Ørsted Posts All-Time High Offshore Wind Earnings
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the sub-heading.
World’s leading offshore wind developer, Ørsted, has reported DKK 6.9 billion (EUR 926 million) operating profit (EBITDA) for the first quarter of 2023, DKK 2.5 billion less compared to the same period a year earlier.
For those, who are sceptical about offshore wind, these results must surely pour cold water on your views.
The profits also appear to have in part been driven by the commissioning of the Hornsea Two wind farm.
Kittiwake Compensation
The title of this post, is the same as that of this page of Ørsted’s Hornsea Three web site.
The first section of the page gives the background.
Hornsea 3 Offshore Wind Farm received planning permission in December 2020. As part of our Development Consent Order, a requirement was included for ecological compensation measures for a vulnerable seabird species whose populations could be affected by wind farms – the Black-legged kittiwake (Rissa tridactyla).
Our compensation plan focusses on providing artificial nesting structures for kittiwake along the east coast of England. This project is the first of its kind and we are working on new and innovative designs for the artificial nesting structures. Each structure will be purpose-built, bespoke and specific to the landscape characteristics of each location. The structures also present an educational opportunity, allowing researchers to better understand kittiwake.
Developing effective environmental compensation measures is essential to ensure the UK Government’s targets for offshore wind can be realised, to deliver a net zero-carbon future.
So kittiwakes are not being paid compensation, as I don’t suspect many have bank accounts.
But they are being built a few new nesting structures.
Wikipedia has an entry on kittiwakes.
It notes that all European kittiwakes are of the black-legged variety and this is a picture, I took of some on the Baltic in Newcastle.
I’ve seen several pictures of kittiwakes lined up like these.
The document goes on to describe the work being done for the kittiwakes and this is said about work in East Suffolk.
Lowestoft and Sizewell are the only locations between Kent and Humberside with thriving kittiwake colonies. Kittiwake normally nest on steep cliffs with narrow ledges. East Anglia doesn’t have these natural nesting spaces, so kittiwake have reverted to colonising urban areas, for example on windowsills and ledges of buildings. Kittiwake breeding for the first time are most likely to find artificial structures that are situated close to these urban areas. They are less likely to find structures in places where there are not already kittiwake. Lowestoft and Sizewell are therefore two of the few places in East Anglia where artificial structures could be colonised quickly. These purpose-built nesting sites would improve breeding conditions for kittiwake, whilst successfully achieving our compensation requirements to unlock the world’s biggest offshore wind farm.
I took this picture of kittiwakes at Sizewell.
It doesn’t seem too unlike the structure on the Hornsea 3 web site.
Vestas 15 MW Prototype Turbine Produces First Power
The title of this post, is the same as that of this article on offshoreWIND.biz.
This is the introductory paragraph.
Vestas’ V236-15.0 MW prototype wind turbine has produced its first kWh after being fully assembled at the Østerild National test centre for large wind turbines in Western Jutland, Denmark.
The first of the four wind farms in the Hornsea wind farm complex to be developed is Hornsea One.
- It has a capacity of 1218 MW.
- It is comprised of 174 Siemens SWT-7.0-154, which each have a generating capacity of 7 MW.
If 15 MW turbines could have been used on Hornsea One, it would have more than doubled the generating capacity to 2625 MW.
But obviously, larger turbines have longer blades, so they may need to be placed further apart.
In Vattenfall Boosts Capacity For Norfolk Offshore Wind Zone, I write about how Vattenfall are increasing the size of their Norfolk wind farms, by proposing to use larger turbines.
Conclusion
Turbines will get larger and 15 MW turbines will be commonplace.
A possible advantage is that you only need sixty-seven turbines for a GW, as opposed to a hundred 10 MW turbines, so there are possibilities to optimise the most profitable way to build a wind farm.
Neptune Energy, Ørsted And Goal7 Explore Powering Integrated Energy Hubs With Offshore Wind
The title of this post, is the same as that of this press release from Neptune Energy.
These four paragraphs outline the agreement.
Neptune Energy today announced it has signed a Memorandum of Understanding with Ørsted and Goal7 to explore powering new integrated energy hubs in the UK North Sea with offshore wind-generated electricity.
Integrated energy hubs have the potential to combine multiple energy systems, including existing oil and gas production assets, carbon storage and hydrogen production facilities. They could extend the life of producing fields and support the economic case for electrification with renewable energy, to keep carbon emissions low.
