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.
Unlocking Efficiency With Cryogenic Cooling Of GaN Traction Inverters
The title of this post, is the same as this insight on the Ricardo web site.
This is the introduction.
As the mobility sector accelerates toward zero-carbon propulsion, hydrogen fuel cell systems (HFCS) are emerging as a cornerstone technology for aviation, marine, and long-haul road transport. Among the most promising innovations in this space is the use of liquid hydrogen (LH₂) not only as a fuel source but also as a cryogenic coolant for electric powertrains. This dual-purpose approach offers transformative potential in system efficiency, packaging, and weight reduction—especially when paired with Gallium Nitride (GaN) semiconductors.
It is a very simple concept, but it appears to give worthwhile efficiency gains.
This was the article’s conclusion.
Ricardo’s cryogenic GaN inverter concept represents a bold leap toward ultra-efficient, lightweight, and integrated hydrogen propulsion systems. While challenges remain in materials, packaging, and reliability, the experimental results are compelling. With efficiencies nearing 99.8% and mass reductions over 50%, cryogenic cooling could redefine the future of electric mobility.
As the hydrogen economy matures, innovations like this will be pivotal in delivering clean, scalable, and high-performance solutions across all mobility sectors.
I very much suggest, that you take the time to read the whole insight.
Using The Concept In a Liquid Hydrogen Carrier
This Wikipedia entry describes the design and operation of an ocean-going liquid hydrogen carrier.
This is a paragraph.
Similar to an LNG carrier the boil off gas can be used for propulsion of the ship.
Ricardo’s concept would appear to be advantageous in the design of liquid hydrogen carriers and I would expect, it could also be applied to the design of LNG carriers.
I would not be surprised to see liquid hydrogen and LNG carriers were the first application of Ricardo’s concept.
This Wikipedia entry describes the Suiso Frontier, which is the world’s only liquid hydrogen carrier.
I believe that Ricardo’s concept could lead to the construction of a more of these ships. Will they mean that liquid hydrogen carriers will deliver hydrogen from sunny climes to places like Europe, Japan, Korea and Canada.
The concept would also enable efficient small liquid hydrogen carriers, that could deliver hydrogen on routes like the North of Scotland to Germany.
Using The Concept In A Railway Locomotive
I could see freight locomotives being designed as a large liquid hydrogen tank with appropriately-sized fuel cells and added electrical gubbins.
- They would be self-powered and would not require any electrification.
- They would be much quieter than current diesels.
- They could pull the heaviest freight trains, between Europe and Asia.
- They could even pull passenger trains, if an electrical hotel supply were to be arranged.
- They could be designed with very long ranges.
But above all they would be zero-carbon.
Note that I’ve written about long freight routes before.
- China, Russia And The EU’s Intermarium Bloc
- How To Move 100,000 Containers A Year Between Germany And China
- Georgia, Azerbaijan and Iran Discuss New Freight Corridor To link India And Europe
- Finland And Norway To Explore Building Arctic Rail Link
- A New Gateway To China: Europe Prepares For The Launch Of Baku–Tbilisi–Kars Railway
I believe that a long-distance liquid-hydrogen locomotive, that was based on the Ricardo concept, would be ideal for some of these routes.
A Specialised Hydrogen Delivery Train
In April 2022, I wrote The TruckTrain, where this is a simple description of the concept.
The Basic Design Concept
The leaflet on their web site describes the concept.
This visualisation at the bottom of the leaflet shows four TruckTrains forming a train carrying twelve intermodal containers, each of which I suspect are 20 feet long.
I believe that the TruckTrain concept could be converted into a hydrogen delivery train.
- It would be an appropriate length.
- It would be powered by the on-board hydrogen.
- The hydrogen would be stored as liquid hydrogen.
It would be able to go most places on the UK rail network.
Conclusion
Ricardo’s concept could revolutionise the use of hydrogen.
Centrica And X-energy Agree To Deploy UK’s First Advanced Modular Reactors
The title of this post, is the same as that of this press release from Centrica.
This is the sub-heading.
Centrica and X-Energy, LLC, a wholly-owned subsidiary of X-Energy Reactor Company, LLC, today announced their entry into a Joint Development Agreement (JDA) to deploy X-energy’s Xe-100 Advanced Modular Reactors (“AMR”) in the United Kingdom.
These three paragraphs add more details.
The companies have identified EDF and Centrica’s Hartlepool site as the preferred first site for a planned U.K. fleet of up to 6 gigawatts.
The agreement represents the first stage in a new trans-Atlantic alliance which could ultimately mobilise at least £40 billion in economic value to bring clean, safe and affordable power to thousands of homes and industries across the country and substantive work for the domestic and global supply chain.
