Energy Focus December 2020

THE BUSINESS MAGAZINE FOR ENERGY LEADERS

www.energy-focus.net

December 2020

HORNSEA TWO – ØRSTED :

World’s Largest Offshore Wind Farm Project Underway ALSO IN THIS ISSUE:

Aramco / Minesto / TransGrid / Lekela

EDITOR’S LETTER EDITOR Joe Forshaw  joe@emea-energy.net SENIOR PROJECT MANAGER Sam Hendricks  sam@emea-energy.net SENIOR PROJECT MANAGER Tommy Atkinson  tommy@ emea-energy.net SENIOR PROJECT MANAGER Lewis Hammond  lewis@emea-energy.net PROJECT MANAGER James Davey  jamesd@emea-energy.net PROJECT MANAGER Chris Wright  chrisw@emea-energy.net FINANCE MANAGER Chloe Manning  Chloe@emea-energy.net SENIOR DESIGNER Liam Woodbine  liam@emea-energy.net CONTRIBUTOR Manelesi Dumasi CONTRIBUTOR Karl Pietersen CONTRIBUTOR David Napier CONTRIBUTOR Timothy Reeder CONTRIBUTOR Colin Chinery CONTRIBUTOR Benjamin Southwold CONTRIBUTOR William Denstone

Published by Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Rouen House, Rouen Road, Norwich NR1 1RB +44 (0) 1603 855 161 E. info@cmb-media.co.uk www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher.

Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2020

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Like most, here at Energy Focus we are happy to see the end of 2020. While the year has been challenging, and has left many projects stuck in the pipeline, it has also been revolutionary.

The UK government has committed to powering the entire country by wind power by 2030, and the US is looking to re enter the fray with the Paris Climate Agreement. Europe is looking forward with positivity as the price of renewable projects is continually driven down, and the efficiency of traditional fossil fuelpowered plants is forever improving.

But it is without a doubt renewables where the world’s next energy frontier is headed. Most have known this for some time, but with the number of the projects now being given consent, and the innovative nature of projects in the pipeline, the energy industry is once again looking like one which can drive positivity across all markets.

Danish heavyweight Ørsted is the perfect example of how a change in mindset can result in a sustainable business that is both profitable and works alongside nature instead of against it. The company is busy with the major Hornsea Two wind farm project in the UK North Sea – upon completion the world’s largest wind farm. New turbines, new methods of tower erection, new vessels, and new helicopter strategy mean this project will drive regional and national economic performance as well as remaining environmentally conscious.

Then there’s Minesto, the Swedish ocean energy business which is using novel technology to harness the major power of the ocean and using movable turbines which are fixed to the ocean floor to generate clean power.

We also explore the work of Lekela, a South African investment business looking to drive the development of wind energy across the African continent. Already contributing to the grid in South Africa, Egypt and Senegal, Lekela is driving potential and will undoubtedly grow.

Get in touch with us today and tell us more about your plans for 2021 and beyond. If nothing, 2020 has provided plenty of time to plan for the future!

Joe Forshaw EDITOR

GET IN TOUCH  +44 (0) 1603 855 161  joe@emea-energy.net www.emea-energy.net

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8/ HORNSEA TWO – ØRSTED World’s Largest Offshore Wind Farm Project Underway As Ørsted begins construction of its major Hornsea Two offshore wind farm – the world’s largest upon completion – the company continues to invest heavily in local business and community to ensure a lasting energy and human legacy.

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CONTENTS

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HORNSEA TWO – ØRSTED World’s Largest Offshore Wind Farm Project Underway ARAMCO Sparking Progress Towards the Energy Transition LEKELA Harnessing Wind Potential to Secure Africa’s Energy Future MINESTO Expanding the Potential of Ocean Energy TRANSGRID Innovation Powers Australia’s Energy Transition ENGIE R&D Helping ENGIE Plan for World of Tomorrow VESTAS Innovation & New Orders Keep Vestas Turning www.energy-focus.net / 5

LUKOIL RECEIVES RUSSIAN AWARD FOR SOCIAL RESPONSIBILITY LUKOIL Group organisations became winners of the 2020 Best Socially Responsible Oil and Gas Company contest held by the Russian Ministry of Energy. The awards ceremony took place in Saint Petersburg under the auspices of Russian International Energy Forum on 9 December.

LUKOIL received awards as a recognition of its efforts to develop

labour market, promote employment, carry out special programmes for younger employees, popularise healthy lifestyle, raise occupational health and safety awareness, create industry-wide partnerships, improve quality of life of the employees and provide them with additional benefits.

LUKOIL’s organisations also received awards for actively pursuing social

policies and creating the interactive Oil Pavilion at the Moscow’s VDNKh. The latter was granted a special award.

LUKOIL had previously been named a winner of the ICCO Global Awards contest, one of the most prestigious international public relations events, for the Oil Pavilion multimedia exhibition devoted to the past, present and future of Russian oil industry.

VESTAS RECEIVES ORDER FOR AUSTRALIAN WIND PROJECT In partnership with Global Power Generation, a subsidiary of the multinational power company Naturgy Group, Vestas has secured a 97 MW deal for the Hawkesdale Wind Farm in Victoria, Australia. The project will feature 23 V136-4.2 MW wind turbines which Vestas will supply and install.

Upon completion, Vestas will also deliver a 15-year Active Output Management 5000 (AOM 5000) service agreement. With an energy-based availability guarantee, the service agreement will maximise the energy production of the fleet and provide Global Power Generation (Naturgy Group) with long-term business case certainty.

The deal follows Vestas’ recent announcement of the second stage of the Berrybank wind project and the Ryan Corner wind project, two new Victorian wind parks to be developed with Global Power Generation. Together, the three projects will export a total of 425 MW of clean energy to the Australian grid.

“We are proud that customers from all around the world turn to Vestas for our leading technology, market experience, broad service solutions and ultimately, the best return on investment for their wind project,” said Clive Turton, President of Vestas Asia Pacific.

Delivery of the turbines is expected to occur in the third quarter of 2021, with commissioning scheduled for the third quarter of 2022.

Equinor partners with Havila Shipping for supply vessels Havila Shipping ASA has been awarded three-year contracts for the Havila Charisma and Havila Foresight platform supply vessels. Both contracts include four oneyear options and have a total framework of close to NOK 800 million.

The total framework includes options and costs related to Havila Charisma modifications.

“We have received safe and efficient deliveries from

6 / www.energy-focus.net

Havila Shipping for several years and look forward to continuing our cooperation with the shipping company.

Long-term contracts bring predictability to both Equinor and our suppliers, and form the basis of continuous improvement,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.

The vessels are part of a fleet of supply vessels supporting Equinor’s operations on the entire Norwegian continental shelf (NCS). Havila Charisma will also be modified to support seismic services in the form of permanent reservoir monitoring. This includes increased accommodation capacity. The vessel’s capacities for supply duties will remain unchanged.

Havila Charisma will sail from the supply base in Florø when it is not on seismic assignments.

“The supply vessels along the entire Norwegian coast are the vital nerve of the more than 40 fields we operate on the NCS. By modifying Havila Charisma to provide seismic services in addition to supply services, we are utilizing our scale advantage to achieve higher efficiency and flexibility in our operations,” says Morten Sundt, who is leading Equinor’s supply vessel activities on the NCS.

NEWS SNAPSHOT BP AND ØRSTED TO CREATE RENEWABLE HYDROGEN PARTNERSHIP IN GERMANY

bp and Ørsted have signed a Letter of Intent (LOI) to work together to develop a project for industrial-scale production of green hydrogen – a significant step in developing bp’s hydrogen business. Green hydrogen is made by the electrolysis of water using renewable power, producing zero emissions.

In their proposed Lingen Green Hydrogen project, the two firms intend to build an initial 50-megawatt (MW) electrolyser and associated infrastructure at bp’s Lingen Refinery in north-west Germany. This will be powered by renewable energy generated by an Ørsted offshore wind farm in the North Sea and the hydrogen produced will be used in the refinery.

Under their LOI, bp and Ørsted will now work together to further define the project, agree definitive documents and plan to make a final investment decision (FID) early 2022, subject to appropriate enabling policies being in place. The companies anticipate the project could be operational by 2024.

Electrolysis splits water into hydrogen and oxygen gases. When powered by renewable energy, this produces ‘green’ hydrogen, without generating direct carbon emissions. Hydrogen is widely used in refinery processes where – as in Lingen – it is now typically produced by reforming natural gas, which does result in CO2 emissions.

This is also known as ‘grey’ hydrogen.

The 50 MW electrolyser project is expected to produce one tonne an hour of green hydrogen or almost 9,000 tonnes a year. This would be sufficient to replace around

20% of the refinery’s current grey hydrogen consumption, avoiding around 80,000 tonnes of CO2 equivalent emissions a year – equivalent to the emissions from around 45,000 cars in Germany.

