How Much Electricity Do You Need To Charge A Garage Full Of Electric Buses?
Consider.
- A couple of years ago, I had a long discussion and a few beers with three managers of bus garages.
- In First Bus To Launch 1MW BESS Unit In Hampshire, Aberdeen To Follow, I talk about a specialist battery to charge buses.
- In Is Sumitomo Heavy Industries Highview Power Energy Storage System On line At Hiroshima?, I talk about an efficient, renewable power supply for an LNG Terminal.
I asked Google AI the question in the title of this post and received this comprehensive answer.
Charging a full garage of electric buses requires massive amounts of electricity, with typical, non-optimized charging for a 100-bus depot capable of drawing nearly 10 megawatts (MW) of power. To put this into perspective, a 100-bus depot might require roughly 150 Megawatt-hours (MWh) of energy to recharge over an eight-hour night.
Key Factors and Energy Requirements
Energy Consumption per Bus: A typical electric bus has a battery capacity between 300-500 kWh. Energy consumption averages around 1.11 to 1.35 kWh/km, with higher consumption in winter or with heavy A/C use.
Total Depot Power: For a 100-bus depot, power requirements can reach 10 MW, equivalent to the power output of a small hydroelectric dam.
Optimal Charging: Using smart charging, a 100-bus depot can reduce its peak demand to around 4 MW.
Daily Usage: A single, large electric bus can consume up to 500 kWh per day, with daily demand ranging from 189 to 231 kWh for typical operations.
Infrastructure and Grid Considerations
Charging Infrastructure: Depots often use 40 kW to 250 kW chargers, with 100 kW common for overnight charging.
Grid Capacity: A 34-bus depot might require a new 1000kVA transformer to handle the load.
Voltage: 11,000 volts may be required to power new substations, which are then stepped down to 400 volts for charging.
Operational Factors Affecting Energy Need
Heating and Cooling: Cold weather can increase energy consumption by up to 45% (due to electric heating).
Driving Style: Inefficient driving can increase energy consumption by 0.24 kWh/km above average.
Regenerative Braking: This can recover 37–40% of energy for 40-60 ft buses.
Cost Implications
Energy Bills: A 100-bus depot can incur monthly energy bills between $112,000 and $515,000 without optimization.
Cost Savings: Electric buses are generally cheaper to fuel, costing ~£0.21/mile compared to £0.49/mile for diesel.
Could A System Based On The Sumitomo/Highview Power System At Hiroshima Charge Electric Buses?
The optimal charging figure for a 100-bus garage would appear to be in the region of 4-5 MW.
In Is Sumitomo Heavy Industries Highview Power Energy Storage System On line At Hiroshima?, I state, that it looks like Highview Power’s CRYOBattery™ at the heart of the system has a capacity of 5 MW/20 MWh.
I also state in the post, that the Hiroshima facility is designed to support grid stability and enhance renewable energy integration.
Does this all mean that if you can install enough solar panels on the roof of the garage or perhaps a wind turbine nearby, that you can have buses substantially powered by the sun and wind.
Chicago would just love wind-powered buses!
Is Sumitomo Heavy Industries Highview Power Energy Storage System On Line At Hiroshima?
From some work I did at ICI in the 1970s on a PACE231R analog computer, I believe that Highview Power may have an extremely promising way of storing energy.
The Highview Power web site talks of Sumitomo Heavy Industries, who are building one of Highview’s batteries at Hiroshima in Japan.
So I asked Google AI the question in the title of this post and received this comprehensive answer.
Yes, the Sumitomo Heavy Industries (SHI) Highview Power liquid air energy storage (LAES) commercial demonstration plant in Hatsukaichi, Hiroshima, is operational, having commenced operations on December 1, 2025.
Key details about the plant:Location: Within the Hiroshima Gas Hatsukaichi LNG Terminal.Capacity: 5 MW output with 4-hour storage (4 MW charging).Technology: Uses Highview Power’s CRYOBattery™ technology, specifically utilizing waste cold from the adjacent LNG terminal to improve efficiency.Role: The facility is designed to support grid stability and enhance renewable energy integration.A completion ceremony for the project was held on December 9, 2025. This news item from Sumitomo Heavy Industries gives more details.This paragraph describes Liquid Air Energy Storage or (LAES).
