Suddenly, US electricity demand is spiking. Can the grid keep up?

Data centers, factories, heat pumps and EVs are putting increasing stress on a grid that isn’t growing fast enough, new data shows.

Written by: Jeff St. John
View the original article here

A recently constructed Meta data center in Eagle Mountain, Utah (George Frey/Getty Images)

For the past two decades, demand for electricity across the United States has hardly increased. But those dynamics appear to have dramatically reversed — and U.S. electric utilities, regulators and power grid planners aren’t prepared to deal with this new paradigm of surging electricity demand.

That’s the key takeaway from a new report by consultancy Grid Strategies called The Era of Flat Power Demand Is Over. Already, massive amounts of clean energy projects are stuck waiting for grid expansions to happen so they can connect. Soon enough, data centers, factories, electric-vehicle charging depots and other major electricity users could start facing the same barriers, the report warns.

In the past year, estimates from U.S. utilities and grid operators of how much electricity demand will grow over the next five years have nearly doubled, jumping from 2.6 percent to 4.7 percent, according to Grid Strategies’ analysis. That’s far higher than the more incremental 0.5 percent annual demand growth estimates of the past decade.

(Grid Strategies)

Over the past 20 years, efficiency improvements — primarily replacing incandescent lightbulbs with fluorescents and then LEDs — have counterbalanced rising power demand from population and economic growth, giving utilities and regulators little reason to expand their power grids or generation capacity.

“I think people got used to…flat power demand,” said Rob Gramlich, Grid Strategies president.

But the combination of near-term growth in electricity use by data centers and industry and longer-term growth from electric vehicles and building heating has upended that status quo, he said. ​“Those who are actively involved in electrifying parts of the economy understand that that means more electricity demand. But it’s only been dribbling out anecdotally here and there.”

That anecdotal data has piled up. In Virginia’s Loudoun County, dubbed ​“Data Center Alley” for its remarkably high concentration of data centers, power shortfalls have prompted utility Dominion Energy to push grid planners to approve a multibillion-dollar grid expansion; some data center operators and regulators have even proposed running backup diesel generators to cover power gaps. In California, lags in grid expansions are causing monthslong wait times for getting connected to utility service, not just for major new loads like electric truck-charging depots but even for everyday commercial and multifamily buildings.

All told, grid planners across the U.S. forecast an increase of 38 gigawatts of peak demand by 2028, according to data reported to federal regulators — a pace of growth that will be hard to keep up with. Data centers and factories can be built in a few years, but it takes four years or more to build new power plants, and up to a decade or longer to build new transmission lines.

While this is a problem that goes beyond the clean energy sector, it also presents a particular hurdle for the energy transition. Not only does the U.S. need to rapidly replace existing coal- and gas-fired power plants with renewables — it also needs to grow fast enough to accommodate the surge of new electricity demand. For this new demand to be met in a way that doesn’t derail the transition away from fossil fuels, the U.S. will need to clear the way for a much speedier buildout of wind, solar, batteries and power lines.

“The main reason [tracking increases in electricity demand] is important is for infrastructure planning,” Gramlich said. ​“Transmission infrastructure in particular takes a long time. As soon as we know this load situation to be the case, we’d better act quickly.”

A sector-by-sector breakdown of where new electricity demand is coming from

Grid Strategies highlighted key demand-growth drivers across several major grid regions, including PJM, which operates the grid in all or part of 13 states from Illinois to Virginia, as well as the grid operators for California, New York and Texas, and four large utilities: Arizona Public Service, Duke Energy, Georgia Power and Portland General Electric in Oregon. 

(Grid Strategies)

Data centers and industrial facilities were among the biggest drivers of new load. New investments in U.S. data centers are projected to exceed $150 billion through 2028, driven by rising demand for cloud computing, telecommunications, digitization and artificial intelligence. Data centers already make up roughly 2.5 percent of total U.S. electricity demand, according to analysis from Boston Consulting Group — but exploding demand for AI could drive that to 7.5 percent by 2030.

(Grid Strategies)


New industrial facilities are also adding demands on the grid. The country has seen about $481 billion in commitments to build and expand industrial and manufacturing facilities since 2021, the report states. Much of that growth stems from the clean energy manufacturing boom and is concentrated in the Midwest and Southeast, which are receiving the lion’s share of battery and EV manufacturing investments spurred by the tens of billions of dollars of federal incentives from the Inflation Reduction Act.

(U.S. Department of Energy)

Not all of the emerging demands for grid electricity are fully accounted for in current load-growth forecasts, Gramlich noted. One striking example is hydrogen produced from zero-carbon electricity, supported by lucrative tax credits offered by the Inflation Reduction Act, which could add gigawatts’ worth of new power demand across the country. But with the exception of New York, grid planners’ ​“load forecasts don’t appear to be explicitly considering the implications of hydrogen fuel plants,” according to the repo

(U.S. Department of Energy)

Increased electricity demand stemming from the electrification of transportation and buildings — a key facet of the Biden administration’s climate plans — is not as granularly tracked in states outside those with aggressive policies on those fronts, such as those adopted by California and New York. In California, where policymakers have set their sights on replacing fossil-fueled vehicles and building heating systems with EVs and heat pumps, respectively, statewide electricity demand is expected to grow by about 60 percent through 2045, according to an analysis from utility Southern California Edison — a remarkable turnaround from a state that’s led the country on energy efficiency. New York expects similar increases in electricity demand over the coming decades.

How uncertainty and cost concerns have limited grid infrastructure buildout

Though it’s clear what direction power demand is moving in, ​“we don’t know enough yet to say what load growth is going to be,” Gramlich cautioned. Load forecasting is an inherently uncertain field. Some proposed data centers and factories may never be built. The uptake rates of EVs or electric-powered heat pumps for homes and buildings can’t be predicted with perfect accuracy.

These uncertainties can lead utility regulators to look askance at utility grid-expansion proposals that may exceed future needs, since their costs are passed on to utility customers via increases on their bills. Over the past half-decade or so, a number of large-scale utility grid-expansion plans have been denied by state regulators due to concerns over excessive costs.

Similar dynamics have slowed efforts within the independent system operators and regional transmission organizations that manage the grids that provide electricity to roughly two-thirds of the country’s population. Since a series of large-scale buildouts in the early 2010s, the scale of U.S. grid projects has declined significantly, with the average miles of newly built high-voltage transmission lines falling by more than half from the first half to the second half of that decade.

Several of these grid operators have approved multibillion-dollar grid buildout plans in the past two years. But those plans still tend to project lower levels of load growth than the data in Grid Strategies’ study indicates is on its way, Gramlich said. ​“It may be that everybody’s base case needs to be ratcheted up.”

The Federal Energy Regulatory Commission, which regulates interstate transmission policy, is in the midst of crafting proposed transmission rules that are expected to require grid operators and utilities to examine a broader set of future grid needs, including increasing demand from electrification of transport and buildings, when making their long-term grid plans.

“There should be a lot of work coming up for every region following the FERC rule,” which is expected some time in the first half of 2024, Gramlich said. ​“That rule will require a lot of planning — and the devil’s in the details in every region.


New industrial facilities are also adding demands on the grid. The country has seen about $481 billion in commitments to build and expand industrial and manufacturing facilities since 2021, the report states. Much of that growth stems from the clean energy manufacturing boom and is concentrated in the Midwest and Southeast, which are receiving the lion’s share of battery and EV manufacturing investments spurred by the tens of billions of dollars of federal incentives from the Inflation Reduction Act.

Map of U.S. manufacturing facilities announced since the passage of the Inflation Reduction Act
(U.S. Department of Energy)

Not all of the emerging demands for grid electricity are fully accounted for in current load-growth forecasts, Gramlich noted. One striking example is hydrogen produced from zero-carbon electricity, supported by lucrative tax credits offered by the Inflation Reduction Act, which could add gigawatts’ worth of new power demand across the country. But with the exception of New York, grid planners’ ​“load forecasts don’t appear to be explicitly considering the implications of hydrogen fuel plants,” according to the report.

Map of planned or operational electrolytic hydrogen facilities in the U.S.
(U.S. Department of Energy)

Increased electricity demand stemming from the electrification of transportation and buildings — a key facet of the Biden administration’s climate plans — is not as granularly tracked in states outside those with aggressive policies on those fronts, such as those adopted by California and New York. In California, where policymakers have set their sights on replacing fossil-fueled vehicles and building heating systems with EVs and heat pumps, respectively, statewide electricity demand is expected to grow by about 60 percent through 2045, according to an analysis from utility Southern California Edison — a remarkable turnaround from a state that’s led the country on energy efficiency. New York expects similar increases in electricity demand over the coming decades.

How uncertainty and cost concerns have limited grid infrastructure buildout

Though it’s clear what direction power demand is moving in, ​“we don’t know enough yet to say what load growth is going to be,” Gramlich cautioned. Load forecasting is an inherently uncertain field. Some proposed data centers and factories may never be built. The uptake rates of EVs or electric-powered heat pumps for homes and buildings can’t be predicted with perfect accuracy.

These uncertainties can lead utility regulators to look askance at utility grid-expansion proposals that may exceed future needs, since their costs are passed on to utility customers via increases on their bills. Over the past half-decade or so, a number of large-scale utility grid-expansion plans have been denied by state regulators due to concerns over excessive costs.

Similar dynamics have slowed efforts within the independent system operators and regional transmission organizations that manage the grids that provide electricity to roughly two-thirds of the country’s population. Since a series of large-scale buildouts in the early 2010s, the scale of U.S. grid projects has declined significantly, with the average miles of newly built high-voltage transmission lines falling by more than half from the first half to the second half of that decade.

Several of these grid operators have approved multibillion-dollar grid buildout plans in the past two years. But those plans still tend to project lower levels of load growth than the data in Grid Strategies’ study indicates is on its way, Gramlich said. ​“It may be that everybody’s base case needs to be ratcheted up.”

The Federal Energy Regulatory Commission, which regulates interstate transmission policy, is in the midst of crafting proposed transmission rules that are expected to require grid operators and utilities to examine a broader set of future grid needs, including increasing demand from electrification of transport and buildings, when making their long-term grid plans.

“There should be a lot of work coming up for every region following the FERC rule,” which is expected some time in the first half of 2024, Gramlich said. ​“That rule will require a lot of planning — and the devil’s in the details in every region.”

