Nitrogen+Syngas 371 May-Jun 2021
31 May 2021
Syngas News
Syngas News
UNITED STATES
Renewable hydrogen to become lower cost than gas-based
A recent report from BloombergNEF (New Energy Foundation) looking ahead to 2050 argues that green hydrogen can be cheaper than natural gas. It finds that ‘green’ hydrogen from renewables should become cheaper than natural gas (on an energy-equivalent basis) by 2050 in 15 of the 28 markets modelled, assuming scale-up continues. These countries accounted for one-third of global GDP in 2019. In all of the markets BNEF modelled, ‘green’ hydrogen should also become cheaper than both ‘blue’ hydrogen (from fossil fuels with carbon capture and storage – CCS) and even ‘grey’ hydrogen from fossil fuels without CCS. The cost of producing ‘green’ hydrogen from renewable electricity should fall by up to 85% from today to 2050, the report predicts, leading to costs below $1/kg ($7.4/MMBtu) by 2050 in most markets. These costs are 13% lower than BNEF’s previous 2030 forecast and 17% lower than their previous 2050 forecast. Falling costs of solar photovoltaic (PV) electricity are the key driver behind the reduction; BNEF now believes that PV electricity will be 40% cheaper in 2050 than they had thought just two years ago, driven by more automatic manufacturing, less silicon and silver consumption, higher photovoltaic efficiency of solar cells, and greater yields using bifacial panels.
Martin Tengler, lead hydrogen analyst at BloombergNEF commented: “Such low renewable hydrogen costs could completely rewrite the energy map. It shows that in future, at least 33% of the world economy could be powered by clean energy for not a cent more than it pays for fossil fuels. But the technology will require continued government support to get there – we are at the high part of the cost curve now, and policy-supported investment is needed to get to the low part.”
“By 2030, it will make little economic sense to build ‘blue’ hydrogen production facilities in most countries, unless space constraints are an issue for renewables. Companies currently banking on producing hydrogen from fossil fuels with CCS will have at most ten years before they feel the pinch. Eventually those assets will be undercut, like what is happening with coal in the power sector today.”
“On one hand the reduction in the forecast was surprising, on the other hand not. This is how it goes with clean energy. Every year it gets cheaper, faster than anyone expects. The key driver is the falling cost of solar PV electricity. We now think solar PV power will be 40% cheaper by 2050 than what we had thought just two years ago.”
Nacero selects Topsoe’s TIGAS™ technology
Nacero has licensed Topsoe TIGAS technology for its multi-billion dollar naturalgas-to-gasoline facility in Penwell, Texas to produce 100,000 bbl/d of gasoline component ready for blending to US commercial grades. The plant will produce gasoline from low-cost natural gas, captured bio-methane from farms and landfills, and mitigated flared gas from the Permian basin. Topsoe is providing engineering and design services currently and will supply catalyst and proprietary hardware to the facility. The Penwell facility will be the first gasoline manufacturer in the world to incorporate carbon capture and sequestration. The captured CO2 will be used for enhanced oil recovery.
“By making our gasoline from natural gas, renewable natural gas, and captured flare gas rather than crude oil, Nacero will offer America’s 225 million drivers an affordable, everyday climate solution,” said Jay McKenna, Nacero President and CEO. “The TIGAS technology enables us to cut both the production cost and the lifecycle carbon footprint of everyday fuel by 50%. As a result, we will be able to profitably sell our environmentally superior fuel at competitive prices. We will use existing vehicles, markets, and infrastructure to quickly, predictably, and cost effectively bring Nacero Blue and Green gasoline to US markets and help mitigate climate change.”
TIGAS incorporates Topsoe’s SynCOR Methanol technology. The Penwell plant will use six SynCOR trains to produce more than 30,000 t/d of methanol, which will then be processed to gasoline. The only byproduct will be water, which will be recovered and used to supply 80% of the plant’s make-up water. The Penwell facility will also produce ‘blue’ hydrogen.
