Norway Plans EUR 3 Billion Subsidy For Floating Offshore Wind
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
The Norwegian government has proposed NOK 35 billion (approximately EUR 3 billion) for a support scheme dedicated towards the first commercial floating offshore wind tender within the Vestavind F and Vestavind B areas.
These are the first two paragraphs.
According to the press release, the government is making progress in following up on its ambitious plan to allocate project areas for 30 GW of offshore wind by 2040.
Norway plans to conduct the next tendering round for offshore wind in 2025. After that, the government intends to hold regularly scheduled tendering rounds and state aid competitions leading up to 2040.
The original press release is called A Responsible Approach To Floating Offshore Wind.
Some politicians and green sceptics might not call three billion euros responsible.
I do suspect that Great British Energy will have to deal in this size of numbers to be able to compete with the Norwegians.
We’ll have to work hard to meet our target of 100 GW by 2040.
But at least as the UK’s target is higher, does that mean that the target should be easier. Or do we have more suitable sea?
There Are Only Three Large Offshore Wind Farms In Contracts for Difference Allocation Round 6
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 6 results for the supply of zero-carbon electricity.
The wind farms are.
- Green Volt – 400 MW – Floating – Claims to be “The first commercial-scale floating offshore windfarm in Europe”.
- Hornsea Four – 2,400 MW – Fixed – Ørsted
- East Anglia Two – 963 MW – Fixed – Iberdrola
Is this what misgovernment expected, when they raised the budget in July 2024, as I wrote about in UK Boosts Sixth CfD Auction Budget, Earmarks GBP 1.1 Billion For Offshore Wind.
Perhaps, some developers held back until government policy is clearer?
Funding Awarded For Study On Hydrogen Storage Potential In The East Midlands
The title of this post, is the same as that of this article on the British Geological Survey.
This is the sub-heading.
A new study has been awarded funding to explore the underground hydrogen storage potential in the East Midlands.
These are the first three paragraphs.
East Midlands Storage (EMstor), a consortium led by Cadent and partnered with BGS, Star Energy Group, Net Zero Strategy and the University of Edinburgh, has been awarded discovery funding by Ofgem’s Strategic Innovation Fund to undertake a new study to evaluate geological storage potential in the East Midlands.
The EMstor study is the first of its kind in the region. It will undertake a feasibility assessment of the East Midlands’ geology to evaluate its potential to host storage technologies, allowing expansion of Cadent’s proposed 100 per cent hydrogen pipeline.
The East Midlands has numerous depleted oil reservoirs, which may have potential to store hydrogen. The study will characterise the potential geological reservoir to establish if it is suitable for hydrogen storage at scale in the local area.
The oilfields of the East Midlands Oil Province have their own Wikipedia entry, which gives full details of the dozens of small oil fields in the area.
- It may not be the world’s largest oil resource, but it certainly helped us during the Second World War.
- Experienced Texan oil-men were even imported, to help boost production.
- It used to be possible to spot the occasional lonely nodding donkey, as you passed through the area.
Surely, if some of the oilfields can be converted to hydrogen stores, this would be very useful.
‘Windiest Part Of The UK’ Could Power Nearly 500,000 Homes
The title of this post, is the same as that of this article on the BBC.
This is the sub-heading.
Power is flowing from the Shetland Isles to mainland Britain for the first time as the UK’s most productive onshore windfarm comes on stream.
These are the first two paragraphs.
SSE says its 103-turbine project, known as Viking, can generate 443 megawatts (MW) of electricity, enough to power nearly 500,000 homes.
Shetland is the windiest part of the UK, which means it will be rare for the blades, which reach a massive 155m at their tip, not to be spinning.
Note.
- SSE has built a 160-mile long undersea cable to carry the power from Viking to Noss Head, near Wick, on the Scottish mainland.
- The company said it has invested more than £1bn in the windfarm and cable projects.
- SSE plans to plough another £20bn into renewables by the end of the decade.
Companies don’t invest billions and banks don’t lend billions, unless they know they’ll get a return, so the finance for this billion pound project must be sound.
A simple calculation, shows why they do.
- According to Google, the electricity for the average house costs £1926.24 per year.
- 500,000 houses would spend £963,120,000 per year.
Google says this about the life of a wind farm.
The average operational lifespan of a wind turbine is 20–25 years, but some turbines can last up to 30 years.
If the wind farm lasts 25 years, then it will generate something like £24 billion over its lifetime.
It looks to me, that SSE have borrowed a billion and will get almost as much as that back every year.
SSE also have the experience to keep the turbines turning and the distribution network sending electricity to the Scottish mainland.
I have some further thoughts.