Dev Sanyal, bp’s executive vice president for gas and low carbon, said: “Hydrogen will have an increasing role to play in meeting the energy demands of a decarbonizing world. And we are determined to build a leading position in this emerging industry. Bringing together Ørsted and bp, Lingen Green Hydrogen offers the opportunity both to accelerate significant emissions reduction in our refinery and build experience of large-scale green hydrogen production and deployment. This has the potential to play an important role in the development of a hydrogen economy, in Germany and beyond.”

Martin Neubert, executive vice president and CEO of offshore wind for Ørsted, added: “Heavy industries such as refineries use large quantities of hydrogen in their manufacturing processes. They will continue to need hydrogen, but replacing the current fossil-based hydrogen with hydrogen produced from renewable energy can help these industries dramatically lower their CO2 footprint. But first, renewable hydrogen has to become cost competitive with fossil-based hydrogen, and for that we need projects such as this with bp’s Lingen refinery which will demonstrate the electrolyser technology at large scale and showcase real-life application of hydrogen based on offshore wind.”

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HORNSEA TWO – ØRSTED

World’s Largest Offshore

Wind Farm Project Underway PRODUCTION: David Napier

As Ørsted begins construction of its major Hornsea Two offshore wind farm – the world’s largest upon completion – the company continues to invest heavily in local business and community to ensure a lasting energy and human legacy.

8 / www.energy-focus.net

© Ørsted

INDUSTRY FOCUS: RENEWABLES

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Way off the UK’s Yorkshire coastline, beyond the horizon, a real energy transition has been taking place. This shift in direction is a spark brought about by Ørsted – the Danish energy giant aiming for carbon neutrality in five years’ time.

The Hornsea One wind farm is now operational and delivering clean electricity to more than one million UK homes and acts as an example to all as the world’s largest offshore wind farm. 174 turbines produce 1.2GW of renewable green power and send it along a massive 900km of specialised cable.

First power came in February 2019 with full commissioning following in June 2019, but focus has now switched to Hornsea Two – a major expansion of the field, adding an extra 165 new-generation Siemens turbines and brining a further 1.4GW of renewable wind energy to the UK grid; enough to power 1.3 million more homes.

Spread across an area of 462 km2, each 8MW turbine will sit atop steel towers reaching a total height of 190m –

// ØRSTED ARE NOT ONLY COMMITTED TO MAKING A POSITIVE IMPACT ON THE GLOBAL CLIMATE CRISIS BUT ARE ALSO KEEN TO SUPPORT LOCAL COMPANIES WHERE WE CAN AND IN TURN, SUPPORT PEOPLE FROM THE REGION IN THEIR EMPLOYMENT // 10 / www.energy-focus.net

taller than the BT Tower or the Gherkin building in London. If you stacked all 165 Hornsea Two towers, with blades, on top of each other, you would reach almost as high as Felix Baumgartner when he jumped from the edge of the earth’s atmosphere to break the record for the highest ever sky-dive in 2012.

The Hornsea Two field alone will cover an area larger than 58,000 football pitches. This is a signal of intent from Ørsted as the company continues to thrive after transitioning from oil and gas to become a renewables major.

Hornsea Two is set for completion in 2022 and will be the world’s largest offshore wind farm, overtaking Hornsea One. Despite worldwide slowdowns due to the Covid-19 pandemic, Ørsted and its partners have pushed forward safely as Hornsea Two begins to take shape. It’s busy, it’s big, and it will be an important achievement for the region and the wider UK economy.

Currently, progress on site is ramping up nicely as contracts have been awarded and the ambition of Ørsted becomes clear.

HTOCB In September 2019, the company opened its Hornsea Two Offshore Construction Base (HTOCB) at Humberside Airport in Lincolnshire.

From here, Ørsted staff orchestrate the monumental undertaking of growing the world’s largest offshore wind farm out of the North Sea. “The new offshore construction management office is the ideal location for our logistical project planning, and means we can move people and equipment offshore efficiently and safely using the heliport at Humberside airport. Not only have we been able to repurpose and redevelop a building that had fallen empty on the airport estate, we’ve also been able to utilise equipment and furniture from some of our previous projects in the region to ensure the build is sustainable and continue Ørsted’s green ethos,” said Senior Project Manager, Jason Ledden.

// HORNSEA ONE IS SO FAR OFFSHORE THAT THERE IS NO LAND REFERENCE WHATSOEVER. IT DOES HIT HOME THAT YOU ARE IN THE MIDDLE OF THE NORTH SEA // “Hornsea Two is the latest ground-breaking offshore wind farm being constructed by Ørsted and the innovation behind each new site is astounding. I’m so proud to be able to work on such a flagship project which will bring even more clean energy to the country.”

Opening of the HTOCB was quickly followed by the launch of the new Wind Operations and Maintenance Centre in Grimsby – the largest facility of its kind in the world. More than £10 million has been invested to upgrade quay, dock and office facilities from where operations for all of Ørsted’s East Coast offshore wind operations – including Westermost Rough, Lincs, Race Bank and Gunfleet Sands, Hornsea One, and Hornsea Two – will be managed.

Darren Ramshaw, Ørsted Head of the East Coast Region, was full of praise for Grimsby, saying: “The town has become a leading light in the development of offshore wind for the country and has really embraced the skills and opportunities that have become available within this exciting sector. With the port’s regeneration also on the horizon, we are excited to be a part of the development and growth in this area.”

LOCAL INVESTMENT In August, further development in the region took place as an exciting new safety training centre was launched.

At the MODAL Training Centre in

HORNSEA TWO – ØRSTED

Immingham, Ørsted opened its Thrive training programme, designed to deliver fully immersive opportunities for employees on Hornsea Two duty, before rolling out across other projects and with other companies.

The entire experience is packaged into a one-day session and focusses solely on safety with the idea of changing attitudes across the industry. Ørsted partnered with ATT to deliver the software and Dermot Kerrigan, CoDirector of ATT was delighted with the result, saying: “Thanks to Ørsted’s vision and investment, ATT has designed a ground-breaking safety leadership centre of excellence on the Humber. As well as the wind power version of the programme, for use by Ørsted’s Hornsea Two and other clients in the renewables sector, we also look forward to hosting bespoke versions of the programme for

a variety of industries in the region – and beyond.”

In February, as the Covid-19 fallout began to show its true destructive power in the UK, all involved in Hornsea Two remained committed to the project, quickly adjusting to ensure a safe but productive working strategy could continue.

Local contractor, Fussey Engineering was onboarded to complete steel framework and cladding at the National Grid 400kV substation site which will be used by Hornsea Two to connect to the UK’s system.

Jason Curtis, Senior Project Manager for Hornsea Two said: “Ørsted are not only committed to making a positive impact on the global climate crisis but are also keen to support local companies where we can and in turn, support people from the region in their employment.

“Fussey Engineering are a wellknown name in the area and by working together on this project, all parties involved will benefit the local economy and business community.”

Fussey Engineering’s head office is just one mile from the site and the company made use of 30 tonnes of locally sourced steel to construct the annex building and substation. Ørsted also signed up longterm partner CHC to provide aerial transportation during both the construction and operational phases of Hornsea Two development. Previously contracted on Hornsea One, CHC has built a fantastic reputation for safety in the North Sea and will carry out crew and cargo transfer services utilising Leonardo AW139 and AW169 helicopters – from Humberside Airport, adjacent to Ørsted’s HTOCB.

ENHANCING THE OFFSHORE WIND INDUSTRY PALFINGER offers a wide range of innovative solutions for wind turbine generators, transformer stations as well as wind farm service operation and supply vessels. Built for the harshest maritime conditions, the entire product range is characterized by high-quality materials and user-friendly designs with very low maintenance requirements.

– SUBSTATION, NACELLE AND TRANSITION PIECE CRANES – BOATS AND DAVITS – WINCHES – LIFTING AND HANDLING EQUIPMENT PROUD SUPPLIER TO THE SUBSTATION OF

PALFINGERMARINE.COM

HORNSEA TWO OFFSHORE WIND FARM

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INDUSTRY FOCUS: RENEWABLES

Mark Edwards, Operations Program Manager for Ørsted said: “We are very happy to expand our relationship with CHC to cover the Hornsea Two wind farm. By working together with CHC to cover both Hornsea One and Hornsea Two, we will able to operate much more efficiently in keeping the turbines spinning and delivering over 2.5GW across both windfarms.”

More great news for the UK market was announced in October when Ørsted signalled intent to engage local suppliers by signing a contract with Pict Offshore, a Scottish company which will deliver its innovative ‘Get Up Safe’ (GUS) motion-compensated lifting system.

This new system allows for landing structures and external ladders to be removed from designs, streamlining steel requirements and improving safety credentials. Operators are winched directly on to the turbine foundation.