Building new power plants instead of transmission lines could help serve these growing loads. But it’s far more efficient to expand the grid to carry power from where it’s most cheaply generated to where it’s most acutely needed.

A host of new transmission grid projects have been approved over the past few years. But they’re still not enough to connect the massive amounts of new renewable power needed to reach the Biden administration’s goals of a zero-carbon grid by 2035. Studies from the U.S. Department of Energy, the Massachusetts Institute of Technology and Princeton University have found the country must double or triple current transmission capacity to reach that goal.

Nor are the new power lines being planned sufficient to eliminate rising grid-congestion costs that are adding billions of dollars to U.S. consumers’ electricity costs, or to enable different regions of the country to share power in order to mitigate the risk of blackouts during extreme winter storms or summer heat waves. This new report also adds the risk of stalling economic growth to this list of threats.

Transmission projects can take more than a decade to move from planning to construction, and they can be blocked by permitting and legal challenges at multiple points. Regional grid-expansion proposals can be scuttled due to conflicts between the utilities and states they connect over how to fairly allocate and distribute the costs of building them.

Federal action on this front has been limited as well. To date, Congress has failed to act on proposed legislation to offer tax incentives to transmission projects, to require minimum amounts of transmission between regions or to give FERC more authority to override state-by-state objections to new projects. But members of both parties in Congress ​“should care enough about infrastructure to support economic growth in this country,” Gramlich said.

A tech-powered approach to overcoming grid bottlenecks

Transmission lines outside Houston, Texas (Courtesy: BFS Man/Flickr)

Contributed by Grzegorz Marecki, co-founder and CEO of Continuum Industries
View the original article here

The expansion of electricity transmission infrastructure is crucial for meeting growing energy demands and accelerating the United States’ clean energy transition. However, spatial planning processes are struggling to keep pace with the speed of change required to tackle climate change. Building clean energy infrastructure today can take more than a decade, largely due to delays in planning and permitting. 

The root of this challenge lies in the complexity of infrastructure planning. Developers need to simultaneously meet the requirements of dozens of stakeholders, which demands a balance between technical and regulatory considerations, as well as the perspectives, priorities, and concerns of diverse stakeholders. Utilities, traditionally functioning as asset managers, are now faced with the need to become developers, driving the rapid expansion of America’s grid demands. However, their processes have not evolved at the pace required to meet this urgent need.

Additionally, as the volume of work increases, the industry grapples with insufficient resources to deliver at the speed required. Automation of repetitive tasks can help free up professionals, enabling them to focus on more complex challenges. The industry also faces constraints due to the limited number of specialists available for traditional tasks.

To overcome these challenges, the industry must embrace a technology-powered paradigm shift. A tech-enabled approach to planning processes, supported by professional oversight, has the potential to revolutionize the development of new energy networks.

Frontloading data for more predictable permitting

With the advancement of technology, governments and other key stakeholders now have access to unprecedented amounts of data. If harnessed effectively, this data can help infrastructure developers expedite decision-making processes and streamline the planning and permitting phases. 

New tools allow for a comprehensive data dive right at the project’s start, providing a full picture of constraints and opportunities. AI algorithms offer intelligent insights, guiding developers toward optimal decisions. These tools empower users by allowing them to configure assumptions, preferences, and project goals before the algorithm runs, ensuring a clear link between inputs and outputs. For example, easier access to spatial data makes it possible for developers to get a comprehensive view of the permits that would be required. Traditionally, they would have to wait a few months for a manually produced report from a consultant. This also allows the professionals to focus on the areas of highest risk. 

Automated routing for unbiased solutions 

By automating routine processes, developers can assess more alternatives than was ever possible without automation and remove decision biases. Algorithms can explore and optimize different solutions for infrastructure assets, simultaneously considering factors such as cost, technical feasibility, and environmental and community impact. 

While still in its early stages of adoption in the US, automated routing is already demonstrating its potential, and it might pay to look across the pond for an example to follow. The UK is slightly ahead of the US when it comes to grid expansion, and more than just encouraging is now expecting transmission companies to standardize and automate routing. The government has adopted a package of 19 measures to slash the project development timeline from 14 to 7 years, but utilities that have adopted a heavily automated approach say that they’ve been able to kick-start their projects and complete 12 months’ worth of work in as little as 8 weeks.

As the energy sector transforms and projects become increasingly complex, automated tools will empower developers to respond swiftly to changing requirements, market dynamics, and regulatory landscapes.

Transparency and accountability through comprehensive decision-making

In the past, manual record-keeping and documentation processes left room for ambiguity and potential oversights. However, technology can establish a reliable audit trail, ensuring that every decision is logged, timestamped, and linked to the specific dataset or analysis that influenced it. This record enables project teams to revisit and refine decisions, supporting external regulatory approvals and fostering accountability throughout the process.

Breaking silos with cross-department collaboration

Technology can also bridge the divide between internal teams, fostering smooth collaboration and streamlining decision-making processes. Providing a shared platform for data and insights ensures that everyone involved in the project is working from the same information, reducing miscommunication and delays.

Through leveraging technology, traditionally siloed disciplines can replace slow email communication channels with rapid feedback based on standard criteria. For example, when engineers move a tower to avoid difficult ground conditions closer to a water body, they receive automatic feedback on whether the new position meets the requirements for setbacks from the water based on environmental protection policies.

Public engagement and transparent project narratives

Beyond internal teams, technology plays a crucial role in engaging the public and garnering support for critical infrastructure projects. Presenting decisions backed by solid evidence and interactive visualizations makes complex data digestible and addresses concerns head-on. This transparency builds trust and fosters a sense of shared ownership, crucial for navigating the permitting process and ensuring community buy-in. 

Stakeholder engagement is also changing thanks to technology. Dynamic maps and immersive 3D visualizations now allow project teams to collaboratively iterate with stakeholders, demonstrating the project’s evolution over time and minimizing impacts. This interactive approach, coupled with routing and siting automation, eliminates the traditional time constraints associated with manual rerouting.

The submission of documents, particularly environmental baseline schedules and reports, has also evolved. Algorithms can now identify potential impacts, presenting them to professionals for screening and defining mitigation strategies. This not only speeds up the process but also frees up professionals for more strategic tasks.

The Linear Infrastructure Planning Panel provides a noteworthy example of the efforts made towards more transparent and dynamic project planning. The Panel’s purpose is to engage key public interest stakeholders, including social and environmental groups, in the development of good practices and ethical approaches in the use of new techniques, such as algorithms and advanced software tools, for infrastructure planning. By actively involving various stakeholders, the Panel contributes to shaping responsible and inclusive technology integration in the planning process, setting a precedent for the industry.

Looking ahead

The American Council on Renewable Energy emphasizes that a $1.5 trillion investment in new transmission infrastructure by 2030 is not just a financial commitment, but an investment in a clean energy future. In this landscape, technology is not a silver bullet, but still a powerful catalyst for change. It facilitates efficiency, transparency, and collaboration, enabling informed decision-making and accelerating the development of a robust and resilient grid.

By embracing a tech-powered approach, the US can overcome the bottlenecks plaguing the current system and realize the full potential of clean energy. This transformation isn’t about replacing human expertise; it’s about empowering and augmenting it, fostering a synergy that paves the way for a more efficient and sustainable future.

Timeline 2024: 28 sustainability policies, guidelines and targets to track

The business of sustainability continues to evolve rapidly. Here are the most important changes to expect in the coming year.

By:  Elsa Wenzel
View the original article here

Sophia Davirro/GreenBiz

With COP28 recent in the rearview mirror, 2024 represents a clear and critical inflection point for confronting the climate crisis. New rules in the European Union and in California, the world’s fifth-largest economy, will change how global businesses report risks, purchase energy and manage supply chains. The effects of the Inflation Reduction Act in the U.S. are still emerging: 175 nations are hashing out the first global treaty to end plastic waste.

Below are some defining moments that will drive change in the business of sustainability in the coming year. 

Carbon

Expected U.S. SEC climate-related disclosures in April will require companies to report their GHG emissions.

The U.S. Office of Fossil Energy and Carbon Management, part of the Department of Energy, announces winners in February of its carbon dioxide removal purchase pilot prize and will publish details for corporate sustainability teams’ own carbon removal due-diligence processes.

New guidance from the Science Based Targets initiative on the use of environmental attribute certificates, including carbon credits, in decarbonization goals should come out by summer.

By the end of 2024, companies subject to California’s new Climate Corporate Data Accountability Act (SB253) will need to establish processes for auditing their 2025 emissions ahead of 2026 reporting.

Finance and ESG

A new proposal may emerge in the spring from the U.S. Securities and Exchange Commission (SEC), after it again delayed its climate change disclosure rulemaking.

Changes to the EU’s Sustainable Finance Disclosure Regulation (SFDR) 2.0 are likely following a September 2023 review.

Sometime in 2024, the U.S. Federal Trade Commission’s updated Green Guides are expected to update what “greenwashing” means in business and marketing.

Nature and biodiversity

The EU’s Corporate Sustainability Reporting Directive (CSRD), requiring companies to disclose their risks from environmental and social factors, takes effect Jan. 1.

COP16, the 16th Conference of the Parties to the Convention on Biological Diversity, will take place in Colombia from Oct. 21 to Nov. 1.

Revised or updated National Biodiversity Strategies and Action Plans (NBSAPs), including national targets, are due by COP16. 

By Dec. 30, operators and traders must prove deforestation-free sourcing for targeted commodities in the EU market. That’s the EU Deforestation Regulation (EUDR) compliance deadline.

Food and agriculture

The EU CSRD goes into effect as 2024 begins, influencing supply chain impact disclosure and bringing new evidence of deforestation.

Supply chains risk disruptions if the U.S. Farm Bill continues to stall in Washington in 2024.

Watch for the next steps from the hundreds of nations that signed sustainable food declarations at COP28.

Transport

The U.S. Departments’ of Treasury and Energy rules go into effect, barring vehicles with battery components from a “foreign entity of concern” from consumer tax credits. 

The IRS expands its EV tax benefit by letting consumers choose between claiming a credit on their tax returns or using the credit to lower a car’s purchase price.