The agreement will see the companies examine the potential to supply renewable electricity from Ørsted’s Hornsea offshore windfarm projects to power future Neptune-operated hubs in the UK North Sea.
Goal7 will provide project management support and technical input.
Note.
- Neptune Energy has three oil and gas fields in the UK North Sea; Cygnus (operational), Isabella (exploration) and Seagull (development)
- Gas from Cygnus comes ashore at the Bacton Gas Terminal.
- Ørsted owns the Hornsea wind farm, which when fully developed will have a capacity of around 6.5 GW.
- Cygnus and Hornsea could be not much further than 50 km apart.
- Seagull and Isabella are further to the North and East of Aberdeen.
- Ørsted has an interest in the Broadshore wind farm, which was numbered 8 in the ScotWind Leasing round.
These are my thoughts.
The Cygnus Gas Field And The Hornsea Wind Farm
This could be like one of those stories where boy meets the girl next door and they hit it off from the first day.
This page on the Neptune web site says this about the Cygnus gas field.
The biggest natural gas discovery in the southern North Sea in over 30 years is now the largest single producing gas field in the UK, typically exporting over 250 million standard cubic feet of gas daily. Cygnus contributes six per cent of UK gas demand, supplying energy to the equivalent of 1.5 million UK homes. It has a field life of over 20 years.
Two drilling centres target ten wells. Cygnus Alpha consists of three bridge-linked platforms: a wellhead drilling centre, a processing/utilities unit and living quarters/central control room. Cygnus Bravo, an unmanned satellite platform, is approximately seven kilometres northwest of Cygnus Alpha.
In 2022, we plan to drill two new production wells at Cygnus, with the first of these expected to come onstream in 4Q. The second well is due to be drilled in the fourth quarter and is expected onstream in the first quarter of 2023, with both wells helping to maintain production from the field and offset natural decline.
Gas is exported via a 55 km pipeline. Cygnus connects via the Esmond Transmission System (ETS) pipeline to the gas-treatment terminal at Bacton, Norfolk. Neptune Energy has a 25% minority interest in ETS.
Note.
- Cygnus with a twenty year life could be one of the ways that we bridge the gap until we have the two Cs (Hinckley Point and Sizewell) and a few tens of offshore wind gigawatts online.
- The two extra wells at Cygnus will help bridge the gap.
- The gas field has a pipeline to Bacton.
So what can the gas field and the wind farm, do for each other?
Hornsea Can Supply The Power Needs Of Cygnus
Typically, ten percent of the gas extracted from the wells connected to a gas platform, will be converted into electricity using one or more gas-turbine engines; which will then be used to power the platform.
So, if electricity from the Hornsea wind farm, is used to power the platform, there are two benefits.
- More gas will be sent through the pipeline to Bacton.
- Less carbon dioxide will be emitted in recovering the gas.
Effectively, electricity has been turned into gas.
Electricity Can Be Stored On The Sea-Bed
The Hornsea One wind farm has an area in the order of 150 square miles and it is only one wind farm of four, that make up the Hornsea wind farm.
I would argue that there is plenty of space between the turbines and the wells of the Cygnus gas field to install some form of zero-carbon underwater battery to store electricity.
But does this technology exist?
Not yet! But in UK Cleantech Consortium Awarded Funding For Energy Storage Technology Integrated With Floating Wind, I described a technique called Marine Pumped Hydro, which is being developed by the STORE Consortium.
- Energy is stored as pressurised water in 3D-printed hollow concrete spheres fitted with a hydraulic turbine and pump.
- The spheres sit on the sea-bed.
- This page on the STORE Consortium web site, describes the technology in detail.
- The technology is has all been used before, but not together.
I think it is excellent technology and the UK government has backed it with £150,000 of taxpayers’ money.
I also believe that Marine Pumped Hydro or something like it, could be the solution to the intermittency of wind farms.
Excess Electricity Can Be Converted Into Hydrogen
Any spare electricity from the wind farm can drive an electrolyser to convert it into hydrogen.
The electrolyser could be mounted on one of the Cygnus platforms, or it could even float.
The hydrogen produced would be blended with the gas and sent to Bacton.
Carbon Dioxide Can Be Stored In The Depleted Cygnus Gas Field
As the gas field empties of natural gas, the gas pipes to the Cygnus gas field can be reversed and used to bring carbon dioxide to the gas field to be stored.
The Cygnus gas field has gone full circle from providing gas to storing the same amount of carbon that the gas has produced in its use.
