1 st st OPPO OP PORTU TUNIT NITIE IES FOR FORUM SCO UM SCOTLAND TLAND GREEN GR N HY HYDR DROG OGEN AT T INDU INDUST STRI RIAL AL S SCA CALE LE FOR A FOR A ZE ZERO CAR CARBO BON FUTURE FUTU RE
Oppor ortuni nities ies Forum Scot otlan land Green Hydrogen at an Industrial Scale for a Zero Carbon Future 20 th May 2020 woodplc.com woodplc.com
Who we are 160+ $10bn 60,000 60+ 400+ Year history Revenue Employees Countries Offices 3 A presentation by Wood.
Scotland – a country rich in renewables Courtesy: SPR Courtesy: SSE 4 A presentation by Wood.
Growth leaders – onshore and offshore wind 3GW onshore wind consented and awaiting construction Offshore wind anticipated to add 12GW by 2030 Source: ScottishRenewables 5 A presentation by Wood.
Renewables can decarbonise all energy… Industr stry Heat Heat / Transport / Industry • Now key focus of decarbonisation policy Electri tricity ty • Three times more energy Wind Solar than power alone • Energy vectors: • Electrification Bio/Ge /Geo Energy Marine ne & Hydro Transpo nsport • Hydrogen • Solutions require large scale infrastructure • Scale is required for cost reduction • Industry has the required expertise 6 A presentation by Wood.
Hydrogen n is poised to grow rapidly T en-fold increase predicted by 2050 • (Hydrogen Council) Quarter of the global CO 2 reduction by • 2050 Investment of $2.5tr • Many governments now heavily promoting • clean hydrogen: Australia • France • Germany • Netherlands • Japan • UK • Full deployment requires international • trade And cost competitiveness with other forms • of low carbon energy 7 A presentation by Wood.
Global Hydrogen Consumption (2018) Ten-fold increase by 2050 (Hydrogen n Counc ncil) Existi ting feedsto tock ck uses 8 A presentation by Wood.
9 A presentation by Wood.
Hydrogen – an Energy Vector with Storage Capability Source: Siemens Source: IEA Technology Roadmap Hydrogen & Fuel Cells 10 A presentation by Wood.
Cost competitiveness $/kg T arget the lowest cost renewable resource: • High load factor • Large scale 11 A presentation by Wood.
Electrolyser costs are reducing rapidly…. $/kg PEM may overtake alkaline, and has other advantages Equipment and electricity costs are equally important 12 A presentation by Wood.
Projects jects ar are e scal aling ing up 13 A presentation by Wood.
Green Hydrogen Costs $/kg Grid, continuous operation Grid, off-peak electricity Dedicated wind farm Curtailed electricity Alkaline PEM Source: Bloomberg NEF, 2020 14 A presentation by Wood.
High load factors are required • Ammonia production alone is responsible for about 360 million tonnes of CO 2 emissions each year, about 1% of the world’s total emissions • Green hydrogen could be competitive to hydrogen from SMR paired with CCS in countries with cheap renewable energy Source: International Energy Agency Assumptions: CAPEX of electrolyzers USD 850/kW, WACC 7%, lifetime 30 years, efficiency 74%; cost of hydrogen from SMR USD 1 to 3/kg, cost of CCS USD 0.75/kg H 2 (~USD 75/tCO 2 )) 15 A presentation by Wood.
Wind & Solar Resource Quality Source: International Energy Agency 16 A presentation by Wood.
Supply and demand centres Low Cost Renewables Low Demand d Centres Source: International Energy Agency 17 A presentation by Wood.
Offshore Green Hydrogen Offshore wind growth creates opportunities for green hydrogen: • Power grid limitations • Remoteness from shore T echnical challenges to address: • Electrolyser marinisation • Deck space required • Fresh water supply • Maintenance logistics • Hydrogen export Potential for shared infrastructure 18 A presentation by Wood.
Establishing a global market Same for hydrogen? 19 A presentation by Wood.
Bulk Transport of Hydrogen Ammoni nia Green Meth than anol Source: KHI Liquefi uefied Source: Siemens Pres essuri urised ed 20 A presentation by Wood.
Summary • Clean ean Hydrogen ogen has key role le to play ay in globa bal l decarbo arbonis nisation: ation: • Heat, t, trans anspor port t and indus ustr try sector tors all l stand and to benef efit it form rm clean an hydrogen ogen use • Large scale deployment is required to fully exploit hydrogen’s capabilities • That at requi uires es: • Electrol olyser yser cost reduct uctions, ons, and • Highest est quality ity renewab ewable le resour ources, es, and • Cost-ef effective ective means s of bulk shipping/t ing/tran ansp spor ort • Scotland tland has a super per-abun abunda danc nce e of low cost t wind – onsho hore e and offsho hore • This is resour ource e is ideall eally positi itione oned d to serve indust dustri rial al demand mand acros oss Europe ope • Working ing in colla laboration boration on an intern ternationa tional l bas asis is 21 A presentation by Wood.
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