- It looks like the battery has a capacity of 5 MW/20 MWh.
- As it talks about using waste cold, this looks to be a very professionally-designed specialist application.
- But surely, that would be expected from a company like Sumitomo Heavy Industries.
There are hundreds of LNG terminals globally, with significant growth driven by over 300 projects (roughly 177 import/regasification and 124 export/liquefaction) expected between 2025 and 2030. In 2023, there were 22 countries with active liquefaction (export) capacity, while Europe alone operates roughly 28 large-scale terminals, supplemented by a rapidly expanding fleet of FSRUs.Export Capacity: In 2023, global liquefaction capacity was 472 million tonnes per annum (mtpa), with top exporters being Australia, the U.S., and Qatar.Expansion: By 2027, 52 new liquefaction terminals are expected to commence operations.Import Growth: European regasification capacity is expanding, with major terminals in Spain, France, Italy, and new additions in Germany and other nations.U.S. Infrastructure: The U.S. alone has more than 170 LNG facilities performing various services.
- They are listed in this Wikipedia entry.
- There are around thirty in Japan alone.
- Will Centrica add a 5 MW /20 MWh Highview Power battery to their Grain LNG Terminal?
- Each facility installed is claimed to be designed to support grid stability and enhance renewable energy integration, so the last part must cut carbon emissions.
Yes, several major chemical engineering and industrial processes generate significant amounts of “waste cold” (low-grade thermal energy or cryogenic energy) that is often discarded. While the chemical industry conventionally focuses on recovering waste heat, recovering waste cold is becoming increasingly popular for improving energy efficiency, particularly in cryogenic processes.
- Liquefied Natural Gas (LNG) Regasification
- Cryogenic Air Separation Units (ASUs)
- Dry Ice and CO2 Liquefaction
-
Liquid Nitrogen Vaporization
-
Emerging: Cryogenic Carbon Capture
- Creation of this page was not difficult, but you have to get the tricks right.
- I used Google Chrome and Google AI.
- My blog is hosted in WordPress.
- All pages on this blog, where I have had help in their creation from Google AI are tagged as such.
I would be happy to help anybody, who wanted to use Artificial Intelligence to create blog pages.
Polanski And Farage Don’t Agree. But They Have More In Common Than You Might Think
The title of this post, is the same as that of this article on the BBC, by Laura Kuenssberg.
It is very much a must read article comparing two of the most controversial party leaders in the UK.
This is the sub-heading.
One is a former stockbroker from the south who, by his own proud admission, loves smoking, drinking and women. The other’s a proud vegan, gay, northern former actor, who told me he’d never drunk a drop.
These first three paragraphs add detail to the story.
But the jubilant Zack Polanski and Nigel Farage have rather a lot in common.
Before you scream, burst out laughing, or think I have lost my marbles, of course, there are very big differences between them.
The Greens talk about a climate emergency. Reform UK calls the government green plans, “net stupid zero”.
This is Laura’s summing up of the Terrible Twins.
Their views on the cause of Britain’s pain vary wildly.
The Greens might point the finger at the super-rich, the “donor billionaires” they often cite. Reform often blames immigration, which they controversially characterise as an “invasion” of people arriving in the UK without permission.
But both parties feed off and stir up sentiment that’s felt by lots of the public: that Britain doesn’t work any more.
Whether it’s the new Green MP saying “working hard used to get you something” in her victory speech, or Nigel Farage repeatedly telling us “Britain is broken”, the same argument flows from both: that the country is in such a dreadful state that only new political saviours can fix it.
And both Reform and the Greens are willing to push the conventions of what traditional UK politicians would find acceptable – or what they believe would make them electable.
That’s not just about their image or the unstuffy ways they court publicity – Nigel Farage willingly going into the I’m A Celebrity jungle, or Zack Polanski being seen on a dance floor in campaign videos – but how they choose to focus on sensitive issues, where others might not choose to tread.
I would disagree that Britain is broken, but that it needs someone with sensible policies that everybody can get behind.
The Greens policies on the super-rich would drive anybody with ambition and money from this country and already countries like Canada are advertising for migrants.
