Tag Archives: Shell

Oil Giants Turn to Startups for Low-Carbon Energy ideas

At-a-Glance:

Some of the world’s biggest oil companies are turning to startups to help plot their future.

Energy giants including BP PLC and Royal Dutch Shell PLC are bolstering their venture capital arms—increasing budgets, hiring more staff and doing more deals—seeking out new low-carbon technologies to help future-proof their profits. The moves come as several big oil companies work to reduce their dependence on fossil fuels and expand their low-carbon activities, partly in response to growing pressure from investors and governments to cut emissions. To learn more, read, “Oil Giants Turn to Startups for Low-Carbon Energy ideas.” Reading this article may require a subscription from the media outlet.

Key Takeaways:

  • BP, Shell, and French peer TotalEnergies SE are now among the most active clean-tech investors, according to data provider PitchBook, with activity ramping up amid the shift to technologies like electric vehicles and solar and wind power.
  • BP now expects to spend up to $200 million a year, double what it has spent in previous years.
    • BP’s investments this year have included geothermal startup Eavor Technologies Inc.—where it was part of a $40 million funding round alongside Chevron Corp. —and autonomous vehicle software company Oxbotica Ltd.
  • Shell declined to disclose its venture capital budget but said the number of annual investments it makes had doubled since 2017 to around 20 to 25 deals a year, typically between $2 million and $5 million in size.
    • This year, Shell’s investments included charging technology, hydrogen-electric planes, and a logistics company that aims to prevent trucks running without goods—all of which could ultimately reduce demand for oil.

Path to 100% Perspective:

The strategy by several international oil giants to invest in startups could reveal solutions that could evolve the oil industry into a net-zero resource. Many of these petroleum based businesses are already exploring hydrogen as a possible way to contribute to decarbonization efforts. To connect the dots further, the most economical long-duration storage is formed with green hydrogen-based future fuels, such as hydrogen, ammonia, carbon neutral methanol and methane.These fuels can be used to generate electricity in flexible power plants. Such flexible power plants provide carbon neutral firm, dispatchable capacity to the grid at any time. Flexibility, reliability and resilient grids are required to avoid power disruptions caused by extreme or intermittent weather conditions.

 

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Big Oil Companies Push Hydrogen as Green Alternative, but Obstacles Remain

At-a-Glance:

Big oil companies have long touted hydrogen energy as a way to reduce carbon emissions. Now they are grappling with how to make that a reality. BP, Royal Dutch Shell and TotalEnergies SE are all pursuing multimillion-dollar hydrogen projects, often with government support, as they seek to redefine their future role in a world less reliant on fossil fuels. Hydrogen made using renewable energy can be produced and used without emitting carbon dioxide. The challenge is to make it using renewable power instead and produce it on an industrial scale, in the hope of bringing down costs. To learn more, read “Big Oil Companies Push Hydrogen as Green Alternative, but Obstacles Remain.” Reading these articles may require a subscription from the media outlets.

Key Takeaways:

  • Oil companies are pursuing green hydrogen, which they see as a longer-term goal, while also looking at applying carbon-capture technology to fossil-fuel-based hydrogen production as a way to clean up the gas in the interim.
  • As of the end of June, there were 244 large-scale green hydrogen projects planned, according to the Hydrogen Council, an industry group, up more than 50% since the end of January. It estimates tens of billions of dollars have already been earmarked for hydrogen projects.
  • In the U.S., the Energy Department has said it aims to reduce the cost of green hydrogen by 80% to $1 per kilogram in the next decade, in part by supporting pilot projects.

Path to 100% Perspective:

U.S. renewable energy adoption continues to rise. In 2019, renewable energy sources accounted for 17.5% of total utility-scale electricity generation, with renewable energy generation reaching 720 TWh. However, allocation of current energy stimulus, $100 billion USD, is tied to the fossil fuel sector, which limits the potential for decarbonization. More than 70% of energy stimulus funding in the U.S. is currently allocated to legacy fossil fuels, compared to less than 30% to clean energy. Large oil companies are maximizing government support to make the energy transition, but a larger federal investment in clean energy instead of fossil fuels could accelerate the decarbonization process. 