The ReFuelEU aviation initiative goes into effect Jan. 1 to advance sustainable aviation fuels (SAF) in the European Union. It also requires aircraft operators and EU airports to work towards emission reductions and to ensure a level playing field for airlines and airports.

In January, the EU extends its cap-and-trade Emissions Trading System (EU ETS) to regulate CO2 from large ships of any flag entering its ports.

The U.S. Department of Energy will release an updated Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model by March 1.

Circular economy

A hoped-for Global Plastics Treaty in 2024 moves forward with INC-4 meetings expected in April in Ottawa and INC-5 by November in Korea.

California, Maine, Oregon and Colorado are working on enforcement rules and other fine print for their new extended producer responsibility (EPR) packaging laws.

EU battery regulations are gradually being introduced, encouraging a circular economy for batteries.

Energy

At COP28, the U.S. announced new rules to cut methane emissions in oil and gas production, likely to change the energy cost equation. Watch for progress from 150 countries pledging two years ago to cut methane by 30 percent by 2030.

The Biden administration will be giving out $7 billion for its Regional Clean Hydrogen Hubs (H2Hubs).

2024 will be a watershed year for microgrids moment: Interconnection backlogs are creating a new value-add for microgrids, especially as the macrogrid can’t keep up with electricity demand.

Buildings

Watch the 28 countries agreeing at COP28 for “near-zero” buildings by 2030 through the Buildings Breakthrough.

Applications are due and funding will be announced for the EPA’s $27 billion Greenhouse Gas Reduction Fund, backing climate tech and moving money into communities.

Applications for the EPA’s Environmental Product Declaration (EPD) grants are due Jan. 16 from manufacturers.

What’s ‘Greenwashing’ and How Can I Avoid It?

By:  Jacqueline Poh
View the original article here

Over the last decade, companies and investors have come to pay more attention to environmental concerns, often with a goal of offering “green” products or making “green” investments. But the companion of green is often what’s known as greenwashing. In some countries, regulators are trying to clean up the field, launching investigations and levying fines. They have the backing of some advocates of environmentally minded investing worried that greenwashing’s taint may undermine the field.

1. What is greenwashing?

It’s the use of misleading labels or advertising to create an undeserved image of environmental responsibility. Here are some eamples:

  • In December, the UK’s antitrust regulator began an investigation of Unilever Plc, the maker of Dove soap and Cif cleaner, for allegedly overstating the environmental qualities of certain products.
  • Fashion companies Asos and Boohoo and airlines such as Air France-KLM, and Deutsche Lufthansa AG were told by regulators to discontinue misleading ads that made air travel seem more eco-friendly than it is.
  • In investing, the UK’s Financial Conduct Authority rolled out a framework in November designed to protect retail investors from misleading claims by firms with so-called ESG funds — where investment decisions are shaped by environmental, social or governance factors.
  • In the US, Deutsche Bank AG’s DWS asset management arm agreed in September to pay a total of $25 million to settle Securities and Exchange Commission probes into alleged greenwashing and anti-money laundering lapses. The penalties included $19 million for “materially misleading statements” about how the bank incorporated ESG factors into research and investment recommendations.

2. What’s the incentive for greenwashing?

The ultimate attraction is the favorable image companies project across to clients, investors, shareholders, lenders and even potential employees. But different players have different reasons for exaggeration. When companies fudge on something they’re selling, it’s because they want environmentally minded consumers to be drawn to their products. When they’re borrowing money, they may be chasing a “greenium” — the money they can save by qualifying for the better terms lenders might extend to green or social projects or to ones with ESG goals. Brazil raised $2 billion in the bond market in November 2023 with proceeds earmarked for green and social work, and the debt was priced lower than initial guidance – meaning the Amazon forest nation is paying lower interest rates, compared with a conventional bond. And investment managers might put a greener label than is warranted on a fund to draw in more assets.

3. How big a problem is it?

In 2022, Bloomberg News analyzed more than 100 bonds worth almost $70 billion tied to issuers’ ESG credentials that were sold by global companies to investors in Europe. The analysis found that the majority were tied to climate targets that were weak, irrelevant or even already achieved. Some companies promised to do no more than maintain their existing ESG ratings. And some of the fastest-growing areas of ESG financing involve so-called sustainability-linked loans (SLL) (and similar bonds) in which the connection between environmental labels and environmental goals can be tenuous.

4. How does sustainability-linked debt work?

Sustainability-linked bonds and sustainability-linked loans are signed with commitments from borrowers to achieve certain environmental or social targets, but those goals may be changed in an increasing number of cases. The more flexible agreements even allow issuers to adjust those targets under certain conditions without incurring a penalty. Issuers argue that they have to look for ways to cope with increasingly volatile markets in which key ESG parameters such as energy prices become harder to predict. Then there’s the “sleeping” sustainability-linked debt where financing has an ESG label but with no immediate sustainability targets. Other approaches push responsibility even further out: Bank of China Ltd.’s so-called re-linked bond sold in 2021 is tied to the performance of a pool of sustainability-linked loans made to its clients — that is, not to anything BOC is or isn’t doing in ESG terms, but to the ESG performance of the clients who have taken out those loans.

5. Who’s checking up?

There are dozens of ESG rating and data providers globally, which can provide some assurance that companies and debt issuers are doing their part in sustainability. But private ratings systems can be unreliable and corporate reporting is spotty and hard to compare. All of this greenwashing detective work would be easier if investors and the public had a standardized approach and a robust set of data to compare. Here’s some of what governments and other organizations are doing:

  • Hong Kong, Japan, South Korea, India, Singapore, the UK and EU have issued or proposed rules for ESG score providers, though the rules are only mandatory in the EU and India. The UK Financial Conduct Authority, meanwhile, has unveiled its Sustainability Disclosure Requirement ensuring investment products are accurately labeled or presented.
  • The US SEC is working on getting companies to report on their greenhouse gas emissions and other climate matters.
  • The EU enforced the Corporate Sustainability Reporting Directive in January 2023 which requires companies to disclose risks and opportunities arising from social and environmental issues. For the debt markets, the European Council adopted a green bond standard in October 2023 that specifies where proceeds will be invested and which activities are aligned with the EU taxonomy.
  • Financial bodies, including the International Capital Market Association which oversees the international debt capital markets, and global loan associations have drafted guidelines for ESG debt such as sustainability-linked instruments, green and social financing.

6. Is it just environmental misconduct that’s considered greenwashing?

No. Social and governance aspects have grown to be just as crucial as companies’ environmental efforts, especially since the #MeToo and Black Lives Matter movements began making an impact on consumers’ spending. Many corporations are using their annual sustainability reports to showcase how fair they are in equality employment or what they did to improve employee wellbeing. Given that some of these goals are hard to measure in areas where little data is available, there’s a risk in overstating the results. Of the $1.4 trillion of sustainability-linked debt with disclosed ESG goals, only $352 billion was tied to social objectives, according to BloombergNEF data.

7. How can I avoid investing in greenwashing?

Here are some questions to ask yourself:

  • How ambitious are a company’s goals? Are they integral to its core business, or just superficial commitments? Is the company just promising to do something it would be doing anyway?
  • How specific is the timeframe? Are the goals set annually, or in a way that allows for easy monitoring?
  • Are companies looking at the full “scope” of their emissions, including the carbon released when customers use their products?
  • How much do their plans rely on the kinds of carbon “offsets” that have come under fire for not living up to their promises of environmental benefits?
  • Is there a way to check on companies’ claims, such as in an evaluation by an impartial ESG data- or ratings-provider?
  • Is a company making information about their sustainability goals accessible in a transparent and timely way?

Top 10 Energy Storage Trends & Innovations in 2024

Published By: Start US Insights
View the original article here

Energy storage is undergoing a rapid transformation wherein research is underway to develop efficient long-lasting solutions. It is a critical component of the manufacturing, service, renewable energy, and portable electronics industries. Currently, the energy storage sector is focusing on improving energy consumption capacities to ensure stable and economic power system operations. Broadly, trends in energy storage solutions can be categorized into three concepts:

  • Moving away from the traditional lithium-ion batteries toward innovative battery chemistries that offer greater stability, density, and shelf life.
  • Developing storage solutions that store intermittent renewable energy efficiently and also scale it up to power large geographical areas.
  • Transitioning from centralized energy storage to a more flexible and portable distributed form of energy storage.

This article was published in August 2022 and updated in September 2023.

Innovation Map outlines the Top 10 Energy Storage Trends & 20 Promising Startups

For this in-depth research on the top global decarbonization trends and startups, we analyzed a sample of 1366 global startups & scaleups. This data-driven research provides innovation intelligence that helps you improve strategic decision-making by giving you an overview of emerging technologies and trends in the energy industry. In the Energy Storage Innovation Map, you get a comprehensive overview of the innovation trends & startups that impact your company.

Top 10 Energy Storage Trends in 2024

  1. Advanced Lithium-Ion Batteries
  2. Lithium Alternatives
  3. Short Term Response Energy Storage Devices
  4. Battery Energy Storage Systems (BESS)
  5. Advanced Thermal Energy Storage (TES)
  6. Enhanced Redox Flow Batteries (RFB)
  7. Distributed Storage Systems
  8. Solid-State Batteries
  9. Hydrogen Storage
  10. Energy Storage as a Service

These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform, covering 3 790 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant technologies and industry trends quickly & exhaustively.

Tree Map reveals the Impact of the Top 10 Energy Storage Trends

Based on the Energy Storage Innovation Map, the Tree Map below illustrates the impact of the Top 10 Energy Industry Trends. Companies and research organizations are developing advanced lithium battery chemistries and lithium alternatives. These innovations combat the peak energy demand from the grid. The immediate need to control this energy demand is advancing utility-scale and distributed energy storage solutions.

The electric vehicle (EV) and electronics industry depending on electric grids and on other distributed energy sources require quick charging and, hence, there is a growing demand for short-duration energy storage (SDES) devices. Due to the low recyclability and rechargeability of lithium batteries, alternate forms of batteries such as redox and solid-state are also rising. Additionally, innovative thermal and hydrogen storage technologies reduce the carbon footprint of the energy storage industry. Lastly, industrial energy consumers are leveraging energy storage as a service to incorporate renewable energy and address energy demands.

Global Startup Heat Map covers 1366 Energy Storage Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 1366 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals that UK and US see the most startup activity, followed by other Western European countries.