What Happens If Scotland Can Get Cheaper Electricity From Its Own Wind Farms?
Shetland’s turbines can be switched off, but that is effectively throwing away electricity that can be generated.
Any spare electricity can also be diverted to an electrolyser, so that the following is produced.
- Hydrogen for transport, rocket fuel for SaxaVord Spaceport and to decarbonise houses and businesses.
- Oxygen for rocket fuel for SaxaVord Spaceport and for fish farms.
Hydrogen may also be exported to those that need it.
Project Orion
Project Orion is Shetland’s master plan to bring all the energy in and around the Shetland Islands together.
This document on the APSE web site is entitled Future Hydrogen Production In Shetland.
This diagram from the report shows the flow of electricity and hydrogen around the islands, terminals and platforms.
Note these points about what the Shetlanders call the Orion Project.
- Offshore installations are electrified.
- There are wind turbines on the islands
- Hydrogen is provided for local energy uses like transport and shipping.
- Oxygen is provided for the fish farms and a future space centre.
- There is tidal power between the islands.
- There are armadas of floating wind turbines to the East of the islands.
- Repurposed oil platforms are used to generate hydrogen.
- Hydrogen can be exported by pipeline to St. Fergus near Aberdeen, which is a distance of about 200 miles.
- Hydrogen can be exported by pipeline to Rotterdam, which is a distance of about 600 miles.
- Hydrogen can be exported by tanker to Rotterdam and other parts of Europe.
It looks a very comprehensive plan, which will turn the islands into a massive hydrogen producer.
Orion And AquaVentus
This video shows the structure of AquaVentus, which is the German North Sea network to collect hydrogen for H2ercules.
I clipped this map from the video.
Note.
- There is a link to Denmark.
- There appears to be a undeveloped link to Norway.
- There appears to be a link to Peterhead in Scotland.
- There appears to be a link to just North of the Humber in England.
- Just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Rough owned by Centrica.
- There appear to be small ships sailing up and down the East Coast of the UK. Are these small coastal tankers distributing the hydrogen to where it is needed?
In the last century, the oil industry, built a substantial oil and gas network in the North Sea. It appears now the Germans are leading the building of a substantial hydrogen network.
This map is only the start and I feel, there would be nothing to stop the connection of the Orion and AquaVentus networks.
SaxaVord Spaceport
SaxaVord Spaceport is now a reality, in that it licensed and tests are being undertaken.
Energy In – Hydrogen And Carbon Dioxide Out
This article was inspired by this article in the Sunday Times, which is entitled ‘It’s A Slog’: Life Inside Britain’s Last Coal Power Station.
The article is about Ratcliffe-on-Soar power station, which is next to East Midlands Parkway station.
This is the first paragraph of the station’s Wikipedia entry.
Ratcliffe-on-Soar Power Station is a coal-fired power station owned and operated by Uniper at Ratcliffe-on-Soar in Nottinghamshire, England. Commissioned in 1968 by the Central Electricity Generating Board, the station has a capacity of 2,000 MW. It is the last remaining operational coal-fired power station in the UK, and is scheduled to close in September 2024.
I took these pictures of the power station in 2019.
Ratcliffe-on-Soar is the last of a number of large coal-fired power stations, that were built in the area, mainly along the River Trent.
- Rugeley – 600 MW – 1961
- Drakelow – 1630 MW – 1964
- Willington – 800 MW – 1962
- Castle Donington – 600 MW – 1958
- Ratcliffe-on-Soar – 2000 MW – 1968
- High Marnham – 1000 MW – 1959
- Cottam – 2000 MW – 1968
- West Burton – 2000 MW – 1968
Note.
- The date is the commissioning date.
- That is 10,630 MW of electricity.
- There are also a few large gas-fired power stations along the river, that are still operating.
- Both coal and gas-fired stations use the water from the River Trent for cooling.
At the mouth of the river, there is the Keadby cluster of gas-fired power stations.
- Keadby 1 – 734 MW – 1996
- Keadby 2 – 849 MW – 2023
- Keadby 3 – 910 MW – 2027
- Keadby Hydrogen – 900 MW – 2030
Note.
- The date is the commissioning date.
- That is 3,393 MW of electricity.
- Keadby 2 is the most efficient CCGT in the world.
- Keadby 3 will be fitted with carbon capture.
- Keadby 2 has been designed to be retrofitted with carbon capture.
- Keadby Hydrogen will be fuelled by zero-carbon hydrogen.
As the years progress, I can see the Keadby cluster of power stations becoming a large zero-carbon power station to back-up wind farms in the North Sea.
- Hydrogen power stations will emit no carbon dioxide.
