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The geopolitical drivers around energy security and the price of crude oil have the potential to change the ‘energy order’ forever.
The global energy transition is not just a transformation of energy systems. It’s a transformation of communities and economies. We’ve reached an important tipping point in this journey with many industries making bold decisions to enable swift changes.
Whether it’s a high density urban community, an island nation seeking improved energy security and reliability, a remote off-grid mine site seeking to decarbonise operations, or an industrial or water asset owner – the ingredients are the same.
Advancements in future fuels like hydrogen as an energy vector show incredible promise to decarbonise other high energy-consuming sectors such as transportation, heavy industry and heating.
Decarbonising these sectors is an urgent global challenge – but it also presents an exciting opportunity to design and build sustainable and resilient communities, while working together to reduce climate change impacts.
The opportunity to act is
Future fuels like HYDROGEN are a path forward.
Sustainability, affordability and accessibility are vital elements of any energy system design
Thanks to unprecedented growth in LOW-EMISSION ELECTRICITY GENERATION, renewable power could significantly reduce global CO2 emissions and underpin our future energy systems.
The global energy order is changing.
in transition
a
the stage is
now
set
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Dive deeper into ideas, concepts and technologies that underpin future energy systems. Our people’s ideas are pushing the boundaries of technology, while being grounded in commercial realities and real-world experience.
6 MINUTE READ
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GHD hydropower technical leader Mike Westerman outlines a robust approach to identifying the best PHES projects for Australia.
Pumped for pumped hydro projects?
How to choose the best and dump the duds
3 MINUTE READ
There is an abundance of renewable energy projects underway in Australia, but the burden of complex modelling and assessments studies in advance of connection presents a significant barrier.
The path to connecting renewable energy to the grid is fraught.
Fast track new energy grid connection
Maintaining power system strength
What are the implications for renewable energy developers and power network operators?
2 MINUTE READ
GHD has actively been involved in the developments surrounding hydrogen strategies across the globe with projects in Australia, Canada and the UK.
Common threads emerging in the development of a global hydrogen industry
GHD shared its global experience and perspective at the invitation-only National Hydrogen Strategy Taskforce-hosted industry workshop to help further shape Australia’s National Hydrogen Strategy.
GHD at the centre of Australia's hydrogen industry development
VISIT MICROSITE
Global future fuels
Investing in future fuels now
GHD is providing technical advice for Melbourne Airport’s solar energy project, which is set to produce enough clean energy to provide power to all four passenger terminals.
Supporting Australia’s largest airport solar energy installation
9 MINUTE READ
Decarbonising transport
Are we ready to convert the humble gas/petrol station into a future-ready ‘hydrogen refuelling’ station?
New GHD research addresses the critical role of consumer transparency on the road to net zero.
Giving consumers the power to drive down carbon
5 MINUTE READ
GHD Future Energy expert calls ‘Year One’ on the energy transition
A global perspective on the energy transition – looking back, looking ahead
Hydrogen energy
Energy systems integration
Bioenergy/biofuels/ renewable natural gas
Oil & gas decarbonisation
Energy security & reliability
Energy from waste
We have global experience navigating real-world hydrogen opportunities.
Bringing together microgrids, energy storage and hybrid energy to realise energy systems that are both reliable and sustainable.
Bioenergy/biofuels/ renewable natural
From sourcing biogas to technology selection and balance-of-plant activities, we deliver comprehensive renewable natural gas solutions.
Throughout the asset lifecycle, we help our clients create strategies to realize their lower-carbon futures.
We have engineering, economics and regulatory skills to help integrate distributed generation at both the transmission and distribution levels.
We can help select appropriate technology, develop feedstock and offtake arrangements and take projects from pre-feasibility to completion.
Carbon capture & storage
Helping clients capture and sequester carbon dioxide and explore solutions for using it as a feedstock.
Decarbonisation of transportation
We can help with procurement of new fleets for a lower-carbon future, as well developing the local fuelling infrastructure.
Water sector energy transition
Our services are centred on wastewater treatment, including solutions that turn biogas and biosolids into energy and useful resources.
RenewablesPlus
We have more than 20 years' experience in wind, solar and pumped hydro.
Climate change & carbon accounting
We can verify and validate greenhouse gas offsets as well as develop inventories and lifecycle assessments.
Having worked in the energy transition area for well over a decade, we have established a specific team focused on working with clients to decarbonise energy systems. At GHD, we call this client service offering Future Energy, with key strengths in the following interconnected focus areas.
Services
Driven by client needs, we provide a range of consulting services, from origination of projects through to delivery - and beyond.
DR. TEJ GIDDA Global Leader – Future Energy
Waterloo, Canada
All things energy transition! Bioenergy / biofuels / Renewable natural gas Waste to Energy Hydrogen Renewables
TALK TO ME ABOUT
CONNECT
CONNECT with Tej
Peter Benyon
Talk to me about: All things energy Systems Integration, microgrids, hybrids Energy storage Hydrogen Renewables
Energy Market Leader & Energy System Integration Lead, Australia
CONNECT with PETER
Malcolm Rushin
Talk to me about: All things Hydrogen Carbon Capture and Storage Future Fuels / Alternative Fuels
Future Energy – Hydrogen Lead, Australia
CONNECT with MALCOLM
Sarah FitzGerald
Talk to me about: All things energy transition in Australia Renewables – wind, pumped hydro and solar Environmental approvals pathways Community and stakeholder engagement
Technical Director & Future Energy Coordination Lead – Australia
CONNECT with SARAH
Australia
IAN FRASER
Talk to me about: All things energy transition in New Zealand, the Pacific Islands, Philippines, Singapore and Chile
General Manager, APAC Region
CONNECT with IAN
LUCAS BLIGHT
Talk to me about: All things energy transition in New Zealand, the Pacific Islands, Philippines, Singapore and Chile All things renewable electricity and power Energy Systems Integration – microgrids, hybrids, energy storage
Technical Director & Future Energy Coordination Lead – APAC
CONNECT with LUCAS
CHILE, NEW ZEALAND, PACIFIC ISLANDS
Kim Domptail
Talk to me about: All things energy transition in the United States Energy from Waste Hydrogen in the US Oil & Gas decarbonisation Renewable natural gas Carbon Capture and Storage
Future Energy – United States
CONNECT with KIM
Shannon Hildebrandt
Talk to me about: All things energy transition in Canada All things hydrogen in Canada Renewable natural gas Carbon Capture and Storage Renewables
CONNECT with SHANNON
Future Energy – Canada
NORTH AMERICA
Sam Mitchelle
Talk to me about: All things energy transition in the Middle East Renewable power Energy System Integration and energy storage Hydrogen
Market Leader – Energy – United Arab Emirates
CONNECT with SAM
David Maunder
Talk to me about: All things energy transition in the UK and Middle East Bioenergy / biofuels / Renewable natural gas Energy from Waste (thermal) Hydrogen
CONNECT with DAVID
Future Energy – Europe, Middle East, UK
EUROPE, MIDDLE EAST, UK
BROOKE MAKI
Talk to me about: All things hydrogen Government relations and public policy Community support development Strategic communication
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Future Energy Market Development Leader
JASON FONTI
Talk to me about: Co-creating Future Energy projects Orgination Commercial models and Transactions advice Funding models
GHD Advisory – Global Origination and Commercialisation Leader
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GLOBAL
Talk to me about: All things energy transition Bioenergy / biofuels / Renewable natural gas Energy from Waste (biological) and anaerobic digestion Hydrogen Renewables
CONNECT with TEJ
Global Leader – Future Energy
In my 20-plus years as an engineer and educator, never has there been a more exciting time to be working in the energy space.
With my team of market leads, technical experts and alternative energy advocates, I’m looking to build deep relationships with clients and industry partners to pave the way to a lower-carbon future. In doing so, I’m keen to explore new and better ways to solve problems and harness the abundant opportunities we see on the horizon – bringing our many decades of combined project experience to each challenge. At the end of the day, it will be people that propel the energy transition forward, so speak with us today about how we can help you leverage this historic turning point and confidently embrace all things future energy.
TEJ GIDDA
We are committed to you
Our vision is to support clients and communities to lead the transition towards a future of affordable, reliable, secure and low-carbon energy, to achieve lasting global benefit. To maximise our clients’ energy transition opportunities, we combine our experience and practical technical knowledge to provide solid advice grounded in reality. At GHD, lasting community benefit is at the core of everything we do.
