for electricity generation, until the massive wind farms are completed.
On the other hand, there is HyDeploy.
I like the HyDeploy concept, where up to 20 % of hydrogen is blended with natural gas.
- Using a blend of hydrogen and natural gas doesn’t require any changes to boilers, appliances or industrial processes.
- The hydrogen blend would make the most of our existing world class gas network.
- Customers do not require disruptive and expensive changes in their homes.
- Enormous environmental benefits can be realised through blending low carbon hydrogen with fossil gas.
- The hydrogen blending could happen, where the natural gas enters the network at terminals which receive gas from the UK continental shelf or where liquified natural gas is imported.
- Alternatively, it may be possible to surround a gas production platform with an offshore wind farm. This could enable hydrogen production and blending to be performed offshore.
The amount of gas we need would drop by twenty percent.
In The Mathematics Of Blending Twenty Percent Of Hydrogen Into The UK Gas Grid, I calculated that 148.2 tonnes per hour of hydrogen would be needed, to blend twenty per cent of hydrogen into UK natural gas supplies.
I also said this about the electricity needed.
To create 148.2 tonnes per hour of hydrogen would need 8,180.64 MW of electricity or just under 8.2 GW.
I also calculated the effect of the hydrogen on carbon dioxide emissions.
As twenty percent will be replaced by hydrogen, carbon dioxide emission savings will be 24,120,569.99 tonnes.
I believe that generating the 8.2 GW of electricity and delivering the 148.2 tonnes per hour of hydrogen is feasible.
I also believe that HyDeploy could be a valuable way to reduce our demand for natural gas by twenty per cent.
Transport
Not every vehicle, ship, aircraft and train can be powered by electricity, although batteries will help.
Hydrogen will help, but we must also develop our capability for sustainable fuels made from rubbish diverted from landfill and biologically-derived ingredients like used cooking oil.
Summing Up Our Long Term And Short Term Energy Problems
We obviously have got the problem of creating enough renewable energy for the future, but there is also the problem of how we keep everything going in the interim.
We will need gas, diesel, petrol and other fossil fuel derived products for the next few years.
Is Rosebank Our Short Term Solution?
This page on the Equinor web site is entitled Rosebank Oil And Gas Field.
This introductory paragraph described the field.
Rosebank is an oil and gas field 130 kilometres off the coast of the Shetland Islands. Equinor acquired the operatorship in 2019 and has since then been working to optimise and mature a development solution for the field together with our partners.
Could the field with its resources of oil and gas, be just the sort of field to tide us over in the next few difficult years.
But given the position, it will surely not be an easy field to develop.
These two paragraphs set out Equinor’s strategy in developing the field.
Equinor believes the field can be developed as part of the UK Government North Sea Transition deal, bringing much needed energy security and investment in the UK while supporting the UKs net zero target. According to a socioeconomic study (see link below) based on data and analysis by Wood Mackenzie and Voar Energy, if sanctioned Rosebank is estimated to create GBP 8.1 billion of direct investment, of which GBP 6.3 billion is likely to be invested in UK-based businesses. Over the lifetime of the project, Rosebank will generate a total of GBP 24.1 billion of gross value add (GVA), comprised of direct, indirect and induced economic impacts.
Equinor together with our partners are working with the supply chain to ensure that a substantial part of investment comes to Scotland and the UK. A supplier day was held in Aberdeen in partnership with EIC in order to increase the number of local suppliers to tender.
Note.
- The sums that could accrue to the UK economy are worthwhile.
- The Government North Sea Transition Deal is worth a read.
- A lot of the deal is about converting oil and gas skills to those of a renewable energy economy.
Planned properly, we should get all the oil and gas we need to get through difficult years.
I particularly like these two paragraphs, which are towards the end of the Government North Sea Transition Deal.
Through the Deal, the UK’s oil and gas sector and the government will work together to deliver
the skills, innovation and new infrastructure required to decarbonise North Sea oil and gas
production as well as other carbon intensive industries. Not only will it transform the sector in
preparation for a net zero future, but it will also catalyse growth throughout the UK economy.
Delivering large-scale decarbonisation solutions will strengthen the position of the existing UK
energy sector supply chain in a net zero world, securing new high-value jobs in the UK,
supporting the development of regional economies and competing in clean energy export
markets.