These are two paragraphs from the press release.
Neptune Energy’s Director of New Energy, Pierre Girard, said: “The development of integrated energy hubs is an important part of Neptune’s strategy to store more carbon than is emitted from our operations and the use of our sold products by 2030.
“Neptune has submitted three applications under the recent Carbon Dioxide Appraisal and Storage Licensing Round, and securing the licences would enable us to develop future proposals for integrated energy hubs in the UK North Sea.
I can envisage a large gas-fired power-station with carbon capture being built in Norfolk, which will do the following.
- Take a supply of natural gas from the Cygnus gas field via the Bacton gas terminal.
- Convert the hydrogen in the gas into electricity.
- Convert the carbon in the gas into carbon dioxide.
- Store the carbon dioxide in the Cygnus gas field via Bacton.
- I also suspect, that if a Norfolk farmer, manufacturer or entrepreneur has a use for thousands of tonnes of carbon dioxide, they would be welcomed with open arms.
Would the ultra-greens of this world, accept this power station as zero-carbon?
The Isabella And Seagull Gas Fields And The Broadshore Wind Farm
Could a similar set of projects be applied to the Isabella and Seagull gas fields, using the Broadshore wind farm?
I don’t see why not and they could work with the Peterhead power stations.
Highview Power In The Daily Express
This article in the Daily Express is entitled The Storage Sites Around The UK That Could Provide Cheap Power To Millions Of Homes.
Highview Power gets a large mention for its plan for twenty storage sites around the UK.
This is said about their planned sites at Carrington and on Humberside.
It is hoped that the first plant, a £250million Manchester station, will come online as early as 2024. It will have a 30megawatts capacity, able to store 300megawatt hours of electricity, enough to supply 600,000 homes with clean power for an hour.
The next plants will be even larger in scale, with four a five planned for Humberside with a 200megawatt/2.5gigwatt hour capacity. The CRYOBattery site would be able to store excess energy generated by the Dogger Bank, Hornsea and Sofia wind farms.
There is also a comprehensive map, with sites indicated at places like Aberdeen, Anglesey, Inverness, Liverpool, Montrose, Norfolk and Sizewell.
The sites seem to be following the wind, which is where excess power needs to be stored and released, when the wind is on strike.
Ørsted Completes 50% Stake Sale In Hornsea 2 To French Team
The title of this post, is the same as that of this article on Renewables Now.
This sale was outlined in this press release from Ørsted in March, where this is the first paragraph.
Ørsted has signed an agreement to divest a 50 % ownership stake in its 1.3 GW Hornsea 2 Offshore Wind Farm in the UK to a consortium comprising AXA IM Alts, acting on behalf of clients, and Crédit Agricole Assurances.
Insurance companies must like wind power, as Aviva backed Hornsea 1 wind farm. I wrote about this in World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant.
It looks like the French feel the same way as Aviva about Ørsted’s Hornsea wind farms.
There is no safer mattress in which to stash your cash.
An Update To Will We Run Out Of Power This Winter?
My Methods
Project Timescales For Wind Farms
In How Long Does It Take To Build An Offshore Wind Farm?, I came to these conclusions.
- It will take six years or less from planning consent to commissioning.
- It will take two years or less from the start of construction to commissioning.
I shall use these timescales, as any accelerations by the government, will only reduce them.
Dates
If a date is something like 2024/25, I will use the latest date. i.e. 2025 in this example.
The Update
In Will We Run Out Of Power This Winter?, which I wrote in July this year, I did a calculation of how much renewable energy would come on stream in the next few years.
I summarised the amount of new renewable energy coming on stream like this.
- 2022 – 3200 MW
- 2023 – 1500 MW
- 3024 – 2400 MW
- 2025 – 6576 MW
- 2026 – 1705 MW
- 2027 – 7061 GW
This totals to 22442 MW.
But I had made two omissions.
- Hornsea 3 wind farm will add 2582 MW in 2026/27.
- Hinckley Point C nuclear power station will add 3260 MW in 2027.
Ørsted have also brought forward the completion date of the Sofia wind farm to 2023, which moves 1400 GW from 2024 to 2023.
The new renewables summary figures have now changed to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 1326 MW
- 2025 – 6576 MW
- 2026 – 1705 MW
- 2027 – 13173 MW
This totals to 28554 MW.
Note.
- The early delivery of the Sofia wind farm has increased the amount of wind farms coming onstream next year, which will help the Winter of 2023/2024.
