H2-DRI-EAF uses hydrogen (H2) to produce direct reduced iron (DRI), which is then processed in an electric arc furnace (EAF) to produce steel. The two main challenges are ensuring an adequate supply of DR-grade iron ore, and cutting the end-to-end cost of making hydrogen. But right now, clean green hydrogen production is in its infancy, and therefore so are green steel plans. Soroush Basirat at IEEFA surveys the landscape, looking at the U.S., … [Read more...]
Building and financing the expansion of Europe’s electrical interconnection market
In the first of a series of four articles covering the expanding market for electrical interconnections in Europe, Jean-Baptiste Vaujour at the Emlyon Business School sets the scene by presenting the main points and current developments around the difficulties of building and financing these assets. Interconnectors allow power to be sent across borders to meet the shortfall where supply is not meeting demand. For example, European electricity … [Read more...]
Spain: as Renewables rise, managing supply and demand is the next challenge
In May this year Spain reached a landmark day when it was powered 100% by renewables - solar, wind and hydroelectric power - from ten o'clock in the morning until seven o'clock in the evening. In four years the share of renewable energy generation rose from 37% to 50%, while non-renewables dropped from 62% to 49%. Its draft Law on Climate Change and Energy Transition targets 35% of renewable energy in final consumption by 2030 and 100% in the … [Read more...]
Sodium-ion batteries ready for commercialisation: for grids, homes, even compact EVs
Sodium-ion (Na-ion) batteries, a much more abundant and cheaper alternative to the standard Lithium-ion, are on the verge of commercialisation, explain Carlos Ruiz, Martina Lyons, Isaac Elizondo Garcia and Zhaoyu Wu at IRENA. Though there’s enough Lithium in the world to support global electrification targets, tightening demand and supply chain constraints point at the urgent need for an alternative. The cost of a Na-ion battery cell is expected … [Read more...]
Will U.S. become the Global Gas Market’s source of flexibility and security of supply?
The U.S. will take the lead in offering flexibility and security of supply to the global gas market, and at prices linked to its wholesale gas market, the most liquid in the world, argue Kong Chyong and Ira Joseph at the Center on Global Energy Policy. It’s because the U.S. leads in the three key sources of gas trade flexibility, critical to meeting unexpected supply and demand gaps: natural gas storage systems, spare capacity in production and … [Read more...]
IEA report: global manufacturing capacity is expanding rapidly for solar, wind, batteries, electrolysers, heat pumps
The IEA summarises its special briefing, “The State of Clean Technology Manufacturing.” It’s a global update on recent progress in key regions, focussing on five technologies – solar PV, wind, batteries, electrolysers and heat pumps – critical to the energy transition. It should be read to keep decision makers informed of investment trends and the impact of industrial strategies. Overall, manufacturing capacity for these technologies is expanding … [Read more...]
Will Europe now commit to long term imports of large quantities of LNG?
The EU and European nations need a more secure LNG supply strategy than just buying on the spot market where there is little control of prices and quantities. With Russian gas off the agenda for the foreseeable future, it’s LNG that’s filled the gap. But spot prices have been extremely high, and may return to the same heights. And though China’s Covid-caused drop in LNG consumption helped enable Europe to buy enough for now, that won’t be the … [Read more...]
Biofuel is approaching a feedstock crunch. How bad? And what must be done?
The IEA is warning that biodiesel, renewable diesel and biojet fuel producers are heading for a feedstock supply crunch over the next five years. Rising prices are the signal to seek out new supplies and solutions, which should – and are - driving the development of government programmes and industry innovation. Here, the IEA lays out their projections for 2022-2027, covering all the main feedstocks: sugars, maize, soy oil, rapeseed oil, palm … [Read more...]
Event Summary: “CHINA: Carbon Neutral by 2060 – The Future of Gas”
Here are the written highlights of our 2-day 4-session workshop “CHINA: Carbon Neutral by 2060 – The Future of Gas”, compiled by Helena Uhde at ECECP. Here you can quickly see the main points made by our expert panellists. Global events have made gas the hottest of issues, and the implications for both Europe and China are strongly reflected in all the sessions. The four session topics were Security of Supply, CCUS for the Gas Sector, Competitive … [Read more...]
4 ways to cut whole system electricity costs with flexible Demand Side Management
Right now, energy system costs are driven by generation capacity, infrastructure upgrades, network reinforcements, curtailment and constraint payments, and imbalance costs. What’s missing is the investment in a raft of demand side management assets that are ready to go but are not part of the market, therefore not rewarded, and therefore not being invested in. Laura Sandys at Energy Systems Catapult, writing for WEF, explains why flexibility must … [Read more...]
Fossil Fuel divestment is premature: instead, enable investment to keep prices low, and tax consumption
We need to shift investment from fossil fuels to other climate-friendly energy sources, but it must be done more intelligently than we’re doing it today, says Schalk Cloete. The rapid global economic development needed to uplift the 86% of the world’s population currently living below $1,000/month is inextricably linked to the continued and timely growth in an abundant supply of affordable energy. It would be unjust – and probably futile – to … [Read more...]
Germany suspends Nord Stream 2: Q&A on what happens next
Following Russia’s invasion of Ukraine, Germany has suspended the go-ahead of the switch-on of Nord Stream 2, the new pipeline for Russian gas imports. What does this mean for the pipeline and Germany’s – and the EU’s – energy strategy? With events moving so rapidly, the full picture cannot be clear. So Kerstine Appunn, Benjamin Wehrmann and Julian Wettengel at Clean Energy Wire raise the big questions and summarise the answers being given. Those … [Read more...]
Critical minerals and materials: supply bottlenecks and risks need international cooperation
The growth in demand for minerals and materials needed for the energy transition is putting a strain on supply. Mining and processing are the two key bottlenecks. Dolf Gielen, Martina Lyons, Francisco Boshell and Peter Chawah at IRENA summarise the multiple challenges. New capacity is not the only problem: the geographical concentration of where the mining and, in particular, the processing is being done is the primary risk. China’s dominance in … [Read more...]
Russia-Ukraine crisis: Germany suspends Nord Stream 2
German Chancellor Olaf Scholz has suspended the certification of Nord Stream 2, the gas pipeline for importing gas from Russia, already built and waiting for approval for the taps to be turned on. The analysis of Germany’s security of supply, a key element of the certification, has been withdrawn and must now be reassessed. Opponents of Nord Stream 2 have always argued that – gas emissions apart – the threat of Russia reducing supply to exert … [Read more...]
Hydrogen at COP26: committing to scale-up and creating demand
At COP26 the voice of hydrogen staked its claim to meeting its targets and its contribution to making the 1.5°C scenario a realistic ambition. Cato Koole and Thomas Koch Blank at Rocky Mountain Institute explain that hydrogen supply should not be the problem. The combination of deployed and announced projects already places the world close to the green hydrogen production capacity needed as outlined in the IEA’s "Net Zero by 2050" roadmap. The … [Read more...]