www.teitimes.com

March 2025 • Volume 18 • No 1 • Published monthly • ISSN 1757-7365

THE ENERGY INDUSTRY TIMES is published by Man in Black Media • www.mibmedia.com • Editor-in-Chief: Junior Isles • For all enquiries email: enquiries@teitimes.com

Hydrogen strategies Spotlight: Australia

Many countries see hydrogen as key to

decarbonising their economies. But who

is lagging and what can they learn from

the leaders?

Page 13

TEI Times looks at Australia’s

generation and consumption proles,

policy, emissions targets and

investment attractiveness.

Page 14

News In Brief

Europe must base energy

security on clean

electrication

Europe needs an energy security

strategy based on clean electrica-

tion, according to a new report

published by Eurelectric.

Page 2

US debates a slowdown in

fossil fuel exit

US Energy Secretary Chris Wright

has called on the electricity indus-

try to stop the closure of coal pow-

er plants, saying “no one has won

by that action”.

Page 4

Indonesia wavering on

climate commitments

Indonesia has again pledged its

support for the Paris climate accord

following its climate envoy’s sug-

gestion that the agreement was “ir-

relevant” after the US again with-

drew from the agreement.

Page 5

European Commission

publishes new Clean

Industrial Deal plan

The European Commission has

published proposals for a new

‘Clean Industrial Deal’ plan, cen-

tred on promoting domestic clean

technology manufacturing, espe-

cially of renewable and low-carbon

hydrogen technologies.

Page 7

India, France unveil nuclear

reactor partnership

India and France have agreed to

jointly develop a new generation of

nuclear reactors as one of the three

nuclear agreements signed during

a visit to France by India’s Prime

Minister Narendra Modi.

Page 8

BP pivots on clean energy

ambition

BP is shifting focus back to its oil

and gas roots after its bet on renew-

able energy hit the group’s share

price, causing a backlash from

investors.

Page 9

Technology Perspective:

Power-to-X and the

hydrogen economy

Power-to-X holds the promise to

transform the global economy onto

a green footing, but to do so means

adopting a pragmatic approach and

breaking down barriers to the wide-

spread adoption and development

of a much more hydrogen-centric

energy system.

Page 15

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There is deepening concern as the world’s biggest polluters fail to submit national action plans

for cutting carbon emissions. Junior Isles

Global investment in energy transition hits $2 trillion milestone

THE ENERGY INDUSTRY

TIMES

Final Word

The battle must continue

– even when the going

gets tough, says

Junior Isles.

Page 16

The EU, Australia, Indonesia, South

Africa and India are among the big pol-

luters that have missed a UN deadline

for new climate targets, fuelling spec-

ulation that the global economy and

the withdrawal of the US from the

Paris Climate Agreement are taking a

toll on nations’ commitment to tackling

global warming.

Under the Paris Agreement, signed

in 2015, nearly 200 countries were

due to submit updated Nationally De-

termined Contributions (NDCs) by

February 10th. These NDCs are meant

to include country-specic headline

gures for cutting greenhouse gas

emissions by 2035. Many countries

are already falling well short of the

targets they set for 2030, with the con-

sequence that carbon emissions and

global temperatures are still rising.

Last year was recorded as the hottest

year ever.

Commenting on the number of

NDCs submitted, Nick Mabey, co-

founder of UK-based climate think-

tank E3G, said only about one- quarter

to one-third of the G20 economies had

been expected to submit their targets

on time. “Because of the shock of the

US presidency and all the other issues,

there is not a lot of leader attention on

this issue,” he said.

While Brazil, New Zealand, Swit-

zerland, UAE and the UK were the

most notable to submit upgraded tar-

gets by the deadline, there were some

worrying absences.

Poland, which holds the rotating

chair of the EU presidency, is one of

the governments that is most sceptical

of climate targets and is unlikely to

push the agenda ahead of presidential

elections in May.

“The quality matters more than the

speed of submission,” one European

ofcial said. The EU submits one

overarching NDC for all countries

within the bloc.

Nonetheless, the failure of the EU to

submit NDCs has fuelled concern

over the bloc’s commitment to its cli-

mate goals.

Mexico, which last year elected a

new government led by climate scien-

tist Claudia Sheinbaum, said it would

seek to submit its target around mid-

year. South Africa said it aimed to

have a new climate plan by around

September. China, meanwhile, is said

to be still assessing geopolitical devel-

opments after the election of Donald

Trump as US President. Trump pulled

Continued on Page 2

Investment in the clean energy transi-

tion exceeded $2 trillion for the rst

time in 2024, according Bloomberg-

NEF’s (BNEF) Energy Transition In-

vestment Trends 2025.

The report reveals that investment in

the low-carbon energy transition

worldwide grew 11 per cent to hit a

record $2.1 trillion last year. BNEF

also reports that global energy transi-

tion investment would need to aver-

age $5.6 trillion each year from 2025

to 2030, in order to get on track for

global net zero by 2050, in line with

the Paris Agreement.

Growth was driven by electried

transport, renewable energy, and

power grids, which all reached new

highs last year, along with energy

storage investment. While overall in-

vestment in energy transition tech-

nologies set a new record, the pace of

growth was slower than the previous

three years, when investment jumped

by 24-29 per cent annually.

Investments in renewable energy hit

$728 billion, which includes invest-

ment in wind (both on- and offshore),

solar, biofuels, biomass and waste,

marine, geothermal and small hydro.

Investment in power grids totalled

$390 billion, which includes invest-

ment in transmission and distribution

lines, substation equipment, and the

digitalisation of the grid.

BNEF’s report also reveals a marked

difference between investment in ma-

ture and emerging sectors of the clean

energy economy. Technologies that

are proven, commercially scalable

and have established business mod-

els, like renewables, energy storage,

electric vehicles, and power grids, ac-

counted for the vast majority of in-

vestment in 2024. These sectors drew

$1.93 trillion, growing 14.7 per cent,

despite hindrance from policy deci-

sions, higher interest rates and expect-

ed slower consumer purchasing.

In contrast, investment in emerging

technologies, like electried heat, hy-

drogen, carbon capture and storage

(CCS), nuclear, clean industry and

clean shipping, reached only $155 bil-

lion, for an overall drop of 23 per cent

year-on-year. Factors that discourage

investment in these sectors include af-

fordability, technology maturity, and

commercial scalability.

In order to scale these industries,

the report stressed public and private

sectors need to do more to de-risk

these technologies, otherwise, they

are not likely to have any meaningful

impact on emissions by the end of the

decade.

The largest market for investment

was mainland China, which alone ac-

counted for $818 billion of invest-

ment, up 20 per cent from 2023. Chi-

na’s investment growth was

equivalent to two-thirds of the total

global increase in the year, with all

sectors reviewed in the report show-

ing solid growth.

The EU, US, and UK, which drove

growth in 2023, saw different results

in 2024.

Investment was stagnant in the US,

reaching $338 billion, and down in

both the EU and UK, hitting $381 bil-

lion and $65.3 billion, respectively.

China’s total investment last year was

greater than the combined investment

of the US, EU and UK. Of the large

markets included in the report, India

and Canada also added to overall

global growth, increasing their invest-

ments by 13 per cent and 19 per cent,

respectively.

A separate report by Global Energy

Monitor said the wealthiest nations

are not building their fair share of

wind and solar. Utility-scale solar and

wind capacity grew by over 20 per

cent in 2024 from 3.6 TW to 4.4 TW.

Yet ju st 10 pe r c ent of th ese p roje cts

are being built by the Group of 7 (G7),

despite these rich countries owning

nearly half the world’s wealth.

Big polluters miss

climate targets

deadline

Since signing the Paris Agreement in

2015, most countries have struggled

to stick to emissions targets

THE ENERGY INDUSTRY TIMES - MARCH 2025

Junior isles

The world’s electricity consumption is

forecast to rise at its fastest pace in

recent years, growing at nearly 4 per

cent annually through 2027 as power

use climbs in several sectors across the

economy, according to a new Interna-

tional Energy Agency (IEA) report.

‘Electricity 2025’, the latest edition

of the IEA’s main market analysis of

the sector, forecasts that the growth in

global demand will be the equivalent

of adding an amount greater than Ja-

pan’s annual electricity consumption

every year between now and 2027. The

surge is primarily driven by robust

growing use of electricity for indus-

trial production, increased demand for

air conditioning, accelerating electri-

cation, led by the transport sector, and

the rapid expansion of data centres.

Most of the additional demand over

the next three years will come from

emerging and developing economies,

which account for 85 per cent of the

demand growth. The trend is most

pronounced in China where electricity

demand has been growing faster than

the overall economy since 2020. Chi-

na’s electricity consumption rose by 7

per cent in 2024 and is expected to grow

by an average of around 6 per cent

through 2027. The demand growth in

China has been fuelled in part by the

industrial sector, where alongside the

traditional energy-intensive sectors,

the rapidly expanding electricity-in-

tensive manufacturing of solar panels,

batteries, electric vehicles and associ-

ated materials played a signicant role.

Air conditioning, electric vehicle adop-

tion, data centres and 5G networks are

additional contributors.

“The acceleration of global electric-

ity demand highlights the signicant

changes taking place in energy sys-

tems around the world and the ap-

proach of a new Age of Electricity. But

it also presents evolving challenges

for governments in ensuring secure,

affordable and sustainable electricity

supply,” said IEA Director of Energy

Markets and Security Keisuke

Sadamori. “While emerging and de-

veloping economies are set to drive the

large majority of the growth in global

electricity demand in the coming years,

consumption is also expected to in-

crease in many advanced economies

after a period of relative stagnation.

Policy makers need to pay close atten-

tion to these shifting dynamics, which

will be addressed at the international

‘Summit on the Future of Energy Se-

curity’ that the IEA is hosting with the

UK government in London in April.”

The new report forecasts that growth

in low-emissions sources – primarily

renewables and nuclear  is sufcient,

in aggregate, to cover all the growth in

global electricity demand over the next

three years. In particular, generation

from solar PV is forecast to meet

roughly half of global electricity de-

mand growth through 2027, supported

by continued cost reductions and pol-

icy support.

A separate report from the IEA, how-

ever, also revealed that global coal red

power generation continued to grow in

2024, albeit at a slower pace, rising 1

per cent year-on-year after a 1.7 per

cent increase in 2023. Going forward,

coal red generation is expected to

remain relatively stable as more clean

energy use curbs expansion.

eanwhile, natural gas red power

generation rose 2.6 per cent in 2024,

marking a new global high. The Middle

East is projected to drive growth in gas-

red power through 22, particularly

in Saudi Arabia, where gas generation

is expected to rise by 10 per cent as the

country transitions away from oil.

Europe was the only major region

where gas red generation declined in

2024, largely due to high gas prices and

a colder winter. The IEA forecasts that

global gas red power generation will

see modest annual growth of around 1

per cent in 2026-2027, with rising de-

mand in China, India, and Southeast

Asia balancing declines in advanced

economies. Additionally, the role of

gas red plants in providing exibility

to power systems is expected to in-

crease worldwide.

the US out of the climate accord

during his rst week of ofce.

This has led Argentina to propose

withdrawing from the pact. Indone-

sia is also now questioning the use-

fulness of the Paris Agreement fol-

lowing the US’s exit.

Mabey said that delaying submis-

sions by three to six months “was

not so much a problem”, because it

would ensure countries could pro-

duce solid plans. “It would be much

better if it was as high ambition as

possible, but also that it was linked

very clearly to both national imple-

mentation procedures and interna-

tional support,” he said.

 U ofcial also said the uality

of the climate plans was the most

important consideration and coun-

tries should take the extra time to

deliver the best plans.

EU ofcials say the bloc will be

late submitting its plan amid con-

cerns that its green agenda will

hamper economic growth.

The EU’s Green Deal, aimed at

decarbonising the economy, was

launched in 2019 but has since come

under re from European compa-

nies complaining of high energy

prices and overregulation. Member

states are also concerned about wan-

ing economic growth, while the US’

decision to withdraw from the Pais

Agreement and scrap climate goals

has increased calls for the bloc to

rethink its entire approach.

European Commission Vice-

President Teresa Ribera told the

Financial Times: “The global real-

ity has evolved, and we may need

to think to what extent these things

that were there need to be updated.”

The Commission says, however,

that it must stick to its climate goals

and must therefore balance protec-

tion of the planet with improving

the continents agging competi-

tiveness. “We need to ensure that

there’s a story of growth and pros-

perity,” said Ribera, who is in charge

of the green transition and competi-

tion, adding that this was a ne line

that we need to strike”.

Last month Ribera laid out how

the Commission might achieve

this. She promised to mobilise more

than €100 billion to support clean

manufacturing, including via the

European Investment Bank. The

bloc’s next multi-year budget,

which still has to be agreed, would

also include a competitiveness fund

to boost European research and

manufacturing of clean tech.