By creating the North Sea Transition Deal, the government and the UK’s oil and gas sector are
ambitiously seeking to tackle the challenges of reaching net zero, while repositioning the UK’s
capabilities to serve the global energy industry. The Deal will take the UKCS through to
maturity and help the sector pivot towards new opportunities to keep the UK at the forefront of
the changing 21st century energy landscape.
I believe that developing Rosebank could enable the following.
- The oil and gas we need in the next few years would be obtained.
- The economic situation of the UK would be improved.
- The skills and techniques we need to decarbonise the UK would be delivered.
- Net-zero would be reached in the required time.
- Jobs will be created.
- The export of surplus oil and gas.
I strongly believe that developing the Rosebank field would be worthwhile to the UK.
I have some other thoughts.
Electrification Of Platforms
This page on the Equinor web site is entitled Electrification Of Platforms.
This paragraph explains what that means.
Electrification means replacing a fossil-based power supply with renewable energy, enabling a reduction in greenhouse gas emissions. Equinor is fully committed to reducing emissions from our offshore oil & gas production.
Note.
- Typically, platforms use gas turbine engines running on natural gas to provide the electricity needed on the platform.
- Platforms in the future will get their electricity from renewable sources like wind and will have an electricity cable to the shore.
- Rosebank will be powered in this way.
This document on the Equinor web site is entitled Rosebank: Investing In Energy Security And Powering A Just Transition, which has a section called How Is Rosebank Different?, where this is said.
The key difference of Rosebank compared to other oil fields is that it
aims to draw on new technology applications to help reduce carbon
emissions from its production, through FPSO electrification.Building offshore installations that can be powered by electricity reduces
reliance on gas powered generators which are the biggest source
of production emissions. The electrification of UKCS assets is vital to
meeting the North Sea Transition Deal’s target of reducing production
emissions by 50% by 2030, with a view to being net zero by 2050.Electrification of Rosebank is a long-term investment that will drastically
cut the carbon emissions caused by using the FPSO’s gas turbines for
power. Using electricity as a power source on Rosebank results in a
reduction in emissions equivalent to taking over 650,000 cars off the
road for a year compared with importing 300 million barrels of oil from
international sources.
Note.
- An FPSO is a Floating Production Storage And Offloading Unit, which is the method of production, that Equinor have chosen for the Rosebank field.
- If we are going to extract fossil fuels then we must extract them in a manner, that doesn’t add to the problem by emitting extra carbon dioxide.
- We will probably extract fossil fuels for some years yet, as they are the easiest route to some important chemicals.
- I also believe that we will increasingly find uses for any carbon dioxide captured in combustion and chemical processes.
I already know of a farmer, who heats greenhouses using a gas-powered combined heat and power unit, who pipes the carbon dioxide to the tomatoes in the greenhouses.
Despite what Greenpeace and others say, carbon dioxide is not all bad.
Energy Security
The last page of this document on the Equinor web site is entitled Rosebank: Investing In Energy Security And Powering A Just Transition, is entitled Energy Security.
Look at the numbers.
- £8.1 billion – Total field investment with 78% of this being spent in the UK
- 1600 – Estimated peak number of direct FTE jobs
- £24.1 billion – Estimated gross value add
- 8 % – Of UK oil production from Rosebank to 2030
- 39 million cubic feet per day – Average daily gas production over the first 10 years of field life, equivalent to almost twice Aberdeen’s daily gas consumption
- 250kt CO2 – Carbon avoided by reusing existing FPSO
And if you have time read it fully.
Could The Rosebank FPSO Be Powered By Floating Offshore Wind?
Floating wind turbines are now being installed around the world.
- They can use the largest turbines.
- Some designs perform in the roughest of seas.
- They have a high capacity factor.
- They are generally brought into a suitable port for servicing and updating.
- Floating wind farms can be connected to floating substations
There is at least 20 GW of floating wind turbines planned for UK waters.
So could an appropriately-sized floating wind farm be placed near the Rosebank FPSO to provide it with electricity?
I don’t see why not, if there were some energy storage in the system, for when the wind wasn’t blowing.