- Carbon dioxide from all gas-fired stations will be captured.
- Some carbon dioxide will be sold on, to companies who can use it, in industries like construction, agriculture and chemical manufacture.
- The remaining carbon dioxide will be stored in depleted gas fields.
As technology improves, more carbon dioxide will be used rather than stored.
Other Power Sources In The Humberside Area
In the next few sub-sections, I will list the other major power sources in the Humberside area.
Drax Power Station
Drax power station is a shadow of its former self, when it was one of the power stations fed by the newly discovered Selby coalfield.
These days it is a 2,595 MW biomass-fired power station.
Eastern Green Link 2
Eastern Green Link 2 will be a 2 GW interconnector between Peterhead in Scotland and Drax.
It is shown in this map.
Note.
- Most of the route is underwater.
- It is funded by National Grid.
- Contracts have been signed, as I talk about in Contracts Signed For Eastern Green Link 2 Cable And Converter Stations.
- It is scheduled to be completed by 2029.
This interconnector will bring up to 2 GW of Scottish wind-generated electricity to Drax and Humberside.
Drax has the substations and other electrical gubbins to distribute the electricity efficiently to where it is needed.
2 GW could also reduce the amount of biomass used at Drax.
In the long term, if the concept of the four Eastern Green Links is successful, I could see another Eastern Green Link to Drax to replace imported biomass at Drax.
I also, don’t see why a smaller Drax can’t be run on locally-sourced biomass.
Solar Farms And Batteries Along The River Trent
As the coal-fired power stations along the River Trent are demolished, solar farm developers have moved in to develop large solar farms.
Salt End Power Station And Chemical Works
These two paragraphs from the Wikipedia entry for Salt End describes the hamlet and its power station and chemical works.
Salt End or Saltend is a hamlet in the East Riding of Yorkshire, England, in an area known as Holderness. It is situated on the north bank of the Humber Estuary just outside the Hull eastern boundary on the A1033 road. It forms part of the civil parish of Preston.
Salt End is dominated by a chemical park owned by PX group, and a gas-fired power station owned by Triton Power. Chemicals produced at Salt End include acetic acid, acetic anhydride, ammonia, bio-butanol, bio-ethanol, ethyl acetate (ETAC) and ethylene-vinyl alcohol copolymer (EVOH) with animal feed also being produced on site.
I wonder, if running the complex on hydrogen would give cost and marketing advantages.
Aldbrough Hydrogen Storage Facility
This page on the SSE Thermal web site is entitled Plans For World-Leading Hydrogen Storage Facility At Aldbrough.
This is the most significant paragraph of the page, that is definitely a must-read.
With an initial expected capacity of at least 320GWh, Aldbrough Hydrogen Storage would be significantly larger than any hydrogen storage facility in operation in the world today. The Aldbrough site is ideally located to store the low-carbon hydrogen set to be produced and used in the Humber region.
This is a hydrogen storage facility for a much wider area than Humberside.
Rough Gas Storage Facility
This is the first paragraph of the Wikipedia entry for the Rough Gas Storage Facility.
Rough is a natural gas storage facility under the North Sea off the east coast of England. It is capable of storing 100 billion cubic feet of gas, nearly double the storage capacities in operation in Great Britain in 2021.
In Wood To Optimise Hydrogen Storage For Centrica’s Rough Field, I describe Centrica’s plans to convert the Rough gas storage into a massive hydrogen storage.
The Location Of Aldbrough Gas Storage, Rough Gas Storage, Salt End And Easington Gas Terminal
This Google Map shows between Salt End and the coast.
Note.
- The river crossing the South-West corner of the map is the Humber.
- Salt End with its power station and chemical works is on the North Bank of the Humber, where the river leaves the map.
- Aldbrough Gas Storage is marked by the red arrow at the top of the map.
- Easington Gas Terminal is in the South-East corner of the map.
- According to Wikipedia, gas flows into and out of the Rough Gas Storage are managed from Easington.
Looking at the map, I feel that the following should be possible.
- The two gas storage sites could be run together.
- Salt End power station and the related chemical works could run on hydrogen.
- Salt End will always have a reliable source of hydrogen.
- This hydrogen could be green if required.
All the chemical works at Salt End, could be run on a zero-carbon basis. Would this mean premium product prices? Just like organic does?
Enter The Germans
The Germans have a huge decarbonisation problem, with all their coal-fired power stations and other industry.
Three massive projects will convert much of the country and industry to hydrogen.
- H2ercules, which is a project of OGE and RWE, will create a hydrogen network to bring hydrogen, to where it is needed.