 

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Shell Could Bring EU Green Hydrogen Scheme to US Shores

At-a-Glance:

Shell has just flipped the switch on the biggest green hydrogen plant in the EU, and it looks like the oil and gas giant could have a hand in fostering the renewable H2 revolution here in the US, as well. It better ramp up quickly, though. Global demand for hydrogen has tripled since the 1970s and it has nowhere to go but up. To learn more, read “Shell Could Bring EU Green Hydrogen Scheme to US Shores.”

Key Takeaways:

  • More sustainable hydrogen sources are finally beginning to emerge, including biomass, biogas, wastewater, waste plastic, and electrolysis, which refers to the process of teasing hydrogen from water with an electrical current.
  • Shell built its new green hydrogen plant at its Energy and Chemicals Park in Rheinland, Germany, with a healthy assist from the a consortium of hydrogen stakeholders and the EU’s Fuel Cells and Hydrogen Joint Undertaking.
  • Billed as “the first to use this technology at such a large scale in a refinery,” the new electrolysis plant revved up in July at a capacity of 10 megawatts. Plans are already under way to add 90 megawatts more.
  • In one especially intriguing indication of surging interest in the US, Texas has launched a study aimed at leveraging its wind and solar resources to produce green hydrogen at scale.

Path to 100% Perspective: 

In the energy sector, it is anticipated that green hydrogen will deliver 7 percent of the global energy demand by 2050. Governments will have to invest significant amounts into the infrastructure needed to develop green hydrogen, but those investments require market-ready engines that can run on the fuel once it is readily available. The energy and marine industries are on a decarbonisation journey, and the fuel flexibility of the engines powering these sectors is key to enable the transformation.

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Why Hydrogen Is the Hottest Thing in Green Energy

At-a-Glance:

Solar panels and wind turbines can’t clean up everything. Making steel, for instance, calls for higher temperatures than traditional electric furnaces can deliver. That’s why plans for blunting climate change now envision a big role for hydrogen in curbing industrial emissions and for powering cars, trucks and ships. So-called green hydrogen is essentially emissions free, But meeting the ambitious plans being made for it means building a giant industry almost from scratch. To learn more, read “Why Hydrogen Is the Hottest Thing in Green Energy.” Reading this article may require a subscription from the news outlet.

Key Takeaways:

  • Replacing fossil fuels used in furnaces that reach 1,500 degrees Celsius with hydrogen gas could make a big dent in the 20% of global carbon dioxide emissions that come from industry. And some companies are betting that hydrogen-powered fuel cells will be a better choice than batteries for heavy vehicles.
  • The European Union (EU) has set the most ambitious goal for green hydrogen: building electrolyzers that are capable of converting 40 gigawatts of renewable electricity into hydrogen by 2030.
  • China plans to have 1 million vehicles powered by hydrogen fuel cells on its roads by the end of 2030. The value of its hydrogen production could reach 1 trillion yuan ($155 billion) by 2025.
  • The U.S. had 6,500 fuel cell electric cars on the road in 2019 – the world’s largest fleet – and the Biden administration has set a goal of reducing the cost of renewable hydrogen by 80% by 2030.
  • Royal Dutch Shell Plc is leading a consortium developing a project to produce up to 10 gigawatts of green hydrogen by 2040.

Path to 100% Perspective:

Power generation is undergoing fast transformation towards cleaner energy sources due to low-cost renewables. In addition, rapidly maturing energy storage technologies, together with sector coupling, are for the first time paving a route towards zero-emission electricity generation. The missing piece of the puzzle is viable long-term storage which will be needed to provide megawatts of capacity and megawatt hours of energy during long duration seasonal conditions or unexpected renewable droughts. Hydrogen-based sustainable fuels can be stored in large quantities and for extended periods at power plants for long periods of use, enabling clean capacity to be cost effectively scaled up according to the needs of grids.

 

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Shell enters supply deal with Amazon to provide renewable energy

At-a-Glance:

Shell Energy Europe BV has agreed to supply Amazon.com Inc. with renewable energy, which will help the U.S. online retailer power its business completely using clean energy by 2025 which is five years ahead of Amazon’s target. To learn more, read “Shell enters supply deal with Amazon to provide renewable energy.”

Key Takeaways:

  • Shell Energy Europe BV said it will provide the renewable energy from a subsidy-free offshore wind farm constructed off the coast of the Netherlands.
  • According to a press release distributed by Shell, the wind farm will be operated by The CrossWind Consortium, a joint venture between Shell and Eneco.
    • Starting in 2024, Amazon will offtake 250 megawatts (MW) from Shell and 130 MW from Eneco, for a total of 380 MW.
    • “Supplying Amazon with electricity from this offshore wind farm contributes to their net-zero pledge while progressing our own ambition to be a net-zero emissions business by 2050 or sooner,” stated Elisabeth Brinton, Executive Vice President of New Energies at Shell.