With two immigrant lines, Farage is everything my father thought was bad about Oswald Mosley and his fascists in the 1930s. If a Reform UK Government started rounding up illegal immigrants on the streets, the violence would probable be enormous.
How Much Renewable Energy Will The UK Be Generating By 2030?
I have to admit, that whether you like the Tories or not, they have developed an energy generation policy and an energy relationship with Germany, that appears to be working and is allowing the current Government to do a bit of spending on defence and other needs.
I asked Google AI, the question in the title of this section and received this reply.
The UK government has set an ambitious target to reach 95% low-carbon electricity generation by 2030, aiming for a system driven by 43-50 GW of offshore wind, 27-29 GW of onshore wind, and 45-47 GW of solar power. This plan aims to dramatically reduce fossil fuel reliance, supported by 23-27 GW of battery capacity.
Key 2030 Renewable Energy Projections & Targets:
Total Clean Power Goal: The goal is 95% of electricity from low-carbon sources (renewables and nuclear) by 2030, up from roughly 74% in 2024.
Offshore Wind: Target of 43-50 GW, deemed crucial to powering the grid.
Onshore Wind: Target of 27-29 GW, with recent policy changes lifting bans to accelerate development.
Solar Power: Target of 45-47 GW, aiming to triple current capacity.
Flexibility: 23-27 GW of battery capacity and 4-6 GW of long-duration storage are needed to manage intermittency.
Challenges and Forecasts:
Shortfall Risks: While the government target is high, some projections suggest wind and solar may only account for 44% of generation by 2030, requiring significant acceleration to reach the 95% clean goal.
Investment Needs: Achieving these goals requires an estimated £48 billion in additional investment, on top of planned projects.
Progress: In 2024, renewable sources already hit a record of over 50% in certain quarters, with low-carbon sources overall (including nuclear) providing nearly 70% of generation.
My Thoughts
I will add some of my thoughts.
Electricity Demand: As I write, according to National Grid: Live it is 33.3 GW, which is met by with Production of 27.1 GW and Transfers of 6.2 GW.
Electricity Production: In 2030, I believe that if the UK has long-term battery capacity of something like 4 GW/40 GWh, that total UK electricity production could be upwards of 125 GW.
Hinckley Point C Power Station: This should add 1.6 GW in 2030 and 2031 to further boost UK electricity production.
Pumped Storage Hydro: In How Much Pumped Storage Hydro Will Be Operational In The UK By 2030?, I estimate that the Bank of England standard of energy storage, will add 5 GW of electricity production.
Highview Power: Highview Power are developing long duration liquid-air energy storage and have identified locations for sixteen 300 MW/3.2 GWh monsters.
Excess Electricity Production: This will be exported, either as electricity or after conversion to hydrogen. It will be a Magic Money Forest for the victor of the General Election in 2029.
If Hinckley Point C, the pumped storage hydro and Highview Power’s batteries work as their engineers hope, then the result of the next General Election will be predictable.
It is certainly, Kier Starmer’s to win, by getting the energy right!
Highview Power And The 2029 General Election
Every extra GWh added to energy storage has the following affect.
It will mean that more wind farms will not have to be switched in times of high wind and over production, as the electricity can be stored.
At the present time, there are four ways of storing energy.
- Turn it into hydrogen. But the Hindenberg did a good PR job for not using hydrogen.
- Store it in a pumped storage hydro system, but these have problems with their large land use.
- Store it in a large lithium battery, but these have problems with fire risks and need a large amount of expensive lithium.
- Store it in one of Highview Power’s liquid air batteries.
I believe that Highview Power’s liquid-air long duration batteries, have several advantages.
- They are built from readily available components.
- They can be scaled to the need at the location, where they are installed.
- A small one is 50 MW/300 MWh and a large one is 300 MW/3.2 GWh.
- The batteries come with grid stabilisation and other features.
- The batteries have a lifespan of greater than 50 years
- The energy storage fluid, is captured from the air.
- They are a product, that would be easy to finance in quantity.
- Goldman Sachs is an investor.
- A village with a power problem could fund a Highview Power battery and have a nice little earner, with perhaps a wind turbine on a nearby hill.
- Centrica is an investor.