A 12-unit Xe-100 deployment at Hartlepool could add up to 960 megawatts (“MW”) of new capacity, enough clean power for 1.5 million homes and over £12 billion in lifetime economic value. It would be developed at a site adjacent to Hartlepool’s existing nuclear power station which is currently scheduled to cease generating electricity in 2028. Following its decommissioning, new reactors would accelerate opportunities for the site and its skilled workforce. The site is already designated for new nuclear under the Government’s National Policy Statement and a new plant would also play a critical role in generating high-temperature heat that could support Teesside’s heavy industries.
This is no toe-in-the-water project, but a bold deployment of a fleet of small modular reactors to provide the power for the North-East of England for the foreseeable future.
These are my thoughts.
The Reactor Design
The Wikipedia entry for X-energy has a section called Reactor Design, where this is said.
The Xe-100 is a proposed pebble bed high-temperature gas-cooled nuclear reactor design that is planned to be smaller, simpler and safer when compared to conventional nuclear designs. Pebble bed high temperature gas-cooled reactors were first proposed in 1944. Each reactor is planned to generate 200 MWt and approximately 76 MWe. The fuel for the Xe-100 is a spherical fuel element, or pebble, that utilizes the tristructural isotropic (TRISO) particle nuclear fuel design, with high-assay LEU (HALEU) uranium fuel enriched to 20%, to allow for longer periods between refueling. X-energy claims that TRISO fuel will make nuclear meltdowns virtually impossible.
Note.
- It is not a conventional design.
- Each reactor is only about 76 MW.
- This fits with “12-unit Xe-100 deployment at Hartlepool could add up to 960 megawatts (“MW”) of new capacity” in the Centrica press release.
- The 960 MW proposed for Hartlepool is roughly twice the size of the Rolls-Rpoyce SMR, which is 470 MW .
- Safety seems to be at the forefront of the design.
- I would assume, that the modular nature of the design, makes expansion easier.
I have no reason to believe that it is not a well-designed reactor.
Will Hartlepool Be The First Site?
No!
This page on the X-energy web site, describes their site in Texas, which appears will be a 320 MW power station providing power for Dow’s large site.
There appear to be similarities between the Texas and Hartlepool sites.
- Both are supporting industry clustered close to the power station.
- Both power stations appear to be supplying heat as well as electricity, which is common practice on large industrial sites.
- Both use a fleet of small modular reactors.
But Hartlepool will use twelve reactors, as opposed to the four in Texas.
How Will The New Power Station Compare With The Current Hartlepool Nuclear Power Station?
Consider.
- The current Hartlepool nuclear power station has two units with a total capacity of 1,185 MW.
- The proposed Hartlepool nuclear power station will have twelve units with a total capacity of 960 MW.
- My instinct as a Control Engineer gives me the feeling, that more units means higher reliability.
- I suspect that offshore wind will make up the difference between the power output of the current and proposed power stations.
As the current Hartlepool nuclear power station is effectively being replaced with a slightly smaller station new station, if they get the project management right, it could be a painless exercise.
Will This Be The First Of Several Projects?
The press release has this paragraph.
Centrica will provide initial project capital for development with the goal of initiating full-scale activities in 2026. Subject to regulatory approval, the first electricity generation would be expected in the mid-2030s. Centrica and X-energy are already in discussions with additional potential equity partners, as well as leading global engineering and construction companies, with the goal of establishing a UK-based development company to develop this first and subsequent projects.
This approach is very similar to the approach being taken by Rolls-Royce for their small modular reactors.
Will Centrica Use An X-energy Fleet Of Advanced Modular Reactors At The Grain LNG Terminal?
This press release from Centrica is entitled Investment In Grain LNG Terminal.
This is one of the key highlights of the press release.
Opportunities for efficiencies to create additional near-term value, and future development options including a combined heat and power plant, bunkering, hydrogen and ammonia.
Note.
- Bunkering would be provided for ships powered by LNG, hydrogen or ammonia.
- Heat would be needed from the combined heat and power plant to gasify the LNG.
- Power would be needed from the combined heat and power plant to generate the hydrogen and ammonia and compress and/or liquify gases.
Currently, the heat and power is provided by the 1,275 MW Grain CHP gas-fired power station, but a new nuclear power station would help to decarbonise the terminal.
Replacement Of Heysham 1 Nuclear Power Station
Heysham 1 nuclear power station is part-owned by Centrica and EdF, as is Hartlepool nuclear power station.
Heysham 1 nuclear power station is a 3,000 MW nuclear power station, which is due to be decommissioned in 2028.
I don’t see why this power station can’t be replaced in the same manner as Hartlepool nuclear power station.
Replacement Of Heysham 2 Nuclear Power Station
Heysham 2 nuclear power station is part-owned by Centrica and EdF, as is Hartlepool nuclear power station.
Heysham 2 nuclear power station is a 3,100 MW nuclear power station, which is due to be decommissioned in 2030.
I don’t see why this power station can’t be replaced in the same manner as Hartlepool nuclear power station.
Replacement Of Torness Nuclear Power Station
Torness nuclear power station is part-owned by Centrica and EdF, as is Hartlepool nuclear power station.