As you’d expect in the evolution of any fledgling industry, there are common threads that will be vital ‘sign-posts’ for us to all listen to and address carefully, in order for us to maximise the vast potential of a hydrogen industry both as an export, and for domestic use. The speakers at the Warren Centre for Advanced Engineering event hosted at the Sydney University, presented on a range of these important ‘sign-post’ topics for Australia. The event was particularly important given the practical assessment of:
Think Tanks like these are key; and are much more than just talk fests. To maintain the momentum, forums where Government, industry, and researchers, are able to talk freely about the opportunities and challenges, will help get us there faster. An interesting thread is around community concerns – this is a very real issue. According to Inframation’s annual global survey, investors also share the same view, revealing environmental, social and governance factors are a first order question, possibly at the expense of financial performance, having risen in importance from last year by 17%. Social considerations are possibly the hardest for us to understand and address given the public can hold conflicting views, particularly in relation to balancing costs with risk. In this regard, perhaps some Government incentives may help in bridging the gap by building value generation to drive investment and scale. After all, energy balance is important but it’s the economic balance that drives solutions. At GHD, we are at the centre of the discussion, helping to shape a clean energy future. Last month, we submitted a response to the Australian Government’s National Hydrogen Strategy Issues Papers for consideration by the Hydrogen Working Group, a Council of Australian Governments (COAG) Energy Council initiative, chaired by Australia's Chief Scientist, Dr Alan Finkel AO. This is a multi-dimensional challenge and although we have some way to go, we’re pleased to be playing a practical part in the next stage of a transition towards achieving a cleaner global energy future.
– the size of the market – hydrogens role in a diverse mix of solutions to decarbonise key industries – where we are with proving the technology and – the elephant in the room - community perceptions of hydrogen and assessing environmental impacts.
For more information, connect with our professional
Richard is Global Leader of GHD's Advisory business. His team partners with clients to boost outcomes in the Capital (plan), Create (design and construct) and Optimisation (operate, maintain and dispose) phases of their projects.
richard.fechner@ghd.com +61 2 9239 7222
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GHD representative, Brooke Maki, Global Communication and Insights Manager, joined a select group of invited industry leaders, government policymakers and researchers, to explore the role of industry in working with the community and government in the development of a sustainable and thriving clean hydrogen energy industry for Australia. “GHD is proud to be at the forefront of clean hydrogen developments and policy discussions globally. We are passionate about enabling an industry that has substantial decarbonisation benefits in power generation, transportation, industrial applications and building heating,” Brooke says. “An emerging industry like hydrogen gives industry players an important opportunity to get it right from the very beginning. The work of government-hosted forums is instrumental in facilitating deliberate collaboration between governments, project proponents, financiers and research institutes.
“I believe we gained a seat at the table because GHD has demonstrated a deep interest in this area - we also bring real-world perspectives given we’re actively working alongside industry leader clients and governments to develop hydrogen projects across Australia, the UK and Canada.
“Sharing our perspectives based on our knowledge and experience from other industries, such as oil and gas, helps us collectively respond to the swiftly growing demand for hydrogen in the domestic and global markets. “What came through at the workshop is that industry and government share the same goal - we all want to develop a new clean hydrogen energy market leveraging Australia’s high value renewables resource position. “We see tremendous value being able to work alongside our industry clients and government policy-makers and play our part in shaping a sustainable and thriving new industry of which we can all be proud. "Thank you to the Department of Industry, Innovation and Science and the National Hydrogen Strategy Taskforce for the opportunity to participate." Click here to view GHD’s response to the National Hydrogen Strategy issues papers which included global perspectives from teams in Australia, Canada and the UK. To read more about GHD’s hydrogen experience, visit: https://www.ghd.com/hydrogen
Brooke has been involved in the front-end of a range of hydrogen projects across Australia and holds a key role on the Australian Hydrogen Council.
brooke.maki@ghd.com +1 7 33163793
Brooke Maki
“In the midst of the global energy transition, many companies are taking steps to decarbonise their operations where possible,” says Mike Atkinson, GHDs Sustainability Service Line Leader, Australia.
“It is great to see more and more airports developing solar panel installations on site.” “And while now is a very challenging time for the aviation industry, and Melbourne Airport is not as busy as it was pre-COVID-19, this is a good time to prepare for a cleaner, cost effective and more sustainable energy future,” says Mike.
“Because the system is ‘behind the meter’ and off the main grid, while the site is still close enough to the airport, they will be able to provide their own power directly to the terminals.” Additionally, GHD is providing services on a separate 2 MW solar project for Melbourne Airport. “As part of our focus on the energy transition, we have also helped a number of other clients across Australia develop ‘behind the meter’ solar installations to offset their carbon footprint,” adds Alex. Since the Australian Government announced its target to reduce greenhouse gas emissions by 26 to 28 percent below 2005 levels by 2030, there has been an increase in renewable energy projects within utilities such as airports and water authorities across the country as they try and reduce emissions.
By using solar power, Melbourne airport will significantly reduce its carbon emissions and achieve cost savings,” says Alex Low, GHD’s Project Manager.
The renewable solar farm located at Tullamarine Airport will generate 16.8 GWh of electricity every year, which is almost 15 percent of the airport’s annual consumption needs. Once live in January 2021, the 10 MW project will be Australia’s largest ‘behind the meter’ solar farm at an airport, surpassing Brisbane Airport’s 5.73 MW installation. As technical advisor GHD has been responsible for all design reviews of civil, structural and electrical items as well as targeted site visits since the project’s beginnings in late 2019.
of electricity every year
Generating
of the airport’s annual consumption needs.
16.8 GWh
=15%
Alex is a technical director in the power sector with more than 15 years industrial experience. He works closely with clients to solve their power challenges across a range of sectors including industrial, renewables, water, aviation and the government context.
alex.low@ghd.com +61 3 86878734
Alex Low
In particular, the physical construction of solar farms and battery energy storage systems will typically be a much quicker process than the time required to secure grid connection. This often results in significant commercial pressure for proponents. Another common challenge is competition for grid access where there are multiple proposed projects in a similar location. Typically the first one to successfully negotiate a grid connection will be the project that gets built, which can lead to frustration and significant additional costs for some players. There are many factors at play here, but the key reasons for grid connection challenges can be summarised as follows:
the need to ensure power system security in the midst of a rapidly changing industry environment shifts in location of the generating sources rapid technological change expediency driven by anticipated commercial benefits and policy drivers (e.g. carbon emission reduction targets) the availability of skilled and experienced resources to address the issues and support delivery the availability of robust assessment methods and tools
So what can be done to minimise the impact of these challenges and hasten Australia’s transition to new energy?
First, it is important that we understand the above limitations and in particular, the boundaries. The potential risks, and the avenues for assessment of their impact and effectiveness of the mitigation solutions, must be clearly understood by all parties involved including the Australian Energy Market Operator (AEMO), Transmission Network Service Provider (TNSP), Original Equipment Manufacturer (OEM), and Engineering, Procurement and Construction (EPC) suppliers. Exploring potential solutions as a well-connected, dedicated, analytical and experienced team is essential. A successful connection project will need to tick off the following checklist in its planning stage:
When considered as a whole, the Grid Connection Checklist goes far beyond the checks done by AEMO, TNSPs or DNSPs (Distribution Network Service Provider) in relation to connection registration and performance compliance assessment. Further, it’s important to be familiar with recent industry action in relation to grid connection. For example, AEMO, AEMC (Australian Energy Market Commission), and TNSPs are already working to streamline and expedite the process of grid connections. There have been many guidelines and checklists published by AEMO and TNSPs. The work is largely focused on ensuring that connection of a new plant: (a) does not adversely impact on secure operation of the power system – now and into the foreseeable future; and (b) does no harm to other connected parties. Unfortunately, in spite of the efforts to date to streamline the grid connection requirements, there are still some inconsistencies in interpretation and application of the requirements, in particular by different TNSPs and DNSPs. Spending time at the early stages of project investigations, considering OEMs with proven models, and/or working with OEMs/partners to build National Energy Market (NEM) compliant models will save time, money and heartbreak down the track.
An experienced and qualified power engineer, Jennie has been navigating the complexities of grid transformation. Recently having project-managed registration and licensing of the Hornsdale Power Reserve and its battery installation process in record time.
jennifer.burdeniuk@ghd.com +61 8 8111 6531
Jennie Burdeniuk
Power network operators are faced with the increasing complexity of managing power networks designed to deliver power from centralised generators to loads now being required to integrate distributed generation at both the transmission and distribution level. Equally, renewable energy project developers are met with increasing regulation and standards required to be met to enable their project to connect to power networks. MITIGATING RISK Recently there have been significant increases and volatility in regulatory costs for renewable energy projects. This has arisen for a number of reasons, such as significant falls in Marginal Loss Factors (a direct multiplier on sent out generation revenue) and increased Frequency Control Auxiliary Services charges. Following the assessment of the causes of the black out in South Australia, the Australian Energy Market Commission, Energy Market Operator and transmission network system operators have identified that system strength issues are emerging as a major challenge to the ongoing development of renewable energy projects.
System strength, inertia and network loss factors.
What are the implications for power networks and renewable generation? Dr Stephen Hinchliffe shares his perspectives on this important topic.
Evaluate loss factors, FCAS (Frequency Control Auxiliary Services) and system strength requirements early Collaborate with other developers/network operator to improve efficiency of system strength provision Update studies regularly – the market is in a significant state of flux.
1.
