Energy Storage

Falling costs for lithium-ion batteries and hydrogen electrolysers have rendered both technologies ready for mass commercialization. The International Energy Agency (IEA) projects the cost of 4-hour battery systems to fall to $220/kWh by 2040, so utility-scale battery deployment could reach nearly 220 GW by 2040.

Roll-out of smart grids to help integrate decentralized power sources and energy storage is accelerating across the Association of Southeast Asian Nations (ASEAN). ResearchAndMarkets anticipates the market will grow at a rate of 18.76% to reach $2,950 million by 2024.

Texas-based Vistra is stepping up the size of its battery energy storage unit at its Oakland Power Plant. The capacity of the battery will be boosted to 36 MW/145 MWh, up from initially 20 MW/80 MWh, and it is due to enter commercial operation by January 2022.

Large tech players – Amazon, Apple, Facebook, Google and Microsoft – are migrating hyperscale data centres to renewable energy. Some 10% of new solar and wind power projects in the U.S. are now underpinned by corporate Power Purchase Agreements (PPAs) and often backed up by onsite energy storage units.

German storage company Tesvolt has kicked off production in Europe's first Gigafactory for commercial battery storage systems." Situated in Wittenberg, the factory can currently produce storage systems of 1 MWh per day and 255 MWh per year. Tevolt aspires to ramp up output to 1 GWh.

New technologies to produce green hydrogen will allow for 34% of global emissions to be cut “at manageable cost,” Bloomberg New Energy Finance finds. Excess renewable energy can be turned into hydrogen at $0.8 to $1.6/kg in most parts of the world before 2050, which would make it competitive with gas prices in Brazil, China, India and Germany.

Five Singaporean and two Japanese companies have joint forces to utilize hydrogen as a green energy source in Singapore. Sembcorb, Chiyoda and Mitsubishi, among others, committed to develop novel technologies related to the import, transportation and storage of hydrogen.

Travel bans, imposed in the United States to contain the coronavirus, have halted commissioning works on energy storage facilities, delayed grid connections and threatens to undermine project economics. Wood Mackenzie expects 31% less behind-the-meter energy storage units will be installed in the U.S. this year.

Shutdowns are lifted in China and South Korea, allowing battery supply chains to ramp back up while rivals in Europe and North America are in lockdown. Electric vehicle sales stayed strong through February, according to Wood Mackenzie, and China’s labour force is returning, expected to be at 70% in March and over 90% in April.

Nearly all of Hawaii’s utility-scale energy storage is installed adjacent to onshore wind turbines or solar photovoltaic (PV) systems. Pairing battery storage with wind and solar helps mitigate some operational challenges of non-dispatchable renewables, as Hawaii aspires to boost its green energy share from 30% at present to 100% by 2045.

Global battery manufacturing capacity is seen surge as energy storage is increasingly installed in conjunction with fast-start gas engine gensets and renewables. By 2021, battery making is forecast to more than double to 278 Gigawatt-hours (GWh), up from 103 GWh at present.

Demand from Asia has pushed up shipments of hydrogen fuel cells beyond 1.1 GW and E4tech sees 2020 characterized by "rapid commercialization and infrastructure build out." Fuel cell vehicles and energy storage remain the largest demand drivers, with Japan’s Toyota and South Korea’s Hyundai accounting for two thirds of total shipped capacity.

The French power grid operator RTE has chosen Nidec to deploy an electricity storage system to optimize the management of electricity flows on the transmission grid in Vingeanne, near Dijon. The pilot project, dubbed Ringo, aims to prevent grid congestion at times of peak demand.

Pacific Gas & Electric (PG&E) and Tesla have been given regulatory approval to build a 182.5 MW/730 MWh clean energy storage system that could eventually be boosted to 1.1 GWh at Moss Landing, California. Construction of the facility, based on 268 Tesla Megapack lithium-ion batteries, is due for completion by the end of 2020.

Falling technology costs, policy incentives and clean energy targets are poised to propel up energy storage deployment from currently about 4 GW annually to more than 15 GW in 2024, Wood Mackenzie forecasts. Manufacturers, developers and investors are consolidating as they compete for their slice of this burgeoning industry.

Page 6 of 18

News in Brief

CCUS market to reach nearly $3bn in 2025

Oct 25 – The global carbon capture, utilization, and storage (CCUS) market will grow from $1.30 billion in 2020 to $1.46 billion in 2021, according to ResearchAndMarket estimates. The rebound comes as companies return to normal operations and sales, after a pandemic-related slowdown. Analysts expect the market will keep growing at a rate of nearly 20% annually to reach $2.97 billion by 2025.

SDG&E accelerates drive towards Net Zero by 2045

Oct 20 – San Diego Gas & Electric Company (SDG&E) has set a new sustainability strategy, outlining new and accelerated goals to help meet its pledge to reach net zero greenhouse gas (GHG) emissions by 2045. SDG&E it now seeks to operate a 100% zero emissions vehicle fleet by 2035 – five years earlier than planned.