Below, you get to meet 20 out of these 1366 promising startups & scaleups as well as the solutions they develop. These energy storage startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.

Top 10 Energy Storage Trends in 2024

1. Advanced Lithium-Ion Batteries

Lithium-ion batteries offer advantages such as portability, fast recharging, low maintenance, and versatility. However, they are extremely flammable, sensitive to high temperatures, require overcharge or complete discharge protection, and suffer from aging. Moreover, there is a huge environmental implication to mining the components for battery manufacturing.

Therefore, startups are modifying lithium-ion batteries to increase their performance and lifetime. To achieve this, lighter and energy-dense materials like li-polymer, li-air, li-titanate, and li-sulfur replace the traditional lithium-cobalt electrodes. In addition, some startups recycle used batteries, advancing the circular economy.

Green Li-ion advances Lithium-ion Battery Recycling

Green Li-ion is a Singaporean startup that recycles lithium-ion batteries to produce battery cathode. The startup’s modular processing plants use co-precipitation hydrometallurgical technology in contrast to the conventional processes that use leaching reagents. This results in purity enhancement while reducing the production time of the rejuvenated cathode. Battery manufacturers utilize this solution for recycling batteries without the need for sorting.

Echion Technologies produces Lithium-ion Anode Material

UK-based startup Echion Technologies produces lithium-ion battery anode material for super fast charging. The startup’s anode material uses a proprietary mixed niobium oxide (XNO) technology which includes designing microcrystals with diffused lithium-ion. This enables fast charging without the need to use nanosized powders. Due to their high energy density, the applications of these anodes range from consumer electronics to the EV industry.

2. Lithium Alternatives

Lithium batteries are not environmentally friendly and it is hard to keep up with the increasing demand for lithium. These limitations are encouraging companies to look for alternative battery materials that power the next generation of battery storage. For instance, zinc-air batteries are a viable alternative to lithium given zinc’s abundant supply, inherent stability, and low toxicity.

Another efficient alternative is sodium-sulfur batteries. These batteries feature longer lifespans, greater charge/discharge cycles, high energy density, and are fabricated of relatively inexpensive materials. Some other promising battery chemistries are aluminum ion batteries, magnesium ion batteries, nickel-zinc batteries, and silicon-based batteries.

Offgrid Energy Labs develops Zinc-based Battery Technology

Indian startup Offgrid Energy Labs develops ZincGel, a proprietary battery technology. It uses a highly conductive zinc electrolyte and carbon-based cathode. The zinc electrolyte is self-healing, temperature-stable, and does not evaporate, thereby warranting a higher life. Moreover, the lack of side reactions and gas evolution ensures high coulombic and roundtrip efficiency. Two-wheeler EV manufacturers leverage this technology as a safe, eco-friendly, non-flammable, and sustainable alternative to the lithium-ion battery.

Altris creates Sodium Battery Cathodes

Altris is a Swedish startup that creates Fennac, a cathode material for use in sodium-ion batteries. The startup produces it using patented low temperature and pressure synthesis technology. It offers a low-cost, sustainable alternative to other electrode materials like alloys and hard carbon, without sacrificing performance. Battery-producing companies use this solution to implement it into their existing production lines and also find use in applications such as photochromic windows.

3. Short Term Response Energy Storage Devices

Devices such as supercapacitors, flywheels, and superconducting magnetic storage have existed for a very long time. Current battery technologies harness their potential in offering high power density for shorter time fractions. Even though they discharge quickly, they improve the quality and reliability of the power grid during transient periods such as after system disturbance, load changes, and line switching.

They also prevent the collapse of power grids due to voltage instability. Further, several startups integrate SDES into fuel cell applications to improve the charge-discharge cycle of electric vehicles. Many cities are also coupling their energy storage systems to SDES and noticed improvements in overall energy storage and charge cycles.

EEXION makes Supercapacitors

Israeli startup EEXION enables energy storage using supercapacitors. The startup’s proprietary product, Energize-N’-Go, is a chemically manipulated cell that uses pure carbon materials to achieve faster charging in comparison to rechargeable batteries. The recyclability and a near-infinite number of charge-discharge cycles make it apt for electric mobility applications.

GODI manufactures Hybrid Capacitors

GODI is an Indian startup that manufactures biowaste-derived hybrid capacitor material. The startup’s capacitor combines activated carbon and graphene which delivers short-term peak power required for fast charging. The extension of the solution from cell to module-level finds applications in automotive, renewable energy, and regenerative braking.

4. Battery Energy Storage Systems

Even though renewable energy technologies are more efficient and economical than ever before, they are highly intermittent in nature. Therefore, they need complementary solutions to fill in the availability gaps. Long-duration energy storage solutions ensure that renewable energy dominates power plant expansion but also overtakes traditional sources of energy.

As more and more clean energy sources are tied to the grid, the electricity infrastructure becomes better suited to tackle the changing demands. The risk of disruption also reduces significantly. Moreover, large-scale renewable energy storage improves the overall resilience of energy systems and accelerates the clean energy transition.

Albion Technologies offers a Smart Battery Energy Storage System

UK-based startup Albion Technologies makes battery energy storage systems (BESS) that serve renewable energy providers, developers, and grid operators. The startup’s product, Smart BESS, is a containerized system that enhances the battery lifetime and delivers over 90% usable energy. The solution is flexible and can be deployed almost anywhere and integrated with other units to meet diverse power and energy requirements.

Smart BESS is equipped with all the essential components, such as batteries, inverter, HVAC, fire protection, and auxiliary systems. It complies with the G99 UK national grid standards and enables the storage of clean energy from renewable sources, thereby reducing CO2 emissions and oil consumption.

Genista Energy designs Lithium-Iron Phosphate Battery Storage

Genista Energy is a UK-based startup that designs a lithium-iron phosphate-based battery energy storage system. It consists of a large container with several battery strings. The startup interconnects several such containers to obtain a scalable system to provide power in remote locations. Genista Energy offers power to industrial and commercial buildings while providing renewable energy management and an alternative to diesel generators.

5. Advanced Thermal Energy Storage

Heat storage, both seasonal and short-term, is an important means for affordably balancing high shares of variable renewable electricity production. The process of thermal energy storage includes providing heat to the storage system for removal and use at a later time. Conventionally, heating companies store hot or cold water in insulated tanks to use when demand increases to manage peaks in district heating and district cooling.

However, the developments in the few years showcase the use of new mediums such as molten salts, eutectic, and phase-changing materials to store heat energy. The most common application for thermal energy storage is in solar thermal systems. This overcomes the challenge of intermittent renewable energy and enables access to stored solar power at night.

HeatVentors offers Phase Changing Material (PCM)-based Thermal Storage

Hungarian startup HeatVentors makes phase-changing material-based thermal energy storage systems. The startup’s product, HeatTank, uses melting and solidification of phase change materials to store thermal energy. The use of these PCMs also saves space, energy, and cost by balancing the efficiency of the cooling and heating system. Companies providing heating, ventilation, and air conditioning (HVAC) systems utilize this solution to improve stability and peak performance management.

Cowa Thermal Solutions produces Capsule-filled Heat Tanks

Cowa Thermal Solutions is a Swiss startup that produces capsule-filled heat tanks for thermal energy storage. The startup’s solution, BOOSTER CAPSULES, utilizes naturally occurring salts as raw materials. The capsule-filled tanks have three times the storage capacity compared to normal water storage tanks without capacity or stability loss. As a result, the heating tank becomes energy-dense and less dependent on the main power. The distributed energy industry leverages this solution in combination with a photovoltaic (PV) system to provide continuous heating.

6. Enhanced Redox Flow Batteries

Redox flow batteries are used as fuel cells or rechargeable batteries. They consist of two interconnected tanks both containing electrolyte liquids and oppositely charged electrodes, where ions pass from one tank to another via a membrane. Redox flow batteries offer longer lifespans than lithium batteries as the flow of current from one tank to another does not degrade the membrane.

Moreover, due to their flexible system design and easy scalability, they offer great potential for utility-scale integration of renewable energy. Advances in the field focus on developing new redox chemistries that are cost-effective and offer greater energy density.

XL Batteries offers Saltwater-based Flow Batteries

US-based startup XL Batteries offers saltwater-based non-corrosive flow batteries. The startup uses organic molecules from inexpensive, industrial feedstock to store charge in the battery. Since dissolved charge storage molecules flow over electrodes in a separate stack during charging and discharging, independent sizing is possible. The mild salt water-based chemistry also renders the battery inexpensive in comparison to vanadium flow batteries. The utility industry leverages this technology as an alternative to expensive lithium-ion batteries.

StorEn Technologies develops Vanadium Flow Batteries

StorEn Technologies is a US-based startup that develops vanadium flow battery technology. The property of vanadium allows the production of batteries with only one electroactive element as opposed to two, eliminating metal cross-contamination. They overcome the issue of decay and capacity loss in lithium batteries. StorEn Technologies’ batteries are apt for telecom tower batteries that source power from the electrical grid and renewable energy in off-grid locations.

7. Distributed Storage Systems

Energy generation and storage systems traditionally follow a centralized architecture. This increases grid failure risks during high energy demand periods, which may disrupt the energy supply chain. Distributed storage systems, on the other hand, address this challenge by allowing individual facilities to produce energy on-site and retain it for personal needs.

Energy producers are also able to sell the excess energy to the grid. Distributed energy storage solutions such as EVs, microgrids, and virtual power plants (VPPs) avert the expansion of coal, oil, and gas energy generation. Moreover, they enable greater reliance on renewables through the integration of local energy storage solutions like rooftop solar panels and small wind turbines.

​MET3R advances Vehicle-to-Grid (V2G) Management

​Belgian startup MET3R aids V2G management. The startup’s platforms, ZenChargeZenSite, and ZenGrid, utilize artificial intelligence (AI) to optimize fleet charging and reduce grid impact due to the charging site. Moreover, they provide insights on managing loads related to EV charging. Energy distribution companies leverage the startup’s platform to monitor the status of distributed energy assets (DERs) on low-voltage networks.

Karit provides Virtual Power Plants

Australian startup Karit offers virtual power plants. The startup combines a number of distributed energy assets such as generation and storage systems into a VPP. By consolidating the distributed energy assets, energy retailers ensure efficient power supply to customers while moving surplus energy into the market. Energy retailers and multi-site organizations use VPPs to enable predictive energy storage and management.