- In Uniper To Make Wilhelmshaven German Hub For Green Hydrogen; Green Ammonia Import Terminal, I describe how Uniper are going to build a hydrogen import terminal at Wilhelmshaven.
- AquaVentus is an RWE project that will use 10.3 GW of offshore wind power in German territorial waters to create a million tonnes per year of green hydrogen.
These would appear to be three of Europe’s largest hydrogen projects, that few have ever heard of.
AquaVentus And The UK
This video shows the structure of AquaVentus.
I clipped this map from the video.
Note.
- The thick white line running North-West/South-East is the spine of AquaVentus, that delivers hydrogen to Germany.
- There is a link to Denmark.
- There appears to be an undeveloped link to Norway.
- There appears to be an undeveloped link to Peterhead in Scotland.
- There appears to be a link to just North of the Humber in England.
- Just North of the Humber are the two massive gas storage sites of Aldbrough owned by SSE and Brough owned by Centrica.
- There appear to be small ships sailing up and down the East Coast of the UK. Are these small coastal tankers, that are distributing the hydrogen to where it is needed?
In the last century, the oil industry, built a substantial oil and gas network in the North Sea.
It appears now the Germans are leading the building of a substantial hydrogen network in the North Sea.
These are my thoughts about development of the AquaVentus network.
Hydrogen Production And AquaVentus
This RWE graphic shows the layout of the wind farms feeding AquaVentus.
Note.
- There is a total of 10.3 GW.
- Is one of the 2 GW web sites on the UK-side of AquaVentus, the 3 GW Dogger Bank South wind farm, which is being developed by RWE?
- Is the 0.3 GW wind farm, RWE’s Norfolk wind farm cluster, which is also being developed by RWE?
Connecting wind farms using hydrogen pipelines to Europe, must surely mitigate the pylon opposition problem from Nimbys in the East of England.
As the AquaVentus spine pipeline could eventually connect to Peterhead, there will be other opportunities to add more hydrogen to AquaVentus.
Hydrogen Storage And AquaVentus
For AquaVentus to work efficiently and supply a large continuous flow of hydrogen to all users, there would need to be storage built into the system.
As AquaVentus is around 200 kilometres in length and natural gas pipelines can be up to 150 centimetres in diameter, don’t underestimate how much hydrogen can be stored in the pipeline system itself.
This page on the Uniper web site is entitled Green Wilhelmshaven: To New Horizons.
This is a sentence on the page.
Access to local hydrogen underground storage at the Etzel salt cavern site.
An Internet search gives the information, that Etzel gas storage could be developed to hold 1 TWh of hydrogen.
That would be enough hydrogen to supply 10 GW for a hundred hours.
Note that the UK branch of AquaVentus reaches the UK, just to the South of the massive hydrogen storage facilities at Aldbrough and Rough.
It would appear that both Germany and the UK are connected to AquaVentus through substantial storage.
I am certain, that all country connections to AquaVentus will have substantial storage at the country’s hydrogen terminal.
AquaDuctus
This would appear to be the first part of the AquaVentus network and has its own web site.
The web site is entitled Nucleus Of A Offshore Hydrogen Backbone.
These are the first two paragraphs.
The project partners are focusing on a scalable, demand-driven infrastructure: By 2030, AquaDuctus will connect the first large hydrogen wind farm site, SEN-1, with a generation capacity of approximately one gigawatt. SEN-1 is located in the German EEZ in the northwest of Helgoland. The pipeline will transport at a length of approx. 200 km green hydrogen produced from offshore wind to the German mainland and from there to European consumers via the onshore hydrogen infrastructure.
In the next project stage, AquaDuctus will be extended to the remote areas of the German exclusive economic zone towards the tip of the so-called duck’s bill. By that, additional future hydrogen wind farm sites will be connected. Along its way AquaDuctus will provide interconnection points with the opportunity for linking of adjacent national offshore hydrogen infrastructures originating from Denmark, Norway, the Netherlands, Belgium and United Kingdom which opens the door for Europe-wide offshore hydrogen transport by pipeline.
There is also an interactive map, that gives more details.
This paragraph explains, why the Germans have chosen to bring the energy ashore using hydrogen, rather than traditional cables.
Recent studies show that offshore hydrogen production and transport via pipelines is faster, cheaper, and more environmentally friendly than onshore electrolysis with a corresponding connection of offshore wind turbines via power cables. The German federal government has also recognized this advantage and has clearly expressed its intention to promote offshore hydrogen production in the North Sea.
I suspect, that some UK offshore wind farms will use the same techniques.
Hydrogen Production For The UK
Electrolysers will probably be built along the East Coast between Peterhead and Humberside and these will feed hydrogen into the network.
- Some electrolysers will be offshore and others onshore.