Torness nuclear power station is a 1,290 MW nuclear power station, which is due to be decommissioned in 2030.
I don’t see why this power station can’t be replaced in the same manner as Hartlepool nuclear power station.
But the Scottish Nationalist Party may have other ideas?
What Would Be The Size Of Centrica’s And X-energy’s Fleet Of Advanced Modular Reactors?
Suppose.
- Hartlepool, Grain CHP and Torness power stations were to be replaced by identical 960 MW ADRs.
- Heysham 1 and Heysham 2 power stations were to be replaced by identical 1,500 MW ADRs.
This would give a total fleet size of 5,880 MW.
A paragraph in Centrica’s press release says this.
The companies have identified EDF and Centrica’s Hartlepool site as the preferred first site for a planned U.K. fleet of up to 6 gigawatts.
This fleet is only 120 MW short.
Shell Pulls Plug On Rotterdam Biofuels Plant
The title of this post, is the same as that of this article on The Times.
This is the sub-heading.
Retreat from green energy continues as facility that was earmarked to produce sustainable aviation fuel and renewable diesel will not now be built
These first three paragraphs add some details.
Shell has scrapped construction of one of Europe’s biggest biofuels plants as it continues its retreat from green energy
The move by the FTSE 100 oil and gas group represents a further setback for efforts to cut aviation emissions.
Shell said it would not restart construction of the biofuels facility at its Rotterdam energy and chemicals plant, which was due to produce sustainable aviation fuel (SAF) and renewable diesel.
When I wrote Centrica Secures Investment Stake In Gasrec Helping Boost UK Bio-LNG Ambitions, I took a look at the use of liquified natural gas (LNG) in transport.
This paragraph from the Centrica press release about the stake, gives the thoughts of Chris O’Shea, who is Group Chief Executive, Centrica.
Chris O’Shea, Group Chief Executive, Centrica plc, said: “Demand for bio-LNG for transport is growing fast as more HGV operators make the switch – drawn by a clean, ready-to-use fuel which slashes CO2 emissions by up to 85 per cent in comparison to diesel*. This investment in Gasrec enhances our collaboration with the leading company in the sector, and puts us in a strong position to energise a vital sector of the industry on its journey to net zero.”
Chris O’Shea of Centrica appears to feel that bio-LNG is a good alternative to diesel, so have Shell come to a similar decision, about satisfying the demand for diesel?
I asked Google AI if LNG has advantages over diesel as a truck fuel and received this answer.
Yes, LNG offers advantages over diesel, including significantly lower emissions of nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM), which improves local air quality. It can also be more economically efficient, with fuel costs potentially lower than diesel depending on market conditions. However, the overall greenhouse gas (GHG) benefits are mixed; while LNG has a lower carbon content, it can result in higher lifecycle GHG emissions due to energy losses in its production and transport, as well as methane slip.
Note.
- If it drops emissions by up to 85 percent for bio-LNG, surely, it would do the same for LNG.
- I also think with tight regulations, the use of LNG could improve air quality in cities like London.
- LNG would probably be a more affordable fuel than hydrogen.
It should also be noted, that several major diesel engine makers, now make families of engines, which can handle, diesel, hydrogen and natural gas.
LNG would also be a convenient stepping stone between current fuels and hydrogen, that might give a few extra years for the transition.
Could LNG Be Used In Aircraft?
Consider.
- LNG would certainly give some reduction in carbon emissions.
- Handling LNG in aircraft could have similar problems to hydrogen, so companies like Airbus might have already solved them.
- In addition, LNG doesn’t have the fearsome reputation, that hydrogen seems to have gained because of the Hindenburg.
- It would be easier to provide LNG fuel at airports all round the world.
- Airbus have said availability of hydrogen at airports, could be a problem.
Out of curiosity, I asked Google AI if LNG could be used to power an airliner and received this answer.
Yes, liquefied natural gas (LNG) can theoretically be used to power airliners, offering a potential reduction in CO2 emissions compared to conventional jet fuel, but significant challenges exist. These challenges include the need for entirely new, larger, and heavier cryogenic fuel tanks, modifications to aircraft engines and fuel systems, and the development of a new global infrastructure for LNG supply. While experimental tests have been conducted, such as on the Soviet Union’s Tupolev Tu-155 in 1989, LNG is not currently in normal service due to these practical and infrastructural hurdles.
I would prefer it was a purpose-designed Airbus, than a Soviet-era Tupolev.
Centrica Enters Into Long Term Natural Gas Sale & Purchase Agreement
The title of this post, is the same as this press release from Centrica.
This is the sub-heading,
Centrica plc today confirmed that its trading arm, Centrica Energy, has entered into a natural gas sale and purchase agreement with US-based Devon Energy Corporation.
This first paragraph adds a few more details.