If a politician were to understand it, it could wind them the next General Election.
Global Investor Joining RWE On Two Norfolk Vanguard Offshore Wind Projects, FID Expected in Summer
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
Global investment firm KKR and RWE have signed an agreement under which KKR acquire a 50 per cent stake in each of RWE’s Norfolk Vanguard East and Norfolk Vanguard West offshore wind projects, totalling 3.1 GW in installed capacity. The wind farms were just awarded Contracts for Difference (CfDs) in the UK’s seventh CfD allocation round (AR7).
These three paragraphs add a few more details.
The two Norfolk Vanguard projects, which RWE bought from Vattenfall in March 2024, have already secured seabed rights, grid connections, development consent orders (DCOs) and all other key permits.
On 14 January, RWE said it launched the process to raise non-recourse project finance debt for the projects and that it expects the closing of the partnership transaction and the project financing, as well as the final investment decision (FID), in the summer of 2026.
Located 50 to 80 kilometres off the coast of Norfolk, the two offshore wind farms are planned to be commissioned in 2029 (Norfolk Vanguard West) and 2030 (Norfolk Vanguard East).
RWE do seem to be lining up everything ready for that final investment decision in the summer of 2026.
- I suspect that with KKR on board, that they have got the money ready and I wouldn’t be surprised to see these two projects quickly progress to a completion.
- I also think it was significant that we have Goldman Sachs involved in Highview Power, who may have a solution to affordable energy storage and now we have KKR getting involved with one of the most professional offshore wind power developers in the world.
- Are Goldman Sachs and KKR placing bets against Trump’s anti wind power stance?
The Germans will certainly need a lot of energy and British offshore wind power, would appear the only place, where it is available easily in quantity to the Germans.
I await the next few months with a lot of interest.
The Liquid Air Alternative To Fossil Fuels
The title of this post, is the same as that of this article on the BBC.
This is the sub-heading.
An overlooked technology for nearly 50 years, the first liquid air energy storage facility is finally set to power up in 2026. It’s hoping to compete with grid-scale lithium batteries and hydro to store clean power, and reduce the need to fall back on fossil fuels.
These three introductory paragraphs add more details.
s the world’s use of renewable electricity soars, surpassing coal for the first time, the need to store that energy when the Sun isn’t shining and the wind isn’t blowing is growing in step. While some turn to grid-scale lithium batteries and others to pumped hydro, a small but growing industry is convinced there’s a better solution still: batteries that rely on air.
Near the village of Carrington in north-west England, the foundations are being laid for the world’s first commercial-scale liquid air energy storage facility. The site will eventually become an array of industrial machinery and a number of large storage tanks, filled with air that has been compressed and cooled so much it has become a liquid, using renewable energy surplus to demand. The stored energy can be discharged later when demand exceeds supply.
If the project succeeds, more will follow. The site’s developers Highview Power are confident that liquid air energy storage will make it easier for countries to replace fossil fuels with clean renewable energy – though at present, the technology is expensive. But as the need for clean energy storage surges, they’re betting the balance will tip in favour of liquid air.
Where this article about Highview Power is different, as it gives various details on the efficiency, return and of liquid air energy storage systems.
Centrica Energy And Exodus Sign Landmark LNG Agreement
The title of this post, is the same as that of this press release from Centrica.
This is the sub-heading.
Centrica Energy has announced the signing of a long-term Sale and Purchase Agreement (SPA) to supply liquefied natural gas (LNG) to Exodus for Honduras, marking a new milestone in the country’s energy development.
These two paragraphs add more details.
Under the terms of the agreement, Centrica will deliver approximately six LNG cargoes per year to Exodus through a ship-to-ship operation into the Floating Storage Unit (FSU) Bilbao Knutsen, located in Puerto Cortes. The 15-year contract is expected to commence in 2026.
“This agreement reflects Centrica Energy’s commitment to expanding global LNG access through strategic partnerships,” said Arturo Gallego, Global Head of LNG at Centrica Energy. “By leveraging our global reach and operational expertise, we’re proud to support Exodus and Honduras in its journey toward a more sustainable and resilient energy future.”
It looks a good deal for Centrica, that has been snatched from under the American’s noses.