“Innovation continues to be a key driver behind the success of offshore wind and the UK is leading the way through engineering innovators like Pict Offshore. Hornsea Two is set to be another ground-breaking offshore wind project and showcases how far the industry has come in terms of size, scale, knowledge and ambition,” said Duncan Clark, Head of UK Region at Ørsted.

© Ørsted

12 / www.energy-focus.net

COMMUNITY ENGAGEMENT By the end of October, through one of the most challenging years on record, it was clear that Hornsea Two and Ørsted were not parachuting in and out, and investments to leave a lasting legacy were well-planned and meaningful.

A partnership with UK youth charity OnSide was struck to invest in the young people of Grimsby as part of the town’s ongoing regeneration plans. Ørsted announced that it would invest £1 million to support development of the new Grimsby Youth Zone. This facility will provide a space for young people to develop through provision of activities, learning space, access to tutors and sports, and a listening ear. As part of a wider network managed by OnSide, the long-term vision is to inspire and support young people. In Grimsby, the centre expects to welcome 4000 people in its first year of operation.

For Ørsted, this type of lasting provision is significant. “Ørsted has been based on the port in Grimsby for six years now. With the recent completion of Hornsea One, now the world’s largest offshore wind farm, and with construction underway for Hornsea Two, we were keen to help the community realise a project that underlines our longterm commitment to the town and has a

// HORNSEA TWO IS THE LATEST GROUND-BREAKING OFFSHORE WIND FARM BEING CONSTRUCTED BY ØRSTED AND THE INNOVATION BEHIND EACH NEW SITE IS ASTOUNDING // meaningful, long-term impact for the people living here,” said Duncan Clark.

“The Youth Zone will bring hope and aspiration to the young people of Grimsby who will have so many new opportunities brought to them through this new venture. Our latest apprenticeship recruitment drive saw over 500 people in the area put their name forward for a chance to work in our green and dynamic industry which shows that there’s a passion and willingness for change, demonstrated by the area’s young people,” he added.

Continues on page 16

Providing Safe Passage for Ørsted in North Sea Skies CHC to provide aerial transportation during construction and operational phase of Hornsea Two offshore wind farm development.

CHC, a world leader in the aviation transportation industry is bringing with it a legacy from years of operation in the oil and gas sector as it transitions, alongside customers, to meet the needs of a growing renewables market.

CHC has forged a lasting relationship with green energy business, Ørsted – the most sustainable company in the world, –built on shared values of safety and optimal operational performance. With both companies bringing learnings from fossil fuel-based industries, future growth in the renewable space looks set to be organic and sustainable.

As the two companies begin working side-by-side once again, this time on the major Ørsted wind project - Hornsea Two – Mark Abbey, Regional Director EMEA, explains that stringent safety standards will remain at the core of everything we do.

“There are two phases to the development of a wind park: the production phase and the ongoing maintenance requirement – two very different mission profiles,” he explains.

“During the production phase a lot more people are moving on and offshore – often using floating platforms before using fixed base stations, with a lot of rapid movement to get through that first phase. Ultimately, that production phase is broken down into different phases: spoke and hub – moving people in large numbers onto fixed or moving platforms and then shuttling them to individual turbines to complete their job; and then ongoing maintenance, which involves going out to the turbines on a less frequent basis.

“We are in the transition phase on Hornsea One, and we are in the initial stages with Hornsea Two, getting ready for production.”

For Abbey, promoting shared values is a top priority and, by focussing on safety, the two companies share common airspace. Jason Ledden, Senior Project Manager in Construction for Ørsted said: “We are continually adapting and improving the way we work as we construct our sustainable offshore projects whilst the safety of our personnel remains of paramount importance to us. Having provided heli-services for Hornsea One offshore wind farm during its construction phase, CHC have a proven track record in this area and as such, we are pleased to work alongside partners who share our attitude towards safety and collaboration.”

CHC echoes this sentiment. “We have aligned values and that is very helpful. We genuinely see safety as our prime deliverable,” confirms Abbey. “Part of the values we share surround innovation, and we have both had to be innovative to develop what we have. The value of collaboration has also been important as we have had to come together to come up with solutions that have been challenging both operationally and commercially because there is a shift in the commercial model between oil and gas and renewables.”

CHC was contracted as a key partner for Hornsea One, taking off from Humberside Airport for its first flight on the project on 25 January 2018 as part of an initial six-year contract. In July 2020, the relationship was extended with CHC active until completion in 2022, when Hornsea Two will become the world’s largest offshore windfarm.

“We have a good regime working as we learned a lot

on Hornsea One. We are co-located at Humberside and that helps with learning and adaptation.

“Our strategy is all about taking transferable skills, particularly around safety and standards, into a market that was somewhat immature where we had not really developed the standards around safety and other operational processes offshore. This is a market that will be material for the aviation industry for many decades to come.

“We basically entered that market with a clear vision that we wanted to help develop alongside the emerging majors of renewables like Ørsted. We wanted to find like-minded partners to ensure we could transfer our skills, but more importantly transfer safety and operational standards that we have developed over many years in oil and gas. “Ørsted were firmly committed to driving safety in offshore renewable aviation and were clearly looking for a partner to help them do that – that was the beginning of our journey with Hornsea One,” says Abbey.

For Hornsea Two, Leonardo AW139 and AW169 choppers will be used for crew transfers and cargo flights as CHC looks to demonstrate its expertise on the biggest stage. The company, which traces its roots as far back as the when the first out of sight of land offshore oil well was drilled in 1947, has a long heritage running search and rescue operations and this has provided the perfect platform for building a deep understanding of winching operations. Currently, CHC is the only company in Europe that runs a bespoke winching training school, used for upskilling internal operators and for training operators who are going down on winches during the production and maintenance stages of an operation, both on and offshore. These attributes will be vital as the aviation requirement grow and changes in the renewables industry.

“With Ørsted we see a real opportunity to move our business to a larger scale and to branch out with new customers within the UK sector, in other areas of Europe and globally as well. We have big ambitions elsewhere in the world and if we can realise those, we will have major opportunities to explore. If you fly with CHC, you get the same in Australia as you do in Brazil or in the North Sea,” says Abbey.

“Right now, we have recognised the need for a cleaner environment and the drive towards carbon neutral is something that will do more to focus on the move to renewables. The key to that move is that we don’t lose the decades of experience and knowledge that we have gained by confusing what this industry is here to deliver: safety. That is the key to being successful and we have to be prepared as a company and as an industry to ensure that the focus we have had on safety and standards in general is carried into renewables. The last thing we need to do is go backwards,” insists Abbey.

The European push towards large windfarm development gives CHC the opportunity to further develop skills and safety and operational processes are well established under its blades. By working alongside Ørsted and developing standards together, the growing renewables industry will be constantly able to adjust in the future, creating a safer environment for all.

Reach Beyond CHC Helicopter provides unmatched helicopter services that enable our customers to reach beyond.

CHCHeli.com

INDUSTRY FOCUS: RENEWABLES

Continued from page 12 The local council was equally excited: “This is a fantastic donation from Ørsted, a company which has really embedded itself in the fabric of the whole area since choosing to base themselves in Grimsby,” said Philip Jackson, Leader of North East Lincolnshire Council.

CARBON NEUTRAL The story of Ørsted, and its major leap forward with Hornsea One and now Hornsea Two, should be an obvious example to the rest of the industry – and the world – that switching from a core business of oil and gas to focus solely on renewables is not one which has to be made at a financial cost to the business. Formerly DONG (Danish Oil and Natural Gas), Ørsted renamed and reinvented itself after Danish scientist Hans Christian Ørsted who discovered electromagnetism and

helped to drive a new way of thinking about power production.

Today, the company has reduced its reliance on coal and is aiming to be coal free by 2023 with an emissions reduction of 96% since 2006. Hornsea Two is another huge stride in the fantastic progress this innovative

company continues to demonstrate.

“Our CO2 emissions are down 83% compared to 2006 and by 2025 our production will essentially reach carbonneutrality. It is now cheaper to build offshore wind farms than developing new coal or gas fired power plants. The same is true for onshore wind and solar

© Ørsted - Henrik Poulsen

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HORNSEA TWO – ØRSTED

© Siemens Gamesa

energy. This is a major breakthrough for the green transformation. The renewable energy technologies that we need to fundamentally transform the energy system and radically reduce emissions are at our disposal and they are costefficient,” Ørsted CEO Henrik Poulsen told world leaders at the 2019 UN Climate Action Summit in New York City.

Those on site are equally ambitious.

“Hornsea One is so far offshore that there

// OUR DEDICATED TEAMS AND CONTRACTORS CONTINUE TO OVERCOME OBSTACLES AND PERFORM ABOVE AND BEYOND EXPECTATIONS //

is no land reference whatsoever. It does hit home that you are in the middle of the North Sea,” says Joshua Gallacher, Ørsted Wind Turbine Technician.