8. Solid-State Batteries

Conventional liquid electrolytes are highly combustible and have low charge retention and operational inefficiencies in extreme temperatures. To address these challenges, solid-state batteries replace the flammable liquid electrolyte with a solid compound that facilitates ion migration. Startups now use electrolytes like polymers and organic compounds that offer high ionic conductivity.

Additionally, solid electrolytes support the use of high voltage high capacity materials for battery manufacturing. This enables greater energy density, portability, and shelf life. Since solid-state batteries offer a greater power-to-weight ratio, they are also an ideal choice for use in EVs.

Solid State Battery (SSB) Incorporated makes Polymer-based Solid-State Electrolytes

SSB Incorporated is a US-based startup that makes polymer-based solid-state electrolyte material. The startup’s solid electrolyte combines polymer and ionic materials to improve ion mobility. In comparison with conventional liquid electrolytes, this material has high energy density while improving electrochemical and thermal stability. The solid-state separator allows packaging of these electrolytes into lithium batteries and also in larger applications such as vehicles or planes.

Theion offers Solid-State Crystal Sulfur Batteries

Theion is a German startup that devises solid-state crystal sulfur batteries. The startup uses direct crystal imprinting (DCi) to develop wafers from molten sulfur. Its proprietary solid-state polymer electrolyte operates within the voids of these wafers where lithium metal foil acts as an anode.

The advantages of this solution over conventional batteries include long cycle life, fast charging, low cell cost, and safety. Theion’s technology finds use in solutions ranging from smartphones and computer batteries to energy storage in cars and airplanes.

9. Hydrogen Storage

Hydrogen exhibits the highest heating value per mass of all chemical fuels while also being regenerative and environmentally friendly. It is stored physically either as gas or liquid. Storage as a gas typically requires high-pressure tanks whereas liquid storage requires cryogenic temperatures.

To economically store hydrogen, startups are designing innovative processes and storage tanks. In terms of storage types, recent trends indicate a shift towards the adsorption of hydrogen on solid surfaces and through chemical reactions. The applications of hydrogen storage range from use in cars as a clean fuel to portable power supply for buildings.

GRZ Technologies manufactures Solid-state Hydrogen Batteries

Swiss startup GRZ Technologies manufactures solid-state hydrogen storage systems. The startup stores hydrogen in atomic form within a metallic structure. This ensures greater safety while providing high volumetric density and a longer lifetime. The standardized stacks enable desirable storage capacity for obtaining stationary and portable power for the transportation industry.

Hydrogen First designs Composite Hydrogen Pressure Vessels

Hydrogen First is a Polish startup that designs composite overwrapped hydrogen pressure vessels. The flat vessel has an isotensoid shape with reinforcement studs across its thickness to store the compressed hydrogen. Its design facilitates carbon fiber reduction, thereby reducing the weight and cost of hydrogen storage. These flat composite containers find applications in the aerospace and automotive industry for storing hydrogen in gaseous, liquefied, supercritical, or cryogenic forms.

10. Energy Storage as a Service

There are several setup costs associated with the installation of energy storage infrastructure and long-term ownership leads to locked-in capital and stranded assets. Energy storage as a service allows businesses to obtain a reliable power supply at zero asset investment and low implementation costs. It enables facilities to evaluate the value of an energy storage solution.

This approach also offers maximum flexibility when market conditions shift. Further, energy storage as a service aids utilities in congestion management, seasonal peak demand management, and tackling grid infrastructure failures. Moreover, consumers in remote locations with weak or no grid connection benefit from increased grid flexibility and efficiency.

Hybrid Greentech simplifies Energy Storage Management

Danish startup Hybrid Greentech offers HERA, an AI-based energy storage management platform. It combines longer-term optimization models and short-term machine learning models to decide the optimal operation of energy storage assets.

This enables detailed operating expenses (OPEX) modeling in early concept development to ensure the best investment decisions. A variety of industries such as hybrid power plants, micro-grid, and electric mobility companies leverage this technology for advanced energy storage analytics.

Renon India makes Smart Battery Management Systems (BMS)

Renon India is an Indian startup that develops ARK, a smart battery management system. It performs passive balancing of cells by voltage measurement and temperature sensing. This ensures functional safety, efficiency, and performance of the battery packs. These ARK systems are suitable for batteries storing solar energy in commercial and industrial applications.

Discover all Energy Storage Trends, Technologies & Startups

Energy storage companies utilize advances in the sector to increase storage capacity, efficiency, and quality. Long-duration energy storage such as BESS plays a vital role in energy system flexibility. Battery energy management systems and VPPs, on the other hand, impact transmission and distribution grids. Additionally, standardization in storage systems, along with a network of distributed energy sources, will ultimately tackle challenges due to increasing energy demands and energy transition.

The Energy Storage Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, lithium alternatives, hydrogen economy, and supercapacitors will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!

The Importance of Energy Storage in Future Energy Supply

Reviewed by: Olivia Frost
View the original article here

Energy is vital in the modern world, powering everything from transportation and production to communication and daily services.

Image Credit: Saint-Gobain Tape Solutions

As energy consumption continues to rise with digitalization, changes in mobility, and globalization, sophisticated grids have been developed to provide energy wherever and whenever needed. However, current and past energy consumption has come at a price.

The intensive use of fossil fuels and other limited resources has led to negative impacts, and the need for a more sustainable energy supply has become one of the biggest challenges facing humankind.

Renewable Energy Production on the Rise

Issues related to health, environment, economies, geopolitical risks, dependencies on limited resources, and advancements in sustainable energy production have prompted a reevaluation of energy policy.

According to the EMBER Global Electricity Review 2022, wind and solar reached a record 10% of global electricity in 2021, with all clean power totaling about 38% of the supply.

Renewable energy supply is an important step in reducing the CO2 footprint and mitigating climate change and the consequences caused by the phenomenon. Tapes are essential in helping wind and solar energy supply get into pole position in renewable energy production and grow even further.

Using these tapes in composite molding for wind turbine blades enables manufacturers to protect molds, tool surfaces, and blades, and also helps to reduce cost, effort, and labor time.

Saint-Gobain’s special PET or PTFE tapes, such as the CHR® M-Series or CHR 2255, are designed to withstand high temperatures and can be re-used multiple times, making them an efficient and sustainable solution for large-scale wind turbine production.

These continuous process improvements are crucial to making renewable energy production more efficient and cost-effective.

Using tapes with low CoF can help reduce the rework needed and improve downstream processes’ quality, making wind turbine manufacturing more efficient. The production of larger and more efficient wind turbines will play a significant role in increasing renewable energy capacity and reducing the reliance on fossil fuels.

Figure 1. Wind and solar energy production as part of modern energy supply. 
Image Credit: ShutterStock/liyuhan

Renewable energy production is just one piece of the puzzle. To be consumed, renewable energy often needs to be transformed and transported.

Saint Gobain’s Kapton® and Nomex® tapes with high mechanical, electrical, temperature, and chemical resistance are crucial in ensuring a trouble-free energy supply through new generations of transformers and generators.

UL-recognized Kapton® and Nomex® tapes offer excellent oil compatibility, which is crucial for boosting the performance and longevity of transformers and generators. As a result, maintenance efforts in electro-mechanical applications can be minimized, and the equipment can operate at peak efficiency for longer periods.

Renewable energy sources may not be available around the clock, which creates intermittency.

Renewable electricity generation does not always align with peak demand hours, causing grid stress due to fluctuations and power peaks. Unpredictable weather events can disrupt these technologies.

The current infrastructure is mainly designed to support regional fossil fuel and nuclear plants. As a result, renewable energy often needs to be transported over long distances from the remote areas where it is produced to the regions it is consumed.

Renewable energy sources, such as solar and wind power, can be unpredictable and generate surplus energy. Efficient storage systems are needed to store excess energy during low demand and release it when demand is high.

Image Credit: Saint-Gobain Tape Solutions

The Importance of Energy Storage in Future Energy Supply

Sustainability is a crucial factor for economic growth, and it will continue to be an important consideration in the future.

Demand for clean energy drives sustainable technology development that will impact future energy and the environment.

Stationary energy storage is essential in transitioning to a sustainable energy system with higher shares of renewable energy.

Energy storage has become a ubiquitous component of the electricity grid, leading to a boom in storage capacity worldwide as electricity is expected to make up half of the final energy consumption by 2050.

Figure 2. Global cumulative energy storage installations 2015-30, trends and forecast. Image Credit: BloombergNEF website, accessed July 2022.

Efficient and Safe Energy Supply with Stationary Energy Storage

Figure 3. Energy storage system in power grids.
Image Credit: Shutterstock/Dorothy Chiron

Optimized energy storage systems ensure grid stability and on-demand availability, preventing blackouts. They are essential in modern smart grids, meeting changing energy demands, such as electric mobility.

Energy storage provides flexibility and opportunities for remote areas using various technologies, including electro-mechanical, chemical, thermal, and electrochemical (batteries).

Advancements in battery technologies and their decreasing costs have enabled the growth of stationary energy storage. Improved energy density, cycle life, and safety have made batteries more efficient and reliable, while lower costs have made them more accessible.

Hydroelectric dams store bulk energy in the long term, while short-term energy storage is achieved through various technologies, such as electric batteries, flow batteries, flywheel energy storage, and supercapacitors.

These technologies offer different characteristics and are suitable for various applications, providing flexibility, stability, and reliability to the energy system.

Lithium-ion (Li-ion) batteries are the most widely used technology for grid-oriented rechargeable electrochemical battery energy storage systems (BESS). Sodium-ion batteries, although less common, are being developed as a potential alternative.

Sodium-ion batteries for BESS are a promising option due to the abundance of sodium resources but are still in the early stages of development. They have the potential as a cost-effective alternative to Li-ion batteries, with lower power density.

Lithium-ion batteries are well-established in the automotive industry, with higher energy density than sodium-ion batteries.

Lithium-ion batteries require high-end materials and thermal protection but are a good solution for the short-duration range. They have the potential for optimization in terms of energy density, safety, loading cycles, and cost.