I also asked Google AI, if Honduras produced any natural gas and received this reply.
No, Honduras does not produce natural gas, but it is importing it through a new liquefied natural gas (LNG) agreement that begins in 2026. The country relies on imports to meet its energy needs, and this new deal aims to diversify its energy mix and provide cleaner energy for power generation.
That’s clear and it’s interesting that Honduras are looking to provide cleaner energy.
These two paragraphs from Centrica’s press release add details on power generation in Honduras.
The LNG will be transported to the Brassavola Combined Cycle Power Plant, an operating 150 MW thermal facility with its combined cycle under construction and set to reach 240 MW of power capacity, marking the first-ever import of natural gas for power generation in Honduras. This initiative represents a significant step toward diversifying the nation’s energy mix and reducing its reliance on less environmentally friendly fossil fuels.
Once operational, the FSU will serve as the backbone of LNG storage at a new terminal currently under construction on Honduras’ Caribbean coast. The project is designed to enhance energy security, improve generation efficiency, and support industrial growth.
This article on Riviera is entitled Honduras Turns To LNG To Meet Energy Needs and provides these points.
- Honduras is grappling with a 250 MW power shortage.
- Genesis Energías is spearheading efforts to introduce a reliable and cost-effective energy source by importing liquefied natural gas (LNG).
- Hyundai, who are one of Centrica’s partners in HiiROC, are converting the Bilbao Knutsen for its new role as a Floating Storage Unit (FSU).
It would certainly help Honduras’s economy, if they had more power generation.
I asked Google AI, if Honduras was developing offshore wind power and received this reply.
While Honduras has been actively developing onshore wind power for over a decade, there is currently no information to suggest it is developing offshore wind power projects. The country’s wind energy development has focused exclusively on land-based projects, with a number of operational farms and more in the pipeline.
I also asked Google AI if Honduras was developing solar power and received this reply.
Yes, Honduras is actively and significantly developing its solar power capacity as a cornerstone of its national energy strategy. The country has been a regional leader in solar energy penetration and continues to invest heavily in new projects to reduce its dependence on fossil fuels.
But, whether its offshore wind, onshore wind or solar power, these renewals will need backup and the 240 MW Brassavola Combined Cycle Power Plant, will be a good start.
I have some further thoughts.
Does HiiROC Have A Part To Play?
If would be good, if the 240 MW Brassavola Combined Cycle Power Plant could be zero-carbon, so that Honduras could be more zero-carbon.
Consider.
- Centrica own part of HiiROC, who can generate turquoise hydrogen efficiently from natural gas.
- Honduras will from 2026, have plenty of natural gas.
- In Hydrogen Milestone: UK’s First Hydrogen-to-Power Trial At Brigg Energy Park, I talked about how Centrica powered Brigg power station with a hydrogen blend.
- If the Brassavola Combined Cycle Power Plant was reasonably-modern like Brigg, I suspect it could be run on hydrogen or a hydrogen-blend.
- A reliable supply of hydrogen in Honduras would have its uses.
I wouldn’t be surprised to see a HiiROC plant in Honduras to help decarbonise the country.
HiiROC Creates A Lot Of Carbon Black
When a HiiROC system produces turquoise hydrogen, it produces carbon black as a by-product.
I asked Google AI, if Honduras has a use for carbon black, and received this reply.
Honduras likely has a use for carbon black because the material is a vital component in the production of many common industrial and consumer goods that are used globally. The primary applications are universal across most countries, including those in Central America.
But carbon black can also be used to improve poor agricultural land.
So I asked, Google AI, if Honduras has a lot of land to improve and received this reply.
Yes, Honduras has significant land to improve, but this is complicated by issues like deforestation, land degradation, and a lack of clear land rights for many communities. There is a need to balance economic activities like coffee plantations with conservation, improve sustainable agriculture practices, and address illegal land occupation.
It seems to me, that a sensible hollistic approach could use some of the carbon black.
I also believe, that there are many universities, who could advise Honduras on land restoration.
Does Highview Power Have A Part To Play?
Consider.
- Centrica are one of the backers of Highview Power, who are building their first two environmentally-friendly liquid air batteries in the UK.