Path to 100% Perspective:

Achieving a 100% renewable energy future requires collaboration and innovation to serve organizations and utility partners. Mutually beneficial partnerships, such as the newly established agreement between Shell and Amazon, is an impactful strategy with the potential to accelerate decarbonization. Although costs continue to decline for renewables, the need for ongoing solutions to create flexible, reliable and sustainable grids continues to be the overarching challenge in reaching renewable energy goals.

 

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Shell Says Hydrogen Is Heavy Transport’s Future. What Now For Biofuels?

At-a-Glance:

Hydrogen will be the key energy source for global road freight, according to a new report commissioned by European oil major Shell. Electrification is the most economic and environmental solution for smaller delivery vehicles. The study, carried out by global accountancy firm Deloitte on Shell’s behalf, questioned 158 executives in the road freight sector in 22 different countries. To learn more, read “Shell Says Hydrogen Is Heavy Transport’s Future. What Now For Biofuels?”

Key Takeaways:

  • Of those interviewed for the report, 70% ranked decarbonization as a top-three concern for their business and many said they expect hydrogen to be commercially viable in just five to 10 years.
  • Carlos Maurer, EVP of sectors and decarbonization at Shell, stated, “We believe that once produced at scale, hydrogen will likely be the most cost-effective and viable pathway to net-zero emissions for heavy-duty and long-route medium-duty vehicles, and electric mobility will do the same for light-duty and short-route medium-duty vehicles.”
  • Major truck manufacturers in Europe have accelerated the target date for their diesel engine phase-out from 2050 to 2040. Hydrogen and electrification are the low-carbon technology options of choice.
  • Biofuels are more likely to play their largest role in the short term when it comes to the transportation sector; however, there are other transport end markets where biofuels hold a strong advantage.

Path to 100% Perspective:

Decarbonizing the transportation sector will be a key step in realizing a 100% renewable energy future. Investments in hydrogen production, both in policies and infrastructure, will accelerate the timeline for commercial viability.

 

 

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The Future Of Carbon Capture Is In The Air

At-a-Glance 

While renewable energy is now widely accepted as the cheapest form of electricity generation, energy demand growth, government growth requirements and the need for a responsible transition mean fossil fuels will still have a role. But for that to work with climate goals, carbon capture and storage (CCS) technology must be mainstreamed. In Iceland, Climeworks is showing how direct air capture/storage (DAC) could change the game. To learn more, read “The Future Of Carbon Capture Is In The Air.” Reading this article could require a subscription.

Key Takeaways

  • Climeworks new plant, named Orca, will combine Swiss-based Climeworks’ direct air capture technology with the underground storage of carbon dioxide provided by Iceland’s Carbfix and the plant should be online in spring 2021. 
  • What makes Climeworks use of DAC so interesting is that it doesn’t just work in removing emissions associated specifically with power generation, but can capture emissions directly from the air. This is the company’s largest plant so far, intended to capture around 4,000 tons of CO2 per year.
  • There has been significant movement in the CCS market recently. In the UK, as part of its recently announced green infrastructure plans, the government has promised £1 billion to set up four industrial clusters for CCS. 
  • The Norwegian government is working with Equinor, Shell and Total on a project intended to standardize and scale carbon capture, transportation and storage in Europe. The Northern Lights Project is expected to capture CO2 from industry in the Oslo-fjord region, following which the carbon will be liquefied and shipped to an onshore terminal on the Norwegian west coast and then taken out to the North Sea for long term subsea storage.
  • In Canada, Carbon Engineering says its technology can be scaled up to remove up to 1 million tons of CO2 from the air annually, with a large-scale plant in development with Occidental Petroleum with a completion date reported to be 2026. 

Path to 100% Perspective

Capturing carbon dioxide from the air, utilizing synthesis to combine these into hydrocarbons suitable for synthetic renewable fuels offers substantial opportunities to take valuable steps towards carbon neutral communities. These renewable fuels could be used in transportation, energy storage and energy distribution which improves power system sustainability, reliability and flexibility.

 

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