B&W develops biomass-to-hydrogen plant in Australia

Oct 19 – B&W's Renewable segment and Port Anthony Renewables Ltd have started to develop a biomass-to-hydrogen energy project in Victoria, Australia, based on B&W’s BrightLoop technology. When completed, the plant is expected to be part of the largest green hydrogen hub in south-eastern Australia.

LNG prices rise faster than oil

Oct 18 – Liquefied natural gas and pipeline supplies have experienced an even sharper increase in prices in 2021 than oil, driven by a combination of circumstances that included a strong recovery in demand in North Asia, southeast Asia and Europe, unseasonal weather and planned and unplanned capacity outages.

Wärtsilä shaft gensets to power two LNG carriers

Oct 14 – The Finish technology group Wärtsilä has been awarded a contract to supply four shaft generators to provide electricity take-off from the main engines of two LNG carriers. The ships are being built at the Hyundai Heavy Industries (HHI) shipyard in Korea on behalf of the Capital Gas Ship Management of Greece.

VoltH2 gets green light for large hydrogen plant

Oct 13 – Vision Hydrogen Corp has announced that its affiliate VoltHe has received building and environmental permits to realise its first large-scale hydrogen plant at the Dutch North Sea Port of Vlissingen. The 5 MW hydrogen plant is located near existing high voltage power and gas infrastructure as well as large wind power assets. Once operational, it will produce around 3,500 tons of green hydrogen per year and will be scalable to 100 MW or 14,000 tons.

Tesla overtakes German e-cars

Oct 12 – Sales of Tesla in Germany has overtaken that of leading German carmakers. In September, more electric Tesla Model 3s were registered in the country than leading domestic models, such as the BMW 3 Series, Audi A4 and Mercedes C-Class combined.

EnerMech spends £500k on crane training tech

Oct 11 – EnerMech has invested £500,000 in new crane simulator training systems at its Luanda (Angola), Doha (Qatar) and Great Yarmouth (UK) facilities. The British company recently formed a joint venture with 3t Energy Group to bring the KraneSIM-6000 equipment to both Qatar and Angola and offer in-country training across client organisations globally.  

Germany finances green hydrogen projects abroad

Oct 8 – The German government has agreed to support green hydrogen projects in other countries with up to €350 million by 2024, the economy ministry said when publishing a directive with relevant guidelines. Moreover, financial support is given to projects that produce and process green hydrogen for storage, transport and use in countries outside the EU through investment grants worth up to €15 million each.

UK e-car sales surge 186%

Oct 6 – Sales electric cars in the UK have surged 186% to a total of 108,000 in 2020 during the pandemic, up from just 38,000 in the previous year. Latest statistics show there were nearly 300,000 pure-electric cars on UK roads at the end of August 2021, and more than 600,000 plug-in models if including plug-in hybrids (PHEVs).

FogHorn deploys AI software at Chugoku Electric Power in Japan

Oct 4 – FogHorn, developer of Edge AI software, has deployed its Internet of Things (IoT) software at the Chugoku Electric Power hydroelectric power plant. The AI solutions will make the power gen process more efficient and enhances workplace safety. Chugoku Electric Power employs nearly 9,200 workers across 114 power units in the western part of Honshū, the largest island of Japan.

Rolls-Royce supplies MTU engines for ferry propulsion

Oct 1 – Rolls-Royce's new MT engines, automation system, and MTU Go! tool for remote service have future-proofed the high-speed catamaran Avemar Dos, run by the Spanish operator Balearia. Four MTU 20V1163 M84 units replaced the previous 1163 units, taking the vessel to a "new level of ecological soundness," the manufacturer says.

GES appoints former Puma Energy Chairman as NED

Sept 30 – Global Energy Storage (GES) has appointed the former Puma Energy Chairman, Graham Sharp, as an NED. Graham will support GES on its ‘new energies’ strategy for the energy transition, focusing on hydrogen fuels and hydrogen carriers space.

Aggreko reaches 2 GW of live power gen capacity

Sept 29 – Aggreko has today announced it has reached 2GW of live global gas power capacity and growth in flare gas to power and stranded gas projects. This new record follows a milestone of exceeding 1GW of delivered flare gas power projects in 2020.

Wärtislä renews O&M agreement with Lafarge Africa

Sept 28 – The Finish technology group Wärtsilä has renewed a long-term Operation & Maintenance (O&M) agreement with Lafarge Africa, a large producer of building materials in Nigeria. The agreement covers the 100 MW Lafarge Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes.

Rolls-Royce supplies MTU engines to Sanlorenzo

Sept 27 – Rolls-Royce business unit Power Systems will become one of the leading engine suppliers for Sanlorenzo, delivering MTU 10V, 12V and 16V 2000 yacht engines with a compact IMO 3 solution. A framework contract from 2022 through 2024 has been signed at the Monaco Yacht Show.

Shell exits Permian Basin

Sept 24 – Royal Dutch Shell has sold all its upstream interested in US Permian Basin to ConocoPhillips for $9.5 billion in cash. Shell’s assets in the Permian include around 225,000 net acres with a current production of around 175,000 barrels per day equivalent.

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