SYSTEM STRENGTH System strength has reduced following the retirement of fossil fuel plant synchronous generation replaced by renewable energy non-synchronous generation. System strength is a local phenomenon on the network; with the propagation of system strength contributed from system strength providing technologies, hampered by the natural impedance of the network. That is, unlike network voltage and frequency control that can propagate over significant distances, system strength provision is limited to the network area proximate to the system strength providing technology.
Fault currents vary around the grid both by location and voltage level. Perceived wisdom is that fault levels (i.e. system strength) contribution generally must be supplied locally within an identified weak network. However, this may not be the most efficient way to maintain system strength. Coupled with fault current is the concept of system inertia – typically provided by steam turbine driven synchronous generators. OBLIGATIONS FOR RENEWABLE DEVELOPERS The introduction of ‘do no harm’ provisions place an obligation on renewable energy developers to make sure their project does not result in network strength falling below a pre-defined minimum level. This may result in the need to incorporate additional capital equipment costs to meet grid strength support requirements, placing further downward pressure on the commercial viability of new projects. Fossil fuel synchronous generators automatically contribute to system strength as a ‘by-product’ of generation. Renewable energy generation is typically asynchronous (induction motors or inverters) contributing negatively to system strength (i.e. reduces it). To compensate for the reduction in synchronous generation, additional equipment is required at key points on the network such as synchronous condensers and grid-forming inverters to increase system strength. STEPS TO TAKE
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Stephen has 25 years' experience in the power sector; initially developing clean energy projects, now as a consultant. Stephen works with client to advise on economic regulation (power networks, rail, water, gas utilities) and on energy market reform and renewable energy policy. He supports developers and financiers of renewable energy projects with project evaluation and asset transactions.
stephen.hinchliffe@ghd.com +61 7 3316 3497
Stephen Hinchliffe
david.luscombe@ghd.com +61 7 33163505
tej.gidda@ghd.com +1 519 340-3941
David Luscombe
Tej Gidda
While the future is still unclear, there are many ways that oil and gas companies will adopt hydrogen into the mix, and we think that the retail solution might just be one of the critical areas of investigation.
Who knows, one day, filling up our hydrogen cars at the gas station might be commonplace.
Existing petrol station assets can be retrofitted relatively easily; using the same footprint reduces the issue of locating new sites. The hydrogen gas (from ammonia) could be made every 24hrs onsite (at night, off peak) and so only a small amount would be needed each day. In this way, it could be stored safely and require less energy to keep it stable. The energy used to make the hydrogen could be made onsite from renewable sources (solar panels for example) during the day and be stored as energy in a battery. If additional power is needed, it could be sourced from the grid. During the day, excess power generated onsite from renewables could be sold back to the grid, ultimately making the petrol station a carbon-neutral operation for the owner. Producing hydrogen onsite from ammonia is highly efficient –a large amount of hydrogen can be made from one tank of ammonia – making it onsite at the petrol station versus trucking hydrogen from another production site makes it safer. Storing and trucking ammonia is now common practice and can be done safely. These self-sufficient sites do not place any extra demand on the power grid.
One concept that could be investigated is making hydrogen gas onsite at existing petrol stations, on a small scale, using ammonia (NH3) which could be stored in small quantities onsite, with extra supplies trucked to the site when required. There are a number of advantages to this idea, including:
Here’s an idea…
Well, there are a few, including technical, regulatory and commercial challenges, but from an infrastructure perspective, the biggest barrier to the broader uptake of hydrogen fuel cell cars is the scarcity of refuelling options. Currently, a hydrogen engine car is refuelled at specially designed fuel pumps, of which there are still very few globally. At the end of 2019, there were only around 40 refuelling stations for hydrogen-powered cars in the US, and approximately 80 in Germany. In Australia, while there has been some major steps forward, there are still less than 10 around the country.
So what’s the stumbling block?
There is enormous potential for the oil and gas industry to look at repurposing or retrofitting the huge number of existing petrol station assets (currently orientated to petrol and diesel retailing), to meet future anticipated high demand for hydrogen car refuelling. Could converting gas/petrol stations play an important role in taking hydrogen-powered vehicles a significant step closer to mainstream uptake?
How about hydrogen gas pumps finding their way into ordinary petrol stations
And while both hydrogen fuel cell cars and battery electric vehicles are technically electric vehicles because they are powered by an electric motor, there is one crucial difference between the two – hydrogen cars produce their own electricity. So, unlike fully electric or plug-in hybrid vehicles that source power from a built-in battery charged from an external power source, hydrogen vehicles tap into their own on-board power plant: the fuel cell. Hydrogen fuel-cell vehicles still need to be refuelled – they need hydrogen gas pumped into the vehicle’s fuel tank just like you would petrol or diesel. You can fill up quickly, the same way you would with petrol or diesel. And once it has a full tank, a fuel-cell vehicle can travel just as far as a ‘normal’ petrochemical-based vehicle. Hydrogen fuel cell vehicles have many positive attributes: few pollutants (the only emission from hydrogen cars is water), low noise, short re-fuelling times and long drive times between refuelling.
The ongoing volatility of oil prices has served to hasten the journey that big oil majors were already on to diversify their business into low-carbon commodities, such as hydrogen, which is shaping up as the world’s most versatile and exportable energy vector. The opportunity for oil and gas companies is to make and sell zero-emission, highly efficiently hydrogen energy for a variety of end-uses including fuelling hydrogen cars. While there is a market for both electric vehicles and fuel cell cars, the latter demonstrates a new and exciting component of energy transition that has broad application.
A transformation of the oil & gas industry - The opportunity to make and sell hydrogen
Transport planners have been asking this question for decades and there have been significant steps forward in terms of designing urban communities that reduce emissions through more efficient movement patterns. However, to make any real difference, our road transport future is going to need to rely on the increased uptake of more efficient vehicles for both commercial and passenger use. Leading the charge in this regard are electric vehicles, hydrogen fuel-cell vehicles and innovations in biofuels. Hydrogen is now seen as the clean energy commodity of the future due to its versatility in power generation, storage, industrial heating, decarbonising gas networks and, importantly, as a zero emission power source for hydrogen fuel-cell vehicles.
So how can we make a real difference to reduce transportation emissions?
Road vehicles (i.e. cars, trucks, buses and two-and-three-wheelers), account for nearly 75% of the world’s transport CO2 emissions, highlighting the need for greater focus on these hard-to-abate subsectors.
95% of the fuel used in transportation still largely comes from gasoline and diesel.
Transportation is still responsible for 24% of the world’s direct CO2 emissions from fuel combustion.
According to the International Energy Agency (IEA), road transport in regions with lockdowns in place dropped between 50% and 75%, with global average road transport activity almost falling to 50% of the 2019 level by the end of March 2020.
As a consequence of global COVID-19 restrictions on movement, transportation and mobility, which accounts for 57% of global oil demand, declined at an unprecedented scale in early 2020.
As countries re-emerge from lockdowns, the world’s love affair with passenger cars will inevitably resume, but the transportation sector will still have to confront its decarbonisation challenge. In 2019, the world’s global transport emissions increased by less than .05% (compared with 1.9% annual growth since 2000) thanks to efficiency improvements, electrification and greater use of biofuels.
https://www.iea.org/topics/transport
Mike has 38 years’ experience in identifying and developing feasibility studies for renewable energy projects. His experience spans documenting, procuring and supervising construction, as well as commissioning of renewable energy projects (particularly hydro-electric projects) in Australia and internationally.
mike.westerman@ghd.com +61 7 3316 3336
Mike Westerman
1. The Australian National University (ANU), 2017 audit of potential PHES sites across Australia
Australia is the driest continent on earth
The best sites will have adequate water supply for filling during construction and for compensating water losses through seepage and evaporation, but without the impost of significant design work for potential floods, or any population at risk below proposed reservoirs. Ideal siting would avoid regions with very high evaporation characteristics, and instead, enhance the quantities of any water stored. TOPOGRAPHY Topography is often cited as a reason why PHES is not suited to the flat expanses of Australia. This is largely a misplaced concern. For example, the 240MW Lewiston PHES near Niagara Falls utilises a 23 meter elevation difference between the man-made upper pond and one of the Great Lakes. The key consideration here is that the proposed areas for pondages are close enough together to minimise waterway lengths, and flat enough to impound the required storage without excessively large dams. Access needs to be engineered without the need for costly cut slopes or fill. As the Australian National University Study,demonstrated (1), Australia has a plethora of suitable sites, so site selection should not be difficult. There are few excuses for poor site choice! REGULATORY PHES schemes, like other infrastructure, needs to meet community expectations in respect to impact on the natural and built environment. This extends to the provision of enhancements to amenity, the protection of habitats, the meeting of local and international conventions on the protection of endangered species and the rights of Indigenous people. Protecting our national parks and protected areas from is essential. The best sites will be a positive asset in all these regards. GHD’s fatal flaw process explores all these key aspects of PHES project design at the earliest stage. The process qualifies the best sites for further investigation and development, with credible and viable concept designs that clearly demonstrate the best in engineering innovation and coherence of thought.