Under the agreement, Devon Energy will supply 50,000 (MMBtu) per day of natural gas over a 10‑year term starting in 2028. This is equivalent to five LNG cargoes per year. The volumes will be indexed to European gas hub price (TTF). This sale and purchase agreement supports Centrica’s objective of managing market price risk in its LNG portfolio by aligning feed gas pricing with European gas prices whilst providing Devon Energy with international price exposure.
At a first look, it looks a lot of gas.
In Investment In Grain LNG, I talk about Centrica’s purchase of the Grain LNG Terminal from National Grid. But the Grain LNG Terminal comes with several things that Centrica might need for gas from Devon.
- A large amount of gas storage.
- The ability to convert liquid natural gas (LNG) into gas suitable for consumers.
- Space to build more storage if required.
- The ability to store LNG for other companies.
- Two jetties for delivering the LNG to the Grain LNG Terminal.
- The ability to load tankers with LNG, so that it can be sold on to third parties like say the Germans or the Poles.
Centrica also say this about their use of the Grain LNG Terminal in this press release, that describes the purchase of the terminal.
Aligned with Centrica’s strategy of investing in regulated and contracted assets supporting the energy transition, delivering predictable long-term, inflation-linked cash flows, with 100% of capacity contracted until 2029, >70% until 2038 and >50% until 2045.
Centrica have obviously modelled their gas supply and delivery and I believe they have come up with a simple strategy, that will work.
How Will Centrica Use The Gas From The Grain LNG Terminal?
The Wikipedia entry for the Grain LNG Terminal says this about the terminal delivering gas into the gas grid.
The terminal can handle up to 15 million tonnes per annum of LNG, has a storage capacity for one million cubic metres of LNG, and is able to regasify up to 645 GWh per day (58 million cubic metres per day) for delivery into the high pressure gas National Transmission System (NTS).
Note.
- This will be one of the major uses of the gas.
- I wouldn’t be surprised if these capacities will be increased significantly, so that more gas can be stored and processed.
In Investment in Grain LNG, I outlined how I believe that hydrogen and ammonia will be produced for the bunkering of ships on one of busiest sea lanes in Europe, if not the world.
Some LNG will be used to create these zero-carbon fuels.
Some modern ships, also run on natural gas, so I asked Google AI about their operation and received this answer.
Ships can run on natural gas, specifically liquefied natural gas (LNG), by using it as a fuel source in specially designed engines. LNG is natural gas that has been cooled to a liquid state at -162°C, making it easier to store and transport. This liquid form is then used to power the ship’s engines, either directly or by burning the boil-off gas (BOG) that naturally occurs when LNG warms up.
This means that some LNG could be used to directly fuel these ships.
What Is The Gas Capacity Of The Grain LNG Terminal?
I asked Google AI this question and received this answer.
The Grain LNG Terminal, the largest LNG import terminal in Europe, has a storage capacity of 1,000,000 cubic meters (m³) and an annual throughput capacity of 15 million tonnes of LNG. This is equivalent to about 20% of the UK’s total gas demand. The terminal also has the capacity to deliver 25% of the UK’s daily gas demand.
As the space is there, I wouldn’t be surprised to see Centrica increase the capacity of the terminal, as in cold weather, emergency gas for Germany can be delivered quicker from Kent than the United States.
Could The Grain LNG Terminal Accept Gas Deliveries From The United States?
I’m certain that it already does.
Could The Grain LNG Terminal Accept Gas Deliveries From The UK?
If we start extracting gas again from under the seas around the UK, could the Grain LNG Terminal be used to store it?
Yes, but it would have to be liquified first.
It would be more energy efficient to process the extracted gas, so it could be used directly and gasify enough gas at Grain LNG Terminal from storage to make up any shortfall.
Conclusion
Centrica have done some very deep joined up thinking, by doing a long term gas deal and the Grain LNG Terminal purchase so that they have the gas to supply and somewhere to keep it, until it is needed.
Investment in Grain LNG
The title of this post, is the same as that of this press release from Centrica.
This sub-heading outlines the deal.
Centrica plc (the “Company”, “Centrica”) is pleased to announce the acquisition of the Isle of Grain liquified natural gas terminal (“Grain LNG”) in partnership1 with Energy Capital Partners LLP (“ECP”) from National Grid group (“National Grid”) for an enterprise value of £1.5 billion. After taking into account approximately £1.1 billion of new non-recourse project finance debt, Centrica’s 50% share of the equity investment is approximately £200 million.
The press release lists these key points.
- Grain LNG delivers vital energy security for the UK, providing critical LNG import/export, regasification and rapid response gas storage capacity to balance the energy system.
- Aligned with Centrica’s strategy of investing in regulated and contracted assets supporting the energy transition, delivering predictable long-term, inflation-linked cash flows, with 100% of capacity contracted until 2029, >70% until 2038 and >50% until 2045.
- Opportunities for efficiencies to create additional near-term value, and future development options including a combined heat and power plant, bunkering, hydrogen and ammonia.
- Highly efficient funding structure, with Centrica’s equity investment of approximately £200 million alongside non-recourse project financing.