Floating Offshore Wind Close To The Rosebank FPSO Would Be Challenging
Rosebank is an oil and gas field 130 kilometres off the West coast of the Shetland Islands.
That would be a challenging location for floating wind turbines.
But solving the installation problems would set precedents for floating wind farms all over the world.
Could The Rosebank FPSO Handle Hydrogen From Floating Offshore Wind?
It would surely be possible to put an electrolyser in the system somewhere, so that hydrogen was also stored in the tanks of the FPSO.
I also don’t think it unfeasible, that twenty percent of hydrogen could be blended into the natural gas to create the low-carbon natural gas, that has been proposed by the HyDeploy project.
Long Duration Energy Storage Would Reduce The UK’d Gas Usage By 10 Megatonnes By 2035
The title of this post, is the same as that of this press release on the Highview Power web site.
The press release gives these three bullet points.
- UK has wasted over 1,300 GWh of wind since the start of the energy crisis in September 2021 due to an inability to store excess generation – enough to power 500,000 homes a day.
- A new survey from YouGov, commissioned by Highview Power, reveals that 43% of UK adults think the UK imports too much gas, rising to 54% among Conservative voters at the 2019 General Election.
- Long-duration energy storage (LDES) would reduce UK’s gas usage by 10 megatonnes in 2035 and save the grid around £2 billion a year, passing on savings of up to £50 a year.
In Highview Power’s Plan To Add Energy Storage To The UK Power Network, I talked about Highview Power’s possible 30 GWh CRYOBattery.
This project has not been fully revealed and I expect something will be announced before the end of this year.
Rio Tinto’s Big Energy Project Attracts Multiple Bidders
The title of this post, is the same as that of this article on Mining Technology.
The article has this subtitle.
The company seeks to offset its power consumption with a massive renewable plant.
These two paragraphs introduce the project.
British and Australian mining giant Rio Tinto has attracted multiple bids for a massive renewable power infrastructure project.
The company currently seeks suppliers to build up to 4GW of renewable generation for its alumina and aluminium operations in Queensland, Australia. Speaking to the Melbourne Mining Club, the company’s CEO of Australia, Kellie Parker, said that it had received proposals for “a lot more than 4GW”. Parker also said that construction of the project “would not be easy” due to the cost of construction for Australian projects.
In the UK, we may talk of wind farms like Hornsea, which could produce 6 GW, but the Aussies can produce similar amounts of energy from the sun.
This will be the fourth major renewable power development in Australia to be announced in the last few months.
- The Asian Renewable Energy Hub could generate up to 26 GW in Western Australia.
- I wrote about Andrew Forrest’s ambitions in Andrew Forrest Snaps Up Pilbara And Gascoyne Cattle Stations For Green Energy Production.
- The Australia-Asia Power Link will export solar power from Australia to Singapore.
Australia is certainly looking to power the world.
Energy Storage
Rio Tinto are also talking about energy storage, as other systems of this type and size do. Could this be one of a number of Australian projects mentioned on the Highview Power web site?
Could A Highview Power CRYOBattery Use A LNG Tank For Liquid Air Storage?
This Google Map shows a 3D image of liquified natural gas (LNG) tanks at South Hook LNG Terminal near Milford Haven.
Note that images of these tanks under construction on the Internet, show that there is an underground portion of the tanks.
This page on the CIMC-ENRIC web site is entitled Successful Delivery Of 5,000M3 LNG Single Containment Tank Project. The page shows the design of the LNG tank.
As the density of liquid air is 870 kg/m3, a 5,000 cubic metre tank would contain 4,350 tonnes of liquid air at −194.35 °C and atmospheric pressure.
How much energy would be needed to create 4,350 tonnes of liquid air?
In this document, this is said about compressing natural gas with an electric drive.
It is the most-energy efficient technology with 230 kWh per ton of LNG.
As air and natural gas have molecules of similar weight, would 230 kWh per tonne be applicable to liquid air.
If it is, then around a GWh of electricity will be needed to create the liquid air.
This Wikipedia entry is entitled Cryogenic Energy Storage and describes Highview Power’s CRYOBattery.
This section describes the operation of the CRYOBattery.