Australia is the driest continent on earth, which limits our development of conventional hydro projects, but is not a serious concern for PHES since water is re-used in each cycle. Regardless, hydrology can be a cause for concern in two regards: initial fill and design for floods. Limits in the offtake of water can lead to unacceptable project delays, or expensive workarounds. Existing reservoirs can bring with them extant limitations on water availability and operating levels, as well as strict flood design criteria that could burden a potential PHES with additional costs and complexity. Any construction of hydro structures will need to consider and address the potential for flooding during construction and operations.
PHES is therefore a facilitator for VRE, but must provide this facility in regions on the network where it reduces, rather than increases, surplus energy or demand constraints. These would otherwise require large investments in augmenting the network, with significant new transmission infrastructure, adding to the already high cost base driving high power bills. So in this context, a strong network component for a proposed PHES project would mean it’s the right size for the market, it has good proximity to existing transmission lines or substations and it has positive FCAS attributes as far as the AEMO is concerned. GEOLOGY Geology can be a challenging consideration for any project due to the uncertainty it introduces. Further, deep boreholes and seismic investigations are expensive and intrusive. Many PHES will require underground caverns and tunnels to best utilise topography, which means expert knowledge is required for their design. Highly variable geology with faulting, igneous overlays and mineralisation, present risk and cost to quantify and overcome. An incompetent response to geology will likely translate to expensive structures that are expensive to remediate, as well as increased safety concerns during construction. Australia has extensive, highly-active seismic regions, adding to the potential cost of structures. Deep weathering can lead to expensive excavation to reach competent rock, while on slopes, it can lead to expensive and extensive anchoring requirements. The best sites for PHES will be in stable, competent geological structures of relatively high strength, free from coal measures and mineralisation.
This is in contrast to variable renewable energy (VRE), which is onerous in its demands on the network due to challenges and lack of operating experience in providing adequate voltage, frequency regulation and fault protection.
FIVE FATAL FLAWS GHD focuses on five areas to identify potential flaws – network, geology, hydrology, topography and regulatory. NETWORK Network refers to both the physical market – the hours per day and level of demand that is valuable, as well as the physical assets. PHES can assist the Australian Electricity Market Operator (AEMO) in efforts to maintain a reliable and stable network. PHES can readily deliver valuable FCAS (frequency control and ancillary services) capability.
Therefore, we need the lowest cost projects that can meet the most valuable period of the daily demand curve, typically only 4-6 hours per day in the evening, with seasonal demand for 1-2 hours per day in the morning. It means that only the best of the best PHES projects should be progressed. SO WHAT DOES A GREAT PHES LOOK LIKE? GHD uses what we call a ‘fatal flaw’ process, a screening process to identify factors that should halt the project at concept stage before significant funds are committed. For conventional hydro, the naturally occurring river morphology and hydrology dictate the yield and an optimal project can readily be determined. However PHES is somewhat indeterminate: a wide range of potential solutions are available, in terms of MWh capacity MW rating and elevation difference between upper and lower reservoirs, even in the volume of each. The best projects are those that may not be optimal, but are at least credible (technically) and viable (financially), while being free of fatal flaws.
KEEPING COSTS DOWN Delays in commitments and debate around viability highlight a key issue: Australia’s energy market is based on the sale of energy, with no parallel capacity market. PHES is primarily a capacity facility: you sell the ability to provide power on demand when required. As the evening peak comes to dominate, capacity that can rapidly ramp up to meet the load as solar outputs decline is necessary if our dependence on gas and coal is to be progressively replaced. This means that unless the market is reformed to explicitly pay for capacity, the meagre generating hours need to be valuable enough to pay for a return on capital invested.
Recent developments such as the Australia Government’s $1.4 billion expansion plans for the Snowy 2.0, the Kidston Pumped Hydro Energy Storage project (awaiting financial close) and recent work on many proposed developments, provide lessons in determining a project’s technical and commercial feasibility.
You sell the ability to provide power on demand when required.
It’s widely accepted that pumped Hydro-electric Energy Storage (PHES) has a key role to play in Australia’s energy future. The challenge is to engage the right projects across Australia; success in this regard could more than triple the nation’s electricity storage capacity.
Therefore, we need the lowest cost projects that can meet the most valuable period of the daily demand curve, typically only 4-6 hours per day in the evening, with seasonal demand for 1-2 hours per day in the morning. It means that only the best of the best PHES projects should be progressed. SO WHAT DOES A GREAT PHES LOOK LIKE? GHD uses what we call a ‘fatal flaw’ process, a screening process to identify factors that should halt the project at concept stage before significant funds are committed. For conventional hydro, the naturally occurring river morphology and hydrology dictate the yield and an optimal project can readily be determined. However PHES is somewhat indeterminate: a wide range of potential solutions are available, in terms of MWh capacity MW rating and elevation difference between upper and lower reservoirs, even in the volume of each. The best projects are those that may not be optimal, but are at least credible (technically) and viable (financially), while being free of fatal flaws
For more information, connect with our professionals
Dr David Maunder is GHD’s Future Energy Lead for our Europe, Middle East and Africa region. He is a leading UK expert in the transition to renewable sources of energy and a decarbonised energy system. He has over thirty years of experience in the energy sector and has worked with some of the UK’s leading organisations.
david.maunder@ghd.com +44 191 731 611
David Maunder, Future Energy
CELEBRATING PROGRESS All in all, the road to a net zero carbon world takes time. The government's 10-point plan is a huge step in the right direction. But there is plenty of work to do to turn it into a reality. In terms of the bigger picture, it’s not as simple as transitioning to fully renewable electricity sources overnight and then putting our feet up. We cannot completely turn our backs on fossil fuels, we must make increasing investments in green technologies and, just as significantly, we will all need to change our habits if we are to succeed. Here, transparency could also play a key role. A concept such as ‘carbon labelling’ – where the likes of monthly energy and water bills carry an approximate carbon impact assessment – would mean customers better understand their carbon footprint and see the progress suppliers are making. Generating interest in the progress that businesses’ investments are making can only be a good thing when it comes to engaging the wider public and increasing customer satisfaction, in particular when it comes to regulated industries. Evidently, there is a long way to go in terms of achieving net zero. But through greater transparency and openly available, accessible information on the impact of our choices on the planet, consumers can be the driving force behind the change needed to achieve our environmental goals.
Clearly, many would like to opt for more sustainable services and products, which in turn would drive business decision making and investment. But asking people to change when they don’t understand the impact of what they are doing is difficult. It’s for this reason that publishing estimates as to the carbon footprint impact of the goods and services people use each day – a similar concept to that of the calorie labels we see on food and drink – can be a catalyst of widespread industry transformation. FOOTING THE BILL Lower carbon does not always mean higher cost. In fact, we have seen great success in the renewable electricity generation sector. Here, there have been huge reductions in the cost of generating electricity from, say, offshore wind or solar farms recently, as economies of scale and technology innovation kicks in.
At present, a business’s transparency when it comes to environmental impact rarely leaves the pages of the lengthy, wordy annual report. However, consumer behaviour could be a key agent of change when it comes to meeting the net zero targets that many businesses have now committed to. Be it the way we use energy at home, the data we use, the products we buy or the journeys we take - all have measurable impact on the environment. According to our research, over 80 percent of the British public struggle to understand the carbon footprint of their daily lives, yet almost two thirds would likely make lower carbon choices if they were better informed.
New GHD research addresses the critical role of consumer transparency on the road to net zero
john.hensman@ghd.com +44 1244 621 000
John Hensman, Water
jonathan.edwards@ghd.com +44 20 8187 7782
Jonathan Edwards, Transport
40%
state they would pay more than an additional five percent for lower-carbon products and services will bring
2/3
would likely make lower carbon choices if they were better informed
80%
of the British public struggle to understand the carbon footprint of their daily lives
Nevertheless, lowering the carbon impact of the services we use and the goods we buy each day is likely to come at an additional cost, particularly as new low-carbon systems and technologies get used for the first time. Significantly, though, our findings show a clear willingness on the part of the public to contribute to the cost of greener services and products. In fact, most are happy willing to pay more, and 40 percent state they would pay more than an additional five percent for lower-carbon products and services will bring.
Within the next thirty years we will need to do more to combat the effects of climate change than we have done in the last 200. Huge efforts are going into enabling this effort on the part of the government and British businesses, but the role of the consumer as a key agent of change has yet to be fully recognised. At present, a business’s transparency when it comes to environmental impact rarely leaves the pages of the lengthy, wordy annual report. However, consumer behaviour could be a key agent of change when it comes to meeting the net zero targets that many businesses have now committed to. Be it the way we use energy at home, the data we use, the products we buy or the journeys we take - all have measurable impact on the environment. According to our research, over 80 percent of the British public struggle to understand the carbon footprint of their daily lives, yet almost two thirds would likely make lower carbon choices if they were better informed.