TRINIDAD & TOBAGO
Two more methanol plants shut down
Methanol Holdings Trinidad Ltd (MHTL) has closed down two of its methanol plants at Point Lisas after failing to secure a gas supply agreement with the National Gas Company of Trinidad & Tobago. The closure of the M4 and M5000 plants means that four of the seven methanol plants at the sprawling Point Lisas site are now idled, as well as several ammonia units at the site. Trinidad’s gas production continues to decline and is now at its lowest level in 16 years, while the high price of natural gas that NGC is trying to achieve renders the operation of many plants uneconomic.
MHTL, operated by the Swiss-based Proman Group, will continue to operate its M2 and M3 methanol units, which use gas supplied by DeNovo.
WORLD
World added record new renewable energy capacity in 2020
Despite the covid-19 pandemic, more than 260 GW of renewable energy capacity was added globally in 2020, beating the previous record by almost 50%, according to data released by the International Renewable Energy Agency (IRENA). IRENA’s annual Renewable Capacity Statistics 2021 shows that renewable energy’s share of all new generating capacity rose considerably for the second year in a row. More than 80% of all new electricity capacity added last year was renewable, with solar and wind accounting for 91% of new renewables. Renewables’ rising share of the total is partly attributable to net decommissioning of fossil fuel power generation in Europe, North America and for the first time across Eurasia (Armenia, Azerbaijan, Georgia, Russian Federation and Turkey). Total fossil fuel additions fell to 60 GW in 2020 from 64 GW the previous year, highlighting a continued downward trend of fossil fuel expansion.
The 10.3% rise in installed capacity represents expansion that beats long-term trends of more modest growth year on year. At the end of 2020, global renewable generation capacity amounted to 2,799 GW with hydropower still accounting for the largest share (1,211 GW) although solar and wind are catching up fast. The two variable sources of renewables dominated capacity expansion in 2020 with 127 GW and 111 GW of new installations for solar and wind respectively.
China and the United States were the two outstanding growth markets from 2020. China, already the world’s largest market for renewables, added 136 GW last year, with the bulk coming from 72 GW of wind and 49 GW of solar. The United States installed 29 GW of renewables last year, nearly 80% more than in 2019, including 15 GW of solar and around 14 GW of wind. Africa continued to expand steadily with an increase of 2.6 GW, slightly more than in 2019, while Oceania remained the fastest growing region (+18.4%), although its share of global capacity is small and almost all expansion occurred in Australia.
DENMARK
Maersk says it will meet carbon neutral methanol vessel deadline
Maersk says that is optimistic it will fulfil its commitment to operate a carbon neutral methanol-powered ship by 2023. The company’s head of decarbonisation Morten Bo Christiansen says that the company’s commitment to a having carbon neutral ship running on green methanol in 2023 is ‘extremely tough’, but the company is in talks to secure the necessary supply of the fuel, and Maersk has a ‘relatively solid path’ towards its 2023 plan for a carbon-neutral methanol-powered ship.
The company committed in February to having a dual-fuel feeder ship running on carbon-neutral methanol by 2023. At the time of its announcement it had not secured a green methanol supply partnership and had not decided where the vessel would operate. It also pledged that all of its newbuild vessels from 2023 onwards would be capable of running on carbon-neutral means. Maersk had previously committed to having net zero CO2 emissions from its operations by 2050.
Blue World and Alfa Laval working on methanol fuel cells for shipping
Methanol fuel cell developer Blue World Technologies is supplying an innovative fuel cell system based on high-temperature proton exchange membrane (HTPEM) technology for testing at the Alfa Laval Test & Training Centre in Aalborg. The test installation, which will use methanol as fuel, will explore the technology’s potential as a source of marine auxiliary power. The project, funded by the Danish EUDP (Energy Technology Development and Demonstration Program), is a joint effort between fuel cell maker Blue World Technologies, Alfa Laval and vessel owners DFDS, Maersk Drilling and Hafnia.
The aim of the project is to establish a highly efficient and cost-effective HTPEM fuel cell solution, giving marine vessels a realistic alternative to combustion-based auxiliary power within the near future. The fuel cell test setup will have a power of 200 kW, but the fully developed and modular design should be possible to scale up incrementally to a level of 5 MW.