“Ten years ago, a wind farm at this size, a wind farm this far offshore, was like putting a man on the moon. All of a sudden, with Hornsea One, we’ve shown that you can make offshore wind power at a scale of conventional power stations,” says Duncan Clark.

Right now, progress continues at pace. At the beginning of October the first offshore turbine foundation was installed on site to the delight of Patrick Harnett, Ørsted Senior Programme Director for Hornsea Two who said: “Our dedicated teams and contractors continue to overcome obstacles and perform above and beyond expectations.

“This offshore installation is another huge accomplishment for the Hornsea Two project and proves the commitment and hard work from everyone working towards the same

goal – to create a world that runs entirely on green energy, through the safe and efficient construction of another of the world’s largest offshore wind farms.”

Following completion of Borselle 1 & 2 – Ørsted projects in the Dutch North Sea – the company’s reputation grows unabated. With around one in three of all offshore turbines installed around the world from Ørsted, and a market value of around $75 billion, this is a company that has heard the call of nature – without ignoring the demands of shareholders.

Hornsea Two cements Ørsted’s lofty position and will be a beacon; exhibiting what is possible with a little courage and a lot of innovation.

WWW.HORNSEAPROJECTS.CO.UK

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© Aramco

ARAMCO

Sparking Progress

Towards the Energy Transition PRODUCTION: William Denstone

Saudi Aramco really needs no introduction, one of the true leaders in the production of the energy and chemicals which drive forward global commerce and enrich the lives of people the world over. The latter part of this year has seen Aramco endure enormous global challenges to continue spearheading a sustainable energy future, and make major strides in the circular carbon economy at the heart of the transition to a sustainable future. www.energy-focus.net / 19

INDUSTRY FOCUS: PETROLEUM AND NATURAL GAS

//

“We believe in the power of energy to transform lives, enhance communities, advance human progress, and sustain our planet.” Energy is big business for Aramco, supporting the fundamental pillars of society and the unstoppable growth of a healthy planet. The United Nations now forecasts global population to grow by nearly two billion in just the next 30 years, from the current 7.7 billion to nearly 10 billion in 2050. Its peak could reach nearly 11 billion around 2100.

With more citizens inevitably comes the need of more energy, to meet exponentially rising demand, and to bring greater and easier access to light and heat for ever larger and more diverse corners of the world.

In order to fulfil this rising need, it will be crucial to properly

© Aramco

20 / www.energy-focus.net

harness every available option for power in the potential mix; while renewable and alternative sources of generation continue to be the subject of extraordinary advances, legacy resources will remain vital to ensure no shortfall as demand rockets beyond the current capacity of carbon-neutral sources.

SUSTAINABILITY AT ITS CORE “Even as we transition to a low emissions future,” Aramco agrees, “hydrocarbon-based energy sources will be counted on to meet the bulk of the world’s energy demand well into the future.

“We’re committed to driving energy efficiency and addressing the global emissions challenge.”

This commitment immediately quashes any potential criticism

of a vision somewhat striking in its promotion of fossil fuels as the answer; their responsible and sustainable deployment is the critical counter-balance to their necessity, as pioneering techniques increasingly lessen the burden on them to keep the world moving.

“As the world’s largest integrated oil and gas company, we believe we are uniquely qualified to make effective contributions to the overall solution and have one of the lowest CO2 footprints in the oil and gas industry,” Aramco affirms.

“At Saudi Aramco, we are proactively doing our part to reliably and sustainably provide the energy products that enable people to seize opportunities that can transform our world.” In order to meet energy needs while managing emissions, Aramco

ARAMCO

// ARAMCO CONTINUES TO WORK WITH VARIOUS PARTNERS AROUND THE WORLD, FINDING SOLUTIONS THROUGH THE DEPLOYMENT OF BREAKTHROUGH TECHNOLOGIES TO PRODUCE LOW-CARBON ENERGY // has identified four key areas of focus: sustaining low carbon intensity crude oil, growing non-fuel applications for crude oil, advancing sustainable transport and driving high-impact solutions.

“For some,” Aramco concedes, “the idea of an oil and gas company positively contributing to the climate challenge is a contradiction. We don’t think so. Our contributions to the climate challenge are tangible expressions of our ethos, supported by company policies, of conducting our business in a way that addresses the climate challenge.”

SPARK SETS THE STANDARD King Salman Energy Park (SPARK) is a new mega-project in construction between Dammam and Al-Ahsa in the Eastern Province of Saudi Arabia, and stands as an unmissable emblem of Aramco’s role in combatting climate change.

It became, in September, the first industrial city in the world to receive Silver Level accreditation for Leadership in Energy and Environmental Design (LEED), an internationally recognised green building certification system which verifies improved building

performance across key sustainability metrics such as energy savings, water efficiency and CO2 emissions reduction.

Strategically located at the heart of Saudi Arabia’s Eastern Province, SPARK’s vision is to be the gateway to the regional energy sector. The LEED certification underscores the city’s integrated sustainability practices, which are at the heart of the community’s planning. It is also a key step in ensuring that environmentally-sensitive techniques are consistently applied to SPARK’s construction across industrial,

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INDUSTRY FOCUS: PETROLEUM AND NATURAL GAS

commercial and residential facilities.

“SPARK is distinguishing itself as a leading global energy, industrial and technology hub,” spoke President & CEO, Saif S. Al

// OUR GOAL IS TO CREATE AN ECOSYSTEM FOR ENERGY-RELATED COMPANIES TO GROW WITH MINIMUM ENVIRONMENTAL IMPACT, AND WE ENCOURAGE OTHER INDUSTRIAL CITIES TO FOLLOW OUR LEAD //

© Aramco

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Qahtani, “cementing Saudi Arabia’s position as a progressive innovator in these fields on the international stage. The certification reaffirms our commitment to reducing the city’s carbon footprint.

“LEED communities are in high global demand, as they offer better rates of profitability, productivity and quality of workplace. Our goal is to create an ecosystem for energyrelated companies to grow with minimum environmental impact, and we encourage other industrial cities to follow our lead.”

BLUE FUEL FOR A GREEN FUTURE Blue ammonia has been earmarked as an alluring prospect in the energy transition, created by harvesting hydrocarbons and converting them into hydrogen and ammonia to be burned in power generation plants.

It is one of the first carbon-free

options for mass use.

The opening by Aramco and the Institute of Energy Economics, Japan (IEEJ), in partnership with SABIC, of the world’s first blue ammonia shipment represents the unlocking of a new route to a sustainable, green future. This milestone strengthens the possibility of a global Circular Carbon Economy, whereby CO2 emissions are reduced, removed, recycled and reused, as opposed to being released into the atmosphere.

Ahmad O. Al-Khowaiter, Aramco’s Chief Technology Officer, was in little doubt as to the significance of the event. “The use of hydrogen is expected to grow in the global energy system, and this world’s first demonstration represents an exciting opportunity for Aramco to showcase the potential of hydrocarbons as a reliable and affordable source of lowcarbon hydrogen and ammonia.

ARAMCO

© Aramco

“Aramco continues to work with various partners around the world, finding solutions through the deployment of breakthrough technologies to produce low-carbon energy and address the global climate challenge.”

// WE ARE MAKING PROGRESS ON MULTIPLE FRONTS, INCLUDING THE WORLD’S FIRST BLUE AMMONIA SHIPMENT FOR ZERO-CARBON POWER GENERATION IN JAPAN //

It is just such adaptability and innovative practice which is helping Aramco to remain robust and resistant to the challenges of a market arguably more volatile than ever.

Continuing to demonstrate strength and resilience across economic cycles, navigating challenging market conditions and the obvious and likely lasting impact of COVID-19 on the global economy, its third quarter 2020 resulted revealed net income of $11.8 billion a dividend of $18.75 billion. Aramco also reported a record historic single-day natural gas production of 10.7 billion standard cubic feet per day (BSCFD) on August 6, 2020 from both conventional and unconventional fields.

“Our resilience is supported by our unique scale, low upstream carbon intensity and low production costs,” commented Aramco President & CEO

Amin H. Nasser on these latest results.

“As the global economic and social landscape evolves, these strengths and our continued drive to lower GHG emissions mean we are well positioned to support the energy needs of the global economic recovery.

“We are confident in Aramco’s ability to manage through these challenging times and deliver on our objectives.

“We are making progress on multiple fronts, including the world’s first blue ammonia shipment for zero-carbon power generation in Japan – further strengthening our focus on new and innovative solutions that contribute to the global energy transition.”