DOWNLOAD
Within the next thirty years we will need to do more to combat the effects of climate change than we have done in the last 200. Huge efforts are going into enabling this effort on the part of the government and British businesses, but the role of the consumer as a key agent of change has yet to be fully recognised. The UK government’s recently announced 10-point plan is vital in creating a decarbonised economy. However, in tandem with the additional investment, the next stage of this process is ensuring the UK will also require consumers to act as agents of change in their own right.
While many of us will look back on 2020 as the year of COVID and a challenging one at that, I think history will ultimately mark this period as a positive and very significant moment in time for the energy transition. Transformation has been happening for years, but 2020 marked a true step change. I think of it as Year One. Energy demand around the world decreased as we stopped flying, driving, and as industry ramped down. This changed how we consumed energy and thus how energy was evaluated. The price of oil plummeted, in some cases below zero dollars per barrel. This created a shock to the energy supply system, especially in the oil and gas industry. This in turn forced many companies to rethink their transition planning horizons, as they tried to foresee how they would evolve over time and maintain the viability of their business. At the same time, electrical systems changed. In Europe, for example, renewables contributed to almost half of all electricity generated – a major milestone that was achieved much earlier than previously expected. All this pressure on energy systems provided additional onus for energy transition, especially as governments considered how they would spend stimulus on green energy infrastructure to help the economy recover. On top of all that, many individual companies further committed to net zero carbon targets, including many oil majors and by the end of 2020, whole countries (notably the UK). And finally, the US election has shifted the outlook for Future Energy in the United States, as the new administration comes in with ambitious goals for decarbonisation.
What were the major energy shifts in 2020 – globally and across key markets?
x
The hydrogen economy is coming – that is probably the most significant shift we have seen. We have witnessed this as at the corporate level, with large firms such as Shell and BP including hydrogen as a key pillar in their transition strategies when announcing net-zero carbon goals for 2050. Likewise, we are also seeing hydrogen come to the fore at the national level. The UK’s recent 10-point plan towards net-zero carbon by 2050 includes 5GW of low-carbon hydrogen by 2030, a highly ambitious goal. Various countries are also seeking to become importers of hydrogen to meet their own goals – Japan, Korea and Germany being some key examples. At the same time, we see continued transition of electrical grids, in particular with the retirement of coal assets. The replacement of traditional fossil fuel assets by renewables requires ongoing attention to energy systems integration, to balance and store energy with appropriate respect for existing grid infrastructure. In North America, renewable natural gas is coming online as a transitional fuel, using biogas sources to generate a renewable product that can be transported via existing natural gas transmission and distribution infrastructure. Energy from waste continues to gain prominence, as a means of both mitigating environmental concerns with waste and to fuel renewable energy – especially from food wastes, a consideration that is now gaining traction in Australia, is very mature in Europe, and that is on the upswing in North America. One of the other areas that is gaining traction is carbon capture, utilisation and storage. CCUS is vitally important for larger oil and gas companies to transition their existing infrastructure and we are seeing much more activity in this area, especially as it relates to blue hydrogen production.
What new solutions or innovations gained traction in 2020?
For 2021 and beyond, expect rapidly decreasing cost curves for renewables such as hydrogen, balancing and normalising against conventional energy production. Buoyant market conditions will encourage more start-ups to develop new technologies given the scale of the energy transition required – perhaps also supported by a greater focus on research and development. The new administration in the US and recent UK Government announcement s will also set a bullish tone globally and set an example for other countries. I would expect the export/import of green energy to become vitally important from 2021 forward. Previously, the use of renewables has been largely restricted to near their point of origin, but vectors such as hydrogen and ammonia create exciting potential export opportunities for green energy. This will require new, specialised infrastructure at key ports. We will also see game-changing approaches to utilising existing in-the-ground infrastructure to move green energy – such as oil and gas pipelines that can be repurposed over time. The same goes for refineries, which have significant asset bases from which to develop green future fuels infrastructure. At the same time existing assets are repurposed, new infrastructure will be constructed to match the energy transition framework, sponsored in great part by the equity markets, which are increasingly viewing and supporting investment opportunities through an Environmental Social Governance lens.
What are going to be the gamechangers for governments and industry players in 2021 and beyond?
Want to learn more about what’s in store for the energy transition?
tej.gidda@ghd.com 1 519 589 8511
Dr Tej Gidda (Ph.D., P.Eng.) Global Leader – Future Energy
2
For 2021 and beyond, expect rapidly decreasing cost curves for renewables such as hydrogen, balancing and normalising against conventional energy production. Buoyant market conditions will encourage more start-ups to develop new technologies given the scale of the energy transition required – perhaps also supported by a greater focus on research and development. The new administration in the US and recent UK Government announcements will also set a bullish tone globally and set an example for other countries. I would expect the export/import of green energy to become vitally important from 2021 forward. Previously, the use of renewables has been largely restricted to near their point of origin, but vectors such as hydrogen and ammonia create exciting potential export opportunities for green energy. This will require new, specialised infrastructure at key ports. We will also see game-changing approaches to utilising existing in-the-ground infrastructure to move green energy – such as oil and gas pipelines that can be repurposed over time. The same goes for refineries, which have significant asset bases from which to develop green future fuels infrastructure. At the same time existing assets are repurposed, new infrastructure will be constructed to match the energy transition framework, sponsored in great part by the equity markets, which are increasingly viewing and supporting investment opportunities through an Environmental Social Governance lens.
3
+
1
Across arguably every key measure, 2020 marked a critical turning point. Nowhere was this fundamental shift more pronounced than global energy systems and economies, as oil prices plummeted, companies set bold net zero targets and governments hastily unveiled energy investment roadmaps to drive economic recoveries. Greenhouse gas emissions dipped dramatically as our usual carbon-intensive routines – most notably, traffic movements and air travel – ground to a halt, putting our carbon footprint firmly front-of-mind and spurring a deeper collective consciousness of our environmental impact. What can we expect from the international energy transformation moving forward? Can we maintain the momentum born out of one of the most tumultuous periods on record, parlaying those gains into a new era of clean energy? What will our shared quest for decarbonisation look like as we enter a post-pandemic world? Here, GHD’s global Future Energy expert, Tej Gidda, provides his perspectives on the year that was, and predictions for the year ahead.
Tesla Battery Farm
The largest battery farm in the world
Santos
Decarbonising natural gas into blue hydrogen
Onslow
Microgrid powering community
Cache Creek Landfill
Landfill gas-to-energy facility
Berry Mills Landfill
Renewable energy facility
bp
Export-scale renewable hydrogen
LAVO
Bringing the power of hydrogen to homes
Nauru
Solar Expansion Plan
Barwon Water
Organic waste-to-energy
Blyth
Offshore demonstrator wind farm
COAG-Commissioned Report for National Hydrogen Strategy
Integrating hydrogen with electricity networks
Scottish Islands
Justifying grid investment
Federal Offset Program
Priority project types
Da’naxda’xw
Solar-diesel hybrid project
We are proud to work with clients at the leading edge of some of the most complex energy transition projects around the world. These game-changing projects span our diverse range of services from regulatory advice to design and project management.
City of Toronto
Renewable natural gas facility
HyNet consortium
Landmark low carbon hydrogen project
Hornsdale Wind Farm + World’s largest Tesla battery storage
Hornsdale Wind Farm and Power Reserve is Australia's first – and the world’s largest – grid-scale lithium-ion battery connection. The project consists of a 315 MW wind farm comprising 99 wind turbines, located in South Australia, and a battery storage system that provides frequency control and grid stability services. For French renewable energy development company, Neoen, the Hornsdale site presented an opportunity to take advantage of outstanding winds and establish one of Australia's most competitive renewable wind farm installations. In 2013, GHD was engaged to support Neoen through the acquisition, development and project financing phases of its first wind farm in Australia. In August 2015, GHD was further appointed as the owner's engineer and principal's representative for its development. This role continued for the 2.5 year construction of the three phases of the project, all completed on time and on budget. GHD provided key assistance in the licencing and registration of the windfarm during a difficult period after the South Australian blackout and subsequent licencing reforms.
TALK TO US
Centre of world-leading innovation in
99
wind turbines
KEY TAKEAWAYS
generation capacity
315MW
renewable energy
Taraz.Saba@ghd.com +61 7 33163496 Brisbane, Australia
TARAZ SABA Project Director - Renewables
GRID CONNECTION In 2017, GHD played a critical role in the connection of Australia’s first grid-scale lithium-ion battery, including obtaining the signed connection agreement. The 100 MW/129 MWh battery installation known as the Hornsdale Power Reserve is a pioneer in storage technology, providing essential grid support. These projects became the centre of world-leading innovation in renewable energy as Neoen partnered with Tesla to deliver the world’s largest lithium-ion battery. In 2019, GHD was appointed owner’s engineer to expand the Hornsdale Power Reserve by 50 MW, building on the success of the initial installation. Completed in 2020, the expansion provides additional system security for the South Australian electricity network.