A Clean Industrial Deal will lay

out how to boost demand for made-

in-Europe products – from steel to

chemicals and cars – through

streamlining public procurement

and allowing the most power-inten-

sive plants to get backing from the

European Investment Bank when

they purchase energy. The commis-

sioner will also propose joint pur-

chasing and strategic stockpiles of

17 critical raw materials.

Another area of action will be to

drastically cut the number of small

and medium companies affected by

existing environmental regulations,

reducing their reporting require-

ments and giving businesses more

time to comply with the revised

rules.

As greenhouse gas emissions con-

tinue to rise and annual tempera-

tures increase, experts have ques-

tioned whether it is still feasible to

regard a limit of warming within

1.5°C as achievable.

Two recent studies, published in

the journal Nature, both said the

lower limit of the Paris accord

looked increasingly out of reach

without urgent climate action.

Continued from Page 1

Natural gas will play a vital role in the

energy transition, supporting the ex-

pansion of renewables and accelerat-

ing the shift away from coal, accord-

ing to the latest ‘Horizons report’ from

Wood Mackenzie.

The report, titled ‘The bridge: Natu-

ral gas’s crucial role as a transitional

energy source’, emphasizes that while

the world is increasingly turning to

renewable energy, natural gas remains

fundamental to meeting global energy

needs and reducing emissions in the

medium-term.

“Gas demand has surged by 80 per

cent over the past 25 years, now meet-

ing almost a quarter of the world’s

energy needs,” said Massimo Di Odo-

ardo, Vice President of Gas and LNG

Research at Wood Mackenzie. “Its

success lies in the scale of global

resources, low production costs, ease

of storage and dispatch, and com-

parative environmental advantages.”

urging electrication, increasingly

delivered by renewable power sourc-

es, will lead the charge to curb CO

emissions, says the report. Electrica-

tion can only move so fast, however,

and the adoption of emerging low-

carbon technologies, such as hydro-

gen, is currently too slow to achieve

net zero emissions by 2050. With coal

still accounting for 30 per cent of the

world’s energy needs, shifting to gas

as a transition fuel is a compelling op-

tion, argues Wood Mackenzie.

Despite its vital role in the future

energy mix, the report also highlights

that challenges remain. It says high

LNG prices since 2022 risk undermin-

ing the full potential of wider gas

adoption in Asia and that carbon

prices would be needed to shift the

market.

“In China and India, where gas usage

is mainly used for peak shaving, gas

demand is still expected to grow by

almost 100 bcm through to 2050 in

the power sector, offering the most

practical option for ensuring exibil-

ity as renewable investments surge,”

said Di Odoardo. “Without a carbon

price of around US$100/tonne, reduc-

ing China’s and India’s dependency

on baseload coal looks like a massive

ask. But the prize could be a reduction

of more than 300 Mt of CO

by 2035.”

Emissions remain an issue as well,

said Wood Mackenzie. Gas and LNG

both produce substantial greenhouse

gas (GHG). However, according to

the report, claims that the LNG value

chain is more GHG-intensive than

coal is unfounded.

“Our analysis shows that, on aver-

age, LNG has around 60 per cent

lower GHG intensity than coal. Even

when considering a 20-year global

warming potential (GWP) and com-

paring methane-intensive LNG with

coal burnt in highly efcient plants,

LNG is still 26 per cent less GHG-

intensive,” said Di Odoardo. “Never-

theless, its carbon dioxide and meth-

ane emissions need to be addressed as

a matter of urgency to ensure its pri-

macy as a bridging fuel.”

The report concludes that natural

gas, particularly LNG, will be critical

in the shift to a lower-carbon future,

bridging the gap as emerging low-

carbon technologies strive to reach

critical mass.

Europe needs an energy security strat-

egy that is based on clean electrica-

tion, according to a recent report pub-

lished by Eurelectric, the organisation

that represents Europe’s electricity

sector.

The study, carried out by Compass

Lexecon on behalf of Eurelectric and

formally unveiled at the Munich Se-

curity Conference, demonstrates the

need for a new approach to energy

security based on clean electrication

to reduce fuel imports dependence,

lower exposure to commodities price

shocks and boost crises resilience.

Providing a backdrop for the study,

Eurelectric noted: “Cables in the Bal-

tic repeatedly sabotaged, devastating

storms leaving Ireland in the dark, war

raging in Ukraine and price shocks

caused by Russia’s fuel disruptions:

Europe’s energy system is being chal-

lenged like never before.

“Meanwhile, Europe is decarbonis-

ing its economy with clean and renew-

able power set to meet 60 per cent of

nal energy use by 2. s energy

needs evolve, so should Europe’s en-

ergy security strategy.”

The EU’s current energy security

strategy was adopted in 2014, at a time

when countries relied heavily on Rus-

sian imports and renewables made up

only a small fraction of the overall

mix. Today, this picture has funda-

mentally changed.

Energy imports are expected to de-

crease from 60 per cent of EU energy

supply in 2022 to 13 per cent by 2050,

thanks to transport and heating

electrication. enewables are set to

generate 69 per cent of total power

by 2030 and Russian oil and gas will

be gradually phased out. These devel-

opments call for an integrated power-

led security approach.

“Energy security has always been a

problem but it has never been such a

tough problem,” said Eurelectric’s

President and E.On CEO Leonhard

Birnbaum. “The recent year has

shown us that business-as-usual in

Europe is no longer an option. With

the threats faced by our sector, secu-

rity of supply is becoming an urgent

priority that policymakers and regula-

tors must acknowledge [this].”

To secure Europe’s power supply,

the study suggests strengthening

three pillars:

1. Better planning: Preparedness

frameworks should encompass the

entire value chain, include all energy

vectors, infrastructure, span across

longer timeframes and factor in ex-

ternal threats to better identify system

needs.

2. lexibility massive exible ca-

pacity will be needed to complement

variable renewables – 175 GW should

come from new storage technologies

and demand side response by 2030.

To incentivise investments, capacity

mechanisms and exibility support

schemes will be crucial.

3. Functioning markets: effective

price signals should reect system

needs and allow consumers to con-

tribute to security of supply by adjust-

ing their energy use.

Headline News

Europe must base energy security on clean electrication

Electricity demand

growth set to accelerate,

says IEA

n Annual consumption forecast to rise at nearly 4 per cent

n atural gas red poer generation mars ne gloal high

Natural gas remains the crucial bridge in the energy transition

THE ENERGY INDUSTRY TIMES - MARCH 2025

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THE ENERGY INDUSTRY TIMES - MARCH 2025

Americas News

Janet Wood

US Energy Secretary Chris Wright has

called on the electricity industry to stop

the closure of coal power plants, saying

“no one has won by that action”.

Coal accounts for about 15 per cent

of US power generation, down from

more than half in 2000, according to

the US Energy Information Adminis-

tration E. ore than 2 coal red

power plants are scheduled to be shut

down over the next ve years, said

Michelle Bloodworth, President of the

America’s Power trade group.

Coal power advocates say they are

hopeful a national energy emergency

declared by Trump on his rst day in

ofce provides an avenue for the gov-

ernment to intervene, but environmen-

talists cite the advantages of other

generation sources.

“Coal has been uneconomic com-

pared to every other energy source

except for nuclear power for quite a

few years now,” Erich Pica, President

of Friends of the Earth, said in an in-

terview. “The only way you keep coal

plants operating is if the federal gov-

ernment subsidises the heck out of this

extinguishing energy source.”

ecent gures in the Es hort-

Term Energy Outlook’ (STEO), an-

ticipate that US utilities and indepen-

dent power producers will add 26 GW

of solar capacity to the US electric

power sector in 2025 and 22 GW in

2026, adding to a record 37 GW of

solar capacity added last year. It fore-

casts wind capacity will increase by 8

GW in 2025 and 9 GW in 2026, slight

increases from the 7 GW added in

2024.

Natural gas is still the largest source

of US power generation and instead of

coal, US states are investing in gas-

red plant alongside renewables to

meet growing demand.

In Nevada, a ten-year old plan to end

coal generation will be completed

when the state’s last utility-owned coal

plant will cease running later this year.

But environmentalists are dismayed

that the North Valmy site will be re-

powered as a natural gas plant. Regula-

tors approved the conversion, but the

utility has further proposed to add 411

MW of natural gas peaking units.

“Utilities all get judged for how reli-

able they are,” said Michael Milligan,

an independent power system consul-

tant who specialises in the integration

of renewable energy into the power

grid. “They don’t get extra credit for

being extra reliable  nobody gets red

if they’re too reliable.”

In Pennsylvania, the Federal Energy

Regulatory Commission has ap-

proved a proposal from system op-

erator PJM with criteria for new

projects that include being ready to

build, high capacity and the ability to

produce electricity at times of short-

falls. Critics say the process favours

gas red plants.

Argentina and Brazil are both setting

out to procure battery storage by auc-

tion for the rst time.

Argentina’s Energy Secretariat

within the Ministry of Economy has

launched an auction to contract 500

MW of new battery capacity across the

Metropolitan Area of Buenos Aires.

The international open call, dubbed

Almacenamiento GBA (AlmaGBA),

envisages an investment of $500 mil-

lion. The selected projects will have to

be implemented in 12 to 18 months.

Winning bidders will secure con-

tracts with power distributors Edenor

and Edesur, with state-run wholesale

electricity market administrator CAM-

MESA acting as guarantor.

The tender is the rst of a series of

measures aimed at guaranteeing en-

ergy supply in the country.

eanwhile rail is planning its rst

auction to add batteries and other stor-

age systems to its national power grid

and expects to attract investments of

$450 million, according to an estimate

by consultancy Oliver Wyman.

The proposed auction will take place

in June and will offer 10-year contracts,

with supply beginning in July 2029.

The systems will have to deliver

maximum power availability equal to

four hours a day, receiving a xed

price.

Power companies such as Portugal’s

EDP and Brazil’s ISA Energia have

indicated they are interested in bidding

for contracts.

Janet Wood

Republicans in both Houses of Con-

gress have joined forces to propose

legislation that would require the Fed-

eral Energy Regulatory Commission

E to reform the ueue of trans-

mission network projects to fast-track

priority projects.

Representive Troy Balderson (R-

OH) and Senators John Hoeven (R-

ND) and Todd Young (R-IN) intro-

duced the identical Guaranteeing

Reliability through the Interconnec-

tion of Dispatchable (GRID) Power

Act, H.R. 1047 and S. 465.

If signed into law, the measure

would direct FERC to develop rules

that authorise regional transmission

organisations and independent sys-

tem operators to fast-track critical

projects by allowing them to bypass

the years-long wait in the intercon-

nection queue.

The American Exploration and Pro-

duction Council, the Ohio Oil and Gas

Association, the Ohio Chamber of

Commerce, the Ohio Manufacturers’

Association all endorsed the bill.

“Our interconnection queue is buck-

ling under its own weight,” said

Balderson. “Transmission providers

are tasked with ensuring we have

enough electricity to keep the lights on,

but the growing backlog of projects is

adding years to an already time-con-

suming process.”

Todd Snitcher, President and Chief

Executive of the Electric Power Supply

ssociation E, said signicant

increases in electricity demand are

expected in every region of the country,

driven by data centres, domestic man-

ufacturing and the electrication of

various sectors of the economy.

The bill would empower “grid op-

erators to put baseload power genera-

tion projects at the front of the line for

approval” said Hoeven. The bill would

set deadlines for FERC, requiring the

agency to promptly set up the priority

approval process and to start acting on

baseload power projects.

Grid operators would be required to

conduct feasibility and system impact

studies on the generation projects be-

fore signing an interconnection agree-

ment, and also required to allow for

public comment and stakeholder en-

gagement before submitting proposals

to FERC.

“Grid operators should be given sig-

nicant exibility to address current or

future reliability concerns, including

the creation of an accelerated intercon-

nection for resources identied as

critical to maintaining reliability,” said

EPSA’s Snitcher. “The bill appropri-

ately requires stakeholder feedback

and FERC approval before any chang-

es are made, ensuring that all view-

points are heard.”

Congress’s action has come as fears

have been raised that tariffs imposed

by President Trump on Canadian ex-

ports to the USA will raise electricity

prices, because Canada may retaliate

by limiting power exports to northern

US states.

According to the US Energy Infor-

mation Administration, the states that

use electricity wheeled across from

Canadian are North Dakota, Michigan,

Minnesota, and Wisconsin, Connecti-

cut, Maine, Massachusetts, Vermont,

and New York, including New York

City.

The Tennessee Valley Authority (TVA)

and Type One Energy have agreed to

jointly develop plans for a potential

TVA fusion power plant using Type

One Energy’s stellarator fusion power

technology. They hope the 350MW

fusion pilot power plant, named nn-

ity Two, will provide power as early as

the mid-2030s, potentially repurpos-

ing retired TVA fossil fuel power plant

infrastructure.

The Cooperative Agreement ex-

pands on roect nnity, rst launched

by Type One Energy, TVA, and the U.S.