- Their flagship battery is a 300 MW/3.2 GWh monster that can incorporate a stability island, that controls the grid.
- Highview Power’s batteries are zero-carbon, with a 40-50 year life.
As a Control Engineer, I believe that one of these batteries would be superb backup for the Brassavola Combined Cycle Power Plant and all those renewables.
Where Will Centrica Get Their LNG For Honduras?
I have already reported on two deals, where Centrica is purchasing LNG.
- Centrica Enters Into Long Term Natural Gas Sale & Purchase Agreement
- Centrica And PTT Sign Heads Of Agreement For Long-Term LNG Supply
I can expect more deals like this around the world.
Also, as the Grain LNG Terminal has the ability to export LNG could we be seeing UK natural gas being exported by Centrica to Honduras and the other countries hinted at in the PTT purchase?
Are Centrica Proposing A Comprehensive Solution To A Nation’s Power Problem?
It certainly looks like they are.
And Honduras would be getting a zero-carbon energy system.
This could be repeated all around the world.
Conclusion
This certainly looks like a good deal for Centrica, that can be repeated in other places.
Highview Surpasses Half A Billion Pounds Of Funding With Latest £130m Capital Raise For Phase One Of Long Duration Energy Storage Facility At Hunterston, Ayrshire
The title of this post, is the same as that of this news story from Highview Power.
Funding Round Enables Build Of “Stability Island” Which Will Deliver Crucial Grid Stability Services; Represents Phase One Of LDES Facility At Hunterston
These two paragraphs outline the funding raised and where it will initially be used.
Highview has secured £130 million in funding to commence work on the first stage of its planned 3.2GWh hybrid long-duration energy storage solution in Hunterston, Scotland. This brings the total raised to commercialise and roll out Highview’s long duration storage solutions to over £500 million.
This latest investment round, involving Scottish National Investment Bank (SNIB), the British multinational energy and services company Centrica, and investors including Goldman Sachs, KIRKBI and Mosaic Capital, will fund construction of the first phase of the Hunterston project, a “stability island”, which will provide system support to the electricity grid.
The Concept Of The Stability Island
This paragraph describes the concept of the Stability Island.This stability island is a key component of Highview’s LDES system. It can operate independently of the energy storage elements and will deliver critical inertia, short circuit and voltage support to the UK power grid. The asset will support the grid at a location that faces considerable stability challenges. In turn, this will enable more power to be transmitted from the point of generation in Scotland to areas of high demand, preventing curtailment of wind energy across Scotland
A large amount of energy will be routed through Hunterston from Scotland to England, Wales and the island of Ireland and the stability island will tightly control the flow of energy.
The Facility At Hunterston
These two paragraphs describe the facility at Hunterston.
As well as the stability island, the facility at Hunterston will also eventually incorporate a hybrid long duration energy storage system, combining both liquid air storage and lithium-ion batteries for greater operational performance. This means that the entire facility will be able to send more power to the grid for longer, in a flexible way, maximising the asset for the benefit of the system operator.
The energy storage element of the Hunterston facility received significant validation recently, when it was named as an eligible project for Ofgem’s Cap and Floor support scheme for long duration energy storage, along with a planned facility at Killingholme, Lincolnshire.
I suspect the Stability Island will actually distribute the energy to where it is needed.
The Thoughts Of Chris O’Shea
This article on This Is Money is entitled Centrica boss has bold plans to back British energy projects – but will strategy pay off?.
The article is basically an interview with a reporter and gives O’Shea’s opinions on various topics.
Chris O’Shea is CEO of Centrica and his Wikipedia entry gives more details.
These are his thoughts.
On Investing In Sizewell C
This is a paragraph from the article.
‘Sizewell C will probably run for 100 years,’ O’Shea says. ‘The person who will take the last electron it produces has probably not been born. We are very happy to be the UK’s largest strategic investor.’
Note.
- The paragraph shows a bold attitude.
- I also lived near Sizewell, when Sizewell B was built and the general feeling locally was that the new nuclear station was good for the area.
- It has now been running for thirty years and should be good for another ten.
Both nuclear power stations at Sizewell have had a good safety record. Could this be in part, because of the heavy engineering tradition of the Leiston area?