- It will also help the Liz Truss/Kwasi Kwarteng government at the next election, that should take place in early 2025.
- Hornsea 3 and Hinckley Point C make 2027 a big year for new renewable energy commissioning.
By 2027, we have more than doubled our renewable energy generation.
The Growth Plan 2022
In this document from the Treasury, the following groups of wind farms are listed for acceleration.
- Remaining Round 3 Projects
- Round 4 Projects
- Extension Projects
- Scotwind Projects
- INTOG Projects
- Floating Wind Commercialisation Projects
- Celtic Sea Projects
I will look at each in turn.
Remaining Round 3 Projects
In this group are the the 1200 MW Dogger Bank B and Dogger Bank C wind farms, which are due for commissioning in 2024/25.
Suppose that as with the Sofia wind farm in the same area, they were to be able to be brought forward by a year.
The new renewables summary figures would change to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 3726 MW
- 2025 – 5076 MW
- 2026 – 1705 MW
- 2027 – 13173 MW
This totals to 28554 MW.
It looks like if Dogger Bank B and Dogger Bank C can be accelerated by a year, it has four effects.
- The renewables come onstream at a more constant rate.
- SSE and Equinor, who are developing the Dogger Bank wind farms start to get paid earlier.
- The UK gets more electricity earlier, which helps bridge the gap until Hornsea 3 and Hinckley Point C come onstream in 2027.
- The UK Government gets taxes and lease fees from the Dogger Bank wind farms at an earlier date.
Accelerating the remaining Round 3 projects would appear to be a good idea.
Round 4 Projects
According to Wikipedia’s list of proposed wind farms, there are six Round 4 wind farms, which total up to 7026 MW.
Accelerating these projects, is probably a matter of improved government regulations and pressure, and good project management.
But all time savings in delivering the wind farms benefits everybody all round.
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity.
Many of these projects are smaller projects and I suspect quite a few are shovel ready.
But as with the big wind farms, there are some projects that can be brought forward to everybody’s benefit.
Norfolk Boreas
Norfolk Boreas wind farm is one of the Round 4 projects.
The wind farm is shown as 1400 MW on Wikipedia.
On the web site, it now says construction will start in 2023, which could mean a completion by 2025, as these projects seem to take about two years from first construction to commissioning, as I showed in How Long Does It Take To Build An Offshore Wind Farm?.
The new renewables summary figures would change to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 3726 MW
- 2025 – 6476 MW
- 2026 – 1705 MW
- 2027 – 11773 MW
This still totals to 28554 MW.
This acceleration of a large field would be beneficial, as the 2025 figure has increased substantially.
I would suspect that Vattenfall are looking hard to accelerate their Norfolk projects.
Extension Projects
I first talked about extension projects in Offshore Wind Extension Projects 2017.
The target was to add 2.85 GW of offshore wind and in the end seven projects were authorised.
- Sheringham Shoal offshore wind farm – 719 MW with Dudgeon
- Dudgeon offshore wind farm – 719 MW with Sheringham Shoal
- Greater Gabbard offshore wind farm
- Galloper offshore wind farm
- Rampion offshore wind farm – 1200 MW
- Gwynt y Môr offshore wind farm – 1100 MW
- Thanet offshore wind farm – 340 MW
These are the best figures I have and they add up to an interim total of 3359 MW.
I suspect that these projects could be easy to accelerate, as the developers have probably been designing these extensions since 2017.
I think it is reasonable to assume that these seven wind farms will add at least 3000 MW, that can be commissioned by 2027.
The new renewables summary figures would change to.
- 2022 – 3200 MW
- 2023 – 2925 MW
- 3024 – 3726 MW
- 2025 – 6476 MW
- 2026 – 1705 MW
- 2027 – 14773 MW
This now totals to 31554 MW.
Accelerating the extension projects would be a good idea, especially, as they were awarded some years ago, so are probably well into the design phase.
ScotWind Projects
I first talked about ScotWind in ScotWind Offshore Wind Leasing Delivers Major Boost To Scotland’s Net Zero Aspirations.
It was planned to do the following.
- Generate 9.7 GW from six wind farms with fixed foundations.
- Generate 14.6 GW from ten floating wind farms.
But since then three more floating wind farms with a total capacity of 2800 MW have been added, as I wrote about in Three Shetland ScotWind Projects Announced.
I suspect that some of these projects are ripe for acceleration and some may well be generating useful electricity by 2030 or even earlier.