When it is cheaper (usually at night), electricity is used to cool air from the atmosphere to -195 °C using the Claude Cycle to the point where it liquefies. The liquid air, which takes up one-thousandth of the volume of the gas, can be kept for a long time in a large vacuum flask at atmospheric pressure. At times of high demand for electricity, the liquid air is pumped at high pressure into a heat exchanger, which acts as a boiler. Air from the atmosphere at ambient temperature, or hot water from an industrial heat source, is used to heat the liquid and turn it back into a gas. The massive increase in volume and pressure from this is used to drive a turbine to generate electricity.
Note.
- The Claude cycle is described in this Wikipedia entry.
- The liquid air takes up one-thousandth of the volume of the gas.
- Wikipedia suggests that Highview claim the process has a round trip efficiency of 70 %.
Having done calculations in the past with chemical reactions in a series of large vessels, the dynamics can be strange and I wouldn’t be surprised that as Highview learn more about the process and add more and better ways of recycling heat and coolth, efficiencies will improve.
Certainly, in the process I mathematically-modelled in the 1970s, when I worked for ICI, I remember that one large reaction vessel performed better than four or five smaller ones with the same total volume.
Hence my thought that perhaps one large containment tank could be the most efficient design.
I also think, that the design of LNG tanks must have improved significantly over the last few years, as the transport of LNG has increased in importance.
Form Energy And The UK
This article on the Telegraph, which is entitled Britain Will Soon Have A Glut Of Cheap Power, And World-Leading Batteries To Store It, is proving to be a mine of information about the development of the UK Power Network.
Reliable information about US startup; Form Energy has been hard to find.
But the Telegraph article has these three paragraphs on Form Energy.
Form Energy in Boston – backed by Jeff Bezos and Bill Gates – is working on an iron-air “rust” battery based on the reversible oxidation of iron pellets. It does not require rare and polluting minerals such as vanadium, and will have a 100-hour range.
“The modules will produce electricity for one-tenth the cost of any technology available today for grid storage,” the company told Recharge.
Form Energy has been working with National Grid to map out the economics of UK renewables with storage, and how to cope with future curtailment. And it too praises the UK as a global trailblazer, though its pilot project next year will be in Minnesota.
Note.
- Iron certainly, isn’t an exotic material.
- A hundred hour range is claimed.
- If National Grid have been working with Form Energy, is it reasonable to assume, that they have been working with Highview Power?
- Good to see that Form Energy praises the UK as a global trailblazer. I have noted several times, that the Department for Business, Energy and Industrial Strategy seems to be well-advised.
Will National Grid put in one of Form Energy’s batteries? It would be a prudent thing to do, to make sure you get the best.
Highview Power’s Second Commercial System In Yorkshire
This is all that Highview Power say about their proposed system in Yorkshire, on their web site.
Highview Power’s second commercial renewable energy power station in the UK is a 200MW/2.5GWh facility in Yorkshire. This is the first of 18 sites for UK wide deployment strategically located to benefit from the existing transmission infrastructure.
I have a few thoughts.
How Does The Size Of This System Fit With Other Systems?
According to the Highview Power web site the Manchester system is a 50MW/300MWh facility, but Wikipedia has this system as a 50MW/250MWh.
In this article on the Telegraph, which is entitled Britain Will Soon Have A Glut Of Cheap Power, And World-Leading Batteries To Store It, it is stated that they are planning a battery with this specification, location and timeline.
- 2.5 GW output
- 30 GWh of storage
- Located on Humberside
- Delivery in late 2024.
This CRYOBattery is an absolute monster.
Will The Humberside CRYOBattery Be Built At Creyke Beck Substation?
In Highview Power’s Plan To Add Energy Storage To The UK Power Network, I came to the conclusion, that the Humberside CRYOBattery will most likely be built near Creyke Beck substation, which is close to Cottingham.
- Dogger Bank A, Dogger Bank B and Hornsea 4 offshore wind farms will all be connected to the Creyke Beck substation.
- These wind farms have a total capacity of 3.4 GW.
- The Humberside CRYOBattery, now looks to have a maximum output of 2.5 GW.
- It looks like the Humberside CRYOBattery would be a well-matched backup to the three planned wind farms and perhaps even a few more turbines.
Building the Humberside CRYOBattery at Creyke Beck substation would appear to be a sensible decision.