- Strong life of asset returns aligned with Centrica’s financial framework, with an expected unlevered IRR2 of around 9% and an equity IRR2 of around 14%+
Underpins delivery of £1.6 billion end-2028 EBITDA target3 – Centrica’s share of EBITDA expected to be approximately £100 million per annum and cash distributions expected to be around £20 million on average per annum for 2026-2028, representing an attractive yield on Centrica’s equity investment - Partnership with ECP (part of Bridgepoint Group plc), one of the largest private owners of natural gas generation and infrastructure assets in the U.S. with direct experience in supporting grid reliability.
This Google Map shows the various energy assets on the Isle of Grain.
Note.
- It appears that works for the 1, 400 MW NeuConnect interconnector to Wilhelmshaven in Germany, are taking place in the North-East corner of the map.
- Grain CHP powerstation is a 1,275MW CCGT power station, which is owned by German company; Uniper, that is in the South-East corner of the map, which can also supply up to 340MW of heat energy recovered from the steam condensation to run the vapourisers in the nearby liquefied natural gas terminal.
- The Grain LNG terminal is at the Western side of the map.
- In the Thames Estuary to the East of the Isle of Grain, I estimate that there are about 1,500 MW of wind turbines.
I find it interesting that two of the assets are German owned.
I have some thoughts.
It Is A Large Site With Space For Expansion
This Google Map shows the whole of the Isle of Grain.
Note.
- The Grain LNG terminal is around the label Wallend.
- The River Medway runs East-West at the bottom of the map.
- Gas tankers deliver and take on gas at jetties on the North Bank of the Medway.
There could be space to expand the terminal, if the RSPB would allow it.
As an example, I asked Google AI, if peregrine falcons nest on chemical plants and got this reply.
Yes, peregrine falcons do nest on chemical plants. They have adapted to using various urban and industrial structures, including chemical plants, for nesting. This is particularly true in areas where natural cliff habitats are scarce.
Peregrine falcons are known for their adaptability, and their population has seen a resurgence in recent decades, partly due to their ability to utilize man-made structures. These structures often mimic their natural cliffside nesting
Cliffs do seem scarce on the Isle of Grain. I also asked Google AI, if peregrine falcons ate small rodents, as several chemical and other plants, where I’ve worked, had a rodent problem. One plant had a cat problem, as there had been so many rats. This was the reply.
Yes, peregrine falcons do eat small rodents, though they primarily consume birds. While their diet mainly consists of other birds like pigeons, doves, and waterfowl, they will also hunt and eat small mammals, including rodents such as mice, rats, and voles. They are opportunistic hunters and will take advantage of readily available prey, including insects, amphibians, and even fish.
I’m sure if Centrica wanted to expand, they’d employ the best experts.
Who Are ECP?
One of the key points of the press release is that this deal is a partnership with ECP (part of Bridgepoint Group plc), one of the largest private owners of natural gas generation and infrastructure assets in the U.S. with direct experience in supporting grid reliability.
The Wikipedia entry for ECP or Energy Capital Partners has this first section.
Energy Capital Partners Management, LP (ECP) is an American investment firm headquartered in Summit, New Jersey. It focuses on investments in the energy sector. The firm has additional offices in New York City, Houston, San Diego, Fort Lauderdale and Seoul.
In August 2024, ECP merged with Bridgepoint Group to form a private assets investment platform.
The Wikipedia entry for the Bridgepoint Group has this first paragraph.
Bridgepoint Group plc is a British private investment company listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
The company had started as part of NatWest.
Are The Germans Going To Take Away Some Of Our Electricity?
Consider.
- Germany has a big need to replace Russian gas and indigenous coal, and to decarbonise.
- Neuconnect is a 1.4 GW interconnector between the Isle of Grain and Wilhelmshaven in Germany. It is scheduled to be completed in 2028.
- The Grain CHP powerstation is a 1,275MW CCGT power station, which is owned by German company; Uniper, could almost keep NeuConnect working at full power on its own.
- I said earlier, in the Thames Estuary to the East of the Isle of Grain, I estimate that there are about 1,500 MW of wind turbines. One of which is part German-owned.
The Germans are also building a large electrolyser at Wilhelshaven, which is described by Google AI like this.
The Wilhelmshaven Green Energy Hub will initially feature a 500MW electrolyzer, with plans to potentially expand to 1GW, according to Energy Monitor. The hub, a joint project between Tree Energy Solutions (TES) and EWE, aims to produce green hydrogen using renewable energy sources like offshore wind. The 500MW electrolyzer is scheduled to be operational by 2028.
I wouldn’t be surprised to see that the Wilhelmshaven electrolyser were to be powered by British-generated electricity flowing down NeuConnect.
Centrica Says Their Future Development Options Include A Combined Heat And Power Plant
This objective was set in one of the key points.
This is the first paragraph of the Wikipedia entry for the Grain LNG Terminal.