GHD is working with Santos to deliver two blue hydrogen-related studies that have potential to pave the way towards large scale export of hydrogen and decarbonising its operations in the Cooper Basin, South Australia. The study will investigate how natural gas can be decarbonised at its source to make “zero-emissions” or “blue” hydrogen. The carbon dioxide produced as a result can then be safely and permanently captured and stored in the same geological formations that the gas came from. The concept study is focused on the production of hydrogen from natural gas and includes preliminary technology selection with a focus on identifying suitable options that facilitate maximum CO2 capture on a lifecycle basis and thereby produce hydrogen with the lowest carbon footprint. The study will also consider integration into the current Cooper Basin operation, pathway to regulatory approvals and a cost estimate.
AN INTEGRATED DESIGN GHD is also undertaking the Front-End Engineering Design (FEED) of a pipeline that will transfer dense phase carbon dioxide from Santos’ Moomba Gas Plant for injection into depleted reservoirs for permanent storage. The project includes the infrastructure for distributing the carbon dioxide from the pipeline to the injection wells. “Carbon capture and storage (CCS) is the fastest and most efficient route to a hydrogen economy, using less water, decarbonising natural gas at its source and eliminating Scope 3 emissions,” said Kevin Gallagher, Santos Managing Director and Chief Executive Officer.
Decarbonizing
natural gas at its source
Producing hydrogen with the lowest carbon footprint
Step towards
Understanding
the potential for large-scale hydrogen exports
malcolm.rushin@ghd.com +61 7 33163735 Brisbane, Australia
MALCOLM RUSHIN Future Energy – Hydrogen Lead - Australia
Mircrogrids are emerging as decentralised sources of energy, offering significant benefit to rural and remote communities. The Onslow Distributed Energy Resource (DER) project delivered by Horizon Power, Western Australia’s regional power provider, is one of the world’s first fully automated, integrated microgrid power systems. Delivered in two stages, over three years, the project included a mix of distributed customer-owned rooftop solar, a new modular gas power station, transmission line, substation, solar farm and battery storage. The project aimed to supply more than 50 percent of the town’s annual energy consumption by centralised and decentralised (customer owned) renewable energy sources, while achieving a lower ongoing cost to supply electricity compared to a conventional system without renewable. A CLEAR VISION Through a clear vision and unity of purpose, the project successfully delivered an advanced microgrid and is well on its way to achieving its objectives, transforming energy supply for Onslow. Customer take up of solar PV systems also exceeded targets by 20 percent.
Delivery of the project has been systematically staged to de-risk the overall deployment of the contemporary power system. The main power station and backbone infrastructure (stage 1) were completed in July 2018, the solar farm and centralised battery were completed in July 2019 and 2.4 MW of decentralised solar PV has subsequently been delivered by Horizon Power in 2020. CLEAN AND COST EFFECTIVE ELECTRICITY With the goal to provide clean and cost effective electricity to the community, the project is helping Horizon Power plan for future energy systems, where customer-owned renewables will be an integral part of the energy mix. “The benefit to the community is more reliable, cleaner, greener power through the incorporation of utility-grade solar and battery assets in to the power infrastructure,” said Stephanie Unwin, Horizon Power CEO.
Both centralised and distributed renewable energy resources complement the high efficiency gas generation to produce clean, green, reliable power
of distributed solar and battery
Solar uptake exceeded targets by
20%
MW
Feliciano.Sanchez@ghd.com +61 8 62228299 Perth, Australia
FELICIANO SANCHEZ Project Manager
Feliciano details the Onslow project
Landfill gas-to-energy facility provides green energy to local utility
Landfilling is the main method for disposal of municipal and household solid wastes in Canada and the United States. Usually maintained in an oxygen-free environment, landfill waste produces significant amounts of landfill gas (mostly methane). These energy rich by-products produced at landfills require proper management to avoid odor and air emission issues. For years, the Cache Creek Landfill collected and flared landfill gas, emitting greenhouse gases (CO2) into the atmosphere without deriving any benefit from the energy rich fuel. The organization managing the landfill recognized an opportunity to create a green energy facility and worked with British Columbia’s government program for the installation of a 4.8 MW landfill gas-to-energy facility.
Reuse
Designed to performance of the engine output while
Successful project
delivery
on time and on budget
of landfill gas to produce electricity in lieu of flaring
long-term maintenance costs on the engine
improve
reducing
tej.gidda@ghd.com 519 340 3941 Waterloo, Canada
Tej Gidda Global Leader - Future Energy
A TEAM EFFORT GHD’s energy and design team completed the detailed civil, structural, mechanical, and electrical design associated with the landfill gas-to-energy facility at the Cache Creek Landfill site. GHD also managed the construction of the mechanical and electrical installations, including commissioning. The system consists of three Caterpillar 3520C reciprocating gas engines operating on landfill gas capable of generating 4.8 MW of electrical power. The electrical power injects into the local electrical utility at 27.6 kilovolts. The controls for the plant are within the electrical room and the operator office. Plant operators are also capable of remotely monitoring the facility.
Renewable energy facility creates revenue for municipality
Active and aging landfills emit gases into the atmosphere that consist of methane, carbon dioxide, nitrogen and other trace components. Recovering methane from landfills and converting it to a new energy source reduces greenhouse gas emissions and creates revenue for municipalities. For years, the Southeast Regional Service Commission’s (the Commission) landfill in Berry Mills New Brunswick, Canada, collected and flared landfill gas. The Commission saw an opportunity to create a green energy facility and applied for an embedded generation contract from New Brunswick Power for the installation of a 1.0 MW landfill gas-to-energy facility. GHD provided a turnkey solution for the design, supply, construction, and commissioning of the facility. The team was responsible for the detailed civil, structural, mechanical, and electrical design, as well as the construction phase, including health and safety, equipment deliveries, and commissioning. A MODULARIZED SOLUTION The modularized facility consists of a gas conditioning skid, engine enclosure, electrical room, outdoor power transformer, switchgear, and houses a Caterpillar G3516A reciprocating gas engine. The gas conditioning system pre-treats the landfill gas to provide the engine with the ideal gas conditions. The gas engine produces power at 600 V, which transforms to 12.47 kilovolt, and then connects to the provincial hydro distribution system.
operations monitored remotely through a smartphone
24/7
uptime of facility at 100% load in first year of operation
96%
Reduced greenhouse gas emissions, while generating a green energy revenue stream
A MODULARIZED SOLUTION The modularized facility consists of a gas conditioning skid, engine enclosure, electrical room, outdoor power transformer, switchgear, and houses a Caterpillar G3516A reciprocating gas engine. The gas conditioning system pre-treats the landfill gas to provide the engine with the ideal gas conditions. The gas engine produces power at 600 V, which transforms to 12.47 kilovolt, and then connects to the provincial hydro distribution system.
bp Australia leading export-scale renewable hydrogen
To better understand the possibility of using hydrogen to export renewable energy at scale, GHD is working with bp Australia to undertake an extensive study to explore the feasibility of developing an export-scale renewable hydrogen production facility in Geraldton, Western Australia. The feasibility study will deliver a detailed techno-economic evaluation of pilot and commercial scale green ammonia production plants. This will include an evaluation of the different technologies and process configurations required to manufacture green hydrogen and green ammonia. Results of this study will be released to the public as part of a knowledge-sharing agreement to help progress the use of renewable hydrogen energy. It will also enhance the energy industry's understanding of the financial and technical implications for a fully integrated renewable supply chain with potential domestic and export market for a demonstration and commercial scale plant.
Supports bp’s vision to become a net zero company by
2050
Industry shaping
opportunity
Potential to export renewable energy at scale
NET ZERO COMPANY The study supports bp’s ambition to become a net zero company by 2050 or sooner and to help the world get to net zero. The project has received funding of AUD2.7 million from BP and a further AUD1.7 million from the Australian Renewable Energy Agency (ARENA) as part of its Advancing Renewables Program. Frédéric Baudry, BP chief operating officer for Asia Pacific, said: "Western Australia has been selected as the location for the study due, in part, to its vast solar and wind resources, existing port infrastructure and proximity to large, long-term markets for green hydrogen.”