Is Cottingham In Humberside, Yorkshire Or Both?
The Wikipedia entry for the village is named Cottingham, East Riding of Yorkshire, says this.
A golf course and leisure club on Wood Hill Way, and a major (400/275 kV AC) electricity substation “Creyke Beck”, lie just outside the formal boundaries of the parish, within Skidby civil parish.
Skidby is definitely in Yorkshire.
Where Are The Other Seventeen Sites?
The Yorkshire facility is indicated to be one of 18 sites on the Highview Power web site. Where are the other seventeen?
All we know is that they will be strategically located to benefit from the existing transmission infrastructure.
This is said in the Wikipedia entry, which is entitled High-Voltage Substations In The United Kingdom.
In 2020 there were 179 400 kV substations and 137 275 kV substations.
He who pays the money, makes the choice!
Has The Company Changed Direction?
I wrote Highview Power Names Rupert Pearce Chief Executive Officer on April 12th, 2022.
- Since then, the Vermont and Chile projects have disappeared from the web site and projects in Yorkshire and Australia have been added.
- The web site has also been improved.
- As new CEOs often do, is Rupert Pearce refocussing the company?
Are they also looking in detail at current projects?
Has The Yorkshire Project Grown Substantially?
Consider.
- National Grid are a company that has improved its image and engineering in recent years.
- It has shown it can obtain finance for infrastructure from the City of London and respected financial institutions.
- National Grid probably have extensive computer models of their electricity network.
- National Grid knows it must add energy storage to their electricity network.
- National Grid pays almost a billion pounds a year to wind farm operators to shut them down.
Eventually saving up to a billion pounds would be a good reason to have a small bet on promising technology.
Did Rupert Pearce ask his engineers to design the largest CRYOBattery they can?
Did National Grid have a count up sand find that twenty CRYOBatteries would cover all the strategic points on their transmission infrastructure?
According to the figures on the Highview Power web site (200 MW/2.5 GWh), eighteen systems like the one proposed for Yorkshire would have.
- A total output of 3.6 GW
- A total storage capacity of 45 GWh
The figures given in the article in the Telegraph (2.5 GW/30 GWh) for the very large system, would mean that twenty systems would have.
- A total output of 50 GW
- A total storage capacity of 600 GWh
These figures are between thirteen and fourteen times larger than those originally proposed.
Building The System
The Highview Power web site, says this about the deployment of eighteen systems.
UK wide deployment strategically located to benefit from the existing transmission infrastructure.
This Google Map shows the Creyke Beck substation.
Could 30 GWh of liquid-air storage be accommodated on the site?
I can see a large insulated sphere, partly buried in the ground being used.
Designing, building and testing the first system will probably be the most difficult part of the project.
- But once the first system is successfully working reliably, the roll-out of other systems can be started.
- The biggest problem will probably be planning permissions, so the systems must be designed to be sympathetic to the local environment.
I can certainly see, twenty of these systems in the UK, but how many others will we see worldwide?
I
Highview Power’s Plan To Add Energy Storage To The UK Power Network
The plan was disclosed in this article on the Telegraph, which is entitled Britain Will Soon Have A Glut Of Cheap Power, And World-Leading Batteries To Store It, by Rupert Pearce, who is Highview’s chief executive.
His plan is to build twenty of Highview Power’s CRYOBatteries around the country.
- Each CRYOBattery will be able to store 30 GWh.
- Each CRYOBattery will be one of the largest batteries in the world.
- They will have three times the storage of the pumped storage hydroelectric power station at Dinorwig.
- They will be able to supply 2.5 GW for twelve hours, which is more output than Sizewell B nuclear power station.
The first 30 GWh CRYOBattery is planned to be operational by late 2024.
- It will be built on Humberside.
- Humberside is or will be closely connected to the Dogger Bank, Hornsea and Sofia wind farms.
- When fully developed, I believe these wind farms could be producing upwards of 8 GW.
The Telegraph quotes Rupert Pearce as saying this.
We can take power when the grid can’t handle it, and fill our tanks with wasted wind (curtailment). At the moment the grid has to pay companies £1bn a year not to produce, which is grotesque.
I certainly agree with what he says about it being a grotesque practice.
It sounds to me, that Rupert’s plan would see Highview Power in the waste electricity management business.