Grain LNG Terminal is a Liquefied Natural Gas (LNG) terminal on the Isle of Grain, 37 miles (60 km) east of London. It has facilities for the offloading and reloading of LNG from ships at two jetties on the River Medway; for storing and blending LNG; for truck loading; and regasifying and blending natural gas to meet UK specifications. The terminal can handle up to 15 million tonnes per annum of LNG, has a storage capacity for one million cubic metres of LNG, and is able to regasify up to 645 GWh per day (58 million cubic metres per day) for delivery into the high pressure gas National Transmission System (NTS). The facility is owned and operated by National Grid Grain LNG Ltd, a wholly owned subsidiary of National Grid.
Note.
- This paragraph was written before the Centrica takeover.
- The terminal also converts liquid natural gas into gas to be distributed around the UK.
The heat needed to convert the liquid natural gas to gas is provided by the Grain CHP power station.
- Currently 340 MW of heat is provided.
- If the Grain LNG terminal is expanded, it will probably need more heat.
I can see Centrica building a combined heat and power (CHP) power station, that can be expanded to meet the current and future needs of gasification at the Grain LNG terminal.
I wouldn’t be surprised to see the CHP power station fitted with carbon capture, as Kent is surely one county, where carbon dioxide can be used in food production, so we can generate our carbon dioxide and eat it.
Centrica Says Their Future Development Options Include Hydrogen
This objective was set in one of the key points.
Consider.
- Centrica are an investor in HiiROC, who have a unique method of generating affordable zero-carbon hydrogen called thermal plasma electrolysis, which uses a fifth of the electricity, that traditional electrolysis does.
- HiiROC can use natural gas as a feedstock. Centrica won’t be short of that at Grain.
- There is space to build a large HiiROC system at the Isle of Grain site.
- The hydrogen could be taken away by tanker ships.
Like the electricity , which will use the 450 mile NeuConnect interconnector, the hydrogen could even be exported to Wilhelmshaven in Germany by pipeline.
Wilhelmshaven is being setup to be a major German hub to both generate, import and distribute hydrogen.
I asked Google AI, how much hydrogen a GWh would produce and received this answer.
A GWh of electricity can produce approximately 20-22 tonnes of hydrogen through electrolysis, depending on the efficiency of the electrolyzer. Modern commercial electrolyzers operate at an efficiency of roughly 70-80%, meaning they require about 50-55 kWh of electricity to produce 1 kg of hydrogen. A GWh (1 gigawatt-hour) is equal to 1,000,000 kWh, and 1 tonne of hydrogen contains roughly 33.33 MWh of energy.
As it is claimed on the web that HiiROC is five times more efficient than traditional electrolysis, it could need around 10-11 kWh to produce one kg. of hydrogen.
1 GWh would produce between 90-100 tonnes of hydrogen.
Centrica Says Their Future Development Options Include Ammonia
This objective was set in one of the key points.
I asked Google AI if ammonia can be produced from hydrogen and received this answer.
Yes, ammonia (NH3) can be produced from hydrogen (H2) through a process called the Haber-Bosch process. This process involves combining hydrogen with nitrogen (N2) from the air, under high temperature and pressure, in the presence of a catalyst.
Ammonia has a large number of uses, including making fertiliser and the powering of large ships.
I asked Google AI, if there are small Haber-Bosch processes to make ammonia from hydrogen and nitrogen and received this answer.
Yes, there are efforts to develop smaller-scale Haber-Bosch processes for ammonia production. While the traditional Haber-Bosch process is typically associated with large industrial plants, research and development are exploring ways to adapt it for smaller, distributed production, particularly for localized fertilizer or fuel applications.
I wondered if Centrica are involved in the efforts to develop smaller-scale Haber-Bosch processes for ammonia production.
Google AI gave me this quick answer.
Centrica is involved in research related to the Haber-Bosch process, particularly in the context of transitioning to a low-carbon energy future. They are exploring how to adapt the Haber-Bosch process, which is crucial for fertilizer production but also a significant source of CO2 emissions, to utilize renewable energy sources. This includes investigating the use of green hydrogen produced from water electrolysis and renewable electricity. Centrica is also involved in research related to using ammonia as a fuel, including potentially for power generation
That looks to be a very positive answer. Especially, as local low-carbon fertiliser production could be a very powerful concept.
Centrica Says Their Future Development Options Include Bunkering
This objective was set in one of the key points.
Bunkering is the process of refuelling ships.
I didn’t know much about bunkering, when I started to read Centrica’s press release, but the Wikipedia entry, was a good way to get some information.
This section in the Wikipedia entry is entitled Two Types Of Bunkering, where this is said.
The two most common types of bunkering procedure at sea are “ship to ship bunkering” (STSB), in which one ship acts as a terminal, while the other moors. The second type is “stern line bunkering” (SLB), which is the easiest method of transferring oil but can be risky during bad weather.