WWW.ARAMCO.COM

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LEKELA

Harnessing Wind Potential

to Secure Africa’s Energy Future PRODUCTION: Timothy Reeder

Lekela’s raison d’être is to deliver sustainable, reliable and competitively-priced power across Africa, founded in 2015 to address the challenges of delivering energy critical for many countries in Africa. Decades of experience have allowed Lekela to amass a portfolio totalling over 1300MW of projects in Egypt, Ghana, Senegal and South Africa, the last of which has brought some of Lekela’s biggest success stories and most notable progress in recent months.

//

Lekela is more than another renewable power generation company. It is able to deliver utility-scale projects which in turn supply wide-ranging African communities with critical clean energy, primarily taking wind and solar projects from mid or latestage development into long-term operation. “Our portfolio includes more than 1300MW across Egypt, Ghana, South Africa and Senegal,” the company reveals.

Many have recognised the huge renewable energy potential held within Africa, with its near-boundless resources of solar, hydro and, in particular, wind resources: “Africa is well positioned to expand the power generation needed to drive growth,

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deliver energy for all and play a leadership role in the crucial climate change negotiations,” enthused the late Kofi Annan, by way of prominent example.

Unlocking this promise remains fraught with obstacles, though, and requires every ounce of Lekela’s combined expertise in conjunction with the heritage of its founder shareholders, Actis and Mainstream Renewable Power.

“Our vision is to build an organisation that offers best-in-class delivery of clean power in African countries,” pronounces Lekela.

“We draw on our team members’ decades of experience to ensure we can deliver sustainable, reliable and competitively-priced power.”

SA TO RUN ON WIND It is widely agreed by some of the sector’s biggest players that wind energy will play a major role in the future of the South African energy grid. Wind energy’s journey in the country has been an interesting and rather arduous one, going from contributing around 796MW to the currently installed capacity of 2078MW. Wind power has been earmarked as the prime candidate to shore up South Africa’s new energy capacity until at least 2030. In the South African government’s final Integrated Resource Plan (IRP) it expects 14.4GW of new wind power capacity to be installed, meaning that wind will be allocated more capacity than any

INDUSTRY FOCUS: RENEWABLES

other energy source in the IRP, which also includes plans for new coal, gas and nuclear plants.

It is forecast to contribute 17.8% of annual energy generation in South Africa by 2030, second only to coal, which will provide 58.8%, despite its capacity falling from 39.1GW to 33.8GW. Lekela has five projects in South Africa, all harnessing wind’s incredible potential. Loeriesfontein and Khobab are neighbouring wind farms, which comprise a total of 122 wind turbines and commenced commercial operations in December 2017. With a generation capacity of 140MW each, they combine to make up the largest single expanse of wind turbines in the country.

Together, Loeriesfontein and Khobab add over a million-megawatt hours of clean, renewable energy each year to the country’s national grid. This is enough to power around

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240,000 South African households.

Noupoort wind farm, meanwhile, has a generation capacity of 80MW and comprises 35 wind turbines, beginning commercial operation in July 2016. Noupoort provides around 300,000MWh of clean renewable energy each year, supplying electricity to approximately 70,000 South African homes and, as is the case with everything Lekela does, all three farms have had a hugely positive impact on and actively participate in the local community.

// WE NOW HAVE OVER 600MW OF WIND POWER IN OPERATION, WHICH WILL SUPPLY CLEAN ELECTRICITY TO HUNDREDS OF THOUSANDS OF SOUTH AFRICANS //

PERDEKRAAL EAST AND KANGNAS ONLINE Until very recently, Lekela’s two further SA projects have been spoken of as merely promising prospects; this changed completely in October when its Perdekraal East wind farm successfully achieved commercial operation. Perdekraal East was the first wind farm from Round 4 of the

Renewable Energy Independent Power Producers Procurement Programme to commence operations, following the lead Lekela’s first wind farm in South Africa, Noupoort, the first project from Round 3 to do so back in 2016.

“This is our fourth wind farm in South Africa in four years, and this milestone cements Lekela as one

LEKELA

of the leading providers of clean, renewable energy in the country,” beamed Chris Antonopoulos, Lekela Chief Executive Officer. “No other source of energy continues to develop as rapidly as renewables in terms of cost and scale, and it’s exciting to see that the Perdekraal East wind farm is now delivering power to South Africa’s grid.”

Even amid the unimaginable challenges posed by the ongoing pandemic, the fourth wind farm in South Africa in a Lekela-led

// OUR VISION IS TO BUILD AN ORGANISATION THAT OFFERS BEST-IN-CLASS DELIVERY OF CLEAN POWER IN AFRICAN COUNTRIES //

consortium to become operational was swiftly joined by the fifth, as the 140MW Kangnas was brought online to complete its first portfolio of South African wind stations.

It goes to further underline the importance of Lekela’s work in delivering clean, reliable power to African communities. Together, this duo totals over 600MW and will provide clean, cost-effective power for up to 485,000 South African homes over the next 20 years.

Perdekraal East is situated within the Witzenberg Local Municipality in the Western Cape, less than two hours from Cape Town, with Kangnas found just over 50KM east of the town of Springbok in the Nama Khoi Local Municipality of the Northern Cape. Construction of both has only been made possible with a high level of locally manufactured content, including wind turbine towers and two large high voltage transformers.

“Kangnas completes what only existed as ideas on a piece of paper just a few years ago,” summated

Antonopoulos. “We now have over 600MW of wind power in operation, which will supply clean electricity to hundreds of thousands of South Africans, at an affordable price for the next two decades.

Our completed portfolio places Lekela firmly as one of the leading providers of clean, renewable energy in the country, and across the African continent more broadly.

“No other source of energy has the pace of development, nor the backing of governments, communities and companies that wind and solar do. We have to capitalise on this appetite to ensure the number of Africans without access to electricity continues to fall, not rise, in the next decade.”

WWW.LEKELA.COM

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MINESTO

Expanding the Potential

of Ocean Energy PRODUCTION: William Denstone

Minesto is living proof that the innovation surrounding renewable energy really knows no bounds. Its Deep Green technology produces electricity from slow tidal streams and ocean currents using a pioneering method, unlocking an until-now untapped renewable source to generate electricity from the awesome power of the ocean.

//

Covering 70% of the planet’s surface, the oceans represent one of largest yet least explored sources of renewable energy on earth, with the potential to provide a substantial amount of new and reliable power. It should come as no surprise that the theoretical potential for electricity generated from this less publicised of future-proofing sources is several times the total global energy demand.

The tremendous amount of energy

harboured in our oceans comes in a number of forms, including tidal streams, ocean currents, waves and salinity gradients, and have the added advantage of being located close to the majority of concentrated populations.

Of the abundant potential sources Minesto’s successful and unique Deep Green technology has been developed since the company’s formation in 2007 to expertly harvest the energy produced by tidal streams

and ocean currents. Headquartered in in Gothenburg, Sweden, Minesto has operations in Sweden, Wales, Northern Ireland and Taiwan.

“Minesto’s goal is to be a worldleading equipment supplier in the field of marine energy,” the company outlines.

“We enable large scale electricity production globally from areas where no other known renewable technology can operate, which will significantly increase sustainability and security of supply.”

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INDUSTRY FOCUS: MARINE ENERGY

UNIQUE TECHNOLOGY Minesto’s inspiration comes from a scene familiar to most of us - flying a kite, on the beach, on a windy day. Attaching a turbine to the kite and putting it in the ocean, where a water current flows instead of the wind blowing, is the essence of Deep Green, Minesto’s patented and awardwinning ocean energy power plant.

“What makes Deep Green different from other tidal energy technologies is the wing, the size of the turbine and the fact that the power plant is ‘flying’ under water,” Minesto explains. “The electricity produced by the power plant’s generator is several hundred times

greater compared to if the turbine would be stationary. By adding this step of energy conversion, Minesto expands the global ocean energy potential.”

Tides are generated by gravitational forces between the earth, moon and sun, creating currents that contain a tremendous amount of energy whose movement and speed can be predicted with complete accuracy. Coupled with tides being unaffected by weather or climate, tidal energy is a safe, reliable and predictable source of clean energy.

Deep Green enjoys market exclusivity as the only known technology to cost-effectively produce

electricity at sites with velocities between 1.2–2.4 m/s, and depths of more than 60 metres. As it operates completely submerged below the surface of the water surface, it is able to work entirely in unison with the marine environment.

“Smaller vessels and equipment are used for installation, service and maintenance,” Minesto continues of the extensive list of what sets its technology apart. “A detachable design concept enables service and maintenance on shore, while the ability to operate at low velocities makes Minesto’s Deep Green the only technology to be cost-efficient in both tidal and ocean currents.”

