A look into the future What is happening at the next frontier?
Three trends in the energy transition At the frontier of Energy, Marine and Renewables. It is our slogan at Atlas Professionals and not just because it sounds good. It is our slogan because our professionals – our Heroes – work at the frontier of the industry. Day in, day out they help our clients bring innovations to life. But what is happening at the next frontier? In this white paper, we explore three trends in the energy transition: Marine Energy, Hydrogen and Remote Operations and Automation.
1. Marine Energy Marine Energy involves harnessing the power of the ocean to generate energy. Technologies such as tidal and wave devices have been around for some time and have recently gained momentum in the search for additional renewable sources to support the energy transition. The International Energy Association reports that “electricity generation from marine technologies increased an estimated 13% in 2019, which is significantly above the levels of the previous three years”, and “needs to be deployed even more rapidly to get on track with the sustainable development goals, which requires much higher annual growth of 23% through 2030.” There is significant potential which is seen through the array of available benefits, such as: • Sustainability – a clean resource • Predictability and reliability – the ocean is always moving • Adaptability – can be used to power communities and provide coastal protection • Efficiency – high energy density making use of space and wasting little in the process • No visual impact There are also challenges presented by the suitability of the environment, as well as a need for further policy support and funding. This will enable research and development from demonstrator to commercial projects, as Marine Energy is expensive, and economies of scale have not been reached yet. Image: Tidal energy illustration, 3D illustration by Alexandr Mitiuc
Let’s take a deeper look at the two types of devices being explored at the moment: tidal energy and wave energy.
Tidal energy Involves generating energy using the Tidal Range, which is derived from the gravitational pull from the Moon and spin of Earth, and Tidal Currents where water rises and falls. These devices tend to look like underwater turbines (like those we see on wind farms), with an average life span of around 25 years. Nova Innovation installed the world’s first offshore tidal energy array in Scotland, which has been powering homes and businesses for over five years, and has worked in multiple countries such as deploying 15 turbines in Canada. Most recently the company secured a £1.2m investment from the Welsh Government for its Enlli project – the world’s first (yes, another record) ‘Blue Energy’ island. Simec Atlantis owns the largest consented tidal stream project in Europe, MeyGen, and has been awarded offshore lease areas from the UK Crown Estate. The company is progressing internationally as its prototype AR500 tidal generator is being deployed in Japan’s Naru Strait.
Wave energy Consists of generating energy from wind passing over the surface of the ocean. Bombora is designing ‘mWave’ models for deployment in Wales and Spain, whilst looking to identify opportunities in Japan and neighbouring regions.
Country Spotlight The UK is one of the key countries leading advances in Marine Energy. To understand the potential economic impact of this industry on a country, consider the Offshore Renewable Energy (ORE) Catapult’s study that finds the following gross value added and job benefits: • • •
Sustainability – a clean resource Predictability and reliability – the ocean is always moving Adaptability – can be used to power communities and provide coastal protection
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Efficiency – high energy density making use of space and wasting little in the process No visual impact
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The study explains that skills can be leveraged to support the industry, which provides an insight into the types of jobs available. Think about leveraging the UK’s existing skills “in subsea engineering, offshore foundation design and manufacture and marine operations”. Next to this, it becomes clear the workforce can be drawn from similar industries, “primarily from existing UK industries where there is strong absorptive capacity, especially offshore wind, oil & gas, steel, and maritime”. Time will tell how the Marine Energy industry progresses, for now it is an interesting area to keep an eye on.
2. Hydrogen Hydrogen is a hot topic. But what is it exactly, which initiatives exist and how can we leverage existing infrastructure and skills?
What is it? Hydrogen is the lightest element in the periodic table and the most abundant chemical element in the universe. Each molecule is made up of two atoms, found in water, plants, animals, and humans. With a high energy density, it can be used as an alternative to methane (natural gas). The • • • •
International Energy Agency (IEA) outline key uses: Industry, oil refining, ammonia production, methanol production and steel production; In transport, cars, shipping, aviation, refueling stations; In buildings, blended into existing natural gas networks; In power generation, for storing renewable energy, from the variable output of wind and solar.
As such, hydrogen has a great potential as an energy source. The difficulty, however, is in scaling production due to high costs, lack of government policy for adoption and limited supportive infrastructure.