DOE’s Oak Ridge National Labora-

tory (ORNL) in early 2024, with sup-

port from the state of Tennessee.

Originally centred on deploying the

Type ne Energy nnity ne stel-

larator prototype in TVA’s Bull Run

power plant, roect nnity now en-

compasses a deeper, broader engage-

ment toward commercialisation of

fusion energy.

Joe Hoagland, TVA Vice President

Innovation and Research, explained:

“Energy security is national security,

and we are focused on developing a

technology, supply chain, and deliv-

ery model to build an industry that can

power America and the world.”

ABI Research noted investment in

fusion is rising, reaching a record $7

billion in 3Q 2024. “Nuclear fusion and

SMRs are just one of many energy

alternatives enterprises and industries

are looking into,” said Daniel Burge,

Smart Energy for Enterprises and In-

dustries Analyst at ABI Research.

US debates a slowdown in fossil

fuel exit

Battery auctions in

prospect in Argentina

and Brazil

US Congress acts to speed

up transmission network

expansion

Tennessee fusion plan aims for commercialisation

Grid upgrades planned for

Rio de Janeiro

Enel Distribuição Rio has announced

a 74 per cent increase in grid invest-

ment to modernise the distribution grid

in 66 municipalities in the state of Rio

de Janeiro. It will spend R$6.1 billion

($1.03 billion) in its investment plan

for 2025 to 2027, compared with R$3.5

billion between 2024 and 2026. It more

than doubles the amount invested

between 2021 and 2023.

“We are investing more and more

throughout the concession area. The

new plan provides for an even greater

volume of resources, which will be

earmarked for a series of measures to

speed up the restoration of power and

bring us ever closer to our customers,”

said Francesco Moliterni, President of

local network operator Enel Rio. Enel

will reinforce the automation of the

network with thousands of telecontrol

devices, which make it possible to

remotely operate the electricity system

and reduce restoration times in the

event of outages. The company will

also intensify preventive and correc-

tive maintenance actions to reduce

unscheduled shutdowns, inspecting 66

000 km of electricity network.

“Our aim is to ensure that the number

of customers affected by outages is as

low as possible, making the service

more efcient and agile, explained

Moliterni.

n Energy Secretary wants to keep coal in the power generation mix

n Claims policies favour new gas plant

n riority lines to e identied and asttraced

n lectrication and demand groth delayed y yearslong

process

THE ENERGY INDUSTRY TIMES - MARCH 2025

Asia News

Japan’s government has adopted new

decarbonisation targets aimed at reduc-

ing greenhouse gas emissions by more

than 70 per cent from 2013 levels over

the next 15 years. The new targets came

as the country set out a new energy plan

that increases the share of renewables

and ends the nuclear phase-out policy

adopted after the Fukushima nuclear

plant meltdown.

Last month saw the country submit

its new Nationally Determined Contri-

bution (NDC), to the United Nations

under the Paris Agreement, commit-

ting Japan to reducing carbon emis-

sions by 60 per cent by 2035 from the

2013 levels, and by 73 per cent by 2040.

Japan previously set a 46 per cent re-

duction target for 2030.

The new targets were put forward

as the government approved its new

energy plan for the next ve years,

which for the rst time sets a goal for

renewables to be the country’s largest

source of production by 2040 and

seeks to make the most of nuclear

energy to reach almost the level prior

to the Fukushima accident.

The plan specically states that off-

shore wind is “a winning card for mak-

ing renewable energy the main power

source” because of the possibility of

mass introduction as well as antici-

pated economic ripple effects. The

government aims to have offshore

wind projects with a total capacity of

30-45 GW by 2040.

The new basic energy plan approved

by the Council of Ministers establishes

the share of each type of energy in the

countrys mix for its scal year 2,

when it aims for renewables, such as

solar and wind, to account for between

40 per cent and 50 per cent of the

total, thermal energy for approximate-

ly 30 per cent to 40 per cent, and

nuclear energy for around 20 per cent.

In the previous energy plan, drawn

up in 2021, Japan envisaged that the

share of renewables would be between

36 per cent and 38 per cent by 2030,

which has now been revised upwards

making it the main energy source for

the rst time. The new document,

however, removes the previous tex-

tual reference that it would prioritise

these energies.

The new plan also discards the tex-

tual reference to “reducing depen-

dence on nuclear energy as much as

possible that had been systematically

included since the Fukushima acci-

dent in 2011 and, instead, states that

the use of nuclear energy will be

maximised together with renewables,

keeping the percentage at around 20

per cent – almost the level prior to the

incident.

n scal 22, the percentage of en-

ergy production through nuclear in the

Asian country stood at 8.5 per cent,

according to government data.

To achieve its nuclear target, Japan

estimates that it would have to have

some 30 reactors in operation. Cur-

rently, the archipelago has 14 active

reactors, 19 suspended and 2 under

construction, while 27 have been shut

down or are being dismantled, accord-

ing to data from the International

Atomic Energy Agency (IAEA).

ndia will reuire signicant invest-

ment, particularly in the power sector,

to achieve its 2070 net zero commit-

ment, according to a report by Moody’s

Ratings. The power sector, which ac-

counts for 37 per cent of the country’s

carbon emissions, will need funding

equivalent to 2 per cent of GDP annu-

ally over the next decade and between

1.5-2 per cent of GDP over the next 25

years.

Moody’s estimates that India’s pow-

er sector will require investments of

between Rs4.5 trillion and Rs6.4 tril-

lion ($53-$76 billion) until FY2034-

35. Beyond that, annual investments

will range from Rs6 trillion to Rs9

trillion through FY2051. These invest-

ments will be shared between public

and private players, with both domestic

and foreign capital playing a crucial

role, says Moody’s.

India’s economy is projected to grow

at an average of 6.5 per cent annually

over the next decade, with power de-

mand rising at a similar pace, Moody’s

said. While India is expected to add

450 GW of renewable capacity during

this period, it will not be sufcient to

meet rising demand. As a result, coal-

based power generation capacity is

projected to expand by about 35 per

cent, increasing from 218 GW to ap-

proximately 295 GW by 2034-35.

Solar and wind power will dominate

new capacity additions over the next

20-25 years, while nuclear and hydro-

power will play a smaller role,

Moody’s said. Installed generation

capacity is expected to double by

FY2034-35, supporting a 1.7-1.8x rise

in power demand. The share of non-

fossil fuel-based electricity is pro-

jected to grow to 45-50 per cent of

total output by FY2034-35, up from

around 23.5 per cent in FY2023-24.

Nuclear is also set to see a massive

boost in nuclear. Following policy re-

forms announced by the Indian govern-

ment, which now allow private and

foreign investments in the nuclear sec-

tor, NTPC, India’s largest power

producer, is set to triple its initial nu-

clear power target. It now aims to in-

vest $62 billion to build 30 GW of

capacity instead of the earlier 10 GW

plan. India, which has committed to

achieving 500 GW of non-fossil fuel

capacity by 2030, aims to reach 100

GW of nuclear capacity by 2047.

Last month Indian Prime Minister

Narendra Modi concluded agree-

ments with both France and the US

that will support his country’s nuclear

programme.

Japan adopts new carbon

reduction targets as part

of energy plan

India needs massive investment to meet 2070 net zero target

Junior Isles

Last month the Environment Ministry

again pledged Jakarta’s support for the

landmark Paris climate deal following

its climate envoy’s suggestion that the

agreement was “irrelevant” after US

President Donald Trump again with-

drew from it.

In late January climate and energy

envoy Hashim Djojohadikusumo, said

targets to cut greenhouse gas emissions

for countries such as Indonesia were

unfair when the US, as the world’s larg-

est historical polluter, was reversing on

climate commitments.

“If the US, which is currently the

second-biggest polluter after China,

refuses to comply with the interna-

tional agreement, why should coun-

tries like Indonesia comply?” Hashim

told a conference in Jakarta.

“This is a matter of justice. Indonesia

3 tons, America 13 tons… Where is the

justice in that?” said Hashim, referring

to carbon dioxide emissions per capita

gures. ashim added that he believed

an agreed $2 billion nancial pro-

gramme to help wean Indonesia off

coal would “certainly be scrapped” by

the US under Trump. The so-called Just

Energy Transition Partnership “is a

failed programme”, he said.

Despite the statements, there has been

no indication from the government that

it would withdraw from the Paris

greement, with ofcials still saying

that it would continue to consider the

pledge’s targets going forward as they

attempt to harness other alternative

sources of energy.

“We have to boost our competitive

strengths while still paying attention to

the agreement’s consensus,” said En-

ergy and Mineral Resources Minister

Bahlil Lahadalia.

Indonesia is the world’s sixth-largest

polluter because of its heavy reliance

on coal. It generates 66 per cent of its

electricity from coal and continues to

build new coal red power plants to

fuel its growth.

President Prabowo Subianto has

pledged to cut CO

emissions by 2030

to reach net zero emissions by 2060.

In its new national electricity master

plan announced in November, it there-

fore committed to phasing out coal by

2040. Analysts have said that is an ag-

gressive target for a country that has

failed to meet any of its climate goals.

A new report by London-based think-

tank Ember says that although the mas-

ter plan projects growth in renewables,

there will in fact also be a sharp rise in

coal generation beyond 2030.

Ember’s analysis claims that the new

plan includes 26.8 GW of new coal

capacity over the next seven years, with

more than 20 GW of that coming from

captive coal plant expansion, which

supplies energy to industry rather than

the grid.

n The Indonesian government has an-

nounced plans to build more than 20

nuclear power plants by 2050. State

utility PLN is said to be collaborating

with companies from Japan and the US

to construct several nuclear power

plants with a total capacity of 4.3 GW,

including oating small modular reac-

tors (SMRs). The challenges posed by

climate change are one of the reasons

cited for the need to build nuclear

power plants.

Indonesia wavering on climate

commitments

n Climate envoy says Paris Agreement “irrelevant” after US withdrawal

n Analysis shows new energy plan increases coal use

Australia supports

hydrogen industries

with tax breaks

The Australian Senate has given the

green light to a $6.7 billion hydrogen

production tax incentive (HPTI) that

will unlock investment opportunities

across Australia, opening the door to

increased scale of ‘green’ hydrogen

produced using renewable energy

sources.

The Future Made in Australia (Pro-

duction Tax Credits and Other Mea-

sures) Bill 2024 is part of the Australian

government’s $22.7 billion Future

Made in Australia Plan and aims to

maximise economic and industrial

benets of the international move to

net zero.

The government said it would intro-

duce the tax breaks for businesses ac-

tive in the production of green hydro-

gen and critical mineral miners and

processors in order to stimulate growth

in these industries.

The incentives include A$2 ($1.25)

per kilogram of green hydrogen pro-

duced between 2027 and 2028 and

between 2039 and 2040 for up to ten

years per project, the country’s re-

source ministry said.

For critical minerals, the tax break

would come in at 10 per cent of “rel-

evant processing and rening costs for

the 31 minerals the Australian govern-

ment has identied as critical, the min-

istry also said. Those would be in effect

for the same period as the green hydro-

gen tax break.

A key detail about eligibility for the

tax breaks is that a project must be up

and running to qualify for them. In

other words, companies must secure

the upfront investment in green hydro-

gen production or critical mineral pro-

cessing before they become eligible for

the new incentives.

Hydrogen is also seen as an important

energy storage vector that can maxi-

mise the use of green but intermittent

renewable energy sources such as wind

and solar, which are rising rapidly in

the country.

www.teitimes.com

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THE ENERGY INDUSTRY TIMES - MARCH 2025

Europe News

Janet Wood

The German Federal Network Agency

has launched a tender for the N-9.4

offshore wind site in the North Sea.

The site can accommodate 1 GW of

installed offshore wind, and it is ex-

pected to be fully operational in the

third quarter of 2032.

The tender is the rst of several

planned over the next four years that

could bring as much as 12 GW of ad-

ditional installed offshore wind capac-

ity to the German grid. The next will

be for two offshore wind areas with a

combined installed capacity of 2.5 GW

recently dened by Germanys ed-

eral Maritime and Hydrographic Agen-

cy. According to its 2023 plan the sites

will be auctioned by Germanys ed-

eral Network Agency later this year.

Germanys offshore wind targets are

at least 40 GW of offshore wind in op-

eration by 2035 and at least 70GW by

2045.

Meanwhile, RWE has commis-

sioned a 220 MW/235 MWh battery

 one of Germanys largest  at its

Hamm and Neurath sites. Nikolaus

alerius, hief Executive of E

Generation SE, said large-scale en-

ergy storage is vital to complement

the expansion of renewable energy

sources, and it has additional battery

storage projects already in the pipe-

line. A new player in the German bat-

tery industry is a partnership between

Zurich-based energy storage owner-

operator BW ESS and German energy

storage developer irai ower. The

two companies say Germany is ex-

pected to add around 7GWh of new

battery capacity by 22, ve times

current levels, and the partners aim to

develop up to G of large batteries

in Southern Germany.