- The wasted wind would just be switched to the Humberside CRYOBattery, if there was too much power in the area.
- The CRYOBattery might be conveniently located, where the wind farm cables join the grid.
- Dogger Bank A and B wind farms are connected to Creyke Beck substation, which is North of the Humber.
- Hornsea 1 and Hornsea 2 wind farm are connected to Killingholme substation, which is South of the Humber.
- Hornsea 3 wind farm will be connected to Norfolk.
- Hornsea 4 wind farms will be connected to Creyke Beck substation
- It looks like the combined capacity of Dogger Bank A, Dogger Bank B and Hornsea 4 could be around 3.4 GW.
- Sofia wind farm will be connected to Lazenby substation near Redcar.
- As the CRYOBattery is buying, selling and storing electricity, I would assume that there’s money to be made.
This Google Map shows Creyke Beck substation.
Note.
- It is a large site.
- Creyke Beck Storage have built a 49.99 MW lithium-ion storage battery on the site.
- The Northern part of the site is used to store caravans.
- It looks like the combined capacity of Dogger Bank A, Dogger Bank B and Hornsea 4 could be around 3.4 GW.
It looks like a 30 GWh CRYOBattery with a maximum output of 2.5 GW would be an ideal companion for the three wind farms connected to Creyke Back substation.
The combination could probably supply upwards of 2.5 GW to the grid at all times to provide a strong baseload for Humberside.
Conclusion
Will the income from the Humberside CRYOBattery be used to fund the next CRYOBattery?
I very much think so as it’s very sensible financial management!
Renewable Power’s Effect On The Tory Leadership Election
I wouldn’t normally comment on the Tory Leadership Election, as I don’t have a vote and my preference has already been eliminated.
But after reading this article on the Telegraph, which is entitled Britain Will Soon Have A Glut Of Cheap Power, And World-Leading Batteries To Store It, I feel I have to comment both about this election and the General Election, that will follow in a few years.
These two paragraphs from the article illustrate the future growth of offshore wind power.
It is a point about the mathematical implications of the UK’s gargantuan push for renewables. Offshore wind capacity is going to increase from 11 to 50 gigawatts (GW) by 2030 under the Government’s latest fast-track plans.
RenewableUK says this country currently has a total of 86GW in the project pipeline. This the most ambitious rollout of offshore wind in the world, ahead of China at 78GW, and the US at 48GW.
If we assume that there is eight years left of this decade, that means that we should install about 4.9 GW of offshore wind every year until 2030. If we add in planned solar and onshore wind developments, we must be looking at at least 5 GW of renewable energy being added every year.
We have also got the 3.26 GW Hinckley Point C coming on stream.
I think we can say, that when it comes to electricity generation, we will not be worried, so Liz and Rishi can leave that one to the engineers.
If we have an electricity problem, it is about distribution and storage.
- We need more interconnectors between where the wind farms are being built and where the electricity will be used.
- National Grid and the Government have published plans for two interconnectors between Scotland and England, which I wrote about in New Electricity ‘Superhighways’ Needed To Cope With Surge In Wind Power.
- We need energy storage to back up the wind and solar power, when the wind isn’t blowing and the sun isn’t shining.
I think it is reasonable to assume, that we will get the interconnectors we need and the Telegraph article puts forward a very feasible and affordable solution to the energy storage problem, which is described in these two paragraphs from the article.
That is now in sight, and one of the world leaders is a British start-up. Highview Power has refined a beautifully simple technology using liquid air stored in insulated steel towers at low pressure.
This cryogenic process cools air to minus 196 degrees using the standard kit for LNG. It compresses the volume 700-fold. The liquid re-expands with a blast of force when heated and drives a turbine, providing dispatchable power with the help of a flywheel.
The article also talks of twenty energy storage systems, spread around the UK.
- They will have a total output of 6 GW.
- In total they will be able to store 600 GWh of electricity.
The first one for Humberside is currently being planned.
Surely, building these wind and solar farms, interconnectors and energy storage systems will cost billions of pounds.
Consider.
- Wind and solar farms get paid for the electricity they generate.
- , Interconnectors get paid for the electricity they transfer.