Over the years, I have found, that two zero-carbon fuels are under development, for powering ships; hydrogen and ammonia. Others are developing ships powered by naturalo gas.
I asked Google AI if hydrogen can power ships and received this answer.
Yes, hydrogen can power ships. It can be used as a fuel for fuel cells, which generate electricity to power the ship’s propulsion and other systems, or it can be burned in modified combustion engines. Hydrogen offers a zero-emission solution for shipping, with water vapor being the only byproduct when used in fuel cells.
Google AI also told me this.
The world’s first hydrogen-powered cruise ship, the “Viking Libra”, is currently under construction and is scheduled for delivery in late 2026. This innovative vessel, a collaboration between Viking Cruises and Italian shipbuilder Fincantieri, will utilize hydrogen for both propulsion and electricity generation, aiming for zero-emission operation.
I also asked Google AI if ammonia can power ships and received this answer.
Yes, ammonia can be used to power ships and is considered a promising alternative fuel for the maritime industry. Several companies and organizations are actively developing ammonia-powered ship designs and technologies. While challenges remain, particularly around safety and infrastructure, ammonia is seen as a key potential fuel for decarbonizing shipping.
Finally, I asked I asked Google AI if natural gas can power ships and received this answer.
Yes, ships can be powered by natural gas, specifically in the form of liquefied natural gas (LNG). LNG is increasingly used as a marine fuel, offering environmental benefits over traditional fuels like diesel.
It would seem to be a case of you pays your money and makes a choice between one of four technologies; ammonia, hydrogen fuel-cell, hydrogen-ICE and LNG.
I looks to me, that if Centrica provide bunkering services for ships, they have the means to cover most of the market by providing hydrogen and ammonia, in addition to natural gas.
Although, I don’t know much about bunkering, I do feel that the two current methods, that work for oil, could be made to work for these fuels.
This Google Map shows the Thames Estuary.
Note.
- The Port of Tilbury is in the South-West corner of the map.
- London Gateway is indicated by the red arrow.
- The Isle of Grain is in the South-East corner of the map.
- Other ports between Tilbury and the Isle of Grain include Barking, Dagenham, Dartford, Erith, Greenwich, Northfleet, Purfleet, Silvertown and Thurrock.
There was never a more true phrase than – “Location, Location and Location”. And the Isle of Grain would appear to be in the right place to send out a bunkering tanker to a passing ship, that was calling at a port in London or just passing through the Strait of Dover.
This Google Map shows the Thames between London Gateway and the Isle of Grain.
Note.
- London Gateway is indicated by the red arrow.
- The Isle of Grain is in the South-East corner of the map.
It seems to me, that a refuelling philosophy could easily be worked out.
How Large is The Bunkering Market?
I asked Google AI this question and received this answer.
The world bunker fuel market is a multi-billion dollar industry, with the market size valued at USD 150.93 billion in 2023. It is projected to reach USD 242.29 billion by 2032, growing at a CAGR of 5.4% according to SkyQuest Technology. In terms of volume, the global bunker demand was estimated at 233.1 million metric tons in 2023 according to the IMO.
The market is not small!
Centrica And PTT Sign Heads Of Agreement For Long-Term LNG Supply
The title of this post, is the same as that as this press release from Centrica.
These two paragraphs add details to the deal.
Under the agreement, PTT will supply LNG to Centrica for a 10-year period across a range of destinations in Asia, with deliveries expected to begin in 2028.
This agreement marks a significant step forward in Centrica’s strategic efforts to grow its LNG portfolio. The agreement provides access to diverse markets in Asia, whilst deepening Centrica’s relationship with PTT, an important partner in Asia. For PTT, this deal represents its first, long-term, international LNG sale.
I wonder if this is a much wider deal than it first appears.
There are a lot of small nations in Asia and it looks as the press release talks about a range of destinations in Asia, that Centrica are setting themselves up as a major supplier of LNG to the smaller nations in Asia.
Centrica are also building up a portfolio of products, that they could offer to these small nations.
- LNG terminals from their own engineering resources.
- Domestic client management software.
- Hydrogen production from HiiROC, which they have backed.
- Carbon black for soil improvement from HiiROC.
- Liquid Air energy storage from Highview Power, which they have backed.
- Gas-fired power stations perhaps based on Rolls-Royce mtu diesel engines running on natural gas or hydrogen.
Countries could get these products and services from China, but at what price?
UK Wind Risks ‘Exponentially Rising’ Curtailment Without Energy Storage
The title of this post, is the same as that of this article on Recharge.
This is the sub-heading.
UK liquid battery pioneer Highview Power is working with renewable energy giant Orsted on plan to store excess power from its Hornsea offshore wind projects
This is the introductory paragraph.
The UK wind sector faces “exponentially” increasing curtailment of assets without a rapid rollout of energy storage, says the chief of liquid battery pioneer Highview Power, which is working with Orsted on a project to store excess offshore wind power.
The article also states that according to Octopus Energy, this cost could have been as high as a billion pounds last year.