“Southern Germany is a region with

huge energy storage development

potential, and our partnership with a

global leader like BW ESS will help

us accelerate our efforts to decarbo-

nise the energy system,” said Marco

Frascati, Managing Director of Mirai

ower.

Other new partnerships are focusing

on expanding solar farms. Axpo and

Raiffeisen Waren-Zentrale Rhein-

Main AG (RWZ) recently announced

a partnership that focuses on new eco-

nomic opportunities for farmers.

RWZ will handle landowner outreach

and the associated contract negotia-

tions and it plans to participate as a

regional anchor shareholder, offering

its RWZ customers new economic

prospects options. Axpo will be re-

sponsible for the development, con-

struction, and operation of the solar

installations.

Meanwhile German newspapers re-

port that authorities are considering

repurposing the Nord Stream 2 pipe-

line, which was built to transfer gas

from Russia to Germany. It would

potentially be used to deliver green

hydrogen or natural gas from Finland,

according to German reports.

Explosions in 222 severely dam-

aged both Nord Stream pipelines and

they are currently inoperable.

Sixteen partners from across the Euro-

pean offshore renewable energy sector

have launched the ffshore Electricity

Storage Technology Research (OES-

TE proect to accelerate the develop-

ment of offshore electricity storage

technologies.

The three-year project includes utili-

ties such as RWE and Vattenfall, and

the Dutch research organisation TNO

and has been approved under the

framework of ission-driven e-

search, evelopment and nnovation

(MOOI), by the Netherlands Enter-

prise Agency. The Dutch Marine En-

ergy Centre (DMEC) said the project

will address challenges in the renew-

able energy transition, such as system

integration, and demonstrate the ben-

ets of renewables.

Energy storage systems could offer

a viable solution to challenges that

face the renewables sector due to the

mismatch between variable energy

production and demand. This often

results in electricity curtailment, re-

ducing the effective utilisation of re-

newable resources and limiting their

potential to accelerate the energy

transition.

In addition, when wind farms are

generating simultaneously it can lead

to oversupply and low or even nega-

tive prices. This may damage the busi-

ness case of offshore wind farms.

ey technologies under evaluation

include batteries integrated into wind

turbine monopiles; compressed air en-

ergy storage; underground pumped

hydro co-located within wind farms;

electrolysers on offshore platforms

directly connected to wind farms.

lans for the olish government to

provide public aid to state energy com-

pany olskie Elektrownie adrowe

E to build olands rst nuclear

power plant have passed its ower

ouse, with ust one  voting

against the bill and one abstaining.

The new legislation, which sees E

receive public aid of up to . bil-

lion, will be now debated by the Senate.

The current version of the olish u-

clear ower rogramme would see

construction of two plants with a total

capacity of 6-9 GW.

Industry Minister Marzena Czar-

necka said recently: “2025 is a year

of strategic decisions, when it comes

to investment in the energy sector,

adding, ell invest  billion

$ billion, including  bil-

lion in power grid investments alone.

eanwhile the European nvestment

ank E has signed off a  mil-

lion loan agreement with olska Grupa

Energetycna GE to support devel-

opment of the Baltica 2 offshore wind

farm. The proect, being developed

with enmarks rsted, will have a

capacity of 1.5 GW and be located in

the Baltic Sea, 40 km off the coast. The

project, set for completion in 2027, will

have  turbines.

E ice-resident Teresa

erwiska called it a transforma-

tive step for the countrys energy

sector.

The European Commission has pub-

lished proposals for a new ‘Clean In-

dustrial eal  plan, centred on

promoting of domestic clean technol-

ogy manufacturing, especially of re-

newable and low-carbon hydrogen

technologies.

orgo hatimarkakis, hief Execu-

tive of ydrogen Europe, said y

incentivising demand and rewarding

early movers, looking at the pull over

the push, the Clean Industrial Deal can

umpstart Europes clean technology

sectors, including hydrogen.” But he

called for urgent action, saying: “If

there is no positive development in

the next 18 months, we are all but

guaranteed to miss our 2030 climate

targets.”

The ffordable Energy ction lan

E, a strategy to lower energy

costs for EU citizens, included new

methodologies for network taxes and

charges to incentivise exibility,

along with proposals to accelerate

permitting.

owever, ydrogen Europe said it

was “dismayed” that the CID indica-

tors are expressed in terms of electri-

cation, which it said was not technol-

ogy neutral.

The European artnership for Energy

and the Environment EEE, repre-

senting manufacturing companies and

associations operating in the refrigera-

tion, air-conditioning and heat pump

industry, also welcomed the CID and

E.

irector General ussell atten said

“Our products are a key solution pro-

vider for the decarbonisation of heating

and cooling and an important contrib-

utor to energy security” and highlight-

ed plans for a new Heating and Cooling

Strategy to be published in 2026.

Janet Wood

The U government has kicked off

planning reforms intended to ease per-

mitting for new nuclear plants.

New nuclear, along with other forms

of carbon-free generation, were seen

to have gained in importance recently,

because the Us independent li-

mate Change Committee placed more

emphasis on electrication in its ad-

vice to government on how to reach

net ero. The latest advice, which

makes recommendations on policies

to keep the country on a trajectory to

net zero by 2050, refers to the period

2-22 and envisages widescale

electrication in most sectors includ-

ing home heating.

The government has also called arti-

cial intelligence and data centre de-

velopment a strategic priority for

growing the UK economy”, establish-

ing a new AI Energy Council to study

the opportunities for “renewable and

innovative energy solutions to power

 Growth ones.

Reforms to planning rules will clear

a path for small modular nuclear reac-

tors (SMRs) to be built in the UK.

Among the planned changes an-

nounced by Secretary of State Ed

Miliband are scrapping a list of eight

current nuclear sites that were identi-

ed as potential new-build areas after

a government-led selection process.

That assumed new nuclear plants

would be on the gigawatt scale, but the

government believes s lower re-

uirements on space and evacuation

zones mean they could be built on

many different sites across England

and Wales (Scotland has outlawed

new-build).

hris hite, law rm s U

Head of Nuclear, also highlighted in

particular, the removal of the current

sunset provision which effectively

puts a time limit on development at a

prescribed list of sites),” saying it

“should further encourage and acceler-

ate private sector developers.

The government was more euivocal

on a decision on whether to continue

to subsidise the Drax biomass power

station, which has been under scrutiny

over sustainability concerns for its

wood pellet fuel. Miliband has decided

subsidies will be renewed from 2027,

but at a lower level and under tighter

conditions.

Under the new agreement, Drax will

have a much more limited role in the

Us energy system, providing power

only when it is needed, Energy Minis-

ter Michael Shanks said in the state-

ment. The previous arrangement did

not deliver a good enough deal for

billpayers and enabled Drax to make

unacceptably large prots, he added.

usie Elks, enior olicy dvisor

for climate change think-tank E3G

said EGs modelling has shown

that the government can hit its 2

power target without the need for bio-

mass. It is reckless to continue subsi-

dising this industry which is a false

climate solution.”

eanwhile the governments infra-

structure adviser, the ational nfra-

structure Commission (NIC), has

warned that electrication will reuire

maor investment in low-voltage dis-

tribution grids. It says demand for

electricity is set to climb by 50 per cent

by 2035 and to double by 2050. The

NIC said: “The current regulatory pro-

cess is too complex and focused on the

short-term cost of network investment,

rather than the wider goals of econom-

ic growth and decarbonisation.” It es-

timates that annual investment in the

distribution networks should be “at

least” double current rates to hit the

£37-50 billion required and must ac-

celerate most steeply.

UK to invest in generation and

netors to support electrication

Partners begin research

projects on offshore energy

storage

Poland investment agreed for new

nuclear and wind

European Commission publishes new Clean Industrial Deal plan

n Nuclear permitting process to be eased

n Drax subsidy maintained but reduced

Germany boosts renewable energy

expansion

n New offshore wind sites to be auctioned n Partners roll-out battery storage and solar

Nadia Weekes

The Rwandan government has un-

veiled a new energy policy that iden-

ties a reuirement for at least

RWF2.5 trillion ($1.8 billion) in in-

vestment to expand generation from

various sources over the next decade.

The new policy focuses on increas-

ing energy access and transitioning to

cleaner energy solutions. While just

over half of households in wanda

have access to electricity at present,

the policy sets the bold target of pro-

viding universal access by 2030.

To achieve this, the government will

focus on expanding the national grid,

improving infrastructure and promot-

ing off-grid solutions like solar home

systems and mini-grids.

The government plans to encourage

private sector participation in energy

projects. To attract investment, it

plans to streamline regulatory pro-

cesses, offer incentives for renewable

energy proects, and facilitate public-

private partnerships.

International cooperation will also

play a crucial role. Rwanda will lever-

age regional and international partner-

ships in order to improve energy se-

curity and access to climate nance

mechanisms.

The policy highlights the impor-

tance of using the countrys abundant

energy resources to reduce depen-

dency on imports, and to use energy

not ust as a utility but as a catalyst for

broader socio-economic progress.

ecause hydropower accounts for

2 per cent of wandas total installed

electricity capacity, the policy aims to

conserve water catchment areas and

increase storage capacity for reser-

voirs, as well as develop micro hydro-

power projects and rehabilitate exist-

ing plants.

With its geographical location near

the Euator, wanda has huge solar

potential, but only 2  of installed

capacity. The policy aims to enhance

solar energy use by supporting hybrid

solar-storage technologies and local

production. The target is for  

by the scal year 22- and an-

other 20 MW by 2034-35.

Wind resources are generally poor

in most of wanda, but some areas

show promise. The policy allocates

 million for feasibility stud-

ies and RWF15 billion to build 15 MW

of wind power capacity.

wandas potential for geothermal

energy is estimated at up to  .

The policy supports resource assess-

ment to attract investors and manage

exploration risks.

ake ivu holds signicant meth-

ane gas resources, with an estimated

volume of  billion cubic metres

(bcm). Methane has been exploited

for power generation in wanda since

2015, currently producing 82.4 MW.

n investment of 2 billion will

be made to increase methane genera-

tion and further exploit this energy

resource for cooking and fertiliser

production.

The government aims to expand

waste-to-energy capacity by support-

ing local initiatives, offering incen-

tives for plant development, and pro-

moting large-scale production and

distribution.

Rwanda has extensive peat resourc-

es with an estimated 23-33 million dry

tonnes of exploitable deposits, repre-

senting a technical potential of 2

  of capacity. The policy fo-

cuses on developing hybrid power

systems combining peat with other

energy sources, as well as researching

efcient peat power generation and

promoting investment in peat by-

products.

aving identied nuclear energy as

a long-term solution, the policy sup-

ports the creation of a regulatory

framework and allocates . bil-

lion for a feasibility study for a nucle-

ar power plant with.

Finally, the energy policy includes

a feasibility study for developing hy-

drogen technology, with an invest-

ment of  million.

Trkiye has successfully doubled its

solar energy capacity in two and a half

years, surpassing its 2025 target ahead

of schedule, according to analysis by

the U-based think-tank Ember.

y the end of 22, the countrys

solar capacity reached . G, up

from . G in mid-222, the re-

search reads. elf-consumption in-

stallations accounted for  per cent

of the growth.

“Over the past two years, solar and

wind energy combined have avoided

$15 billion in natural gas imports, re-

inforcing Trkiyes energy indepen-

dence,” Ember noted, adding that the

country has a pipeline of  G in

pre-licensed solar and wind projects,

far surpassing its 2 target.

Trkiye concluded a wind tender

auction in anuary, awarding .2 G

of capacity to ve proects across three

provinces. The move is expected to

attract $1.2 billion in investment.

igeria is likely to experience im-

proved power supply in 2025, bol-

stered by several factors including a

planned $ billion package from the

frican evelopment ank f,

but must overcome funding and distri-

bution challenges.

“While advancements in generation,

grid infrastructure and regulatory re-

forms offer optimism, persistent chal-

lenges around gas supply, distribution

inefciencies and funding limitations

will need to be addressed for sustained

growth,” according to a new report by

Olaniwun Ajayi.

The Nigerian National Integrated

Power Project (NIPP) and other initia-

tives will boost renewable energy de-

velopment, particularly solar. “Nigeria

presents a compelling investment op-

portunity for both domestic and inter-

national investors,” the report states.

laniwun ayi said infrastructure

improvements were anticipated

through large-scale investment in

transmission and distribution net-

works, reducing losses and boosting

reliability.

igerias continued engagement

with the est frican ower ool

 reects a strategic effort to

integrate the national grid into region-

al energy systems, facilitating cross-

border electricity trade,” the report

adds. This positions igeria as a key

player in regional energy stability.

The establishment of the igerian

Independent System Operator (NISO),

expected to be completed by early

22, marked a signicant step to-

wards a decentralised electricity mar-

ket and should improve the efciency

of system operations.

igeria suffers freuent blackouts

due to systemic failures. n 22 alone,

the national grid collapsed multiple

times, throwing millions into darkness

and disrupting economic activities.