As battery technology advances, materials are evolving to improve the energy density, cycle life, safety, and cost of Li-ion batteries.

Compression Pads That Combine Increased Loading Cycles and Energy Density

Compression pads with a low compression force deflection (CFD) curve can improve the lifetime, durability, and performance of Li-ion batteries in energy storage systems.

They distribute forces evenly, prevent internal damage, and reduce the risk of thermal runaway. Optimal pressure on cells can maximize loading cycles and extend battery life.

Micro-cellular polyurethane foams, such as Norseal® PF100 or PF47 Series, are designed for high energy density and optimal thickness.

They enable more cells to be packed into a single unit, increasing performance and allowing for the creation of battery energy storage systems with maximized energy density and minimized space requirements.

Maintaining a sealed environment for batteries is crucial to protect them from outside elements. Saint Gobain provides a range of battery pack housing options that include foam-in-place gasketing, silicone foam rubbers, butyl-coated PVC, and micro-cellular PUR foams.

Maximize Safety to Enhance Battery Pack Performance

Safety is critical in Li-ion battery-based energy storage as flammable materials are used to maximize performance.

Thermal Runaway Protection materials enhance the safety and reliability of battery modules and packs for BESS systems by providing thermal insulation, fire-blocking characteristics, and excellent compression set resistance.

The Norseal TRP Series prevents adjacent cells from experiencing exothermic reactions and stops thermal runaway propagation, protecting battery systems. This technology plays a crucial role in enhancing the safety and reliability of battery energy storage systems.

To regulate battery temperature, improve functionality, and extend battery life in Li-ion batteries, it is important to control heat. The ThermaCool® R10404 Series Thermal Interface Materials effectively remove excess heat, ensuring the safe and efficient operation of battery energy storage systems under demanding conditions.

The thermally conductive gap fillers act as heat sinks, allowing heat to flow away from batteries.

High-End Materials to Create Cost-Effective BESS Solutions

These solutions enable customers to design large BESS systems that are safe and reliable for long-term operation in harsh conditions. By reducing the risk of thermal runaway, this technology enhances the safety and efficiency of battery energy storage systems.

More cells in a battery pack can boost performance and longevity by offering higher energy storage capacity in a smaller space, though this can increase the risk of cell imbalance and failure.

This battery combination is ideal for decentralized and cost-effective energy production and storage in industrial buildings and private households with solar collectors.

Solutions, Know-How, and Capabilities for Next-Level BESS

Tailored materials cater to energy storage systems of various sizes and types by fulfilling their specific cushioning, compression, protection, and insulation needs. This supports the transition to a sustainable energy supply.

Specialized materials and expertise in high-performance battery pack development can aid in designing Li-ion BESS for stationary grid energy storage

Could sand be the next lithium?

By:  Shira Rubin
View the original article here

A cadre of start-ups are building batteries that can store renewable energy in natural materials such as sand, salt and rock.

(Illustration by Emily Sabens/The Washington Post; iStock)

TAMPERE, Finland — When Russia halted gas and oil exports to Europe following its invasion of Ukraine, hundreds of millions of citizens agonized over the prospect of a winter without enough heating and a summer without enough air conditioning.

But the Kremlin’s wartime strategy to shut the taps on its fossil fuels has coincided with, and also catalyzed, a critical sector for the clean energy transition — batteries made from inexpensive and abundant natural materials that store heat.

The use of sand, salt, heat, air and other elements as energy banks dates back centuries. The walls of ancient Egyptian homes captured solar heat during the day and released it during cool desert nights. Indigenous peoples across the Americas valued adobe — a composite of earth, water, and other organic materials like straw or dung — as a preferred construction material for its ability to do the same.

For modern civilizations whose industrial development has been powered by the combustion of fossil fuels, these materials offer a revolutionary premise: “Nothing is burned,” said Tommi Eronen, chief executive of Polar Night Energy, a Finnish start-up running the world’s first commercial-scale sand battery.

Natural batteries are meant to enable countries to take advantage of prodigious supplies coming from wind turbines and solar panels, when the sun isn’t shining and the wind isn’t blowing. The price of renewables remains below the cost for fossil fuels —especially after a Russian fuel pullback drove prices across Europe to record highs — but the green energy revolution still faces a hugeobstacle: a lack of long-term, cost-efficient renewable storage.

At Polar Night Energy’s facilities in the city of Tampere and the nearby town of Kankaanpää, hulking steel vats hold heaps of sand, heated to around 1,000 degrees Fahrenheit. That stored energyhelps to smooth out power grid spikes and back up district heating networks, keeping homes, offices, saunas and swimming pools warm. The heat keeps flowing, even in remote areas, even as Russian fossil fuel supplies dwindle.

“Sand has almost no limits,” said Ville Kivioja, Polar Night Energy’s lead scientist, speaking over the whirring sound of the substance circulating. “And it’s everywhere.”

A Polar Night Energy sand battery. (Martti Tikka)

How natural batteries work

The sensors and valves that monitor the sand battery’s performance are relatively high-tech, said Kivioja, but, by design, the battery itself is simple.

The sand is trucked in from anywhere nearby — a demolished building site or sand dunes, for example — and costs less than a euro per ton. It is dumped into a giant vat, or “battery,” which is consistently kept hot, or “charged.”

The renewable energy from solar panels and wind turbines is converted into heat by a resistance heater, which also heats the air that swirls through the sand. A fan circulates the flow of heat continuously, until it’s ready to use. Like a boulder in the sun, the sand remains hot even after sundown — except unlike the boulder, the sand never gets cold because it’s insulated by the enormous vat. Even when the battery level is low, the temperature remains above 200 degrees Fahrenheit; when it is full, it can surpass 1,000 degrees.

The sand can hold onto the power for weeks or months at a time — a clear advantage over the lithium ion battery, the giant of today’s battery market, which usually can hold energy for only a number of hours.

Polar Night Energy prefers to use sand or sand-like materials that are not suitable for construction industry. This enables the usage of materials that are locally and commonly available or even considered as waste. (Polar Night Energy)

A natural battery rush

Unlike fossil fuels, which can be easily transported and stored, solar and wind supplies fluctuate. Most of the renewable power that isn’t used immediately is lost.

The solution is storage innovation, many industry experts agree. In addition to their limited capacity, lithium ionbatteries, which are used to power everything from mobile phones to laptops to electric vehicles, tend to fade with every recharge and are highly flammable, resulting in a growing number of deadly fires across the world.

The extraction of cobalt, the lucrative raw material used in lithium ion batteries, also relies on child labor. U.N. agencies have estimated that 40,000 boys and girls work in the industry, with few safety measures and paltry compensation.

These serious environmental and human rights challenges pose a problem for the electric vehicle industry, which requires a huge supply of critical minerals.

So investors are now pouring money into even bigger battery ventures. More than $900 million has been invested in clean storage technologies since 2021, up from $360 million the year before, according to the Long Duration Energy Storage Council, an organization launched after that year’s U.N. climate conference to oversee the world’s decarbonization. The group predicts that by 2040, large-scale,renewable energy storage investments could reach $3 trillion.

That includes efforts to turn natural materials into batteries.Once-obscure start-ups, experimenting with once-humble commodities, are suddenly receiving millions in government and private funding. There’s the multi-megawatt CO2 battery in Sardinia, a rock-based storage system in Tuscany, and a Swiss company that’s moving massive bricks along a 230-foot tall building to store and generate renewable energy. One Danish battery start-up, which stores energy from molten salt, is sketching out plans to deploy power plants in decommissioned coal mines across three continents.

“In some ways, these are some of the oldest technologies we have,” said Kurt Engelbrecht, an associate professor who specializes in energy storage at the Danish Tech University.

He and his colleagues have long been advocating for national decarbonization programs to integrate simple, natural based storage solutions,he saidbut clean batteries only began receiving real market attention as a result of energy crises of recent years.

The war in Ukraine and the subsequent political crisis over Russian oil and gas exports, was the final “tipping point,” Engelbrecht said.

The geopolitical benefits of natural batteries

Natural batteries will help renewables eclipse fossil fuels and free countries from geopolitical challenges, such as Russia’s Ukraine invasion, said Claudio Spadacini, founder of Italian company Energy Dome. The company has been considering selling a version of its CO2-based battery to clients in the United States.

“Renewables are democratic,” he said. “The sun shines everywhere and the wind blows everywhere, and if we can exploit those sources locally, using components that already exist, that will be the missing piece of the puzzle.”

But in order to succeed, natural batteries will need to provide the same kind of steady power as fossil fuels, at scale.Whether that can be achieved remains to be seen, say energy experts.

And the industry may be subject to the same pitfalls that loom over the renewables energy sector at large: Projects will need to be constructed from scratch, and they might only be adopted in developed countries that can afford such experimentation.

Lovschall-Jensen, the CEO of a Danish molten salt-based storage start-up called Hyme, says the challenge will be maintaining the same standards to which the modern world has become accustomed: receiving power, on demand, with the flip of a switch. He believes that natural batteries, though still in their infancy, can serve that goal.

“As a society that’s going away from fossil fuels, we still need something that’s just as flexible,” he said. “There’s really no other option.”

Hubs and spokes: Extending the reach of hydrogen hubs through clean transportation corridors

Written by: Jonathan Lewis and Anna Menke
View the original article here

Low-emissions hydrogen is a critical component of the climate change solution set, and it is likely to play a significant role in affordably achieving full, economy-wide decarbonization by midcentury. Electrification will achieve much of the decarbonization needed, but more than 80% of final energy use in the U.S. comes from fuels. Many existing fuel uses can be electrified, but electrifying some hard-to-abate sectors of the economy (such as long-haul heavy-duty trucking, marine shipping, and ironmaking) may be either commercially impossible or prohibitively expensive. For these sectors, we will need zero-carbon fuels, namely hydrogen and ammonia, to reach full decarbonization. Accordingly, the International Energy Agency (IEA) projects that the world’s demand for hydrogen could increase by almost 500% between 2020 and 2050.

To catapult the United States on a path towards commercial scale clean hydrogen production, the 2021 Infrastructure Investment and Jobs Act (IIJA) allocated $8 billion for the Department of Energy (DOE) to fund at least four Regional Clean Hydrogen Hubs — or H2 Hubs — across the country. The program is designed to demonstrate viability of new production and end-use technologies for clean hydrogen, and to drastically bring the cost of production down.  