- Energy storage systems make a profit by buying energy when it’s cheap and selling it, when the price is better.
- In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I talked about how Aviva were funding the world’s largest wind farm at Hornsea.
- National Grid has a history of funding interconnectors like the North Sea Link from large financial institutions.
I believe that the islands of Great Britain and Ireland and the waters around our combined shores will become the largest zero-carbon power station in the world.
This will attract engineering companies and financial institutions from all over the world and we will see a repeat of the rush for energy that we saw for oil and gas in the last century.
If we get the financial regime right, I can see a lot of tax money flowing towards the Exchequer.
The big question will be what do we do with all this energy.
- Some will be converted into hydrogen for transport, the making of zero-carbon steel and cement and for use as a chemical feedstock.
- Industries that use a lot of electricity may move to the UK.
- A large supply of electricity and hydrogen will make it easy to decarbonise housing, offices and factories.
The Telegraph article also says this.
Much can be exported to the Continent through interconnectors for a fat revenue stream, helping to plug the UK’s trade deficit, and helping to rescue Germany from the double folly of nuclear closures and the Putin pact. But there are limits since weather patterns in Britain and Northwest Europe overlap – partially.
I suspect that more energy will be exported to Germany than most economists think, as it will be needed and it will be a nice little earner for the UK.
Given the substantial amount of German investment in our wind industry, I do wonder, if Boris and Olaf did a deal to encourage more German investment, when they met in April this year.
- BP have been backed with their wind farms by a German utility company.
- RWE are developing the Sofia wind farm.
- Only last week, the deal for the NeuConnect interconnector between the Isle of Grain and Wilhelmshaven was signed.
- Siemens have a lot of investments in the UK.
I wouldn’t be surprised to see more German investments in the next few months.
The Golden Hello
Has there ever been a Prime Minister, who will receive such a golden hello, as the one Liz or Rishi will receive in September?
The Tory Leadership Election
Some of the candidates said they would reduce taxes , if they won and Liz Truss is still saying that.
I wonder why Rishi isn’t saying that he would reduce taxes, as he must know the cash flow that is coming. It may be he’s just a more cautious soul.
Can Highview Power’s CRYOBattery Compete With Pumped Storage Hydroelectricity?
In this article on the Telegraph, Rupert Pearce, who is Highview’s chief executive and ex-head of the satellite company Inmarsat, discloses this.
Highview is well beyond the pilot phase and is developing its first large UK plant in Humberside, today Britain’s top hub for North Sea wind. It will offer 2.5GW for over 12 hours, or 0.5GW for over 60 hours, and so forth, and should be up and running by late 2024.
The Humberside plant is new to me, as it has not been previously announced by Highview Power.
- If it is built it will be megahuge with a storage capacity of 30 GWh and a maximum output of 2.5 GW.
- Humberside with its connections to North Sea Wind, will be an ideal location for a huge CRYOBattery.
- The world’s largest pumped storage hydroelectric power station is Fengning Pumped Storage Power Station in China and it is 40 GWh.
Pumped storage hydroelectric power stations are the gold standard of energy storage.
In the UK we have four pumped storage hydroelectric power stations.
- Cruachan Power Station – 7.1 GWh
- Dinorwig Power Station (Electric Mountain) – 9.1 GWh
- Falls of Foyers – 10 GWh
- Ffestiniog Power Station 1 GWh
With two more under construction.
- Coire Glas Power Station – 30 GWh
- Red John Power Station – 2.8 GWh
As energy is agnostic, 30 GWh of pumped storage hydroelectric power at Coire Glas is the equivalent of 30 GWh in Highview Power’s proposed Humberside CRYOBattery.
Advantages Of CRYOBatteries Over Pumped Storage Hydroelectric Power
I can think of these advantages.
- Cost
- Could be build on the flat lands of East Anglia or Lincolnshire
- Factory-built
- NIMBYs won’t have much to argue about
- No dams
- No flooding of valleys
- No massive construction sites.
- No mountains required
- No tunnels
- Small footprint
I suspect that a large CRYOBattery could be built well within a year of starting construction.
Rupert Pearce’s Dream
The Telegraph article says this and I suspect it’s a quote from Rupert Pearce.