In Grid Powers Up With One Of Europe’s Biggest Battery Storage Sites, I described how Ørsted were planning to build a large BESS near the Swardeston substation in Norfolk, where the Hornsea 3 wind farm will connect to the grid.
Have Ørsted decided to put a Highview Power battery on the Swardeston site, as it can be a bigger battery, as Highview Power talk about 200MW/2.5GWh capacity batteries on the projects page of the web site?
Highview also say this about co-operation with Ørsted on that page.
Highview Power and Ørsted’s joint study shows that the co-location of LAES with Ørsted’s offshore wind offers a step forward in reducing wind curtailment, and helping to move to a more flexible, resilient zero carbon grid.
The words are accompanied by pictures of a smart gas storage site, which shows four of the largest tanks, that might be used to store LNG.
In Could A Highview Power CRYOBattery Use A LNG Tank For Liquid Air Storage?, I estimated that one of the largest LNG tanks could hold about a GWh of energy.
So Highview Power’s visualisation on their project page would be a 4 GWh battery.
.
Centrica And Coterra Energy Announce Natural Gas Sale And Purchase Agreements
The title of this post, is the same as that of this news item from Centrica.
These three bullet points, act as sub-headings.
- Coterra will supply 100,000 MMbtu/d of natural gas for a period of 10 years, commencing in 2028.
- Volume supplied sufficient to heat 400,000 homes per year.
- Agreement expands Centrica’s growing LNG business.
These three paragraphs say more about the deal and add more on its context.
Centrica LNG and Coterra today announced the execution of two natural gas sale and purchase agreements. Under the contracts, Coterra will supply 100,000 MMbtu/d of natural gas linked to European gas prices such as TTF and NBP, for a period of 10 years, commencing in 2028.
This major gas deal will reduce the market risk in Centrica’s LNG portfolio by purchasing US gas on the same price indices under which the LNG is subsequently sold, and help underpin customer energy supplies for a decade. The volume supplied is sufficient to heat 400,000 homes per year, further cementing Centrica’s global role supporting energy security.
The deal follows similar agreements over recent years, demonstrating Centrica Energy’s innovative partnership approach, one of the key pillars of its successful and growing LNG business.
It certainly looks like Centrica are doing their best for UK energy security.
It also looks to me, that it is a low risk deal.
It should also help to keep us all warm in the UK, until renewable electricity and hydrogen come fully on stream.
Energy Security Boost After Centrica And Repsol Agree LNG Supply Deal
The title of this post, is the same as that of this press release from Centrica.
This is the sub-heading.
Centrica Energy and Repsol today announced the signing of a deal that will improve the UK’s energy security in the coming years.
These two paragraphs give more details of the deal.
The deal will see Centrica purchase 1 million tonnes of Liquified Natural Gas (LNG) shipments between 2025 and 2027. All of these cargoes are expected to be delivered to the Grain LNG import terminal in Kent.
The deal marks an additional move by Centrica to build further resilience in the UK’s energy security. It follows a 15 year, $8bn deal with Delfin Midstream in July 2023, a three-year supply agreement with Equinor that will heat 4.5m UK homes through to 2024 and the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023 respectively. Rough now provides half of the UK’s total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.
Centrica do seem to be keeping us supplied with gas.
Two days ago, National Grid published this press release, which is entitled Grain LNG Signs New Deal With Venture Global Further Strengthening The Security Of Supply Of LNG To The United Kingdom.
This is the sub-heading.
Today (5 February), Grain LNG and Venture Global have announced the execution of a binding long-term terminal use agreement (TUA) enabling the regasification and sale of LNG from all of Venture Global’s LNG terminals in Louisiana, including CP2 LNG, subject to obtaining necessary federal permits.
These two paragraphs give more details of the deal.
Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum (3MTPA) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for sixteen years beginning in 2029, equivalent of up to 5% of average UK gas demand.
This is the second agreement from Grain LNG’s competitive auction process which was launched in September 2023. The successful outcome of the auction further secures the future of Europe’s largest LNG import terminal into the mid 2040s.
Two big deals in the same week is not to be sneezed at and must be good for the UK’s energy security.
Grain LNG
The Grain LNG web site, greets you with this message.
Welcome To Europe’s Largest Liquified Natural Gas Terminal, Grain LNG
Grain LNG is the gateway connecting worldwide LNG to the European energy market, making a genuine difference to people’s lives. Find out all about our cutting-edge operations – showcasing our leadership in powering the future – and why Grain LNG is at the forefront of energy as we move towards net zero.
There is also a video.
This Google Map shows the location of Grain LNG on the Isle of Grain.
Note.
- The River Medway flows into the River Thames between the Isle of Grain on the left and the Isle of Sheppey on the right.
- From South to North, the red arrows indicate, the National Grid – Grain Terminal, National Grid L N G and Grain LNG.
There would appear to be space for expansion.
The Anonymous Widower 