According to the report, the potential

unbundling of the igerian ulk Elec-

tricity Trader (NBET) will lead to a

more mature, competitive electricity

market, enabling direct, bilateral trad-

ing between generation and distribu-

tion companies, thereby allowing for

transparency in electricity pricing.

Under the nterconnected ini-Grid

Accelerated Scheme (IMAS), several

mini-grids have been established

across the country, providing clean,

renewable energy to underserved com-

munities, unlocking new economic

opportunities and improving access to

key services such as education and

healthcare.

y replacing traditional fossil fuel-

based energy sources, such as diesel

generators and kerosene, the mini-

grids are also signicantly reducing

carbon emissions.

Nadia Weekes

India and France have agreed to joint-

ly develop a new generation of nucle-

ar reactors as one of the three nuclear

agreements signed during a visit to

rance by ndias rime inister a-

rendra Modi.

Under a new strategic partnership,

the two countries will cooperate on

advanced modular reactors (AMRs)

and small modular reactors (SMRs),

alongside developing a joint road map

on AI data centres and wider civil

nuclear cooperation.

oting that  reuires vast amounts

of electricity, ndias foreign secretary,

ikram isri, said s and s

could play a key role.

SMRs have a smaller capacity than

conventional nuclear reactors and can

be manufactured in factories and in-

stalled elsewhere. This class of reac-

tors, which can have as much as 300

 of generating capacity, can be

assembled in locations where larger

nuclear facilities are not feasible.

There has been renewed interest in

ndias nuclear energy sector by maor

players such as rance following the

governments recent move to amend

the Atomic Energy Act and Civil Lia-

bility for uclear amage ct.

Misri said the two sides will col-

laborate in jointly designing, develop-

ing and producing SMRs and AMRS,

and also cooperate in training re-

searchers and professionals in civil

nuclear energy.

Though the technology is still in its

initial stages, such cooperation can

help India leverage the existing indus-

trial ecosystem for nuclear compo-

nents and power plants, Misri added.

ndia plans to have at least ve s

by 2033.

ndias nuclear power generation ca-

pacity has grown signicantly, nearly

doubling from   in 2 to

8180 MW in 2024. Capacity is pro-

jected to triple to 22 480 MW by 2031-

32. At present, nuclear power plants

contribute . per cent of ndias total

installed power capacity of 2 G.

In a joint statement, the two govern-

ments said that “nuclear energy is an

essential part of the energy mix for

strengthening energy security and

transitioning towards a low-carbon

economy”.

India, France

unveil nuclear reactor

partnership

Türkiye on track to

surpass renewables

targets

Nigeria to see improved power generation in 2025, says AfDB report

Rwanda launches new policy to

boost energy generation

n Government targets better access to cleaner energy

n Focus on infrastructure expansion and off-grid solutions

TE EEG UT TE -  22

International News

n New-generation reactors to boost electricity supply

n Collaboration extends to training researchers and

professionals

ore than  local and foreign com-

panies are bidding for proects to con-

struct  steam power stations in ra

with a combined generation capacity

of  G, according to the rai Elec-

tricity Ministry.

The ministry is offering three invest-

ment models to the companies wishing

to formally bid for these proects.

 capacity of   is to be lo-

cated at four plants in outh ra, 

 at ve plants in entral ra and

3500 MW at three plants in the North.

ra is seeking to boost its power

supply networks following severe

damage during wars.

ne unre rms bi or

Iraq steam power plants

THE ENERGY INDUSTRY TIMES - MARCH 2025

Companies News

Junior Isles

BP is switching focus back to its roots

after its bet on renewable energy hit

the group’s share price, causing a

backlash from investors.

The UK-headquartered oil and gas

major has abandoned an attempt to

reinvent itself as a green energy com-

pany, bowing to pressure from inves-

tors after its aggressive shift away

from fossil fuels over the past ve

years.

The group now says it will increase

oil and gas spending by a fth to $

billion a year and cut expenditure on

renewables by 70 per cent.

s hief Executive fcer ur-

ray Auchincloss said that the change

was a “fundamental reset of BP’s strat-

egy”, as he scrapped targets to cut

fossil fuel production and develop 50

GW of renewable power.

“Our optimism for a fast transition

was misplaced and we went too far,

too fast,” he said, as he announced the

new strategy following pressure from

activist investor Elliott Management.

“Oil and gas will be needed for de-

cades to come.”

He said the growing electricity de-

mands of data centres would make

gas, in particular, the fuel of choice.

“The challenge is how do we decar-

bonise this stuff as much as you can,”

he said, adding that BP was already

actively capturing carbon emissions.”

BP said it plans to more than double

the oil major’s market value within

ve years to $2 billion, the level it

achieved before the 2 eepwater

Horizon disaster.

In response to the decision, Charlie

Kronick, Senior Climate Adviser for

Greenpeace UK, said: “This is posi-

tive proof that fossil fuel companies

can’t or won’t be part of climate crisis

solutions; this conversation is over.

“The Climate Change Committee

has said UK emissions must be drasti-

cally slashed – the reality is now it’s

up to the government to see this

through and to ensure companies like

BP pay their share for the climate dam-

age they’re causing.”

Auchincloss said, however, that the

group had not abandoned its plans to

be a diversied energy company. 

don’t really see anybody else doing

any more than we’re doing at this type

of scale,” he said. “You will see no

better integrated energy company in

the world than BP.”

Earlier in the month BP reported

strong renewables growth with in-

creased solar capacity. The company

said installed renewables capacity

reached 4 GW by the end of December

2024, marking an increase from 2.7

GW in 2023 and 2.8 GW in Q3 2024.

Meanwhile, its competitor Shell also

looks set to shift away from renew-

ables investment. At the end of Janu-

ary, Wael Sawan, the UK oil major’s

Chief Executive, said the company’s

green energy businesses must start

delivering returns to shareholders. In

its fourth-quarter results, it revealed

that it had written down the value of

its U wind business by $ million,

after quitting the Atlantic Shores proj-

ect off the coast of New Jersey.

It also said its renewables and en-

ergy solutions business recorded an

adusted earnings loss of nearly $

million in 22, a  per cent fall

compared with the year before.

awan said hell had spent $ billion

on renewables since 2023 and was on

track for its three-year target of be-

tween $ billion and $ billion of

investment. But he warned: “The key

for us is making sure that we deliver

the returns that our shareholders ex-

pect of us from that capital.”

Siemens Energy has made a strong

start to its new scal year, as demand

for its products remained favourable

and the strong order trends continued.

evenue of . billion increased

by . per cent, with all segments

recording growth. Orders for Sie-

mens Energy amounted to . bil-

lion. As expected, this was below the

high level of the prior-year quarter, in

which Grid Technologies and Trans-

formation of Industry had booked

exceptionally high orders. rot be-

fore Special items more than doubled

year-over-year to  million 

FY 2024: €208 million) again held

back by results of Siemens Gamesa,

but to a signicantly lesser extent than

in the prior-year quarter.

Christian Bruch, President and CEO

of Siemens Energy AG, said the

strong rst uarter reects the market

opportunities arising from the in-

creasing demand for electricity, and

noted that the strong cash ow was

mainly driven by growth across all

businesses.

“Strong electricity consumption

growth, replacement investment and

the requirements of the energy transi-

tion necessitate investment in energy

infrastructure supporting all busi-

nesses of Siemens Energy,” he said.

At Siemens Gamesa we continue to

work on the measures to reach break-

even in scal year 22. e continue

to strive to resume sales activities for

the . onshore turbine during scal

year 2025.”

Gas Services assumes a comparable

revenue growth of  per cent to  per

cent and a prot margin before pe-

cial items of  per cent to 2 per cent.

Grid Technologies plans to achieve

a comparable revenue growth of 23

per cent to 2 per cent and a prot

margin before Special items between

 per cent and 2 per cent.

Transformation of Industry expects

a comparable revenue growth of 

per cent to  per cent and a prot

margin before Special items of 8 per

cent to  per cent.

Siemens Gamesa assumes a compa-

rable revenue growth of negative 

per cent to negative 5 per cent and a

negative prot before pecial items

of around . billion.

The company expects to achieve

comparable revenue growth exclud-

ing currency translation and portfolio

effects in scal year 22 in a range

of  per cent to  per cent and a

prot margin before pecial items

between 3 per cent and 5 per cent.

Shortly after announcing the results,

Siemens Energy re-elected Joe Kaiser

as Chairman of its Supervisory Man-

agement Board. Speaking at the vir-

tual Annual General Meeting, Kaiser

said: “Today’s Annual General Meet-

ing has shown that our shareholders

are convinced of the operational

strength and strategic direction of

Siemens Energy.”

European companies have warned

Brussels policymakers that excessive

regulation related to decarbonisation

will harm the bloc’s competitiveness,

especially as the Trump administra-

tion has scrapped US climate change

commitments.

Christian Bruch, Chief Executive at

Siemens Energy, said the burden on

businesses from rules intended to

measure their impact on the environ-

ment was “disproportionate” to the

benets.

“Just making cosmetic changes to

regulations will not move us one inch

closer to becoming more competi-

tive,” Bruch said, as he singled out

the Corporate Sustainability Report-

ing irective , a rule the EU

introduced in 2023 requiring compa-

nies to detail their environmental and

social impact.

The directive has created more than

 data points that must be report-

ed to Brussels, he said, adding that it

needed to be “radically shortened and

simplied.

Last month the biggest business

lobby groups in France, Germany and

Italy joined the campaign, calling for

the European Commission to go be-

yond its promise to merely prune

reporting regulations by adjusting EU

laws “to match the standards of our

competitors where appropriate”.

In a sign of the growing pressure

Brussels is under, the Commission

has said it will review the reporting

requirements on companies across

four pieces of environmental legisla-

tion, including the CSRD.

Patrick Pouyanné, the head of oil

major TotalEnergies, described the

CSRD as “a monster” formed from

“good intentions”.

Siemens Energy gets off to

strong start

EU businesses warn Brussels on

excessive green regulation

BP pivots on clean energy

ambition

n Oil and gas major bows to pressure from investors

n Shell says green energy businesses must start delivering returns

Several major European companies

have announced major tie-ups that

will support the growth of hydrogen

production, signifying growing con-

dence in the future of the nascent

technology.

In mid-February French energy ma-

jor TotalEnergies and compatriot in-

dustrial gas supplier Air Liquide signed

agreements to develop projects for

offshore wind-powered production

and delivery of green hydrogen.

The agreements cover two projects

for the production of 45 000 t/y of green

hydrogen using renewable power, gen-

erated mostly by the OranjeWind off-

shore wind farm, a joint development

by TotalEnergies and RWE.

These projects aim to cut CO

emis-

sions from TotalEnergies reneries in

Belgium and the Netherlands by up to

450 000 tonnes a year and contribute

to the European renewable energy tar-

gets in transport.

Under the rst agreement, TotalEn-

ergies and Air Liquide will set up a

joint venture that will build and oper-

ate a 250 MW electrolyser near the

eeland renery in the etherlands.

This project is expected to enable the

production of up to 30 000 tonnes of

green hydrogen each year, most of

which will be delivered to Zeeland’s

platform.

The electrolyser will be commis-

sioned in 22 and cut the sites 

emissions by up to 300 000 tonnes a

year. This project represents a global

investment of around  million.

The tie-up followed an earlier an-

nouncement by Siemens that it has

signed an agreement to become pre-

ferred supplier and technology partner

for Guofu Hydrogen’s production of

electrolysers and green hydrogen.

Siemens, together with RCT GH Hy-

drogen, a Germany-based supplier of

hydrogen systems and services, signed

a Memorandum of Understanding

oU with the hina-based supplier

of integrated solutions for hydrogen

energy, to collaborate on advancing the

hydrogen value chain. The partnership

marks a signicant step forward in the

global expansion of green hydrogen

technology.

The partnership focuses on three key

areas: developing and engineering

Guofu’s electrolysers and electrolyser

systems; equipping new electrolyser

manufacturing facilities starting in

Germany; and developing, construct-

ing, and operating new hydrogen pro-

duction plants. RCT GH Hydrogen,

as a technology partner, will lead the

engineering, procurement, and con-

struction of state-of-the-art hydrogen

production facilities.

“This strategic partnership exempli-

es iemens commitment to driving

the industrialisation of green hydro-

gen production,” said Axel Lorenz,

CEO of Process Automation at Sie-

mens. “Our portfolio and domain ex-

pertise, combined with Guofu Hydro-

gen's vision and RCT GH Hydrogen’s

proven engineering capabilities, will

help establish new standards in elec-

trolyser manufacturing efciency and

scalability.”

Hydrogen

partnerships gain

momentum

2 GWh of Invinity’s manufacturing

capacity. Final volumes will depend

on how much capacity is enabled by

Ofgem’s 2025 LDES window and

how many, if any, project bids are

accepted.