- Turning off windfarms will become a thing of the past, as all surplus electricity will be used to make hydrogen for the UK or export to Europe.
- Until needed the hydrogen will be stored in Albrough and Rough.
Backup for wind farms, will be provided using hydrogen-fired power stations like Keadby Hydrogen power station.
Financial Implications
I reported on Rishi Sunak’s Manifesto Speech, which he made on June 11th. This is an extract
This document on the Policy Mogul web site is entitled Rishi Sunak – Conservative Party Manifesto Speech – Jun 11.
These are three paragraphs from the speech.
We don’t just need military and border security. As Putin’s invasion of Ukraine has shown, we need energy security too. It is only by having reliable, home-grown sources of energy that we can deny dictators the ability to send our bills soaring. So, in our approach to energy policy we will put security and your family finances ahead of unaffordable eco zealotry.
Unlike Labour we don’t believe that we will achieve that energy security via a state-controlled energy company that doesn’t in fact produce any energy. That will only increase costs, and as Penny said on Friday there’s only one thing that GB in Starmer and Miliband’s GB Energy stands for, and that’s giant bills.
Our clear plan is to achieve energy security through new gas-powered stations, trebling our offshore wind capacity and by having new fleets of small modular reactors. These will make the UK a net exporter of electricity, giving us greater energy independence and security from the aggressive actions of dictators . Now let me just reiterate that, with our plan, we will produce enough electricity to both meet our domestic needs and export to our neighbours. Look at that. A clear, Conservative plan not only generating security, but also prosperity for our country.
I can’t remember any reports about an energy security policy, which he outlined in the last paragraph of my extract from his speech.
He also said we would have sufficient electricity to export to our neighbours. As I said earlier some of this energy will be in the form of hydrogen, which has been created by offshore electrolysers.
If we are exporting electricity and hydrogen to Europe, this is likely to have three effects.
- An improvement in Europe’s energy security.
- H2ercules will improve and decarbonise German industry, using UK hydrogen.
- The finances of UK plc will improve.
It looks like there would be winners all round.
Rishi Sunak had the cards and he played them very badly.
It is now up to Keir Starmer, Great British Energy and Jürgen Maier to play those cards to link the energy systems of the UK and Germany to ensure security and prosperity for Europe.
Centrica Business Solutions And Highview Power
Centrica Business Solutions is one of Centrica’s business units.
It has its own web page, with this sub heading.
Helping Organisations Balance Planet And Profit
This is followed by this mission statement.
Centrica Business Solutions helps organisations to balance the demands of planet and profit, by delivering integrated energy solutions that help you save money and become a sustainable business.
Several pictures show some of the solutions, that Centrica Business Solutions can provide.
Centrica Business Solutions In Numbers
These numbers are given about the customers of Centrica Business Solutions.
- Customer Sites Globally – 7000
- Solar PV Installations Delivered Worldwide – 16,380+
- Solar PV Installations Delivered Power – 240 MW
- CHP Units Operated And Maintained Globally – 700 MW+
- Energy Data Points Collected Each Month Globally – 29 billion
Theses are large numbers.
How Would Centrica Business Solutions Use Highview Power’s Batteries?
The obvious use of Highview Power’s batteries is to connect them between a solar or wind farm and the grid, for when the sun isn’t shining or when the wind isn’t blowing.
Currently, there are three sizes of Highview Power batteries, either working on under development.
5MW/15 MWh
This is the demonstration system, which is described on this page of the Highview web site.
Surely, if a system of this size is very useful for Viridor, there may be other applications and customers out there.
This system will provide 5 MW for three hours.
50MW/300MWh
This is the Carrington system, which is described on this page of the Highview web site.
The Highview web site says this about output potential and connectivity.
The facility will store enough clean, renewable energy to serve the needs of 480,000 homes, as well as providing essential grid stabilisation services. The site will use existing substation and transmission infrastructure.
This system will provide 50 MW for six hours.
200MW/2.5GWh
This is the larger system for Scotland and the North East, which is under development and described on this page of the Highview web site.
The Highview web site says this about output their use.
These will be located on the national transmission network where the wind is being generated and therefore will enable these regions to unleash their untapped renewable energy potential and store excess wind power at scale.
This system will provide 200 MW for 12.5 hours.
In Rio Tinto Punts On British Start-Up To Plug Renewables Gap, I said this.
In Britain, Highview hopes to be putting four 2.5-gigawatt assets into planning this year – one in Scotland, three with Orsted in England.
This sentence was originally published in this article on the Australian Financial Review.
I believe that Centrica could find applications for all three sizes of Highview’s batteries.