Hydrogen Energy Supply Chain
Jason.Fonti@ghd.com +61 3 86878168 Melbourne, Australia
JASON FONTI Origination and Value Chain
Enabling Victoria’s organic waste-to-energy evolution
Working on landmark organic waste-to-energy projects for Barwon Water, GHD is helping Victoria reduce the need for landfills and turn organic waste into useful resources. The development of local organic waste-to-energy projects has been a major stride in realising wider economic, environmental and social benefits for water utilities and their respective regions. The move to use organic waste to produce resources, including electricity, hot water and soil enhancers will ensure less waste, creating a circular economy by diverting organics from landfill and reducing waste and energy costs. These projects are also closely aligned to the Victorian Government’s Recycling Victoria policy and action plan which aims to encourage the development of waste-to-energy facilities that process organic waste.
municipal councils in partnership
6
Water utilities to use
organic waste
Major stride towards achieving Barwon Water target of zero net emissions by
BARWON WATER RENEWABLE ORGANICS NETWORKS Barwon Water is a regional Victorian Water Authority with a strong history in the development of innovative and sustainable solutions to complex operational challenges. In partnership with six municipal councils as well as major export manufacturers, Barwon Water are developing two Renewable Organics Networks within both the Geelong and Colac regions. The projects will transform organic municipal and trade waste into dispatchable renewable energy and agricultural soil enhancers. In doing so, Barwon Water will be helping to create a circular economy for the region’s organic waste, enabling sustainable waste management. The projects will reduce the volume of waste sent to landfills, address climate change by reducing greenhouse gas emissions, as well as containing Barwon Water customer bills by reducing the energy and waste costs incurred by councils and Barwon Water through waste and water infrastructure operating costs. The project in Colac is currently underway and is scheduled for completion by the end of 2022. The project in the G21 region in partnership with the five regional councils and neighbouring Wyndham City Council in is in its early stages of development and based on current milestone dates, the project is estimated to be completed by the end of 2023. GHD has been supporting Barwon Water with both of these projects, having delivered the concept design and business case for the Colac project as well as currently being engaged for the concept development and preliminary commercial assessment of the facility in the G21 region. The development of local organic waste-to-energy projects has been identified as a major way of achieving Barwon Water’s Strategy 2030 targets of 100 percent renewable electricity by 2025 and zero net emissions by 2030.
to produce renewable energy
2030
Alister.Green@ghd.com +61 40 1167981 Melbourne, Australia
ALISTER GREEN Engineer
With a surface area of just 21km2, and a population of around 13,000 people, Nauru is the world's smallest island nation. Currently, Nauru relies on imported diesel fuel for energy, which is costly, vulnerable to market changes, and has significant environmental impacts. GHD is supporting the Asian Development Bank (ADB) and the Government of Nauru to reduce the country's reliance on diesel, by sourcing nearly 50 percent of the country's energy from renewable sources. In 2018, the ADB and the Government of Nauru rolled out an Energy Road Map, which identified solar power as Nauru's most economical renewable energy option. TOGETHER WITH LOCAL TEAM Together, GHD teams New Zealand, the Philippines, Australia, and the UK, with support from local team members in Nauru, have prepared a Solar Expansion Plan and Feasibility Study for a grid-connected solar power plant and a battery energy storage system. The plant will also enable local people to develop the technical skills necessary to operate and maintain the planned facilities independently, without the need for support from foreign staff or companies.
Increase supply of reliable, cleaner energy
50%
In accordance with Republic of Nauru Energy Road Map
"This project significantly reduces Nauru's sovereign risk," says Lucas Blight, GHD’s Future Energy Regional Coordination Lead for APAC. "Solar will help provide energy security, vital to Nauru's social and economic development. It also puts the 'power' back in the hands of the local community, empowering local people, including women and vulnerable groups, to run and manage the plant's day-to-day operations."
2014-2020
new plan to achieve
Nauru Solar Expansion Plan
Lucas.Blight@ghd.com +61 0408 081508 Melbourne, Australia
LUCAS BLIGHT Technical Director & Future Energy Coordination Lead – APAC
GHD is providing product development support for the world’s first household hydrogen energy storage system, known as LAVO. It is being developed by investment firm Providence Asset Group and the Hydrogen Energy Research Centre at the University of NSW, Australia. The LAVO system uses innovative, patented metal hydride technology to store hydrogen equivalent to up to 60kWh electricity, which is enough to power an average household for approximately three days. HIGH POTENTIAL ALTERNATIVE Hydrogen has emerged as a high potential alternative for zero-emissions energy storage, with a large range of potential uses, including within the electricity system, as well as transport and industrial fuels. According to Henry Sun, CEO Providence Asset group: “The timing is right for hydrogen as the cost of renewables has fallen quicker than predicted and there is unprecedented political support for this emerging industry. We aim to start LAVO production in 2021 to accelerate the clean energy transition to Australia and globally.”
1st
LAVO potential to store up to
Potential to power an average home for
3 days
using zero emissions
residential solar –based hydrogen storage system
of surplus energy
60kWh
World's
Greg.D.Bowyer@ghd.com +61 40 2060122 Parramatta, Australia
GREG BOWYER Senior Technical Director
According to Henry Sun, CEO Providence Asset group: “The timing is right for hydrogen as the cost of renewables has fallen quicker than predicted and there is unprecedented political support for this emerging industry. We aim to start LAVO production in 2021 to accelerate the clean energy transition to Australia and globally.”
Blyth offshore demonstrator wind farm
Located in the UK, Blyth is the test site for emerging offshore technologies and including the world’s first use of float and submerge foundations. GHD provided owner’s engineer and technical advisor services for EDF Renewables, one of the leading renewable energy companies in UK and Ireland. The project involved construction of an offshore windfarm comprising of an onshore substation and a string of five wind turbines with generating capacity of 41.5MW - powering up to an average of 36,000 homes, and with a tip height of 191.5m above LAT. A PROJECT OF FIRSTS The project was set to use the first 66kV submarine cable and the first large-scale gravity based foundations to support the wind turbines. To assure the design, GHD provided:
Powering
36k
homes
offshore wind farm utilising large scale float and submerge foundation technology and 66 Kv submarine cabling
41.5MW
Provision of technical advice for the design of the electrical system and onshore substation Review and verification of third party drawings and documents Oversight of construction activities for the onshore substation Attendance at factory and site acceptance tests
Graham.Skelly@ghd.com +44 191 731 6100 Newcastle Upon Tyne, United Kingdom
GRAHAM SKELLY Associate Director
The wind farm successfully began commercial operations in October 2017.
Justifying grid investment in the Scottish Islands
$
techno-economic assessment of investment options
Successful
Engagement
with regulator and stakeholders
Cost-benefit analysis for three transmission connection projects
Robust
Development of generation development scenarios (driven by alternative political, regulatory and economic policies) Assessment of the affordability of renewable generation (and any political/regulatory inhibitors to its future development) Detailed power flow modelling to enable the calculation of energy constraints for a range of potential future generation scenarios and reinforcement options using GHD’s Constrained Energy Flow Model (CEFM) Detailed cost-benefit analysis modelling Least Worst Regrets (LWR) analysis Socio-economic benefits analysis Assessments of consumer welfare
GHD has delivered cost-benefit analysis studies for three separate transmission reinforcement projects considering the connection of the Scottish Islands of Orkney, the Western Isles and Shetland to the mainland transmission grid. Electricity transmission company SHE Transmission was required to submit a needs case submission to the sector regulator for three proposed electricity transmission connection projects between mainland Scotland and the islands. The objective of each proposed investment is to unlock the vast renewable energy potential on each island, with a view to helping the UK achieve its low-carbon energy targets whilst also ensuring the investments provide value for money for consumers in Great Britain. WIDE-RANGE CONSIDERATIONS The GHD team was required to develop robust solutions that stand up to, and also account for the changes seen in government policy, the differing positions between UK government, Scottish government and local council, changes in subsidy arrangements, council planning decisions and competing investors. The project included:
GHD's multi-faceted cost-benefit analysis methodology and associated toolset enabled a robust techno-economic assessment of the investment options. This allowed SHE Transmission to successfully engage with the regulator, system operator, developers, landowners, councils and other interested parties on the islands reinforcements. “GHD has been invaluable in preparing our submissions to the regulator providing innovative solutions to the myriad of complexities connecting remote islands to the mainland system. They have been a real asset to our team,” said Sharron Gordon, Islands Lead Regulatory Manager, Scottish and Southern Energy Networks.
Paul.Espie@ghd.com +44 191 731 6115 Newcastle Upon Tyne, United Kingdom
PAUL ESPIE Principal Consultant Engineer
hydrogen production
Identifying regulatory and policy options to realise
benefits
Report is of interest to electricity market participants, regulators, grid owners, network businesses and consumers
Large-scale
GHD, in partnership with ACIL Allen, provided advice on Council of Australian Governments Energy Council’s (COAG) development of a National Hydrogen Strategy via the ‘Hydrogen to support electricity systems’ work stream. The report assessed the potential role of hydrogen in Australia’s power systems and whether the electricity regulatory frameworks enable large-scale hydrogen production. The work focused on understanding the interactions between hydrogen and Australia’s on-grid and off-grid power systems. The project team undertook an extensive literature review that considered demonstration projects and barriers to hydrogen production and use internationally, developing learnings for Australia’s electricity sector.
How do we prepare Australian power systems for hydrogen production?