A clean hydrogen hub is a co-located network of infrastructure needed to produce, transport, store, and use clean hydrogen in a functional regional market. The program intends to demonstrate localized production and end use of hydrogen and to create a connected synergistic hydrogen economy across the United States.

In parallel to DOE’s H2 Hubs program, DOE and the Department of Transportation (DOT) are pursuing several additional measures to promote the deployment of hydrogen-fueled trucks and ammonia-powered marine vessels, including the IIJA’s National Alternative Fuel Corridors Program — a piece of the $2.5 billion Charging and Fueling Infrastructure competitive grant program that is designed to support the build-out of clean charging and fueling infrastructure projects along designated alternative fuel corridors of the National Highway System.  

Clean transportation corridors include routes for heavy-duty trucks that run on hydrogen to transport their freight across multiple states, provinces, or even countries, as well as transoceanic shipping routes for vessels that run on ammonia. In the future, clean corridors will also include airline routes serviced by aircraft that are powered by hydrogen or other zero-carbon fuels. Clean transportation corridors will be necessary to turn H2 Hubs from islands into a network, allowing hydrogen and other resources to move between hubs and simultaneously creating a steady demand base for hydrogen to fuel the transportation corridors themselves.  

Moving from competition to connection between H2 Hubs  

CATF has previously written about the elements that individual hubs should prioritize as they develop their proposals to DOE, including low-carbon production pathways, hard-to-decarbonize end uses, the creation of community and local environmental benefits, and long-term economic viability.  

On April 7, 2023, final applications were submitted from hub developers across the country hopeful to receive funding from the Department of Energy. The application process for the DOE Regional Clean Hydrogen Hubs program is long and applicants have recently entered a new phase – the waiting period between application submission and award negotiations and selections. Until this point in the process, the focus and feel between hub hopefuls has been competitive with more than 20 known hub efforts competing for $8B in funding to be spread amongst the 4 to 10 hubs that will be selected by DOE. As award selections and negotiations evolve over the spring, summer, and into the fall, we expect to see more tangible production proposals, off-taker agreements, robust community engagement efforts, and greater collaboration and coordination between the various hub efforts.  

In addition to getting specific within each hub proposal, this phase of the program creates an opportunity for hub developers and the Department of Energy to start thinking collaboratively.  Proactive planning to connect hubs can strengthen individual proposals and improve the likelihood of long-term success for the collective H2 Hubs program. As the Department of Energy’s Clean Hydrogen Liftoff report points out, the development of ‘midstream infrastructure’ will be crucial to getting hydrogen to commercial scale. For the H2 Hubs program, this midstream infrastructure will include hydrogen storage, carbon storage, and transportation infrastructure. The ability to move hydrogen efficiently and safely between hubs — while minimizing hydrogen leaks throughout the process — will be an essential part of the H2 Hubs program. There is the potential to create a national network that simultaneously allows for distribution and hydrogen refueling across the country while bolstering demand for hydrogen and creating benefits for communities.  

The importance of linking clean transportation corridors and H2 Hubs 

Clean transportation corridors have the potential to bolster the economic viability of H2 Hubs and create benefits to communities. To date, Congress and the U.S. DOE have focused primarily on supply-side policies for hydrogen; including the Regional Clean Hydrogen Hubs Program and the Hydrogen Production Tax credit (45V). Recently, focus has begun to shift to demand-side measures that could help give certainty to hub developers that off takers will be there for the hydrogen they produce. DOE and DOT’s investments in and development of clean, hydrogen-fueled transportation corridors will aid in demand-side certainty for H2 Hubs in two ways:  

  1. Clean transportation corridors that support trucks and marine vessels that run on hydrogen or hydrogen-based fuels will broaden the market for low-carbon hydrogen by increasing demand beyond the industrial off takers that are typically located next door to hydrogen production sites. 
  2. The corridors will also expand the geographic reach of H2 Hubs by extending demand for decarbonized hydrogen along spokes — i.e., highways and/or marine shipping routes — that connect each hub region to other cities and ports.     

Additionally, clean transportation corridors have an important role not only in curbing harmful CO2 emissions but also in curbing conventional air pollutants from diesel powered trucking which disproportionately affect environmental justice communities across the country. As H2 Hubs evaluate the benefits they may be able to create for communities near and far, they should consider the transportation routes stemming from their hubs that could transition to be hydrogen-fueled clean transportation corridors and should begin benchmarking the public health benefits that may accrue to communities as a result.  

The first awardees of the DOE and DOT clean transportation corridors grant program were announced in February and include several awardees focused on developing hydrogen-fueled clean transportation corridors:  

  • CALSTART: East Coast Commercial ZEV Corridor along the I-95 freight corridor from Georgia to New Jersey.  
  • Cummins Inc.: MD-HD ZEV Infrastructure Planning with Focus on I-80 Midwest Corridor serving Indiana, Illinois, and Ohio.  
  • GTI Energy: Houston to Los Angeles (H2LA)–I-10 Hydrogen Corridor Project.  
  • Utah State University: Wasatch Front Multi-Modal Corridor Electrification Plan for the Greater Salt Lake City Region.  

CATF sees a key opportunity for H2 Hubs and clean corridors grant recipients to coordinate to develop an interconnected hydrogen network across the United States.  

Imagining hubs connected via clean transportation corridors  

Given that around half of the hydrogen production in the United States currently takes place in the Gulf Coast, let’s assume the example of a hydrogen hub depicted in the graphic above is in the Houston region. If a Houston-based hub were to be selected, there would be at least three and at most nine other hydrogen hubs under development in the United States per the requirements of IIJA’s Regional Clean Hydrogen Hub provision. Meaning, the hypothetical hub in Houston isn’t the only one of its kind, and a hydrogen-powered truck that fuels up in Houston isn’t limited to conducting only local deliveries. There are other places it could carry its freight to, if those places — and the routes along the way — also have hydrogen fueling capacity.  

If a hub in Chicago and the Upper Midwest/Great Lakes region was also selected, the ability to move goods between Houston and Chicago and points in between would improve the use-case for hydrogen trucks purchased in those regions — which in turn would benefit hydrogen truck manufacturers, producers of low-carbon hydrogen, and, most pertinently, air quality and the climate. 

The success of this Houston-Chicago clean hydrogen corridor could be replicated with corridors that connect those regions to other potential hosts of federally backed regional clean hydrogen hubs. Once there are hydrogen production facilities in places like Los Angeles, New Orleans, and New York, along with hydrogen fueling stations along the interstate highways that connect them, the viability of hydrogen-fueled trucks would improve dramatically, the market for low-emissions hydrogen would increase, and both sectors would benefit from growing economies of scale. 

The success of this Houston-Chicago clean hydrogen corridor could be replicated with corridors that connect those regions to other potential hosts of federally backed regional clean hydrogen hubs. Once there are hydrogen production facilities in places like Los Angeles, New Orleans, and New York, along with hydrogen fueling stations along the interstate highways that connect them, the viability of hydrogen-fueled trucks would improve dramatically, the market for low-emissions hydrogen would increase, and both sectors would benefit from growing economies of scale. 

Concluding: How DOE and hub developers can support the development of clean transportation corridors  

Building synergistic linkages between H2 Hubs and clean trucking and shipping corridors requires multi-market investments by fuel providers, fleet owners, and other market participants; support and coordination from federal and state agencies; and constructive input and oversight from communities, NGOs, and universities. 

As discussed above, DOE, DOT, and other U.S. government agencies are working on multiple fronts to implement key provisions in the IIJA and the Inflation Reduction Act that will support the deployment of clean energy production and utilization technologies including hydrogen and zero emissions vehicles. More can be done, however, to ensure that the H2 Hubs and clean corridors programs are well coordinated. The seven grant recipients of DOE and DOT’s program “to accelerate the creation zero-emission vehicle corridors” cover highway systems across the country and meanwhile, nearly every state in the U.S. is represented in the hub projects proposed to DOE’s H2 Hubs program. The extent to which the seven funded corridor efforts match up geographically with regional hydrogen hub efforts is not yet known, because the Regional Clean Hydrogen Hubs program funding recipients will not be announced until later this year. 

may proceed irrespective of DOE funding decisions. Accordingly, CATF is connecting with DOE, hydrogen hub developers, trucking companies, and others to spotlight the opportunities for constructively linking clean corridor development and H2 Hub development. We’re encouraging H2 Hub project developers to look for ways to integrate clean corridor plans into their strategy, in part by involving entities like Cummins, GTI Energy, CALSTART, and Utah State University that received initial clean corridor grants from DOE and plan to support hydrogen refueling infrastructure as part of their projects.    

Given the likely importance of hydrogen to the decarbonization of long-haul heavy-duty trucks, DOE and DOT should account for H2 Hub development when determining when and how to expand the clean corridors program, and the agencies should prioritize the development of hydrogen fueling infrastructure along routes that span between H2 Hub regions. Additionally, H2 Hub applicants and DOE should consider how clean corridors can be leveraged to improve demand-side certainty and to create meaningful benefits for communities. As selections are announced later this fall, CATF looks forward to collaborating with clean corridor grant recipients, H2 Hub awardees, and other stakeholders to support the development of a connected clean hydrogen ecosystem across the United States.  

Green hydrogen: Loaded up and (long-haul) trucking

By Joseph Webster and William Tobin
View the original article here

Long-haul trucking is a highly promising use case for the US hydrogen industry, and California and Texas are two large potential markets for pioneering hydrogen-fueled trucking. Both states have excellent green hydrogen potential and are taking initial steps to become hydrogen trucking hubs. When it comes to decarbonizing heavy-duty transportation, hydrogen is here for the long-haul. 

Cleaning up hydrogen

Today, the vast majority of hydrogen is produced from reforming the methane in coal or natural gas in a process that produces ten times more carbon dioxide than hydrogen by mass. It is principally used for refining heavy sour oil and producing ammonia for fertilizer. 

The most promising pathways to create zero-carbon clean hydrogen at scale are through renewables-produced green hydrogen or nuclear-powered pink hydrogen, both of which use zero-carbon electricity to separate hydrogen and oxygen via electrolysis. There is also blue hydrogen, which comes from natural gas in a process paired with carbon capture. Blue hydrogen’s role in decarbonization, however, is contingent on the mass buildout of carbon transportation and storage infrastructure.