Suppose, though Centrica find that an application needs say a 100 MW/1 GWh battery.
From the mathematics, I did at ICI in the 1970s, when looking at the scaling of chemical plants, I believe that Highview’s battery design could be scalable, by just using appropriately-sized turbomachinery, matched to the right number of tanks.
So the customer would get the battery size they needed!
How Much Electricity Could One Of Highview’s Batteries Store?
This image shows large LNG tanks at Milford Haven.
In Could A Highview Power CRYOBattery Use A LNG Tank For Liquid Air Storage?, I did a rough calculation and found that the largest LNG tanks could hold enough liquid air, that would be the equivalent of around one GWh.
So the image above could be a 5 GWh battery.
This image clipped from Highview’s web site, shows large tanks for liquified gas storage.
With tanks like these, Highview could be building batteries with storage to rival the smaller pumped storage hydroelectric power stations.
In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I talked about how Ørsted were planning the Swardeston BESS, where the 2852 MW Hornsea Three wind farm connects to the grid.
The chosen battery will be from Tessla with an output of 300 MW and a capacity of 600 MWh.
I suspect Ørsted couldn’t wait for Highview, but circumstances might have changed now, with the financing deal for the Carrington battery!
Are Combined Heat And Power Units And Highview’s Batteries Interchangeable And Complementary Technologies?
According to the Centrica Business Systems web site, they have deployed over 700 MW of CHP systems globally.
I wonder how many of these systems could have used a standard Highview battery?
Perhaps, Centrica Business Systems have done a survey and found that it could be quite a few.
So, perhaps if Centrica Business Systems had access to Highview’s technology, it would increase their sales.
In addition how many of Centrica Business Systems existing CHP systems, would be improved with the addition of a Highview battery?
It appears to me, that if Centrica Business Systems were to develop a series of standard solutions based on Highview’s technology, they could substantially increase their sales.
What Could Centrica Business Systems Do For Highview Power?
Centrica Business Systems could probably develop several standard applications with Hoghview’s technology, which would be to the benefit of both companies.
But, I believe that as Centrica Business Systems are supporting large number of systems globally, that they are in a good place to help develop and possibly run Highview Power’s support network.
Conclusion
I can see Centrica Business Systems and Highview Power having a long and profitable relationship.
Where’s The Plan, Rishi?
In RWE Goes For An Additional 10 GW Of Offshore Wind In UK Waters In 2030, I detailed how RWE intended to add an extra 10 GW of offshore wind to the seas around the UK.
As our current offshore wind capacity is around 15 GW, another 10 GW would surely be very welcome.
My post also outlined H2ercules, which is Germany’s massive project to create a hydrogen network to bring hydrogen to Southern Germany.
I also gave details of the hydrogen hub at Wilhelmshaven, which is being built by Uniper to feed H2ercules with green hydrogen from around the world.
I believe that some of this hydrogen for H2ercules will take a short trip across the North Sea from UK waters, after being created by offshore electrolysers.
Rishi Sunak’s Manifesto Speech – June 11
I also reported on Rishi Sunak’s Manifesto Speech, which he made on June 11th. This is an extract
This document on the Policy Mogul web site is entitled Rishi Sunak – Conservative Party Manifesto Speech – Jun 11.
These are three paragraphs from the speech.
We don’t just need military and border security. As Putin’s invasion of Ukraine has shown, we need energy security too. It is only by having reliable, home-grown sources of energy that we can deny dictators the ability to send our bills soaring. So, in our approach to energy policy we will put security and your family finances ahead of unaffordable eco zealotry.
Unlike Labour we don’t believe that we will achieve that energy security via a state-controlled energy company that doesn’t in fact produce any energy. That will only increase costs, and as Penny said on Friday there’s only one thing that GB in Starmer and Miliband’s GB Energy stands for, and that’s giant bills.
Our clear plan is to achieve energy security through new gas-powered stations, trebling our offshore wind capacity and by having new fleets of small modular reactors. These will make the UK a net exporter of electricity, giving us greater energy independence and security from the aggressive actions of dictators . Now let me just reiterate that, with our plan, we will produce enough electricity to both meet our domestic needs and export to our neighbours. Look at that. A clear, Conservative plan not only generating security, but also prosperity for our country.
It is now nine days since Rishi made that speech and I can’t remember any reports about an energy security policy, which he outlined in the last paragraph of my extract from his speech.
He particularly mentioned.
- New gas-powered stations
- Trebling our offshore wind capacity
- Having new fleets of small modular reactors.
He also said we would have sufficient electricity to export to our neighbours. As I said earlier some of this energy will be in the form of hydrogen, which has been created by offshore electrolysers.