Prepared Australian electricity systems for
NEW POTENTAL The team also looked at the way that hydrogen production technology could provide benefits to Australia electricity networks. A series of regulatory and policy options were identified that would help electricity markets realise these benefits from the hydrogen sector, as that sector matures. The team considered the potential for hydrogen opportunities to emerge in the National Electricity Market, South West Interconnected System, North West Interconnected System and the Northern Territory interconnected networks with consideration of the physical network characteristics and the markets that may provide future revenue streams for hydrogen producers that rely on power as an input to produce clean hydrogen. The team also developed a series of use case scenarios that considered different network configurations and isolated power system applications, and developed indicative deployment timeframes based on geographical, physical, technical and economic considerations.
Lizzie.Obrien@ghd.com +61 8 62228783 Perth, Australia
LIZZIE O'BRIEN Senior Advisor - Regulation and Access
Da’naxda’xw solar-diesel hybrid project
community consultation
lithium-ion Battery Energy Storage System
200 kWh
New solar/diesel
Collaborative
The Da’naxda’xw First Nation live in a remote location in Tsatsisnukwomi Village, on Harbledown Island, British Columbia. Historically, the community has depended entirely on diesel generators for electricity and a significant portion of the community’s annual operating budget has been spent on diesel fuel. As a result, the community was eager to displace part of their diesel costs, and reduce their greenhouse gas emissions, by installing a solar power system that would supply part of their energy demand from a renewable source. The scope included replacement and commissioning of three diesel generators on site (one 100 kilowatt (kW) and two 60 kW), construction of a 90 kW solar array; installation of a battery house and a 200 kWh lithium-ion Battery Energy Storage System (BESS), and development and installation of a Human Machine Interface (HMI) software that allows for the operator to remotely operate the system.
NEW DESIGN In 2016, a contractor was engaged to design and install a hybrid solar/diesel microgrid system for the community. As owner’s representative for the construction, installation, commissioning and operator training for project, GHD acted as a liaison between the Da’naxda’xw First Nation, the funding agency and the contractor engaged to design and install the system. The system was successfully installed and commissioned and had been operating for four months, when a fire destroyed the BESS and all of the system controls, rendering the solar array inoperable and making the community once again dependent on diesel generation. Following the fire, a new plan to return the solar/diesel hybrid micro-grid system to operation was created. GHD developed a 30 percent design for the new battery system and controls and developed a request for proposal for a design-build team to complete design and construction of the rebuilt solar/diesel hybrid system. GHD provided technical support to the Da’naxda’xw First Nation through the process and selection of the design-build team and is now acting as owner’s engineer through detailed design and construction.
Hybrid
system
Christian.Baechler@ghd.com 1 604 248 3656 Richmond, Canada
CHRISTIAN BAECHLER Engineer
Priority project types identified for proposed Canadian Federal Offset Program
Sector-specific GHG emissions standards
GHD supporting potential
offsets
Elevating opportunities for change in waste and reforestation management
nation-wide
Greenhouse Gas (GHG) emission reduction (offset) programs have been developed across Canada on a provincial basis to a limited extent. A federal offset program is currently under development with new details on priority project types and key policy elements. The following provides an overview of the regulatory system under which this voluntary program operates, and critical details for potential program participants. The Federal Backstop Program includes an output-based pricing system (OBPS) for industrial facilities that emit greater than 50,000 tCO2e annually. Jurisdictions in Canada that have not implemented a carbon pricing mechanism are required to use the OBPS program. Facilities operating within these jurisdictions are required to meet sector-specific output-based emissions standards, or provide compensation for exceedances, which may include remittance of offset credits generated under the Federal GHG Offset System. The Draft Federal GHG Offset System Regulations are scheduled for publication in the fall of 2020. To date, two publications have been released, providing insight on what the Federal GHG Offset System might look like.
As the Federal Offset Program moves forward, potential opportunities to create and recognize offset credits are gaining clarity. GHD’s experience and expertise includes: Working with governments to:
advanced refrigeration systems (i.e., ozone-depleting substances) aerobic composting of organic waste anaerobic digestion landfill methane management
understand GHG emission reduction opportunities and programs develop offset protocols
engineering design, permitting and construction evaluating funding and revenue opportunities (such as income from offset credits) developing offset projects, including evaluation of program requirements and eligibility criteria, registration and reporting GHG verification and validation for offset projects and industry reporting under the OBPS
Working with project developers on:
Our environmental team is closely monitoring the development of this program, including ongoing work with provinces to identify the offset potential in their own jurisdictions.
livestock manure management improved forest management afforestation/reforestation soil organic carbon
jennifer.packer@ghd.com +1 519 884-0510 Waterloo, Canada
JENN PACKER Senior Advisor
Under the Federal Offset Program, offset credits can be generated from projects with a start date of 2017 or later. Priority project types identified for Federal Offset Protocol Development include:
City of Toronto Dufferin Organics Processing Facility Renewable Natural Gas Facility
food waste diversion program in North America
Upgrade biogas to produce
3 million cm
Turning biogas into
Largest
The City of Toronto (City) has been diverting food waste from landfills for years, reducing greenhouse gas impacts significantly. It has one of the largest food waste and organics diversion programs in North America and will upgrade biogas to displace natural gas via renewable natural gas (RNG). The expansion of the Dufferin Waste Management Facility to produce more than 3 million cubic metres (cm) of RNG per year supports the City’s closed-loop approach where not only will organics collection trucks use the RNG for fuel, but the RNG will be blended with the City’s entire 50 million cm annual consumption – further reducing costs and its carbon footprint and working towards the City’s Transform TO targets. GHD is the City’s owner’s engineer on the Anaerobic Digestion (AD) expansion project and is the design engineer (design-build) on the RNG Project, owned by Enbridge Gas Inc. (Enbridge). The AD expansion project will increase total organics processing capacity along with additional biogas generation. The RNG Facility will upgrade biogas for injection into Enbridge’s existing natural gas pipeline.
of RNG per annum
renewable natural gas
ryan.loveday@ghd.com +1 519 340-3893 Waterloo, Canada
RYAN LOVEDAY Project Manager and Engineer, Waste Management
As part of the RNG Facility design, GHD has completed balance of plant design, permitting and approvals, integration and commissioning support and project management through construction and commissioning. INTEGRATION CRITICAL The site offers some unique design constraints, including the requirement for foundation supports and the use of a passive gas management system. Construction of the RNG Facility is occurring at the same time as the construction of the AD expansion. Integration of both projects is critical to overall success, as well as the coordination of construction and commissioning schedules. In a time where the City has declared a climate emergency, this project represents an exceptionally important outcome with respect to addressing greenhouse gas emissions reduction. It also establishes Toronto as a leader in this field, demonstrating a model for RNG production that can be utilized by many other municipalities.
GHD supporting landmark low carbon hydrogen project
tonnes of CO2 equivalent are emitted by UK’s industry
Carbon dioxide emission reductions are equivalent to taking
600
UK wants to be carbon-neutral by
+100
GHD is supporting a ground-breaking hydrogen project led by HyNet consortium in the north west of England. Energy use in industry is one of the largest sources of greenhouse gas emissions, with over 100 million tonnes of CO2 equivalent emitted from the UK’s industry each year. The reduction of such emissions is one of the biggest challenges we face in the decarbonisation of our economy and is vitally important in the fight against climate change. In alignment with GHD’s global future energy strategy to help guide clients through the important transition to affordable, reliable, decarbonised energy, we are providing engineering design for a pioneering project to conduct a live demonstration of using hydrogen as a fuel for industrial process heat.
cars off the road
david.maunder@ghd.com +44 191 731 6110 Newcastle Upon Tyne, UK
DAVID MAUNDER Technical Director
As engineering design partner on the Industrial Fuel Switching element of the programme, GHD is working with Progressive Energy, one of the host industrial sites, and other project participants to design the new plant and equipment needed to convert a boiler system from natural gas to carbon-free hydrogen. The work includes detailed mechanical, electrical and control system design, all set in the context of the extremely tight safety and environmental regulations that exist at the site. Upon successful completion of the project we will be able to demonstrate that hydrogen can be used as a substitute fuel for natural gas in the industrial process, helping our client transition to a low carbon future and leading the way for others to follow. David Maunder, Technical Director: said: “We are delighted to have been selected to support BEIS, Progressive Energy and their industrial partners with this really important project. The decarbonisation of industrial energy is a vital part of the push to reduce our greenhouse gas emissions, and is an important part of GHD’s global Future Energy initiative. Our team is excited to be supporting a successful demonstration of this ground-breaking and important industrial fuel-switch to hydrogen.”
Funded by the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS) under its Industrial Fuel Switching Competition, this project forms part of the wider ‘HyNet’ initiative, which is a programme co-ordinated by Progressive Energy and involving a range of industrial and academic stakeholders, including the Essar refinery in Stanlow, the Unilever site at Port Sunlight and the Pilkington glass factoring in St Helens, all in the north west of England. HyNet aims to develop the UK’s first net-zero hydrogen cluster, and is driving forward many elements of the hydrogen supply chain from production (alongside carbon capture and storage) to distribution, and end-use, making an important contribution in helping the UK to reach its goal of being carbon-neutral by 2050.