The companies will also explore

opportunities for collaboration in

other locations where Frontier Pow-

er is active, including Japan, Korea,

Vietnam, Malaysia, the US and the

EU.

Mitsubishi Power has won a contract

to supply two M701JAC gas turbines

and auxiliary equipment for the Al

Wahda Open Cycle Gas Turbine Pow-

er Plant in Morocco owned and oper-

ated by The ational fce of Elec-

tricity and Drinking Water (ONEE).

In addition, Mitsubishi Power

signed a long-term service agree-

ment with ONEE for the provision

of parts, repairs and services.

Al Wahda is located in the Prov-

ince of Ouazzane in the north of

Morocco. The power plant will be a

peaking plant to help stabilise the

growing renewable energy contri-

bution to the country’s national

grid.

Once operational, the plant’s two

gas turbines will generate a com-

bined 990 MW, representing nearly

7 per cent of Morocco’s national

grid capacity.

The M701JAC gas turbines are

capable of co-ring hydrogen with

natural gas, offering exibility for

future decarbonisation.

The Al Wahda Power Plant is ex-

pected to begin operation in 2027.

Samsung C&T Engineering and Con-

struction (E&C) has won a $2.84 bil-

lion EPC contract for the Qatar Facil-

ity E Desalination and Combined

Cycle Power Project in Doha, Qatar

under a consortium with Japan’s Sum-

itomo Corporation. The project, ex-

pected to be completed in 2029, will

supply 16 per cent of Qatar’s electric-

ity and 17 per cent of its desalinated

water.

The project involves construction

of a 2400 MW combined cycle gas

turbine (CCGT) power plant and a

desalination facility that will pro-

duce around 500 000 t/day of water.

Saudi Arabia has announced that it will

invest $3.57 billion to expand the

Qurayyah CCGT power plant in the

Eastern Province by 3.01 GW.

The Saudi Procurement Company

has signed a PPA with the Saudi

Electricity Company and ACWA

Power for this project. The expan-

sion plan includes readiness to in-

corporate carbon capture units.

ACWA Power has signed a 25-year

PPA with the Egyptian Electricity

Transmission Company (EETC) for a

2 GW wind project in Egypt. The proj-

ect will become the largest wind farm

in Egypt, surpassing ACWA Power’s

existing 1.1 GW Suez Wind Farm. It

will also be the largest single-asset

independent power producer (IPP) in

the country.

The 2 GW wind project will play

an important role in supporting the

Egyptian government to increase

the renewables share in its genera-

tion mix to 42 per cent by 2030.

low-CO

solutions for the power

generation market. Our capabilities

on HVO successfully complement

those on hydrogen, thus providing

customers a wide choice to decar-

bonise their assets.”

Va tt e nf al l h a s s i gn ed a p ow er p ur-

chase agreement (PPA) with chemi-

cals group LyondellBasell (LYB),

for electricity from the Nordlicht 1

wind farm off the German coast.

The PPA covers the supply of

electricity from Nordlicht 1 for a

period of 15 years, starting in 2028.

Under the contract, LYB will pur-

chase around 450 GWh per year for

plastics production.

Vattenfall is currently developing

the Nordlicht 1 wind farm. The

wind farm is located 85 km north of

the island of Borkum in the German

North Sea. It will have a total out-

put of 980 MW from 68 wind tur-

bines. It is due to be completed and

connected to the grid in 2028.

Vattenfall holds a 51 per cent

share of the wind farm, while BASF

owns 49 per cent.

Fortum has won a contract to supply

zero-carbon electricity to cover the

initial power needs of a green hydro-

gen production plant in southwestern

Finland owned by P2X Solutions.

The companies have signed a ve-

year PPA, with the corresponding

Guarantee of Origin, which will al-

low the Harjavalta plant to meet the

EU requirements for renewable hy-

drogen. Fortum will source power

for the plant from its renewable en-

ergy portfolio.

The 20 MW Harjavalta project is

described as the rst industrial-scale

green hydrogen and synthetic meth-

ane plant in Finland. The facility is

in the commissioning phase and is

expected to start production in early

2025.

The Danish distribution system opera-

tors Cerius-Radius and its joint service

company Nexel selected Sweco to

partner in developing the electricity

grid in Eastern Denmark. Sweco’s or-

der value is estimated at about $11

million over ve years.

Sweco will provide EPC services

under the agreement which extends

until 2. fter the ve-year term

there is the possibility of three fur-

ther one-year extensions.

Dariush Rezai, Business Area

President of Sweco in Denmark,

said: “Sweco plays an important

role as an advisor in accelerating

the green energy transition in Den-

mark, and we are excited to contrib-

ute our expertise in this new collab-

oration to future-proof the electrical

grid in Eastern Denmark.”

Invinity Energy Systems and UK-

based energy infrastructure developer

Frontier Power signed a partnership

and supply agreement to deploy up to

2 Gh of nvinitys vanadium ow

batteries.

The batteries will be used in proj-

ects that Frontier Power is currently

developing to bid into the UK long

duration energy storage (LDES) cap

and oor scheme. The rst applica-

tion window of this is expected to

be open between Q2 and Q3 2025.

Under the terms of the agreement,

Frontier Power has reserved up to

Candu Energy, an AtkinsRéalis com-

pany, in a joint venture with Aecon

Group, has won a contract from On-

tario Power Generation (OPG) to

progress the early works associated

with the Pickering Nuclear Generating

Station Retube, Feeder and Boiler Re-

placement project (RFBR).

The contract covers professional

engineering services, procurement,

and execution planning associated

with critical path activities for the

announced life-extension of four of

Pickering’s Candu 1 reactors to op-

erate until the mid-2060s. The man-

dates are worth approximately

C$1.1 billion to the joint venture for

early works and roughly C$1 billion

for the denition phase.

BWX Technologies (BWXT) has

been awarded a contract by GE Hitachi

Nuclear Energy (GEH) to manufac-

ture the reactor pressure vessel (RPV)

for the rst -  to be

constructed at Ontario Power Genera-

tion’s Darling New Nuclear Project

site.

The RPV is the largest component

within the BWRX-300. GEH previ-

ously awarded a contract to BWXT

for RPV-related engineering analy-

sis, design support and manufactur-

ing and procurement preparations.

Early site preparation work at Dar-

lington has been completed with

construction of the rst unit expect-

ed to start later in 2025, pending

regulatory approval, and commer-

cial operations expected to com-

mence by the end of 2029. A total of

four units are planned for the site.

The Vedanta Group is seeking bids

from rms to build  G of nuclear

power capacity in India to meet the

energy needs of its facilities. Initial

bids are to be submitted by March 22.

The company said: “We are look-

ing for a globally recognised com-

pany with a proven track record of

designing, building, and operating

nuclear plants to deliver an end-to-

end turnkey project.”

It added that it will arrange for the

land, infrastructure support, and

regulatory approvals.

Vedanta currently has an energy

portfolio consisting of 9000 MW of

thermal and 4000 MW of renew-

ables under construction. It is aim-

ing to expand its capacity to 20 GW

over the next three years.

Siemens Energy is supplying two gas

turbines and related components for

the 1200 MW Kuo Kuang 2 power

plant in Taiwan.Taiwan predicts its

electricity demand will rise by 12-13

per cent by 2030. As a result, the coun-

try is expanding clean power genera-

tion and upgrading the grid.

Siemens Energy’s scope of supply

is a complete power island solution

including two SGT6-9000HL gas

turbines, one SST6-5000 steam tur-

bine, three SGEN6-2000P genera-

tors and the Omnivise T3000 con-

trol system.

Kuo Kuang 2 is being built with

CTCI Corporation as the consor-

tium partner responsible for the

plant EPC.

Bharat Heavy Electricals Limited

(BHEL) has won a contract from Ma-

harashtra State Power Generation

Company (Mahagenco) worth $920

million for the supply, erection, and

commissioning of the boiler-turbine-

generator (BTG) package at the coal

red oradi thermal power station in

Nagpur, Maharashtra.

The contract is for two 660 MW

units (Units 11 and 12). The scope

of work includes equipment supply,

civil works, erection, commission-

ing, and successful performance

guarantee testing of both units.

Unit 11 is scheduled to be opera-

tional within 52 months, and Unit

12 within 58 months.

Global energy consultancy Xodus has

won a contract to support the develop-

ment of an advanced carbon capture

and storage (CCS) hub in Japan.

Xodus will work with a consor-

tium comprising West Japan Carbon

Dioxide Storage Survey (WEST),

ENEOS, Electric Power Develop-

ment (J-Power) and ENEOS Xplora

to deliver the Offshore Western Ky-

ushu CCS project.

Under the terms of the contract,

Xodus will design the pipeline and

cable geotechnical surveys for the

Offshore Western Kyushu CCS

project.

Offshore Western Kyushu CCS

aims to capture and store approxi-

mately 1.7 million tons of CO

per

year from EEs oil reneries

and J-Power’s thermal power plants

located in the Setouchi and Kyushu

regions. The captured emissions

will be transported via ship and

pipeline to saline aquifers off Ja-

pan’s southwestern island of Ky-

ushu for permanent storage.

Indian energy company Caparo Pow-

er has renewed the O&M Agreement

it has with rtsil, with a ve-year

extension.

The 36 MW plant operates with

four Wärtsilä 34SG engines pow-

ered by natural gas. It supplies

baseload electricity to nearby indus-

tries through a dedicated transmis-

sion system.

In addition to operating the plant,

the agreement includes maintenance

management, spare parts, operation-

al support, and Wärtsilä’s Expert In-

sight solution. Wärtsilä Expert In-

sight is a predictive maintenance

service that proactively detects po-

tential issues and provides action-

able advice to solve them.

Ansaldo Energia will supply a

AE94.3A turbine for the 300 MW Tar

bert Next Generation Power Station in

Ireland. The plant will run on 100 per

cent hydrotreated vegetable oil

(HVO), produced by processing waste

feedstocks. SSE Thermal is the plant

owner.

The simple cycle plant will supply

electricity at periods of peak de-

mand and support the expansion of

Ireland’s renewable energy genera-

tion capacity.

Stefano Gianatti, Executive Vice

President New Units of Ansaldo

Energia, said: “We are grateful to

E Thermal for the condence it

has placed in Ansaldo Energia. This

new project award demonstrates the

Ansaldo Energia capacity to offer

Americas

iaacic

AtkinsRéalis JV will

retube Pickering

Vedanta s eeks bids for

Indian NPPs

Siemens Energy supplying

gas turbines to Taiwan

Caparo extends Wärtsilä

service agreement

BHEL wins $920 million

boiler contract

Xodus to support CCS

hub in Japan

BWRX-300 RPV contract

awarded

International

Europe

THE ENERGY INDUSTRY TIMES - MARCH 2025

Tenders, Bids & Contracts

300 MW biofuel power

station for Ireland

Vattenfal l signs offshore

wind power PPA

Finnish hydrogen plant to

be powered by Fortum

Sweco to future-proof east

Denmark electricity grid

Order for Al Wahda power

plant in Morocco

Samsung C&T wins

Qatari EPC contract

Saudi Arabia to expand

Qurayyah IPP

ACWA to develop Egypt’s

largest wind farm

2 GWh batteries for UK

LDES scheme

US looks to boost gas sales in Asia with

Alaska LNG project

Discoveries of white hydrogen in Earth’s crust

could unveil new alternative energy

Gary Lakes

US President Donald Trump has not

held back about his desire to see US

energy dominate world markets. Cer-

tainly, the US is already a big produc-

er and exporter of oil and gas but Trump

has made it clear that he not only wants

to boost domestic production and re-

duce regulatory barriers that hinder oil

and gas projects, but he wants to see

more exports, especially of LNG.

To this end, he has lifted pauses

placed on the construction of new

LNG export terminals along the Gulf

of Mexico put there by former Presi-

dent Joe Biden and granted export

authorisations. Trump has urged

American companies to sell more oil

and gas abroad as well as urged Eu-

ropean and Asia countries to buy more

LNG.

Europe is expected to purchase more

US LNG as it takes new measures that

will restrict imports of Russian LNG

and as the use of renewables through-

out Europe grows. Asian countries are

also likely seen buying more US LNG

in future. Japan, Taiwan and the Phil-

ippines have recently expressed their

interest.

Among Trump’s prime project

choices is Alaska LNG, which has

been on the stove for some time, but

which has grown cold due to a lack of

support due to long-term questions

about the need for LNG in the face of

efforts to reduce carbon emissions and

a lack of support from the previous

administration. The cost of the project

has also been an issue. But as the mar-

ket for LNG appears to be returning,

Alaska LNG is once again a topic of

discussion.

Alaska LNG and the possible par-

ticipation in it by Japan was discussed

last month when Prime Minister

Shigeru Ishiba visited Trump at the

White House. Although the project

was discussed only during a closed

meeting, it was reported that Trump

emphasized that imports of Alaskan

LNG would give Japan the opportu-

nity to reduce its reliance on Middle

East gas deliveries and at the same

time address Japan’s trade imbalance

with the US.

