stella-renewables

HYDROGEN HYPE

Tue, 28 Jun 2022 13:17:36 GMT

The last two years has seen the long-awaited hydrogen economy boom into the public conscience.

It seems every day there are multi-GW announcements from both governments and private companies for hydrogen production from renewable wind and solar at scales that are hard to fathom – even for renewable energy optimists like us. Hydrogen has been promised to allow transport of energy from the Renewable energy rich northwest of Australia, the middle east and the windy north of Canada to Europe, however, the energy and economic viability of this is still in question.

Clearly Hydrogen has a role to play in the future energy mix and in our view especially in the production of ammonia, methanol and chemical intermediates (i.e. the current markets for fossil hydrogen), however a growing body of studies indicates that using Hydrogen for home heating through the gas network and for transport is unlikely to compete with alternatives.

For the transport industry the well to wheel efficiency for hydrogen transport is between 30-40% of renewable electricity into distance travelled. While it is between 70-80% for electric vehicles using batteries. This means that hydrogen-based transport will require 2.5 times as much solar and wind vs electric cars, plus extensive infrastructure, plus electrolysers.

SAF Frenzy

Tue, 28 Jun 2022 13:17:35 GMT

Hard to decarbonise sectors like long distance trucking, long distance ocean freight and long-haul aviation have few options outside of functionally equivalent renewable fuels to replace fossil incumbents.

In the last 3 years there has been a frenzy of investment into refineries that can convert vegetable oils/fats into renewable diesel and jet fuel. As of September 2022, there are approximately 100 billion L of renewable diesel/SAF facilities under construction or planning. The elephant in the room is that there is no where near enough vegetable oils and fats from existing resources available to feed these.

This feedstock gap has the potential to unlock new resources like algal biofuels or cover crops, but has also opened the door to other alternatives like synthetic Electro fuels and ethanol to jet options.

The key take home is that the trilemma of low emissions/affordable/fuel security and the sheer scale of current consumption means there is no silver bullet and multiple pathways and feedstocks will be required in combination with continuing penetration of electrification and efficiency gains.

Slow and Steady with constant potential

Tue, 28 Jun 2022 13:17:35 GMT

Amidst the fanfare and hype around Hydrogen/Lithium ion/Solar pv/Offshore wind/Electrofuels the mature technologies related to biomass based heat, wood pellets and anerobic digestion continue to demonstrate cost and energy efficiency as energy vectors, offer measurable and proven carbon emission reductions and multiple value adds, including:

Carbon negative potential (sequestration through soil improvement)
Waste re-useand emissions avoidance
Local economic benefits
Energy available in transportable and useable forms
These technologies are being deployed globally at fantastic rates and they have genuine potential to deliver real outcomes with low risks.

Stella’s team has extensive experience in these technologies and can help businesses and investors identify opportunities to use local resources to meet energy and environmental objectives.