If we are exporting electricity and hydrogen to Europe, this is likely to have three effects.
- An improvement in Europe’s energy security.
- H2ercules will improve and decarbonise German industry, using UK hydrogen.
- The finances of UK plc will improve.
It looks like there will be winners all round.
Rishi also said this, in his speech.
As Putin’s invasion of Ukraine has shown, we need energy security too.
The gas-powered stations, offshore wind farms and the fleets of small modular reactors, will be part of the equation.
But I believe, we need three other components to complete our energy security.
- The upgrading of the National Grid.
- The building of four x 2 GW interconnectors between Scotland and Eastern England.
- Large amounts of energy storage.
Note.
- The Great Grid Upgrade and the four x 2 GW interconnectors are being planned.
- In Huge Boost To UK Supply Chain As National Grid Launches The Great Grid Partnership With Seven New Industry Partners, All United In The Drive To Deliver The Great Grid Upgrade, I describe how National Grid has setup the Great Grid Partnership to deliver the Great Grid Upgrade.
- In UK Infrastructure Bank, Centrica & Partners Invest £300M in Highview Power Clean Energy Storage Programme To Boost UK’s Energy Security, I describe how the big boys do a deal with Highview Power to create affordable batteries for the UK and the world.
- In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I describe how the very large Swardeston BESS is to be built near Norwich.
- In Mercia Power Response & RheEnergise Working Together To Build Long Duration Energy Storage Projects In The UK, I describe another UK-developed long duration energy storage system, which is now being planned.
- In National Grid Shares Proposals For Green Electricity Projects In Lincolnshire And West Norfolk, Needed To Boost Home-Grown Energy Supplies And Progress Towards Net Zero, I describe National Grid’s projects in the East of England.
- In UK ESO Unveils GBP 58 Billion Grid Investment Plan To Reach 86 GW of Offshore Wind By 2035, I show how we’re not that far away from 86 GW by 2035.
- In 400k For National Grid Innovation Projects As Part Of Ofgem Fund To Help Shape Britain’s Net Zero Transition, I describe how National Grid is using innovation to help target net-zero by 2035.
- In Iberdrola Preparing Two East Anglia Offshore Wind Projects For UK’s Sixth CfD Round, I describe how Iberdrola is getting 1.7 GW ready for commissioning in 2026.
- In National Grid To Accelerate Up To 20GW Of Grid Connections Across Its Transmission And Distribution Networks, I describe how National Grid are accelerating the development of the electricity networks. 10 GW of battery storage is a collateral benefit.
These ten projects, most of which are financed and/or underway, would appear to be good foundations, on which to build the Great Grid Upgrade.
It looks to me, that National Grid, RWE, Centrica, Iberdrola and others, by just doing what comes naturally have offered the next government a road to a future.
It will be interesting, what gets said before the election.
Recurrent Energy’s Middle Road Project Sold To Centrica
The title of this post, is the same as that pf this article on Solar Power Portal.
These are the first two paragraphs.
Recurrent Energy, a global solar and energy storage developer and a subsidiary of Canadian Solar, announced the sale of its 49.9 MWp Middle Road solar project in Harbury, Warwickshire, to Centrica Business Solutions. The subsidy-free project, slated for construction this summer, will commence operations in 2025.
The Middle Road project is just one piece of Recurrent Energy’s expanding UK pipeline, which boasts over 2.6 GWp of solar PV and 6.7 GWh of battery storage projects. This mirrors the broader trend of increased investment in UK solar. Indeed, Recurrent announced €1.3 billion of financing for EU and UK solar projects earlier this week.
This 49.9 MW solar project shows three ways to make money from a solar project.
The Developer
Recurrent Energy would appear to have developed the expertise to put together these solar farms and do all the legals and administration to connect them to the National Grid.
They obviously can show their financial backers, the cash flow, that the farms generates.
So if you’re good at building solar farms, I suspect you can develop a substantial pipeline of projects, each with their own case flow.
The Operator
Initially in the early days, Recurrent Energy will probably be the operator, so they can sort out any teething problems and build the financial profile of the site.
The Owner
But as at Middle Road, they may decide to cash in their investment.
Centrica have now taken over the ownership and they can operate the farm themselves or pay, Recurrent Energy a fee.
Note.
- Developer, operator and owner all have ways of making money from this solar farm.
- Developer and owner can use the solar farm, as an asset on which to raise money.
- Similar cash flows and inside probably apply to batteries and wind farms.
By buying, selling and updating the various assets, a financial operator, can use their assets to make money.
As Centrica are also an electricity supplier, they can probably suggest to developers, where a solar farm or battery-electric storage system is needed.