There had been some speculation

prior to Ishiba’s visit that Japanese

rms might become partners in the

project, but there has been no solid

evidence of that yet, apart from com-

ments made by Trump during a joint

press conference.

“Japan will soon begin importing

historic new shipments of clean

merican liueed natural gas in re-

cord numbers,” Trump said, accord-

ing to Alaska Public Media/BBC.

“It’ll be record numbers,” he added

with his usual hyperbole.

Ishiba said through a translator that

Japan isn’t just interested in LNG. “As

the country of Japan, we are inter-

ested in importing not just LNG but

also bioethanol, ammonia, and other

resources at a stable price, a reason-

able price from the United States,”

Ishiba said. “And we also want to

improve the trade decit that the U

has towards Japan.”

Meanwhile, Japanese conglomerate

Mitsui told the Asahi Shimbun that it

is considering a study on the Alaska

G proect but had not made a nal

decision.

Although Japan has in the past ques-

tioned the viability of the project – it

will cost around $40 billion and re-

quire the construction of a gas pipeline

across Alaska from the North Slope

to the state’s southern shore. But it is

eager to avoid the embargoes that

Trump has been threatening the US’s

other allies with and maintain a strong

relationship in the face of an imposing

China and erratic North Korea.

Ishiba is reported to have told his

host that he hopes Japan can partici-

pate in the Alaska LNG project, but

he said nothing of the project pub-

licly while in Washington.

Alaska LNG is seen by many in the

US oil and gas industry as one of the

most important energy projects in the

country. The project was approved

under Trumps rst administration

and received Federal Energy Regula-

tory Commission (FERC) authorisa-

tion in 2020. Final legal approval was

obtained in 2022, in spite of strong

opposition from several environmen-

tal groups.

Alaska’s state-owned Alaska

Gasline Development Corporation

(AGDC) owns the project. Last month

AGDC entered an exclusive agree-

ment with developer Glenfarne to

move ahead, although there is much

to do before any gas will begin to ow.

ExxonMobil, TransCanada, BP and

ConocoPhillips are participants in the

project. The infrastructure work in-

cludes a 1300 km pipeline through

Alaskan wilderness that begins on the

North Slope and runs to a new LNG

export facility at Nikiski on the south-

ern coast of the state. The LNG facil-

ity is to have a capacity to export 20

million tons annually for a 30-year

period. And the pipeline will transport

3.3 billion cubic feet per day of gas

processed near the production site.

Recent developments have been

happy news in Alaska. According to

Alaskan Governor Mike Dunleavy,

President Trump has “rescued Alaska

– rescued, I think, the country, and

quite frankly, the world.”

Gary Lakes

If the world wanted to invest in devel-

oping a whole new infrastructure for

a new industry, would it want to put

that money into an energy resource

that would provide clean, non-pollut-

ing energy, or build a system around

capturing, transporting, piping, ship-

ping, storing, and sequestering carbon

dioxide? – just so we could continue

to burn carbon-generating, green-

house gas emitting, climate destroy-

ing hydrocarbons?

Science has determined that cur-

rently there exists about six trillion

tons of white hydrogen in the world.

White hydrogen is formed under-

ground through a natural geochemical

process without human involvement.

Science says white hydrogen has

clean energy potential and has numer-

ous advantages over the hydrogen that

is manufactured through whatever

method is currently used – either from

green renewable sources or energy

from fossil fuels like coal and gas.

Those advantages include: it is

known to be naturally occurring; and

it is found in the Earth’s crust which

means it does not require any energy-

intensive processes to produce – that

makes it more cost effective and en-

vironmentally friendly.

Yet the method of extracting it for

use is in the early days of development

and there will be signicant chal-

lenges (as there was with oil and gas).

Some developers have suggested

fracking – but that puts the new re-

source in the basket with hydraulic

fracturing for natural gas, with big

expenses and possible environmental

damage.

An entire infrastructure will need to

be developed, unless some existing

natural gas facilities can be switched

to hydrogen, which is now the case in

some instances. But new drilling

equipment, pipelines, storage and trans-

portation hardware will also need to

appear. This in itself would likely cre-

ate a new industry and many jobs.

There will be difculties, but when

this energy source is burned it pro-

duces only water vapor and no direct

carbon emissions. As manufactured

green hydrogen is capable of doing

now, this would make a big contribu-

tion to signicantly decarbonising

industries like steel, aluminium, and

transport.

Across the globe, and despite efforts

by politicians and hydrocarbon busi-

nesses to downplay alternative ener-

gies, universities, colleges, private

companies, research institutions, and

independent entrepreneurs are work-

ing to crack the nut that is cheap hy-

drogen energy. The ongoing techno-

logical research and advances promise

to make hydrogen a prime source of

global energy at some point. As more

attention goes to white hydrogen, it is

itself looking like a future major play-

er even if time and investment will be

needed to overcome the challenges

and scale up production.

hen hydrogen was rst considered

as a clean fuel, it was believed that

hydrogen did not occur naturally in

nature. But that turned out to not be

the case, and some scientists have

known this for some time. As the

story goes, white hydrogen was rst

discovered in Mali in 1987 in the vil-

lage of Bourakebougou where a crew

was drilling for water. When a work-

man smoking a cigarette leaned over

the well, it exploded. The borehole

was closed but reopened in 2012 and

has since been supplying the village

with a fuel source for power genera-

tion. The white hydrogen can be used

as is, without the complicated process-

ing needed for hydrocarbons or low-

carbon hydrogen.

In recent years, explorers have gone

looking for white hydrogen in a num-

ber of places, and usually it is found

within mountain ranges where the

tectonic plates in the Earth’s crust rub

each other. White hydrogen has been

found in the US, Australia, Mali and

Albania.

 potentially signicant discovery

was announced in the Lorraine region

of France last month. So far it is con-

sidered the Earth’s largest deposit of

natural hydrogen, estimated at 46 mil-

lion tons.

Researchers from the GeoRessourc-

es laboratory at the University of Lor-

riane and the French Center for Sci-

entic esearch were checking for

methane deposits at the Folschviller

mining basin in Mosellee, when they

stumbled across white hydrogen at a

depth of 1250 m.

The researchers reported that the

data indicated that the basin is very

rich in white hydrogen and suggested

that if their ndings are conrmed, it

could mean a big step forward in the

transition to clean energy.

Drilling for white hydrogen is also

taking place in a number of locations

in the US, including Texas, Colorado

and Nebraska, and also Australia. As

more research takes place, the promise

of white hydrogen continues to cap-

ture the imagination of entrepreneurs,

and perhaps eventually it could cap-

ture some markets.

Hydrogen

Gas

Donald Trump’s return to the White House has been seen by some as a boon for the US energy industry, especially

for the Alaska LNG project, the future of which has been revived.

Tucked away at numerous locations around the Earth, there exists an energy source that promises to make a

difference in the future of how we power our world. White hydrogen, which is naturally occurring, is coming into focus

ithin the scientic and usiness communities nd hile it ont e easy to deelop, it really might mae a dierence

once it is.

THE ENERGY INDUSTRY TIMES - MARCH 2025

Fuel Watch

Source: Electricity 2025: Analysis and forecast to 2027, https://www.iea.org/reports/electricity-2025 CC BY 4.0

THE ENERGY INDUSTRY TIMES - MARCH 2025

Energy Industry Data

For more information, please contact:

IEA Publications

International Energy Agency

Website: www.iea.org

Contact information:

www.iea.org/contact

Change in electricity demand by region, 2021-2027

Evolution of per capita electricity consumption and GDP in

selected regions throughout the years, 1990-2027

Growth rates of electricity demand and GDP in selected

regions, 2003-2027

ydrogen is increasingly rec-

ognised as a cornerstone of

global net zero ambitions,

and nations across the globe are

ramping up efforts to grow the global

project pipeline.

Key examples include Germany,

which has committed over €9 billion

($9.5 billion) to hydrogen develop-

ment, and China, where ambitious

hydrogen goals have drawn signi-

cant attention of late — with plans

for fuel cell vehicles, green hydrogen

production, and critical infrastructure

development. Japan has also im-

pressed, having recently updated its

Basic Hydrogen Strategy, seeing the

government commit around $98.8

billion over the next ve years to-

wards nine core technologies, includ-

ing fuel cells and water electrolysis.

But who is lagging behind and

what can they learn from those lead-

ing the way in infrastructure and in-

vestment in hydrogen? The US and

UK both stand out. Having suffered

setbacks with serious changes in po-

litical parties, the development and

continued support of hydrogen and

its associated technologies have tak-

en a massive hit.

The Trump administration has pri-

oritised policies aimed at advancing

energy sovereignty via domestic fos-

sil fuel production. The move to ex-

pand oil, natural gas, and coal extrac-

tion within the US has come with a

signicant push to reduce regulations

on the fossil fuel industry, streamline

permitting processes for energy proj-

ects, and open up more federal lands

and waters for exploration and drill-

ing. As he starts to put into play more

of his ideas, we are probably likely

to see incentives for the investment

in fossil fuel infrastructure, such as

pipelines and reneries.

The UK, since coming under a La-

bour government, has seen a massive

cut in the green prosperity plan that

was promised for battery manufac-

turing, hydrogen power, offshore

wind, tree planting, ood defences

and home insulation.

There has been a little progress

since the publication of the UK Hy-

drogen Strategy, supporting hydro-

gen hubs and clusters such as

the HyNet North West. But from a

government perspective, last year

was a year of stagnation rather than

advancement of policy frameworks,

and the UK still lacks a credible

strategy for the implementation of

hydrogen and other technologies to

achieve true net nero in the economy.

Although hydrogen investment in

Europe is strong, it has also started

to lag in the follow through and this

may carry on with some of the same

political instability we have started

to see in France and Germany.

The right investment

While obvious, it needs to be said;

one of the critical factors in driving

innovation and development in sus-

tainable energy solutions is money.

Unfortunately, global nancial mar-

kets pose a challenge, as high-inter-

est rates incentivise investors to

choose safer options, such as govern-

ment bonds, rather than investing in

companies or projects. Encouraging

investment in the renewable energy

sector requires policies and incen-

tives that provide nancial security

and attractive returns for investors,

such as tax incentives, subsidies, and

favourable regulatory frameworks,

which we have seen in the countries

leading the charge in hydrogen.

Although we have seen a lag in fol-

low through, Europe as a whole

leads the charge in this area with 617

projects and the highest total invest-

ments announced ($199 billion)

through 2030. Japan and South Ko-

rea are also showing good growth

with an increase of 130 per cent in

vital hydrogen investments. India is

also a fast growing market with

growth of 110 per cent although fo-

cusing on industrial use rst.

China has also demonstrated its

dedication to hydrogen in both in-

vestment and strategy. One such strat-

egy, from which other nations could

learn, is how China has resolved the

‘chicken and egg’ scenario that has

long hindered the development of the

hydrogen economy – whether to pri-

oritise fuel cell vehicles or the infra-

structure to support them. China has

focused on putting the right resources

in place, including subsidies into rap-

id scaling across the board, so it can

all come to fruition together – a simi-

lar trajectory seen in the solar PV and

wind industry, which China also con-

tinues to lead.

Countries need to focus on the en-

tire value chain. If you create an

amazing vehicle but it can’t be refu-

elled it loses all importance. The crit-

ical part, and there is a parallel here

with battery electric and heat pumps,

is that the infrastructure generally is

not ready for electrication on a

wholesale basis.

Facing the challenges

Climate, level of industrialisation,

consumer culture and geography are

all majorly different across the world

and hydrogen is needed in different

places to completely different extents

in a net zero world. Because of the

level of industrial globalisation, the

effort must be global. A good parallel

is aircraft or deep-sea marine, if you

don’t have infrastructure and regula-

tory consistency globally you can’t

y or sail to different places.

The infrastructure needed for all

clean energy technologies to function

efciently is a complex and tricky

outlook. When it comes to hydrogen,

a key concern across geographies is

the grid itself and where the electrici-

ty comes from. And even after pro-

ducing hydrogen, the question re-

mains: how do you transport it

efciently to where its needed or

green hydrogen to be the most viable

option, you need large-scale renew-

ables and in excess to direct grid use.

Some countries are obviously al-

ready in a better place if they have

the natural resources to deliver on

this, making them good candidates

for developing hydrogen. As an ex-

ample, in 2023, 35 per cent of Austra-

lia’s total electricity generation was

from renewable energy sources, in-

cluding solar (16 per cent), wind (12

per cent) and hydro (6 per cent). With

these renewable energy advantages,

ustralia has identied hydrogen op-

portunities including export. Austra-

lian hydrogen can be exported as an

energy carrier to countries less able to

generate renewable electricity.