Further projects will be built at a breakneck speed of two to three a year during the 2020s, with a target of 20 sites able to provide almost 6GW of back-up electricity for four days at a time, or whatever time/power mix is optimal.
6 GW for four days is 576 GWh, which if it were spread around twenty sites is 28.8 GWh per site, which is just under the 30 GWh of the proposed Humberside CRYOBattery.
Conclusion
You can just imagine the headlines in The Sun!
Man In Bishop’s Stortford Shed Saves The World!
This story on the BBC, which is entitled Meet The British Inventor Who Came Up With A Green Way Of Generating Electricity From Air – In His Shed, explains my suggested headline.
Now that’s what I call success!
How Will Highview Power Affect The Lithium-Ion Grid Battery Market?
In this article on the Telegraph, Rupert Pearce, who is Highview’s chief executive and ex-head of the satellite company Inmarsat, discloses this.
Highview is well beyond the pilot phase and is developing its first large UK plant in Humberside, today Britain’s top hub for North Sea wind. It will offer 2.5GW for over 12 hours, or 0.5GW for over 60 hours, and so forth, and should be up and running by late 2024.
The Humberside plant is new to me, as it has not been previously announced by Highview Power.
- If it is built it will be megahuge with a storage capacity of 30 GWh and a maximum output of 2.5 GW.
- Humberside with its connections to North Sea Wind, will be an ideal location for a huge CRYOBattery.
- The world’s largest battery is at Ouarzazate Solar Power Station in Morocco and it is 3 GWh.
- The world’s largest pumped storage power station is Fengning Pumped Storage Power Station in China and it is 40 GWh.
The proposed Humberside battery also has a smaller sibling under construction at Carrington in Manchester.
This will have a storage capacity of 250 MWh and a maximum output of 50 MW.
Factors Affecting The Choice
Several factors will affect the choice between lithium-ion batteries and Highview Power’s CRYOBattery.
Reliability
Reliability is paramount and whilst lithium-ion batteries batteries have a high level of reliability, there probably needs to be more development and quality assurance before CRYOBatteries have a similar level of reliability.
Size
The largest lithium-ion battery, that has been proposed in the UK, is the 320 MW/640 MWh battery that will be installed at the Gateway Energy Centre in Essex.
This size of CRYOBattery should be possible, but this size is probably in range of both lithium-ion and CRYOBatteries.
Safety
The Wikipedia entry for Battery Storage Power Station has this to say about Safety.
Some batteries operating at high temperatures (sodium–sulfur battery) or using corrosive components are subject to calendar ageing, or failure even if not used. Other technologies suffer from cycle ageing, or deterioration caused by charge-discharge cycles. This deterioration is generally higher at high charging rates. These two types of ageing cause a loss of performance (capacity or voltage decrease), overheating, and may eventually lead to critical failure (electrolyte leaks, fire, explosion).
An example of the latter was a Tesla Megapack in Geelong which caught fire, fire and subsequent explosion of battery farm in Arizona, fire of Moss Landing battery farm. Concerns about possible fire and explosion of a battery module were also raised during residential protests against Cleve Hill solar farm in United Kingdom. Battery fire in Illinois resulted in “thousands of residents” being evacuated, and there were 23 battery farm fires in South Korea over the period of two years. Battery fires may release a number of dangerous gases, including highly corrosive and toxic hydrogen fluoride.
The long term safety of a CRYOBattery is probably not yet known in detail, but I suspect in some applications, CRYOBatteries could be safer than chemical batteries.
Environmental Factors
I suspect that CRYOBatteries can be built without any hard-to-mine or environmentally-unfriendly materials like lithium.
Cost
The article in The Telegraph, says this about costs.
Mr Pearce said Highview’s levelised cost of energy (LCOE) would start at $140-$150, below lithium, and then slide on a “glide path” to $100 with over time.
It does look that the all important factor of cost could be the clincher in the choice between the two systems.
For larger batteries, the CRYOBattery will probably have a larger advantage.
Conclusion
I can see Highview Power and their CRYOBatteries putting up a good fight against lithium-ion batteries, especially with larger batteries, where they have a larger cost advantage.
In the UK, we will know they have won an advantage, if the two big battery-storage funds; Gore Street and Gresham House, start to install CRYOBatteries.
The Anonymous Widower 