GERMANY
‘Green’ hydrogen from waste to energy plant
Linde Engineering has been selected for the design and construction of an integrated hydrogen fuelling station and electrolysis plant for AGR in Herten. The project comprises hydrogen production using proton exchange membrane (PEM) electrolysers, compressors, storage tanks and high-performance fuelling stations. It will receive funding of up to e6.2 million from the German Federal Ministry of Transport and Digital Infrastructure via the National Innovation Program Hydrogen and Fuel Cell Technology (NIP). The contract also includes provisions for Linde to provide maintenance and service. The electrolysers will have a capacity of around 440 t/a of hydrogen.
Electricity will come from AGR’s wasteto-energy thermal power plant, where municipal and commercial waste with a biogenic content of around 50% serves as the primary fuel source. The planned fueling station will be able to fill vehicles at 350 bar and 700 bar and therefore will be suitable for both cars and trucks. The hydrogen produced in Herten will primarily be used to supply both public and private transportation vehicles, but the focus will be on waste trucks serving the surrounding communities, AGR’s own fleet, and the sale of hydrogen to commercial and industrial enterprises.
“The collaboration is a good example of how Linde can support companies and municipalities with an integrated hydrogen offering,” says Michael Schäffer, Head of Hydrogen and Syngas Plants at Linde Engineering. “This ambitious project includes superior solutions, such as electrolysis and refuelling technologies, which fit well with AGR’s ambitions for an environmentally friendly circular economy.”
FRANCE
Hydrogen cargo vessel to begin commercial operation
The European innovation project Flagships will deploy the world’s first commercial cargo transport vessel operating on hydrogen on the river Seine in Paris later this year. The hydrogen cargo transport vessel will be owned by French inland shipowner Compagnie Fluvial de Transport (CFT), a subsidiary of the Sogestran Group. The company is currently developing a new business for urban distribution with transport vessels in the Paris area. The new vessel will be tasked with moving goods on pallets and in containers along the river Seine.
The Flagships project was awarded euro 5 million of funding in 2018 from the EU’s Research and Innovation programme Horizon 2020, under the Fuel Cells and Hydrogen Joint Undertaking (FCH JU), to deploy two hydrogen vessels in France and Norway. The vessel will operate on compressed hydrogen produced from electrolysis. The power generation system will be supplied by ABB Marine & Ports, with fuel cells from Ballard. LMG Marin is responsible for detail design drawings, with hydrogen provided by suppliers in the Paris region.
NETHERLANDS
Alliance to bring green hydrogen to European market
Proton Ventures BV, trading company Trammo, and VARO, an European mid- and downstream energy company, have signed a memorandum of understanding to form the ‘Transhydrogen Alliance’, a joint initiative on the production and import of green hydrogen and ammonia into Europe via Rotterdam, as well as export from selected locations worldwide. The Port of Rotterdam Authority supports this consortium, especially in its effort to set up an import terminal in Rotterdam for these new supply chains.
The consortium will begin with an initial project for the production of green hydrogen produced from solar and wind rich areas and the import of this hydrogen in the form of green ammonia into Europe. The initial project is expected to be completed by 2024. Following success of the initial project, the Transhydrogen Alliance will target the import up to 500,000 t/a of green hydrogen equivalent via up to 2.5 million t/a of green ammonia per year via the Port of Rotterdam.
INDIA
Tecnimont to develop green hydrogen projects in India
Maire Tecnimont, via its subsidiaries NextChem, Stamicarbon and MET Development, has signed a memorandum of understanding with Adani Enterprises Ltd (AEL) to explore the development of industrial projects using NextChem and Stamicarbon’s technologies and MET DEV’s project development capabilities to industrialise green chemistry and circular economy sectors in India. The projects will be focused on producing chemicals, ammonia and hydrogen from renewable feedstocks.
AEL is part of the Adani Group, India’s largest player in the infrastructure and energy sectors, including 14 GW (gigawatt) of renewable assets under operation, construction and contracts. AEL is strongly committed to enabling the renewable transition via its 3.2 GW of existing and planned annual solar panel manufacturing capability and incubation of innovative environmentally friendly technologies. Under the agreement, AEL and Tecnimont’s subsidiaries will jointly explore integrated opportunities for the monetisation of renewable feedstocks via NextChem’s and Stamicarbon’s technologies for chemicals, ammonia and green hydrogen applied to the chemicals value chain.