On Investing In UK Energy Infrastructure
This is a paragraph from the article
‘I just thought: sustainable carbon-free electricity in a country that needs electricity – and we import 20 per cent of ours – why would we look to sell nuclear?’ Backing nuclear power is part of O’Shea’s wider strategy to invest in UK energy infrastructure.
The UK certainly needs investors in UK energy infrastructure.
On Government Support For Sizewell C
This is a paragraph from the article.
Centrica’s 500,000 shareholders include an army of private investors, many of whom came on board during the ‘Tell Sid’ privatisations of the 1980s and all of whom will be hoping he is right. What about the risks that deterred his predecessors? O’Shea argues he will achieve reliable returns thanks to a Government-backed financial model that enables the company to recover capital ploughed into Sizewell C and make a set return.
I have worked with some very innovative accountants and bankers in the past fifty years, including an ex-Chief Accountant of Vickers and usually if there’s a will, there’s a solution to the trickiest of financial problems.
On LNG
These are two paragraphs from the article.
Major moves include a £200 million stake in the LNG terminal at Isle of Grain in Kent.
The belief is that LNG, which produces significantly fewer greenhouse gas emissions than other fossil fuels and is easier and cheaper to transport and store, will be a major source of energy for the UK in the coming years.
Note.
- Centrica are major suppliers of gas-powered Combined Heat and Power units were the carbon dioxide is captured and either used or sold profitably.
- In at least one case, a CHP unit is used to heat a large greenhouse and the carbon dioxide is fed to the plants.
- In another, a the gas-fired Redditch power station, the food-grade carbon dioxide is sold to the food and construction industries.
- Grain LNG Terminal can also export gas and is only a short sea crossing from gas-hungry Germany.
- According to this Centrica press release, Centrica will run low-carbon bunkering services from the Grain LNG Terminal.
I analyse the investment in Grain LNG Terminal in Investment in Grain LNG.
On Rough Gas Storage
These are three paragraphs from the article.
O’Shea remains hopeful for plans to develop the Rough gas storage facility in the North Sea, which he re-opened in 2022.
The idea is that Centrica will invest £2 billion to ‘create the biggest gas storage facility in the world’, along with up to 5,000 jobs.
It could be used to store hydrogen, touted as a major energy source of the future, provided the Government comes up with a supportive regulatory framework as it has for Sizewell.
The German AquaVentus project aims to bring at least 100 GW of green hydrogen to mainland Germany from the North Sea.
This map of the North Sea, which I downloaded from the Hydrogen Scotland web site, shows the co-operation between Hydrogen Scotland and AquaVentus
Note.
- The yellow AquaDuctus pipeline connected to the German coast near Wilhelmshaven.
- There appear to be two AquaDuctus sections ; AQD 1 and AQD 2.
- There are appear to be three proposed pipelines, which are shown in a dotted red, that connect the UK to AquaDuctus.
- The Northern proposed pipeline appears to connect to the St. Fergus gas terminal on the North-East tip of Scotland.
- The two Southern proposed pipelines appear to connect to the Easington gas terminal in East Yorkshire.
- Easington gas terminal is within easy reach of the massive gas stores, which are being converted to store hydrogen at Aldbrough and Rough.
- The blue areas are offshore wind farms.
- The blue area straddling the Southernmost proposed pipe line is the Dogger Bank wind farm, is the world’s largest offshore wind farm and could eventually total over 6 GW.
- RWE are developing 7.2 GW of wind farms between Dogger Bank and Norfolk in UK waters, which could generate hydrogen for AquaDuctus.
This cooperation seems to be getting the hydrogen Germany needs to its industry.
It should be noted, that Germany has no sizeable hydrogen stores, but the AquaVentus system gives them access to SSE’s Aldbrough and Centrica’s Rough hydrogen stores.
So will the two hydrogen stores be storing hydrogen for both the UK and Germany?
Storing hydrogen and selling it to the country with the highest need could be a nice little earner.
On X-energy
These are three paragraphs from the article.
He is also backing a £10 billion plan to build the UK’s first advanced modular reactors in a partnership with X-energy of the US.
The project is taking place in Hartlepool, in County Durham, where the existing nuclear power station is due to reach the end of its life in 2028.