// MINESTO’S TECHNOLOGY CAN PLAY A SIGNIFICANT ROLE IN FAROE ISLANDS’ TRANSITION TO 100 PERCENT RENEWABLE ENERGY BY 2030 //

© Minesto

30 / www.energy-focus.net

MINESTO

© Minesto

FIRST TIDAL ENERGY Minesto has just announced the injection of the first tidal energy into the Faroe Islands’ grid, with the switch on of its 100kW gridconnected tidal kite system in collaboration with Faroese electric utility company SEV. The partnership dates back to November 2018, the first phase of a long-term ambition to add further tidal energy capacity by Minesto’s Deep Green technology to

// MINESTO’S DEEP GREEN IS THE ONLY TECHNOLOGY TO BE COST-EFFICIENT IN BOTH TIDAL AND OCEAN CURRENTS //

the Faroe Island’s energy mix.

“SEV is an advanced customer with a pioneering energy transition agenda and a world-class tidal energy resource,” explained Minesto CEO Dr Martin Edlund at the time. “With Minesto’s technology, they can add a predictable and affordable source of clean energy with the potential to play a significant role in Faroe Islands’ transition to 100 percent renewable energy by 2030.”

Already one of the world’s leading nations in sustainable electricity production, with over 50% of the nation’s electricity deriving from renewable energy sources, the government’s policy is to transform the heating of buildings from oil to electricity, and the production of electricity from oil to renewables.

Long-term, the transport sector will also run on electricity.

Of this major breakthrough, Dr Edlund said: “This is a historic moment and a massive step forward for Minesto and the development of our unique product. We are particularly satisfied with the production performance level of the system.

“Although this is still on a trial basis, we are confident that tidal energy will play a significant part in the Faroese sustainable electricity generation,” added Hákun Djurhuus, Chief Executive Officer of SEV. Unlike other sustainable sources, tidal energy is predictable, which makes it more stable than the likes of wind power.”

WWW.MINESTO.COM

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TRANSGRID

Innovation Powers

Australia’s Energy Transition PRODUCTION: Benjamin Southwold

Against the backdrop of an ever-changing energy landscape, Transgrid’s network has developed to reflect the growing consumer needs in New South Wales (NSW) and the Australian Capital Territory (ACT). Much has changed in its decorated 70-year lifetime, but one thing remains constant: Transgrid’s network is the backbone of the National Energy Market, enabling energy trading between Australia’s three largest states along the east coast and supporting the competitive wholesale electricity market.

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INDUSTRY FOCUS: TRANSMISSION

//

TransGrid operates and manages the high voltage electricity transmission network in NSW and the ACT, connecting generators, distributors and major end users. A range of infrastructure, connection and telecommunication services is on offer to meet customers’ growing needs, and enable consumers to gain access to the lowest cost generation available.

“Building on a proud past.

Creating a smarter, low carbon future,” is the very essence of the TransGrid approach. Some years ago it was ahead of the curve in drastically increasing its adoption of innovative technologies, to support a move towards a low emissions electricity system and targeting zero carbon emissions by 2050. In June this year, it reaffirmed this stance in its vocal and robust support

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of the NSW government’s electricity infrastructure roadmap.

“Today’s announcement gives a clear signal that NSW will be at the forefront of the clean energy future which will mean significant job and investment opportunities for communities across the state,” TransGrid asserted.

“TransGrid is playing a critical role in the energy transition by planning and delivering a grid which is better connected and is able to meet our energy needs for the 21st century.”

ENVIRONMENT IS EVERYTHING “As a responsible business,” TransGrid sets out, “we strive to maintain the highest environmental standards and practices to minimise our environmental impact.” This environmental commitment spans

infrastructure planning, building and operation, as well as ongoing asset management and decommissioning.

“By integrating environmental considerations into all parts of our business, we protect our communities and the environment.

This helps to achieve sustainable growth and drive compliance with all relevant legislation.” Word has clearly spread of TransGrid’s environmental strengths, with interest abounding in its New England renewable infrastructure development.

The new transmission infrastructure in the state’s north-west is part of a $1 billion infrastructure development investment by TransGrid Services and renewable energy generators connecting to its New England Transmission Infrastructure (NETI). 18 submissions were received

TRANSGRID

// AUSTRALIA’S CHANGING ENERGY LANDSCAPE PRESENTS OPPORTUNITIES TO INCREASE THE INTEGRATION OF LARGESCALE RENEWABLE GENERATION WITH THE TRANSMISSION NETWORK // as part of the New England Connection Capacity Auction (NECCA) process, seeking to connect to a new 330kv transmission line in the New England region and liable to create up to 2000 construction jobs and 150 ongoing operational roles.

“We’re pleased there has been very strong interest from the market, totalling about 6900MW, from those wanting to secure capacity on the new, purpose built line,” effused Executive Manager of

Business Growth, Richard Lowe. “It demonstrates a healthy appetite to invest in renewable energy generation where enabling infrastructure services can be delivered.”

The NETI design will strive to minimise costs to generators by providing fit-for-purpose infrastructure, essential asset and support policies and grid stability. It marks the first step in the private sector of enabling infrastructure for collaborative renewable energy development.

WALLGROVE GRID BATTERY Significant as it is, the NETI is far from a standalone initiative on TransGrid’s part. The company is wholly aware, and an active proponent of, the plentiful future opportunities for mixed-generation network connections in the territory.

“Australia’s changing energy landscape presents opportunities to increase the integration of largescale renewable generation with the transmission network,” Transgrid asserts, and dominating its Wallgrove substation will soon be another emblem of its desire to accelerate emerging technology.

The Wallgrove Grid Battery, with its output of 50MW - the power equivalent of 125,000 solar panels - will be the second largest battery in Australia and one of only a few in

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INDUSTRY FOCUS: TRANSMISSION

the world to demonstrate “synthetic inertia” as a network service.

The announcement in October of NSW’s first large-scale grid battery, will, in the words of Eva Hanly, Executive Manager Strategy, Innovation and Technology: “accelerate our understanding of the role this emerging technology can play in stabilising and securing the national electricity grid as we transition to renewable energy.

“In leading this project, TransGrid will trial world-class battery technology and share knowledge outcomes that will guide industry and government in

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Australia’s energy transformation, while paving the way for future investment opportunities.”

“While it is early days, Transgrid’s Wallgrove Grid Battery project is on track to be a worldclass pilot program that will improve our network service, strengthen knowledge of this emerging inertia technology and pave the way forward for Australia’s transition to a low-carbon future.”

“We look forward to bringing this project to life in 2021 as we work together to make electricity more reliable, efficient and affordable.”

// IN DIFFICULT TIMES, WE HAVE NOT JUST SUSTAINED BUT CONTINUED TO ADVANCE PLANS TO DELIVER SAFE, RELIABLE ELECTRICITY AT THE LOWEST POSSIBLE COST TO CUSTOMERS //

TRANSGRID

STRONG IN THE FACE OF CHALLENGE Like most enterprises globally, TransGrid has had to deal with the unimaginable impact of the COVID-19 pandemic, compounded by the devastating bushfires which rang in the New Year on an unprecedented scale.

However, more than anything else this has given TransGrid the opportunity to demonstrate its agility and responsiveness, continuing to provide its essential service to customers

// TRANSGRID IS PLAYING A CRITICAL ROLE IN THE ENERGY TRANSITION //

while advancing transformation of the National Energy Market.

Its annual review for 2020 highlighted network reliability just fractions of a decimal away from perfect, lowered energy prices for customers and revenue of $864.98m, alongside prescribed capital expenditure invested in the network of some $260.62m.

TransGrid Chairman Jerry Maycock described his pride in the resilience of the business and its people, and its ability to persevere in the face of immense challenge.

“In difficult times, we have not just sustained but continued to advance plans to deliver safe, reliable electricity at the lowest possible cost to customers.

“The resilience of TransGrid means we are also well positioned, given the right conditions, to provide vital economic stimulus to the national and regional economies through delivering a pipeline of major projects which provide benefits to customers through lower wholesale electricity prices.”

“TransGrid will play a collaborative and central role in driving the transition to a more robust and sustainable national electricity market,” he rounded off.

WWW.TRANSGRID.COM.AU

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ENGIE

R&D Helping ENGIE Plan for

World of Tomorrow PRODUCTION: David Napier

By investing into renewable energy technologies, with the goal of achieving a carbon neutral society, ENGIE is making all the right moves to position itself at the top of the pile when it comes to leading the transition around the world.

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© Engie

INDUSTRY FOCUS: RENEWABLES

//

Long recognised as one of the long-term solutions and contributors within a modern energy mix, biogas is yet to see the uptake of offshore wind or commercial solar, but as technology advances and ideas become cheaper and easier to implement, this important provider of clean, renewable energy is starting to come into its own.

Still, only two billion cubic meters (bcm) of biogas are produced each year in Europe. The continent consumes some 470 bcm annually, so there is room for growth. Industry onlookers vary in their predictions for how big and how fast the industry can grow – some suggest almost 100 bcm by 2050, others are more conservative, predicting 20-36 bcm per year.