Hydrogen types TNO describes three types of hydrogen: grey, blue and green hydrogen.
Grey Hydrogen Almost all hydrogen produced is so-called ‘grey hydrogen’. Production currently takes place via Steam Methane Reforming. Here highpressure steam (H2O) reacts with natural gas (CH4) resulting in hydrogen (H2) and the greenhouse gas (CO2).
Blue Hydrogen The term ‘blue hydrogen’ is used when the CO2 released in the process of grey hydrogen production is largely (80-90%) captured and stored. This is also called CCS: Carbon Capture & Storage. By 2030 the costs of renewable hydrogen production could be in the range of $2.3 and $1.4 per kilogram.
Green Hydrogen Green hydrogen, also known as ‘renewable hydrogen’, is hydrogen that is produced with sustainable energy. The best known is electrolysis, in which water (H2O) is split into hydrogen (H2) and oxygen (O2) via green electricity. Low-carbon hydrogen can break even with grey hydrogen between 2028-2034 at a cost of $35-50 per ton of carbon dioxide equivalent.
Initiatives The Hydrogen Council and McKinsey & Company highlights “there are over 30 countries with roadmaps, and 228 large-scale projects, with 85% located in Europe, Asia, and Australia”. Of those, 188 are within industrial, transport or integration, those for storage and renewables only represent 40. There is growing support for implementation. In line with the EU Green Deal, a hydrogen strategy was launched in July 2020. In the short term (2020-2024), the aim is to support the installation of at least 6-gigawatts, and production of up to one-million tonnes. In the years after, hydrogen is to be integrated into the energy system, with at least 40-gigawatts and production of up to ten-million tonnes. Selected EU member states have begun actioning and are being spurred on by energy companies that are building infrastructure to progress scalability. Recharge provides examples of green hydrogen projects utilising offshore wind. Whilst the strategies of energy companies, can be explored here: Vattenfall, Equinor & ENGIE, Shell, Woodside, BP & Ørsted. Atlas’ Flushing office, which focuses on Renewable Energy, is playing a key role in providing competent professionals to key upcoming hydrogen projects in the Netherlands.
Leveraging existing infrastructure and skills There is still considerable progress to be made, the IEA outlines several recommendations to support scaling up. One of those is to focus on key opportunities to further increase momentum over the next decade.
a. Utilise existing ports as hubs; b. Use existing gas infrastructure; c. Support transport fleets, freight, and corridors; d. Establish first shipping routes.
Considering the synergies available from the gas and marine (ports) industries, as well as others including electricity, wind and solar, there are opportunities available for professionals. Jobs can include Gas Engineer and Electrical Engineer for example, and are suitable for those with existing transferable qualifications and skills. An exciting time to join an emerging industry due to play a critical role in the energy transition. Sources: TNO, CNBC, Nesfircroft, Offhore Energy - DOE to assign $160M to fossil-based hydrogen projects, Equinor, Recharge, Offshore Energy - Study: Hydrogen fueling market sees dramatic growth, BBC, IEA, Hydrogen Council, Topsector Energie, Renews - Enegix signs MoU for Brazilian green hydrogen base, European Commission , Offshore Energy - USA: hydrogen coalition formed, BP, 4Coffshore, SWIC, Renews - Scottish islands secure green hydrogen funding. Image: Liquid Hydrogen renewable energy in vessel - LH2 hydrogen gas for clean sea transportation on ship with composite cryotank for cryogenic gases by AA+W
3. Automation and Remote Operations Every day for decades our professionals and clients have worked at the frontier of Energy, Marine and Renewables in the marine environment. With this in mind, you would imagine that this work environment was fully understood. However, more than 80% of our oceans are unmapped, unobserved, and unexplored! That’s a significant gap in the knowledge of our home planet, especially considering that the oceans cover 70% of Earth. Additionally, these oceans contain an abundance of another underutilised commodity: Power! We have a lot to learn and a new industry to establish when it comes to harnessing the power of the sea. Which innovations are out there to bridge this gap? We investigate the innovative world for ROVs, AUVs and remote operations.