CANADA
Carbon Engineering to offer carbon dioxide removal service
Carbon Engineering has launched a new carbon dioxide removal service that allows customers to purchase the removal of carbon dioxide from the atmosphere using CE’s large-scale ‘direct air capture’ (DAC) technology. Shopify, a leading global e-commerce company based in Ottawa, Canada, has signed on as the first customer for the service, reserving 10,000 tonnes of permanent carbon removal capacity via a large-scale DAC project.
The carbon dioxide removal will be achieved through CE’s plant development partner, 1PointFive – a US development company currently engineering CE’s first industrial-scale facility, which is expected to be operational in 2024. DAC removes carbon dioxide directly from the atmosphere, enabling it to be permanently, securely and measurably put back underground. The new service allows customers to purchase carbon removal units in quantities as small as 100 units. Each unit represents one metric tonne of carbon dioxide captured and permanently removed from the atmosphere, offsetting emissions from the past, present or future. Customers pre-pay a deposit for their carbon removal units, with the remainder due only once the carbon dioxide has been physically removed and independently verified. Customers will receive discounts for purchasing higher volumes.
SWEDEN
Siemens to invest in Liquid Wind consortium
After several years of collaboration, Siemens has agreed to take an equity stake in power-to-fuel developer Liquid Wind AB to produce renewable methanol and significantly reduce carbon emissions from shipping. Siemens Energy will contribute technology and expertise to the development of eMethanol facilities.
Liquid Wind’s facilities will integrate a 70 MW PEM electrolyser built by Siemens Energy, which will use renewable electricity to split water into green hydrogen and oxygen. In addition to the electrolyser, Siemens Energy will also supply the entire power distribution, electrification, instrumentation, motors, drives and plant-wide automation for the facility. Digital tools will support the operation, optimisation and replication of the standardised facilities.
“eMethanol will be one of the drivers in the future of transportation and Siemens Energy wants to be an active part of this,” said Engelbert Schrapp, Principle Corporate Account Manager of Siemens Energy.
“After close collaboration for five years we are pleased to officially welcome Siemens Energy to the Liquid Wind project,” said Claes Fredriksson, CEO and founder of Liquid Wind. “They bring a broad range of valuable expertise, solutions and contacts.
Their systems and collaborative spirit will play a crucial role in enabling the efficient replication of eMethanol facilities to meet growing demand for carbon neutral fuel.”
UK-based carbon capture company Carbon Clean has also recently entered into an agreement with Liquid Wind to develop, standardise, and supply carbon capture technology and expertise to support the production of carbon neutral marine fuels. Carbon Clean’s technology will capture biogenic carbon dioxide emissions from a local industrial site. Within the Liquid Wind facility, the CO2 will then be combined with renewable hydrogen to form methanol.
The initial project will be built in Örnsköldsvik, on the northeastern coast of Sweden. Once operational from early 2024, the fuel facility will turn 70,000 t/a of CO2 into 50,000 t/a of carbon neutral methanol. By replacing fossil fuels, the methanol will prevent up to 100,000 tonnes of carbon dioxide emissions per year.
Liquid Wind ultimately plans to develop up to 500 operational sites globally by 2050. The project has support from a consortium including Haldor Topsoe and Alfa Laval, as well as Carbon Clean and Siemens Energy.
SPAIN
Waste-to-methanol plant in Tarragona
Repsol says that it will join the Ecoplanta project, together with Enerkem and Grupo Agbar to build a waste-to-methanol plant in Tarragona, Spain. Under the joint venture Ecoplanta Molecular Recycling Solutions, the plant will process around 400,000 t/a of non-recyclable municipal solid waste from the city’s surrounding regions and produce 220,000 t/a of methanol. This methanol will be used as raw material to produce circular materials or advanced biofuels, contributing to avoid 200,000 t/a of CO2 and reducing the waste that ends up in the landfill. This alliance is a further step towards the multi-energy company’s ambition to become a net-zero emissions company by 2050.