Germany leads way in biogas production, but hit a stumbling block in 2014 when government removed support for the sector after environmental concerns. Denmark is viewed by many as the example, with biogas representing 10% of gas injected into the national grid. Both France and Italy have been inspired and, with favourable policy conditions, these two European powerhouses are rolling out biogas successfully.

In France, one of the leading organisations involved in the biogas revolution is ENGIE. A leading global energy player, ENGIE exists to aid in the transition to a low-carbon society.

Headquartered in Paris, with 170,000 employees around the world, ENGIE walks the walk. Formerly known as GDF, the national gas monopoly in France, the

// IN A WORLD IN WHICH INDUSTRIAL CHANGES ARE EXTREMELY FAST, R&D IS ESSENTIAL TO MAINTAIN OUR COMPETITIVENESS // 40 / www.energy-focus.net

company has broadened its horizons Alongside its subsidiary, ENGIE Bioz, the aspiration is to produce five terawatt-hours of biomethane by 2030.

The company already has a number of operational plants around France, and more will come online soon. In Italy, ENGIE has been active for 20 years, now recognised as one of the country’s energy leaders. Across the rest of Europe, the company commands revenues of more than €17 billion.

GREEN GAS In September, ENGIE launched its new green gas and energy transition technology research centre, the ENGIE CRIGEN centre, in Stains, France. Located just north of Paris, the new centre will undertake operational R&D projects while developing industrial pilot projects in France and Europe, to hone expertise in low-carbon technologies and to help projects to reach maturity.

Academics from different areas of thought and different regions will share the new centre. All experts in their field, with several PhD graduates and many studying for Doctorates, the research team will be focussed around green gases, new energy uses and technologies of the future.

Main areas of study include low-carbon energies and in particular green gases (hydrogen, biogas, etc.); intelligent and efficient energy

consumption in cities, buildings and industry 4.0; and emerging technologies essential for the energy transition (artificial intelligence, nanotechnologies, robots and drones, etc.).

The opening of the new centre was marked with a small gathering of JeanPierre Clamadieu, ENGIE Chairman of the Board; Claire Waysand, ENGIE interim CEO; Azzédine Taïbi, Mayor of Stains; Bernard Larrouturou, Head of Research and Innovation Division representing Frédérique Vidal, Minister of Education and Research; and Eric Cesari, Vice President of the Grand Paris Metropolis.

“In a world in which industrial changes are extremely fast, R&D is essential to maintain our competitiveness. We are convinced that accelerating the transition to a carbon-neutral economy is based on an ambitious Research and Development policy. This investment in our new research centre gives our teams the resources they need to invent the solutions of tomorrow,” said Jean-Pierre Clamadieu and Claire Waysand, in a joint statement.

In 2019, ENGIE committed €189 million to R&D spending and now has eight R&D centres in seven countries.

In July, ENGIE signed a MoU with BTS Biogas – part of Bioenergy DevCo – to share expertise and resources with the goal of advancing low carbon technologies and decarbonization

ENGIE

strategies across Italy and then Europe.

As a leader in the biogas sector, Bioenergy DevCo through BTS Biogas hopes to build a pipeline in partnership with ENGIE that will result in the construction of more anaerobic digestion projects, where organic waste can be used to create renewable natural gas.

Franco Lusuriello, CEO of BTS Biogas commented: “Entering into this partnership with ENGIE provides us with incredible opportunities to leverage our technology and expertise on decarbonization projects. Anaerobic digestion is experiencing a renaissance, with increased interest throughout Europe, Asia and now North America – but our heart and our home is and will always be Italian. Through this deal we can help ensure that Italy meets its zero-carbon goals, invests in sustainable projects that encourage economic

recovery and contributes to the global fight against climate change.”

Shawn Kreloff, CEO of Bioenergy DevCo and Executive Chairman BTS Biogas agreed, saying: “The agreement between ENGIE and BTS Biogas brings together two leaders in sustainable energy development. The BTS approach to anaerobic digestion is unmatched, driven by decades of experience, data and innovation – and we look forward to the projects that result from this collaboration as more communities and businesses worldwide realise the potential for both sustainable organic waste management and renewable energy generation powered by BTS’ anaerobic digestion solution.”

From the ENGIE side, CEO of ENGIE Italia, Damien Terouanne was excited: “This is a valuable partnership,” he said.

“ENGIE aims to be the leader of the

zero-carbon transition and is committed to the realisation of numerous projects for the production of sustainable energy. In BTS Biogas we have found profound technological competence for the construction of advanced biomethane production plants with numerous environmental and economic advantages. In the current historical context progress in the field of environmental and social sustainability means pushing and supporting economic recovery.”

FUTURE STRATEGY? While biogas is viewed by most as an important part of strategy for not just businesses in the sector but also countries and economies, the future of this form of energy generation – and renewables as a whole – was briefly called into question recently when

BTS Biogas and Engie: the green partnership to provide renewable energy projects Our expertise is the development of complex, smart and profitable projects for companies and utilities in many different sectors

BE PART OF THE ZERO-CARBON TRANSITION

bts-biogas.com

226

25

191MWe

2.480Sm3

PLANTS BUILT

YEARS OF EXPERIENCE

INSTALLED

BIOMETHANE PRODUCED PER HOUR

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INDUSTRY FOCUS: RENEWABLES

ENGIE announced the appointment of Catherine MacGregor as its new CEO. From 1 January 2021, MacGregor will lead the organisation forward, executing its transformation to a carbon neutral economy. Paulo Almirante, Judith Hartmann and Claire Waysand will continue to serve as interim management team until January 1st.

However, MacGregor’s career has largely centred around the oil and gas and fossil fuels industries and it was asked if her experience was appropriate for a global company looking to embrace renewables.

“On behalf of the Board and employees of the Group, I am pleased to welcome Catherine MacGregor and wish her full success in her missions.

Her professional and personal skills will be essential assets in accelerating

ENGIE’s transformation. I look forward to working with her in the months and years to come to deliver the Group’s strategic orientations,” said Jean-Pierre Clamadieu.

“One should not reduce Catherine MacGregor to someone who comes from the oil industry. She has had a career in services to the extractive industries, but more than that she is someone who has major operational experience in complex environments and who has overcome all those challenges successfully,” he added.

MacGregor’s career spans more

than two decades in the energy industry, starting out at Schlumberger in 1995 and holding senior positions across the globe, before joining TechnipFMC in 2019 and leading the Technip Energies business.

“I would like to thank the Board of Directors for the confidence it shows in me. It honours and commits me. On the strength of our shared industry culture and my operational experience, I will work with all of our teams to achieve our goal of enabling ENGIE to accelerate the energy transition,” she said.

// WE ARE CONVINCED THAT ACCELERATING THE TRANSITION TO A CARBON-NEUTRAL ECONOMY IS BASED ON AN AMBITIOUS RESEARCH AND DEVELOPMENT POLICY //

© Engie

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ENGIE

© Engie

RENVICO ACQUISITION At the end of 2019, ENGIE acquired Renvico, a renewable energy business with interests in offshore wind in Europe. With 329 MW of installed wind capacity and a greenfield portfolio of 300MW, the hope is that this latest acquisition will offer up hope to those who are set on a carbon neutral future.

Gwenaëlle Avice-Huet, ENGIE’s

// ENGIE ALREADY SUPPLIES 100% GREEN ELECTRICITY FOR 2.9 MILLION CLIENTS IN FRANCE AND ONE MILLION CLIENTS IN ITALY //

Executive vice president in charge of Renewable Energy said: “This acquisition will contribute to ENGIE’s growth ambitions, adding 9 GW worldwide by 2021, of which 3 GW in Europe.

In France, this transaction will allow ENGIE to strengthen its onshore wind leadership, with a 2.1 GW installed capacity at the end of 2018. In Italy, ENGIE will double its onshore wind installed capacity, to reach more than 300 MW. ENGIE already supplies 100% green electricity for 2.9 million clients in France and one million clients in Italy. This new portfolio brings also an additional 300 MW capacity to be developed. It’s a corner stone of our ambition to accelerate the zero-carbon transition of our clients.”

This approach, taken by ENGIE but only a handful of other global energy businesses, is vital for the future of

the sector. As perceptions change and people position the spotlight right over the energy industry, there is a clear demand for renewable, carbon neutral and environmentally friendly practices.

By investing heavily into research and development, gaining world-class expertise to lead the business, and brining on board other businesses with shared values and expertise, ENGIE is actively working towards its purpose. By adding three or four GW of renewable capacity each year, ENGIE perhaps the perfect example of a business doing the right things for all stakeholders.

WWW.ENGIE.COM

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VESTAS

Innovation & New Orders

Keep Vestas Turning PRODUCTION: David Napier

A raft of new orders from all over the world, along with an innovative nature and history, have helped Vestas to continue to thrive during a year of turmoil in global markets.

