22
START PLANNING ALTERNATIVE FUELS • AS THE WORLD MOVES TOWARDS A CARBON-NEUTRAL FUTURE, GOVERNMENTS WILL HAVE TO TALK TO INDUSTRY TO ENSURE A VIABLE SUPPLY CHAIN THE MUCH-VAUNTED ENERGY transition now seems inevitable – but the details remain sketchy. It is also not a little scary, particularly for those operators in the supply chain that have made a decent living in moving and storing the liquid hydrocarbons that the world relies on at the present for heat and power. This is especially true for operators of capital-intensive bulk liquids storage terminals, who need some level of clarity over the future demand for their services if they are to be able to plan properly to have the right type of storage capacity in the right places to meet future needs.
But the energy transition is unlikely to be smooth: there are many different routes towards decarbonising the fuel chain and, while governments seem keen to push forward the idea of electrification, there are problems with this. Not only will it require substantial additional generating capacity, which will have to be based on renewable sources, but there are also concerns over distribution capacity in power grids. Therefore, many industry bodies are pressing for a mixed solution that will involve net-zero carbon fuels, including biofuels and ‘e-fuels’ as well as hydrogen and other alternatives.
To help its members navigate a path through this unknown future, the UK Tank Storage Association (TSA) has published a pamphlet, Enabling the energy transition: The role of the bulk liquid storage sector. In his introduction to the document, Peter Davidson, TSA’s executive director, says: “As essential energy partners, we are determined to up the ante and ensure that our sector can support and facilitate access to the broad mix of energy solutions that will be necessary to succeed. The bulk liquid storage sector already has some insight into what a changing landscape might mean for its infrastructure and is already active in many of the areas of growth that will drive success going forward. “Ultimately, significant investment in enabling infrastructure, along with collaboration and partnership, will be key to seize opportunities and enable solutions for change,” he adds. “To that end, we conclude our report with a number of recommendations setting out our sector’s essential considerations as we move towards the next phase of the transition and continue to generate economic benefits for all.” PLANNING FOR THE UK Focusing on its home market in the UK and Ireland, TSA notes that there are ambitious emission reduction targets in place under the UK’s Climate Change Act 2008 and the fifth carbon budget, which covers the critical phase from 2028 to 2032. The UK government is aiming for a 57 per cent reduction in greenhouse gas (GHG) emissions by 2030 compared to 1990, and a net zero position for GHG emissions by 2050. “In practical terms, this means changes in energy generation, industrial processes, transport, buildings and heat,” TSA notes. The transport sector currently accounts for some 40 per cent of the UK’s final energy consumption – not including aviation fuel and marine bunkers for international transport, which count as exports. Supplying this need is strategically essential and calls on flexibility within the supply chain,
HCB MONTHLY | MARCH 2020