The plant, the first of its kind in the Iberian Peninsula, will be co-managed by Repsol and Agbar, whilst Enerkem will be the key technological partner. The plant is projected to be in operation in 2025 after taking the project’s final investment decision by the first quarter of 2022. The project already obtained the Integrated Environmental Authorization and the approval of the Environmental Impact Statement from the local authorities.
The plant will use gasification technology to transform municipal solid waste into high value-added products such as methanol. Enerkem is the owner of this patented technology, the first to be tested on an industrial scale, after a rigorous scale-up from pilot to demonstration to commercial scale that took place over a decade, in its commercial demonstration plant in operation in Edmonton, Alberta, and a new facility under construction in Varennes, Québec.
Jose Luis Bernal, Repsol’s Executive Director for Chemicals, said: “We are very pleased to join forces with relevant waste management and innovative technology partners, showing our commitment to circular economy and reinforcing our commitment to recycle 20% of our polyolefins production by 2030.”
Hydrogen electrolysis hubs
Siemens Energy and Messer Group have entered into a cooperation agreement to work on green hydrogen projects in the 5-50 Megawatt (MW) range for industrial and mobility applications. Within the framework of this agreement, Messer Ibérica has already submitted three clean hydrogen projects in the chemical complex of Tarragona to the Spanish government. These projects will have a total electrolyser capacity of 70 MW. The intention of the partners is to achieve the most economic operation possible, by maximising cost efficiency and the utilisation of all co-products in an integrated hub concept. In the Tarragona chemical park Messer Ibérica operates a pipeline network for oxygen where this electrolysis co-product will be used.
Decarbonisation is a top priority of governments worldwide in order to combat climate change. Spain’s “Hydrogen Roadmap” places the country at the forefront of this movement, building on its advantageous geography for the generation of renewable energy. The chemical industry in Tarragona, one of Europe’s largest chemical parks, has identified renewable hydrogen based on electrolysis as an essential solution to replace fossil fuels in its processes.
Stefan Messer, owner and CEO of Messer Group GmbH, said: “We are focused on developing technologies that make our customers’ production processes safer, more efficient and eco-friendly, including clean hydrogen applications in industry and in mobility. In Europe, Asia and the Americas, we already operate gases production facilities expertly on-site, optimizing the use of all co-products, allowing customers to concentrate on their core businesses whilst enjoying environmental and commercial benefits. Together with Siemens Energy we will extend these advantages to industrial customers switching to green hydrogen produced by electrolysis.”
BRAZIL
Linde to support $5.4 billion hydrogen hub
Linde subsidiary White Martins has signed a preliminary agreement with the Pecém Industrial and Port Complex (CIPP) to support the development of a green hydrogen hub in Brazil. The Port complex will be built by Australia’s Enegix Energy following an investment of $5.4 billion to develop the hub with support from White Martins. White Martins hopes to expand on its current industrial gases plant, situated in the Port, by introducing new facilities that support hydrogen production and distribution, ammonia production, hydrogen liquefaction and the use of hydrogen in transport. The Port complex already contains multiple heavy industrial facilities including steel, fertilisers, cement and mining with the new hydrogen project looking to develop new sustainable variants in each of these products.
CHINA
Air Products acquires full ownership of gasification joint venture
Air Products says it has completed the acquisition of the remaining 50% equity stake in its gasification technology joint venture (JV) with China Shenhua Coal to Liquid and Chemical Co. Ltd., a subsidiary of China Energy Group, for an undisclosed sum. Air Products acquired its initial 50% stake in the JV as part of its acquisition of General Electric Company’s gasification business from GE Power in 2019. The company says that the transaction further strengthens its broader gasification technology portfolio and integrates technical and engineering resources in China.
“Our latest investment is another step to support our gasification growth strategy that addresses the world’s energy and environmental challenges. We continue to execute several megaprojects in China and around the world. The acquisition further strengthens our position to leverage our complete gasification technology portfolio to serve our customers,” said Seifi Ghasemi, chairman, president and chief executive officer at Air Products.