INTOG Projects
I wrote about INTOG in What Is INTOG?.
I can see the INTOG Projects contributing significantly to our fleet of offshore wind turbines.
I have already found a 6 GW/£30 billion project to decarbonise oil and gas rigs around our shores, which is proposed by Cerulean Winds and described on this web page.
If the other large INTOG projects are as good as this one, then we’ll be seeing some sensational engineering.
Floating Wind Commercialisation Projects
This page on the Carbon Trust website is entitled Floating Wind Joint Industry Programme (JIP).
They appear to be very much involved in projects like these.
The page has this description.
The Floating Wind Joint Industry Programme is a world leading collaborative research and development (R&D) initiative dedicated to overcoming technological challenges and advancing commercialisation of floating offshore wind.
This graphic shows the partners and advisors.
Most of the big wind farm builders and turbine and electrical gubbins manufacturers are represented.
Celtic Sea Projects
The Celtic Sea lies between South-East Ireland, Pembrokeshire and the Devon and Cornwall peninsular.
The Crown Estate kicked this off with press release in July 2022, that I wrote about in The Crown Estate Announces Areas Of Search To Support Growth Of Floating Wind In The Celtic Sea.
This map shows the five areas of search.
One Celtic Sea project has already been awarded a Contract for Difference in the Round 4 allocation, which I wrote about in Hexicon Wins UK’s First Ever CfD Auction For Floating Offshore Wind.
Other wind farms have already been proposed for the Celtic Sea.
In DP Energy And Offshore Wind Farms In Ireland, I said this.
They are also developing the Gwynt Glas offshore wind farm in the UK sector of the Celtic Sea.
- In January 2022, EDF Renewables and DP Energy announced a Joint Venture partnership to combine their knowledge and
expertise, in order to participate in the leasing round to secure seabed rights to develop up to 1GW of FLOW in the Celtic Sea. - The wind farm is located between Pembroke and Cornwall.
The addition of Gwynt Glas will increase the total of floating offshore wind in the UK section of the Celtic Sea.
- Blue Gem Wind – Erebus – 100 MW Demonstration project – 27 miles offshore
- Blue Gem Wind – Valorus – 300 MW Early-Commercial project – 31 miles offshore
- Falck Renewables and BlueFloat Energy – Petroc – 300 MW project – 37 miles offshore
- Falck Renewables and BlueFloat Energy – Llywelyn – 300 MW project – 40 miles offshore
- Llŷr Wind – 100 MW Project – 25 miles offshore
- Llŷr Wind – 100 MW Project – 25 miles offshore
- Gwynt Glas – 1000 MW Project – 50 miles offshore
This makes a total of 2.2 GW, with investors from several countries.
It does seem that the Celtic Sea is becoming the next area of offshore wind around the British Isles to be developed.
How do these wind farms fit in with the Crown Estate’s plans for the Celtic Sea?
I certainly, don’t think that the Crown Estate will be short of worthwhile proposals.
Conclusion
More and more wind farms keep rolling in.
Hornsea 2, The World’s Largest Windfarm, Enters Full Operation
The title of this post, is the same as that of this press release from Ørsted.
These are the first three paragraphs, which outline the project.
The 1.3GW project comprises 165 wind turbines, located 89km off the Yorkshire Coast, which will help power over 1.4 million UK homes with low-cost, clean and secure renewable energy. It is situated alongside its sister project Hornsea 1, which together can power 2.5 million homes and make a significant contribution to the UK Government’s ambition of having 50 GW offshore wind in operation by 2030.
The Hornsea Zone, an area of the North Sea covering more than 2,000 sq km, is also set to include Hornsea 3. The 2.8GW project is planned to follow Hornsea 2 having been awarded a contract for difference from the UK government earlier this year.
Hornsea 2 has played a key role in the ongoing development of a larger and sustainably competitive UK supply chain to support the next phase of the UK’s offshore wind success story. In the past five years alone, Ørsted has placed major contracts with nearly 200 UK suppliers with £4.5 billion invested to date and a further £8.6 billion expected to be invested over the next decade.
Note.
- Hornsea1 was the previous largest offshore wind farm.
- The first three Hornsea wind farms, could have a total output of over 5 GW.
- There is a possible Hornsea 4, that may be in the pipeline!
Will Hornsea 3 take the crown from Hornsea 2, when it is commissioned in 2027?
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.
The Anonymous Widower 