RENEWABLE ENERGY PROVISION
BIG PORT ENERGY TURNROUND Ports could become the power brokers in the provision of renewable energy in Europe, writes Stevie Knight “It used to be that the inland side provided the power and harbours provided the resources,” says Jillis Raadschelders of DNV GL Energy, “But this model could soon change dramatically with ports beginning to deal in renewable energy.” The reason is simple. There is a huge increase planned for European offshore wind, from 16GW in 2017, to a targeted 56GW in 2030 and 168GW by 2050. This poses a conundrum that has been investigated in the new Ports: Green Gateways to Europe study by DNV GL, with input from Eurelectric. EXCEEDING PRESENT CAPACITY To put it in perspective, the Netherlands’ electric grid currently handles somewhere between 15,000MW and 25,000MW, but by 2030 another 10GW of offshore wind will be added. This will “far exceeds present capacity,” underlines Raadschelders. The idea is to absorb it at the coast, so there is no need to build out the entire onshore grid for peak power generation. “If you are able to land offshore wind close to port, you are already working with an optimised energy hub,” he explains further. Location will be key, regardless, and many harbours will invite industrial partners to share in developing a local electrical grid. At the same time, a similar hydrogen network – created by an electrolyser at the port – will also be attractive and can partner with technical and safety expertise already available. “BEYOND SMALL EXPERIMENTS” Magnus Hall, lead of both Vattenfall and Eurelectric, adds that renewably derived hydrogen “is one of the front runners” for decarbonisation. It can be used directly in a number of industrial processes, although he stresses that for efficiency “you have to put it in the harbour”. Interestingly, he explains that in Sweden there are already discussions on the low carbon manufacture of steel, although he adds that it is necessary to “think beyond small experiments”. Size will have more than a little influence. Some countries are looking to create a national hydrogen infrastructure with associated grid resources, but ports can be the first movers, providing a valuable tipping point and helping crystallise green transport initiatives. “History shows that in a harbour, supply creates demand... so if something is available, it will be utilised further,” explains Raadschelders. However, investment choices might not always be clear, as Raadschelders confirms. “For one partner company, electrification might be the answer, but the one next door might want hydrogen, while a third could want both. Therefore, there is a question about how best to utilise the available energy and balance demand. It’s about system integration, combining the two infrastructures.”
8 There’s a huge increase planned for European offshore wind which potentially brings with it a power broker role for ports
FALLBACK PLAN Yet all systems require a fallback plan, as wind power can be inconsistent. Hydrogen will have some kind of storage, but if looking at fulfilling a baseline electrical demand for clients, it is unlikely that hydrogen can then be switched back to electricity, “as is too valuable for that”, he explains. The alternatives are conventional generation, battery storage and import or power connections from elsewhere, plus there could be demand side flexibility worked into the agreement. All this adds to the investment… and of course, it all needs to have a clean-green source if zero emissions are in the contract. However, do it right and ports will have a compelling business case. There is also a warning: “The decarbonisation roadmap will develop over time,” says Raadschelders, “so a straight line between start and finish is unlikely, but if you constantly change direction, you can strand your assets”. Therefore, choices need to have built-in flexibility, but be backed up by long-term policy decisions and, of course, remain firm enough to build on. 8 An electrolyser at a port will provide the basis for a local hydrogen grid and crystallise green transport initiatives
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The inland side used to provide the power and harbours the resources . . . but soon ports could begin to deal in renewable energy For the latest news and analysis go to www.portstrategy.com/news101
SEPTEMBER 2020 | 39