44 / www.energy-focus.net

Vestas CEO Henrik Andersen Courtesy of Vestas Wind Systems AS

INDUSTRY FOCUS: WIND

//

As one company in the energy industry that is not having to undergo rapid overhaul to stay up to date with needs from clients, Vestas – which has been renewable to the core since switching to focus solely on wind energy in the late 70s – is thriving as countries around the world seek to reduce carbon emissions and harness nature.

Founded in 1898 as a blacksmith in rural Denmark, Vestas became a manufacturer and then an engineering business before entering the world of wind energy.

As a pioneer in the space, Vestas has witnessed the ups and downs of wind power, and is now recognised as one of the world’s authorities on turbines and wind farm installations.

Today, in a time of turmoil and disruption around the world, Vestas continues to march forward with strength as the demand for clean energy grows and sentiment surrounding the industry is bolstered by a number of major successful project all over the world.

NEW PROJECTS Earlier in the year, some projects were placed on hold as countries and companies struggled to deal with the Covid-19 pandemic, and strategies

// WE ARE PROUD TO DELIVER OUR TECHNOLOGY TO A LIGHTHOUSE PROJECT LIKE GREENLAB, WHICH WORKS TO TRANSFORM THE WAY GREEN ENERGY IS PRODUCED, CONVERTED, STORED AND PUT TO USE // 46 / www.energy-focus.net

were sought to ensure socially distanced workplaces. Now, projects are starting to come back online and new projects are being commissioned.

Vestas has secured a number of orders from clients on all continents, highlighting its global importance.

In September, Vestas announced orders from Italy, the USA, Poland and China.

In Poland, Eurowind Energy A/S ordered V100-2.0 MW wind turbines combined with 120m towers for three wind farms, totalling 40 MW. The parks are located in the north-west of the country in the Wagrowiec, Oborniki and Wyrzysk provinces. With around 400 people working on an installed capacity of 2.2 GW in Poland, operating there since 2002, Vestas is a the market leader.

“We are proud to continue our partnership with Eurowind Energy A/S and deliver best-in-class technology to drive the energy transformation in the region. We’re looking forward to realising these projects for our customer Eurowind Energy A/S,” says Nils de Baar, President of Vestas Northern and Central Europe.

Eurowind Energy A/S CEO Jens Rasmussen was equally buoyant. “We are happy to place this order for a second bundle of projects that won the 2019 renewable auction in Poland.

Our pipeline of projects in Poland are

substantial and we expect to place further orders in the near future.

Vestas was a natural choice for our pipeline due to the reliability of the technology,” he said.

Similar enthusiasm came from Denmark where Eurowind Energy is busy with the GreenLab Skive project.

This project sees multiple renewable energy projects combined to produce clean power while providing research for the industry. Solar, wind and biogas are utilised on the site, in Mid Jutland, with Vestas brining a unique solution.

One V126-3.45 MW turbine, delivered in 3.6 MW Power Optimised Mode, and 12 V136-4.2 MW turbines, combined with towers will help to enhance performance. The total 54 MW order brings Vestas contribution in Denmark to more than 3.7 MW. “We are happy to execute this landmark project in Denmark together with Vestas and thus strengthening our cooperation with Vestas even further. This hybrid project - with wind, solar and storage battery - will supply green power directly to a 12 MW hydrogen/E-methanol production facility making the green transition really happening through sector coupling,” says Jens Rasmussen.

“We are proud to deliver our technology to a lighthouse project like GreenLab, which works to transform the way green energy is produced,

VESTAS

converted, stored and put to use.

GreenLab truly marks a significant step in making the energy transition come true. At the same time, we look forward to implementing yet another wind project with Eurowind Energy A/S and utilising the flexible 4 MW platform technology for the benefit of our valued customer,” says de Baar.

In October, further new orders were announced from clients in India, Chile and Vietnam.

In South America, Vestas has completed many successful installations but Chile in particular has been something of a boon market.

Today, the company has installed or under construction 1.5 GW of turbines.

Mainstream Renewable Power placed the order for supply and installation of 26 V150-4.2 Turbines to make up the 109 MW

Ckani wind park, to be located in the Antofagasta region.

“We are proud to be partnering with Mainstream Renewable Power once again in Chile, after working together on the 185 MW Cerro Tigre wind project. We are certain that the competitiveness of our V150-4.2 MW turbine and our service capabilities will make a great contribution to optimise our customer’s business case,” says Sales Senior Director for Vestas LATAM South Cone, Andrés Gismondi.

“We are delighted to announce this second partnership with Vestas in Chile and to continue working with them on the delivery of our Chilean renewable energy platform, Andes Renovables,” says Manuel Tagle, General Manager for Mainstream Chile and LATAM.

// VESTAS IS THE LEADER IN ONSHORE WIND, BUT TO ACCELERATE THE ENERGY TRANSITION AND ACHIEVE OUR VISION WE MUST PLAY A LARGER ROLE IN OFFSHORE WIND // Soon after this announcement, a 50 MW order came in from Vietnam and local developer, Ia Bang Wind Power Joint Stock Company (owned by the Vietnam-based renewable power producer Gia Lai Electricity Joint Stock Company (GEC)). The order

Courtesy of Vestas Wind Systems A/S

www.energy-focus.net / 47

INDUSTRY FOCUS: WIND

includes supply and supervision of the installation of 12 V150-4.2 MW wind turbines delivered in different power ratings to optimise energy production for the site’s specific wind conditions.

The project which should be commissioned in 2021 will take Vestas order intake beyond 1.1 GW in Vietnam.

“Partnering with GEC is a fantastic opportunity to cement our leadership in Vietnam, delivering clean and reliable energy to accelerate this country’s growth,” said Clive Turton, President of Vestas Asia Pacific. “With our extensive experience in executing projects,

both globally and locally, we look forward to getting the project online ahead of the feed-in-tariff deadlines.”

Ms Nguyen Thai Ha, Chief Executive Officer of GEC added: “In GEC’s Renewable Energy development strategy, wind power is one of the first priority segments for investment with the ambition to develop up to hundreds of megawatts of wind power capacity in the next five-year period. We are therefore honoured with this cooperation and believe that the use of Vestas’ turbines, installation supervision, operation and maintenance services will not

only help GEC to complete the project on schedule with the highest quality, but also achieve optimal efficiency in operation, contributing to the supply of clean and safe energy for the country.”

INNOVATIVE PARTNERSHIP At the end of October, Vestas announced that it would deepen its partnership with Mitsubishi Heavy Industries (MHI). The idea is to increase both companies exposure to relevant market opportunities while innovating and solving problems by utilising joint expertise.

// OFFSHORE WIND IS KEY TO CREATING A SUSTAINABLE PLANET FOR FUTURE GENERATIONS AND OFFERS UNIQUE GROWTH, AND WITH TODAY’S ANNOUNCEMENT WE UNDERLINE THAT WE WANT TO BE AN INTEGRAL PART OF BOTH //

48 / www.energy-focus.net

VESTAS

With Vestas experience in the wind energy sector combined with MHI talent on the engineering side, the partnership will help Vestas to further its profile in offshore wind while MHI will be able to influence the integration between on and offshore technology.

“Vestas is the leader in onshore wind, but to accelerate the energy transition and achieve our vision we must play a larger role in offshore wind,” said Henrik Andersen, Group President and CEO of Vestas. “On behalf of all of Vestas, I’m therefore very excited that MHI shares Vestas’ vision to become a leading player in offshore wind energy in the long term and will strengthen our partnership by becoming a large shareholder and part of Vestas’ Board of Directors.

Offshore wind is key to creating a sustainable planet for future generations and offers unique growth,

and with today’s announcement we underline that we want to be an integral part of both.

“On behalf of Vestas, I look forward to welcoming Kentaro Hosomi, CEO, Energy Systems, MHI, to our Board of Directors. We hope to benefit from his visionary and strategic mindset as we seek to create a more sustainable planet for future generations.”

Seiji Izumisawa, President and CEO of MHI, was also excited about the opportunities to develop technology that would benefit future generations.

“We are very pleased to be able to expand our cooperation and collaboration with Vestas, now more than ever, under the backdrop of increasing need for cleaner and more economical energy worldwide,” he said. “We will continue to strengthen business cooperation by leveraging our respective strengths to support the growth of clean energy around the

world, especially in Japan.”

These partnerships, along with the ongoing and regular additions to the company’s order book, cement Vestas’ position as a global industry leader. Its long-term vision – to be the global leader in sustainable energy solutions – is certainly achievable, and if the mid-term objectives of becoming the global leader in wind power plant solutions and wind service solutions are obtained then there is no reason why Vestas cannot continue on its path to the top of the wind energy power pyramid.

WWW.VESTAS.COM

Courtesy of Vestas Wind Systems A/S

www.energy-focus.net / 49

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