As is the nature of these projects, it involves risks around technology, regulation and finance, though the potential rewards are significant. Among them is the prospect of 2,500 jobs in the town, where unemployment is high.
Note.
- This is another bold deal.
- I wrote in detail about this deal in Centrica And X-energy Agree To Deploy UK’s First Advanced Modular Reactors.
- Jobs are mentioned in the This is Money article for the second time.
I also think, if it works to replace the Hartlepool nuclear power station, then it can be used to replace other decommissioned nuclear power stations.
On Getting Your First Job
These are three paragraphs from the article.
His career got off to a slow start when he struggled to secure a training contract with an accountancy firm after leaving Glasgow University.
‘I had about 30, 40 rejection letters. I remember the stress of not having a job when everyone else did – you just feel different,’ he says.
He feels it is ‘a duty’ for bosses to try to give young people a start.
I very much agree with that. I would very much be a hypocrite, if I didn’t, as I was given good starts by two companies.
On Apprenticeships
This is a paragraph from the article.
‘We are committed to creating one new apprenticeship for every day of this decade,’ he points out, sounding genuinely proud.
I very much agree with that. My father only had a small printing business, but he was proud of the apprentices he’d trained.
On Innovation
Centrica have backed three innovative ideas.
- heata, which is a distributed data centre in your hot water tank, which uses the waste heat to give you hot water.
- HiiROC, which is an innovative way to generate affordable hydrogen efficiently.
- Highview Power, which stores energy as liquid air.
I’m surprised that backing innovations like these was not mentioned.
Conclusion
This article is very much a must read.
Ørsted In Talks To Sell Half Of Huge UK Wind Farm To Apollo
The title of this post, is the same as that as this article in The Times.
This is the sub-heading.
The US investment giant is eyeing a 50 per cent stake in the Danish energy company’s £8.5 billion Hornsea 3 project off the Yorkshire coast
These are the first three paragraphs, which add more detail.
An American investment giant is negotiating a deal to buy half of what will be the world’s largest off-shore wind farm off the coast of Yorkshire from the troubled Danish energy company Ørsted.
New York-based Apollo, which oversees assets of about $840 billion, is in talks with Ørsted about acquiring a 50 per cent stake in Hornsea 3, an £8.5 billion project that started construction in 2023 and will be capable of powering more than three million UK homes.
A transaction would be a boost for Orsted, which has come under pressure in recent months from rising costs and a backlash against renewables in the United States by President Trump. Orsted started the process of selling a stake in Hornsea 3 in 2024 and said last month that it had an unnamed preferred bidder for the asset, which the Financial Times first reported was Apollo.
I have written several times about Ørstedregularly building a large wind farm and then selling it, so they must be doing something right.
In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I wrote about how Aviva bought Hornsea 1 from Ørsted.
One of the guys at Aviva explained that these sort of investments gave the right sort of cash flow to fund insurance risks and pensions.
Now that Trump has attempted to give his kiss of death to wind power in the United States, will US funds be looking for quality investments like Hornsea 3 in the UK and other large wind farms in France, Germany, Norway, Japan and Korea?
Already, Blackrock are investing billions to build a massive data centre at Blyth, where there are Gigawatts of offshore wind power and an interconnector to Norway, so that UK and Norwegian wind can be backed up by UK nuclear and Norwegian hydropower.
Highview Power And Ørsted
I wrote Highview Power, Ørsted Find Value In Integrating Offshore Wind With Liquid Air Energy Storage in November 2023.
I would have thought, that by now a battery would have been announced in one of Ørsted’s many projects.
I asked Google AI if Highview Power and Ørsted were still talking about liquid air energy storage and received this reply.
Yes, Highview Power and Ørsted are still actively involved in Liquid Air Energy Storage (LAES), having completed a joint study in late 2023 on combining LAES with offshore wind to benefit the UK grid, and the findings were presented to the government for its long-duration energy storage (LDES) consultation. They believe LAES can reduce wind curtailment, increase energy productivity, and support grid resilience, with potential projects aligned with offshore wind farm timelines.
Perhap’s Ørsted are getting their finances aorted first?
Conclusion
The Times They Are A-Changing!
The Anonymous Widower 