Are Centrica Developing A Pipeline Of Projects?
In Centrica Set For Solar Boost With Acquisition Of Two Projects In South-West England, I talked about how Centrica had acquired two projects in South-West England.
The Middle Road project is the third project that Centrica has purchased this year.
As a Control and Electrical Engineer, I know, that by careful management of the assets, Centrica can achieve the following.
- Delivery of electricity to their customers at a competitive price.
- If a battery is included in the local grid, higher supply reliability can be achieved.
- Batteries also allow the local network to carry out other tasks, like frequency stabilisation.
The flexibility of the local network should allow other assets to be added.
Aura Power Secures £10 Million Funding From Novuna
The title of this post, is the same as that of this article on Solar Power Portal.
These two paragraphs introduce the deal.
Aura Power has announced the successful closing of a £10 million debt facility with Novuna Business Finance. Novuna is a part of Mitsubishi HC Capital UK PLC, designed to support projects from early development through to the operational phase.
Bristol-based Aura Power is developing an active pipeline of utility-scale solar PV and battery energy storage of about 12GW in the UK, Europe and North America. The funding will help progress global development for Aura, covering expenditures like grid payments, planning fees and legal land costs.
These two paragraphs describe some of Aura’s projects.
In December 2023, Aura was granted planning permission for a 100MW/400MWh battery energy storage (BESS) project in Capenhurst, Cheshire. It was the third UK project to receive planning permission last year, alongside Aura’s 49.9MW Horton Solar Farm located in East Devon and its 49.9MW Hawthorn Pit Solar Farm in Durham.
Aura has been active within the solar and battery industries, with a pipeline in development in excess of 20GW. Last week (2 May), following an appeal, the developer secured planning permission for an Essex solar farm that will have an export capacity of 30 MW.
Nearly, forty years ago, I started a finance company in Ipswich with a friend. Our financing was mainly directed towards truck leasing for companies moving containers to and from the Port of Felixstowe.
Before, I committed my money to that venture, I built a large mathematical model of the proposed business. I found, that there were some unique financial properties to leasing quality trucks, that meant losing large sums of money were difficult.
I wouldn’t be surprised that leasing battery energy storage (BESS) systems have a lot of things going for them, if you have the right contract.
This may explain, why there a large number of companies in the market of providing grid batteries.
- At the top end; Centrica, Rolls-Royce and SSE will supply you with one.
- Funds like Gore Street and Gresham House and others allow you to invest in batteries.
- At the other end of the market are companies like Aura Power.
I suspect, that as with truck-leasing company, the financial flows are very stable and investor-friendly, if you get the model right.
UK’s Green Power Industry Receives Surprise £10bn Pledge
The title of this post, is the same as that of this article in the Guardian.
This is the sub-heading.
Potential investment by NatPower would create largest portfolio of battery storage projects in Britain
These five paragraphs outline the proposed investment.
Britain’s under-pressure green power industry has received a surprise fillip after a renewables developer pledged to plough £10bn into what would become the largest portfolio of battery storage projects in the country.
NatPower, a UK startup that is part of a larger European energy group, is poised to submit planning applications for three “gigaparks”, with a further 10 to follow next year.
Battery storage projects are seen as a key part of the jigsaw to decarbonise Britain’s power grid, allowing electricity generated by wind turbines and solar panels to be stored for use when weather conditions are still or not sunny.
The NatPower investment would lead to the construction of 60 gigawatt hours of battery storage, with solar and wind projects also in the pipeline.
The two gigaparks would be located in the north of England, with a further site in the west of the country planned later this year. The projects would be built on industrial land, and also through leasing deals with farmers.
Note.
- To gauge the scale of this development; the largest energy storage development in the UK at present is SSE Renewable’s massive Coire Glas pumped storage hydro in the Highlands of Scotland, which is a 1.5 GW/30 GWh monster, that is budgeted to cost £1.5 billion.
- NatPower has a web site, which has an opening video, which is all landscape, sun, water and wind, that would be worthy of an epic from Hollywood or by Eisenstein.
- NatPower’s investment of £10 billion, buys them 60 GWh of storage and if it’s a proportionate amount of capacity to Coire Glas, perhaps around 3GW or around the capacity of Hinckley Point C.
I have a few thoughts.
Is It All A Hoax?
Those who were alive and sober in 1977, may well remember the April Fools’ Day Hoax of the Guardian of that year, which concerned a fake supplement in the paper promoting the island of San Serriffe.
The story has its own Wikipedia entry.
The web site; http://www.sanserriffe.com, doesn’t seem to be accessible.
Today’s story seems genuine, although some will smell a rat.
The Anonymous Widower 