Automation To have offshore infrastructures such as pipelines or platforms, the seabed environment must be surveyed and continually inspected. Typically, Divers, Remote Operated Vehicles (ROVs) and vessel mounted (or towed) sensors have been used for this work. As with other industries, technology is playing a vital role in developing the next generation: in this case through the use of Autonomous Underwater Vehicles (AUVs). The key concept is in automation, and this is being driven by a variety of factors including a change in operational focus and operator requirements and also external factors such as COVID-19. Additional factors include: • Health and safety • Technological advancements • Operational costs • Efficiency • Carbon footprint The first thought that comes to mind with automation in this context, is whether this means over time less people are expected to go offshore to conduct subsea activities? But let’s take a deeper look at the reality of this transition.
Remotely Operated Vehicles An ROV is a “robot that is connected to a vessel by a series of cables that transmit command and control signals from an operator to allow for remote navigation and operation”. The ROV may have a payload that includes a wide range of sensors and manipulatory systems such as a video camera, sonar systems, cable detecting devices, and an articulating arm. The operator would typically be onboard the vessel, but recently we have seen Fugro deliver the first fully remote inspection of an oil and gas platform in UK waters… using an ROV and remote operations centre (ROC) in Aberdeen. In this example it is interesting to note that Fugro initially only planned to do this as a trial, but due to Covid-19 restrictions on personnel, they decided to conduct the entire project remotely using personnel in the ROC who were able to receive the data in near real time. There are additional developments such as Oceaneering’s hybrid ROV model, Freedom, which is “supported by a docking station at the seabed. The vehicle operates in two modes: remotely piloted, via tether or through-water communications, to provide real-time control, or autonomous mode, which relies on advanced autonomy to complete mission scopes”. Watch ‘Freedom ROV | Oceaneering’ on Youtube
Autonomous Underwater Vehicles The offshore world has always been cutting edge and follows closely the heavily invested military sector. As we have seen with drone technology, where once pilots flew over distant lands and billeted in barracks, they now operate safely in command headquarters and are at home in the evening with their families. Similarly, remote operations centres are being introduced in the offshore industry to operate AUVs. An AUV has the freedom from being tethered to a vessel with limited capabilities and can therefore reach areas previously difficult to navigate to. Additionally, it can collect a large amount of data to be retrieved once it has docked. However, connectivity speeds of operational platform to the onshore base remain a limiting factor, but as we have seen, communication technology is one of the fastest growing sectors, and transfer speeds are increasing rapidly. Fugro have one of the largest AUV fleets, looking at their track record “the combined length of all line kilometres surveyed in the past few years comfortably exceeds the Earth’s circumference at the equator five times”. A familiar case is Ocean Infinity’s search for MH370, where AUVs were “equipped with pioneering obstacle avoidance capabilities, which allowed Ocean Infinity to navigate this challenging environment, covering 125,000km2 of seabed in 138 days, equivalent to just over the size of Los Angeles”. Watch ‘The Search of MH370’ on Youtube
People The world is changing and so are the work methods. From a personnel perspective, developments within remote and autonomous technologies will still require offshore management, maintenance and data manipulation. Additional competence training will be needed to ensure personnel onshore in remote operations centres for example have the same awareness for the offshore environment and to enable them to conduct more of an analytical and supervisory role. Luckily, according to Atlas’ Survey & ROV Manager Paul Hampton, one thing is for sure in the offshore industry: skillsets and talent will always be required. “Looking at where the industry is going to over the next 10 years, I am sure increased automation is going to change the face of the industry. If you want to be a part of it, it’s all about self-investment. Take the time to read industry papers, attend industry events, keep up to date on software and hardware advances and keep training. Like any forward-looking industry, you have to be up to speed with the latest developments. The good thing is people like to talk about advancements!” Paul continues: “The roles and environments of personnel will adapt simultaneous to the development in the technological ability of these and future models. It is actually an awesome time to be in such a dynamic market. Professionals will need to be more multiskilled, for example as a technician as well as a data processor. So, people coming into the industry now shouldn’t just expect to be an online surveyor only.” Paul recommends students considering an offshore career to make sure they are a ‘more rounded individual’ and to certainly study subjects like automation and robotics. For established professionals, flexibility and keeping a close look at what is coming are key too. “We see that there will be a lot more AUV work soon. So, as a professional you should be proactive and try to get more AUV experience in one way or another.”
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