If deployed judiciously, clean hydrogen can have a meaningful impact on lowering emissions in hard-to-electrify sectors, which require a chemical feedstock, long-duration energy storage, or extreme heat.

Long-haul trucking is a viable clean hydrogen offtaker

For most forms of transportation, growing economies of scale have given batteries an edge over hydrogen fuel cells. However, long-haul trucking—which accounts for 7 percent of transportation emissions—may be too high a fence for batteries to climb.

As a vehicle becomes heavier, its battery must expand proportionately in volume to provide the requisite power. Electric freight tractors use battery packs that are significantly heavier than the weight of diesel a truck typically carries, which decreases range and payload capacity while requiring more frequent charging. This is meaningful in the freight industry, where time is precious, and downtime can come at a cost of over $50 per hour before accounting for costs of charging. An electric long-haul truck takes thirty minutes to charge to only 70 percent capacity even with megawatt charging.  In comparison, hydrogen re-fueling can be done quickly. Refueling a hydrogen truck takes ten minutes.

Hydrogen fuel cell trucks are therefore likely to edge out batteries for trips surpassing 180 miles and payloads above 24,000 pounds, according to an industry study.

The US Department of Energy estimates that total cost of ownership for hydrogen fuel cell long-haul vehicles will become affordable by 2030 thanks to new production tax credits for clean hydrogen. Furthermore, the department cites evidence that the long-haul trucking sector is willing to pay a premium for clean hydrogen. This outcome, however, is contingent on a buildout of refueling infrastructure along freight corridors. To boost demand, infrastructure could be built along freight lines that support high volumes of freight, such as near seaports. This can help medium-sized refueling stations reach their breakeven utilization rate. To do so, industry and policymakers must overcome a chicken-and-egg problem. The development of refueling infrastructure is critical to enable hydrogen-powered long-haul trucks, and—conversely—hydrogen refueling stations will rely on long-haul trucking for their income, as hydrogen uptake in transportation is likely to be confined to this sector.

California and Texas: Unlikely hydrogen trucking partners

California and Texas are important players in both green hydrogen and long-haul trucking.

Not only do the two states have the largest populations and economies in the country, but they also have outstanding green hydrogen potential.

Both California and Texas have excellent renewable resources, including solar and wind. The two states have deployed nearly 74 gigawatts of solar and wind capacity with another 36 GW in development.

Texas and California are the nation’s largest and second-largest renewables generators. As more renewable electricity production grows in these states, so will green hydrogen capacity—although there will be tensions between providing renewables for power generation or hydrogen.

Long-haul trucking is a natural use case for green hydrogen in both states. Texas and California are the country’s largest users of diesel for the transportation sector, consuming 633,000 barrels per day in 2021, or about 21 percent of total US diesel demand. Both states rely heavily on trucking to transport cargo from ports along the coast of California and Texas to destinations further inland. Indeed, Los Angeles, Long Beach, and Houston are the country’s first, second, and fifth-largest container ports by volume, respectively.

There is already evidence that Texas and California’s long-haul trucking sectors could see synergies between ports and green hydrogen production. California provides fiscal support for zero-emissions vehicles, plans to end the sale of fossil fuel-powered medium- and heavy-duty trucks by 2036, and continues to develop hydrogen refueling infrastructure. Tellingly, Hyundai Motor will soon operate thirty fuel cell electric trucks in California; Hyundai states this deployment will mark the largest commercial deployment of fuel cell electric trucks in the United States in the super-large vehicle class. In North Texas, Air Products and AES are teaming up to construct the country’s largest green hydrogen facility to service the trucking industry.

The trucking fleet is replaced very rapidly: the average lifespan of a super-large class truck is eight years, while the median truck on the road today is approximately six years old. In comparison, personal vehicles are replaced on average only every ten and a half years. Moreover, unlike the personal vehicle segment, most long-haul trucks are procured by fleet owners who pay very close attention to the total cost of ownership, not just the sticker price. If hydrogen-fuel trucks become more competitive than their diesel counterparts, there could be a relatively rapid adjustment.

Hydrogen: Here for the long-haul

Hydrogen’s technical and economic fundamentals are likely to improve as technology advances and the Inflation Reduction Act incentivizes investments in renewables. Owing to their renewables potential, large ports, and significant diesel demand, California and Texas are primed to lead the trucking market’s transformation. While trucking fleet turnover will take time, hydrogen appears poised to disrupt the US trucking market.

Pieces That Need To Fall Into Place To Make Green Hydrogen Viable

By:  Steven Carlini, VP of Innovation and Data Center
View the original article here


In the zero-carbon economy of the future, electricity will become the dominant energy but green hydrogen (and the fuels derived from it) will have a role to play as well. Making green hydrogen viable and abundant will take collaboration, effort, and investment.

Pieces that need to fall into place to make green hydrogen viable

Hydrogen definitely has a role to play in global decarbonization. In the decarbonized world of the future, electricity will become the dominant energy with a 60-70% share in 2050, biofuels will rise, dependence on fossil-based energy will significantly decrease and hydrogen will increase. I want to focus on green hydrogen – derived from water using electrolysis since it is the most promising. In my estimation, green hydrogen will rise between 3 – 10 times the 90 Mt of hydrogen used today by 2050. The 3X – 10X projection goes from a very conservative 270 Mt (3X) to an aggressive 900 Mt (10X). So why is there such a large gap if green hydrogen is the energy source needed for hard-to-abate applications? Mainly because there are 10 significant “pieces” of the puzzle that must come together to produce green hydrogen at the scale needed.

1) Renewable Generation Electricity Capacity – Green hydrogen must be derived through electrolysis which is highly energy intensive. For hydrogen to be green the process must be electrified using a sustainable source (hydro, wind, or solar). How much? The electricity required by 2050 for decarbonized electrification and green hydrogen production of 900 Mt (10X) is estimated to be 130,000 TWh – around 5X today’s total electrical supply of 27,000 TWh. By 2050 using the 900 Mt (10X) green H2 assumption, 30% of electricity use will be dedicated to producing clean hydrogen and its derivatives, such as e-ammonia and e-methanol.

2) Electrolyzer Capacity – Once there is sufficient renewable generation, the capacity of electrolyzer plants needs to match. According to Bloomberg NEF, today’s global electrolyzer capacity of 300 MW must grow to 3000 GW by 2050 to meet clean hydrogen demands of 900 Mt (10X). IEA estimates that every month from January 2030 onwards, three new hydrogen-based industrial plants must be built.

3) Total Cost of green hydrogen – Green hydrogen is fundamentally tied to the cost of renewable electricity, the cost of clean water, CapEx cost of electrolyzer plants, the efficiency of the electrolyzer plant, and finally the cost of storing and transporting the green hydrogen. Today, green hydrogen can cost around €2.5-€5/kg, making it significantly more expensive than the fossil fuel alternatives. Levelized prices need to fall to €1.5/kg by 2050 and possibly sub-€1/kg, to make it competitive with natural gas. However, there are incentives from governments around the world to bring the price down. In the US part of the Inflation Reduction Act created new provisions for clean hydrogen. Under the law, clean hydrogen plants in 2023 can receive a production tax credit up to $3 per kg of hydrogen, for the first 10 years of operation through 2032.

4) Electrolyzer cost – the total installed costs of a GW scale industrial electrolysis plant is currently around 1400 €/kW for Alkaline electrolyzer technology and 1800 €/kW for PEM electrolyzer technology. These need to drop at least 50% by 2050 for green hydrogen to be cost-competitive. However, CapEx improvement plans cannot be a tradeoff resulting in reduced electrolyzer efficiency or durability.

5) Electrolyzer efficiency – Today’s efficiency hovers around 50%. To meet the cost targets, the consensus in the industry is that efficiency needs to continuously improve and be at 75% by 2050. This is a major engineering challenge, plus there is efficiency degradation every year as well.

6) Water Supply – Fresh or clean water must be used in electrolysis. Ocean or salt water (sometimes called seawater) cannot be used. Clean water can be aggregated from collecting rainwater or from a process called desalination. Desalination using reverse osmosis is another very energy-intensive process that also outputs brine (salt-dense water) as a byproduct.

7) Storage – Ideally, electrolysis plants should be located in areas that have abundant renewable electrical power and fresh water. Consumption in the future will likely be places like marinas for ships/vessels and airports for long-haul planes as well as strategic places in the electrical distribution system at the turbine or areas requiring grid stabilization. This means compression, storage, and transportation will be needed. Hydrogen does not degrade over time and can be stored indefinitely. In a gaseous form, it can be stored in ways: pressurized steel tanks and underground reservoirs or salt caverns (for large capacity). Hydrogen can also be liquefied. This would deliver about 75% higher energy density than gaseous hydrogen (stored at 700 bar), But it would waste the equivalent of 25%-30% of the energy contained in the hydrogen to liquefy.

8) Transportation Grid – Moving gaseous hydrogen from the place where it is derived to the place where it will be used is not a straightforward process. There is no piping infrastructure like there is with oil and natural gas pipelines or distribution grids. Because hydrogen is such a small and potentially combustible element, constructing a pipeline is quite challenging.

9) Demand side efficiencies – Just like miles per gallon affects how much fuel a car uses, all applications using electricity or hydrogen need to be made more efficient. A massive effort is required to modernize the existing stock of inefficient assets (buildings, mobility, industrial facilities, and machines, etc.), for higher efficiency or adapt to fun on hydrogen.

10) Funding – In total, investments could amount to almost $15 trillion between now and 2050 – peaking in the late 2030s at around $800 billion per annum1 for 900 Mt (10X). Of this, about $12.5 trillion (85%) relates to the required increase in electricity generation, with only 15% (peaking at almost $150 billion per annum in the late 2030s) relating to an investment in electrolyzer, production facilities, and transport and storage infrastructure. This investment must be coordinated between private-sector action and national and local governments.

The 10 “pieces” of the puzzle that must come together are significant. As with all puzzles, if a single piece is missing, the puzzle is ruined and the 3X scenario would be more likely than the 10X. We have no choice but to put this puzzle together and in this case, we must have all of the pieces in order to meet decarbonization targets and have green hydrogen play its critical role in the effort to halt global warming.