Hydrogen is ideal for curtailed en-

ergy and also transmission over

long distances like LNG is today,

but without the investment in the

necessary infrastructure, such as hy-

drogen pipelines, storage facilities

and refuelling networks, we cannot

support large-scale production and

distribution.

According to IRENA, investment

costs for electrolyser plants can be

slashed by up to 40 per cent in the

short-term and 80 per cent in the

long-term through various strategies,

including improved design, econo-

mies of scale, material substitution,

enhanced efciency, and operational

exibility. Theres also a need for ad-

vancements that increase both pro-

cess efciency and the lifespan of

electrolyser technology.

Making electrolyser technology

more competitive will trigger de-

ployment, giving us important learn-

ings and data globally, which enables

lower cost, attracts private capital for

R&D and drives further improve-

ment. Put simply, if we want to make

sure that ultimately all hydrogen

used is green, we have to use and in-

vest in electrolysis more.

Emerging trends

We still need to execute radical inno-

vation and a symbiotic relationship

between renewables and hydrogen

infrastructure, meaning new technol-

ogies are essential for a market-driv-

en adoption. As renewables increase

in grid penetration, hydrogen be-

comes even more viable due to the

need to curtail, which would make

hydrogen extremely low-cost and

therefore viable for the market to

adopt without signicant subsidy.

Many of the world’s hydrogen

leaders, such as Japan for example,

have shown success through collabo-

ration between governments, large

corporations and innovative startups.

Sharing risks, insights from demon-

stration projects, highlighting what

works and pooling resources is one

of the best ways to accelerate the

transition from pilot to industrial-

scale operations and an approach na-

tions such as the UK and US could

certainly benet from.

Dr. Tom Mason is CEO of Bramble

Energy.

any countries hae identied hydrogen as ey to decaronising their economies ut ho is lagging ehind and

hat can they learn rom those leading the ay in inrastructure and inestment in hydrogen ramle nergys

Dr. Tom Mason eplores the leading inrastructure and inestment strategies driing green hydrogen success

orldide

Infrastructure and investment in

hydrogen: a global view

THE ENERGY INDUSTRY TIMES - MARCH 2025

Industry Perspective

Dr Mason: Although hydrogen

investment in Europe is strong,

Europe has also started to lag

in the follow through

substantial grid investment. The po-

tential for renewable energy exports,

particularly through green hydrogen,

could push electricity demand even

higher under more ambitious scenari-

os. AEMO’s most likely ‘Step

Change’ scenario forecasts annual

growth of around 2.5 to 3 per cent.

Under a high-growth scenario with

stronger decarbonisation policies and

international demand for clean energy,

electricity demand could increase by

over 4 per cent annually.

Investment environment

Australia has one of the best renew-

ables investment proles in the world.

The nation enjoys a high sovereign

credit long-term rating and outlook

from rating agencies. Moody’s is Aaa

(Stable) and S&P’s AAA (Stable), the

latter is in fact higher than that of the

US which stands at AA+, one notch

lower. Australia scores highly in the

Global Corruption Perceptions Index,

in the Rule of Law Index and the EY

Renewable Energy Country Attrac-

tiveness Index 40, all in the top 10 per

cent. In terms of innovation and trans-

parency, the country is still well rated

– in the best 17 and 22 per cent, re-

spectively. The massive growth in

clean energy generation capacity testi-

es to the positive national investment

prole.

For investors, there are a series of

important considerations when in-

vesting in projects in Australia. Some

of the challenges are not specic to

the Australian context while others

are.

Issues found in many jurisdictions

include regulatory transparency and

policy shift due to changes in the ad-

ministration at the federal level have

created some level of uncertainty for

some investors. The country’s grid

infrastructure and transmission net-

work are constrained and at times has

struggled in some regions to absorb

the fast-increasing amount of distrib-

uted generation and renewables.

There is also a shortage of skilled la-

bour. Admittedly, regulatory, grid,

and human resources trials are com-

mon in a great many countries and

regions.

ountry specic challenges include

geographic and supply constraints

due to the country’s vast distances

which raises cost as well. Another is

the lack of rming capacity as well as

uctuating wholesale electricity pric-

es which can make revenue streams

unpredictable.

Key policies and incentives

Australia’s federal government has

introduced multiple climate, energy

transition, and decarbonisation poli-

cies that may directly impact overseas

investors. These policies create invest-

ment opportunities in renewables,

hydrogen, and low-carbon industries

while also imposing compliance re-

quirements for emissions-intensive

businesses. The most critical policies

include legally binding net zero com-

mitments, investment incentives, and

market regulations. The three most

talked-about ones in the media and

academia regarding climate change,

energy transition, and decarbonisation

are the Climate Change Act 2022,

Safeguard Mechanism (Reform 2023),

ustralia’s energy transition to

net zero is accelerating,

marked by rapid coal retire-

ments and a projected tripling of re-

newable energy generation capacity

by 2050 from current levels. This surge

is driven by strong government poli-

cies, increasing electricity demand,

and substantial expansion in clean

energy development. Major interna-

tional asset and investors are leading

this shift, while offshore wind, battery

storage, and green hydrogen are rap-

idly emerging as key growth sectors.

Decarbonisation commitments

Australia’s climate action has been a

complex and inconsistent affair, with

signicant political divisions at the

federal and state levels. At the federal

level there has been a lack of commit-

ment from conservative coalitions (led

by the Liberal Party) versus pro-action

policies by the more progressive coali-

tions (led by Labour). Meanwhile,

individual states have set their own

emissions reduction and renewable

energy targets, often more ambitious

than the federal government’s goals.

For instance, the Australian govern-

ment has committed to a 43 per cent

emissions reduction below 2005 lev-

els by 2030 and net zero by 2050.

However, the two most populous

states, New South Wales and Victoria,

have set more aggressive targets.

New South Wales aims for a 50 per

cent reduction by 2030, 70 per cent by

2035, and net zero by 2050. Victoria

wants to reduce emissions by 28 to 33

per cent by 2025 and 45 to 50 per cent

by 2030, with net zero by 2050.

This disparity in targets and com-

mitments has resulted in state-led ac-

tions playing a more signicant role

in Australia’s decarbonisation efforts

than federal policies. States have been

investing in new renewable energy

capacity, phasing out fossil fuels, and

implementing ambitious emissions

reduction targets. While the federal

government may face increasing

pressure to strengthen its climate

commitments, the states have

emerged as the primary drivers of

Australia’s clean energy transition.

Future climate action in the country is

likely to continue to be led by indi-

vidual states, as they forge ahead with

their own decarbonisation strategies.

nerirole

Australia’s energy consumption has

seen signicant transformation and is

poised to see even more dramatic shifts

in the coming years. The average an-

nual growth rate over the past ten years

of oil consumption was zero per cent

and that of coal was negative 2.3 per

cent. At the same time, the consump-

tion rate of gas rose 1 per cent and that

of renewables 5.2 per cent. This, while

the rate for overall demand was rela-

tively sluggish. The picture for the

electricity generation mix to 2050 will

be even more dramatic.

The compound annual growth rate

for electricity demand to 2050 is

projected to be around 2 to 3 per cent

by most institutions, including the

Australian Energy Market Operator

(AEMO) and Department of Climate

Change, Energy, the Environment

and Water (DCCEEW).

Australia mandates AEMO to

publish an Integrated System Plan

every two years for essential infra-

structure that will meet future energy

needs. The 2024 plan projects that

generation will nearly triple by 2050

(1 to 4 per cent annual growth). This

increase is primarily driven by the

retirement of coal red power plants,

higher electrication across various

sectors, and broader economic

growth. About 90 per cent of the

nation’s coal capacity is expected to

be retired by 2035.

The phase-out means a need for

large-scale investment in renewables,

storage, and transmission infrastruc-

ture. The transition to EVs, industrial

electrication, and the growth of

green hydrogen production will fur-

ther drive electricity demand, high-

lights the plan.

Additionally, population and eco-

nomic growth will contribute to

greater consumption. Increased adop-

tion of rooftop solar, household bat-

teries, and virtual power plants will

shift demand patterns but still require

and the Capacity Investment Scheme

(CIS) – 2023 Expansion.

The Climate Change Act enshrines

the country’s net zero by 2050 target

and a legally binding 43 per cent

emissions reduction by 2030. It pro-

vides policy certainty for investors

and aligns government decisions

with emissions goals. However,

some experts argue that stronger in-

terim targets and enforcement

mechanisms are needed to drive

deeper decarbonisation.

The Safeguard Mechanism policy

applies to large industrial emitters and

requires them to reduce emissions

intensity annually or buy offsets. It is

a cornerstone of Australia’s industrial

decarbonisation strategy and affects

sectors like mining, energy, and heavy

manufacturing. Academics and in-

dustry groups debate its effectiveness,

with some arguing that loopholes and

reliance on offsets may weaken its

impact. Others highlight its role in

driving low-emissions investments

and cleaner technologies.

The CIS policy is designed to ac-

celerate investment in renewables

and rming capacity such as grid-

scale batteries and pumped hydro) by

providing revenue guarantees for

projects. It is crucial for replacing re-

tiring coal red plants and ensuring

grid reliability as Australia transitions

to 82 per cent renewable electricity by

2030. Frequently experts question

whether investment in grid infrastruc-

ture and storage is happening fast

enough to avoid supply shortfalls.

Investor backdrop

Australia’s Clean Energy Council re-

ported that 2024 marked the strongest

year for large-scale renewable energy

investment in the country since 2018,

with a total capital commitment of A$9

billion ($5.65 billion). According to

the Clean Energy Council’s latest

‘Quarterly Clean Energy Investment

Report,’ seven new large-scale renew-

able energy projects were approved in

the fourth quarter of 2024. These proj-

ects represent 1598 MW of new gen-

eration capacity and A$2.4 billion in

capital investment. Throughout 2024,

investments were secured for 4346

MW of new renewable energy gen-

eration capacity. Additionally, energy

storage experienced signicant

growth, with commitments to 4029

MW/11 348 MWh of new projects. In

the fourth quarter alone, investments

totalling 870 MW/1936 MWh were

made in new energy storage initiatives.

The country’s attractive renewables

investment parameters have attracted

a great variety of asset and nancial

investors. A good sample list is the top

ten renewable energy investors in

Oceania from PF Nexus, a data pro-

vider. They include corporations such

as ENGIE (France), Enel Green

Power (Italy), Iberdrola Group

(Spain), Lightsource BP (UK), Main-

stream Renewable Power (Ireland),

and Vena Energy (Singapore). As

well as nancial investors such as

uila apital, rookeld sset

anagement, aciorp  a erk-

shire Hathaway company.

Prepared for The Energy Industry

Times by Joseph Jacobelli at Asia

Clean Tech Energy Investments.

THE ENERGY INDUSTRY TIMES - MARCH 2025

Decarbonisation Series

Australia’s massive

growth in clean

energy generation

capacity testies to

the positive national

inestment prole

This is the latest in

a series of country

analyses where TEI

Times looks at the

country’s generation

and consumption

proles, policy,

emissions targets

and investment

attractieness

Australia: continuing the clean

energy surge

traliaaoneoteetrenealeinetentroleinteorl

n any realistic scenario, the green

energy transition is predicated on

a massive shift towards the elec-

trication of transport and industry.

Transportation, for example, is cur-

rently one of the three largest sourc-

es of greenhouse gas emissions

worldwide, behind only power gen-

eration and industry. t is responsible

for producing more than  billion

tonnes of CO

e a year. Emissions

from this sector have more than dou-

bled since 1990 and there is plenty

of evidence to suggest that emissions

from transport will continue to grow

without even more concerted action.

s with much of the worlds hard-

to-reach and high emissions heavy

industries  the steel, cement, and

agrochemicals sectors for example 

transportation has remained stub-

bornly resistant to change despite the

growing success of consumer elec-

tric vehicles. omestic cars, while a

signicant source of emissions, are

ust a small part of the overall trans-

port sector when considering areas

like shipping, heavy vehicles, and air

transport. ts simply not possible to

directly electrify some industrial sec-

tors and certain areas of transport

and the energy density of fossil fuels

is hard to challenge in many applica-

tions. owever, the development of

commercially viable so-called pow-

er-to-X technologies holds the prom-

ise to play a major role in making

the clean energy transition nally be-

come a reality.

The power of power-to-X

Power-to-X represents a range of cli-

mate-neutral energy solutions  of-

ten but not always centred on hydro-

gen  that mainly rely on renewables

to create alternatives to conventional

fossil fuels. Typically, renewables

are used to drive electrochemical

processes such as electrolysis to cre-

ate hydrogen. oupled with process-

es such as direct capture of atmo-

spheric carbon dioxide, for example,

the carbon and hydrogen can be used

to recreate climate-neutral chemical

analogues of liuid or gaseous hy-

drocarbon fossil fuels like kerosene,

petroleum and natural gas.

nown as e-fuels, these synthetic

fuels simply drop in to existing dis-

tribution and supply chains. They

thus maximise the residual value of

current and well-established systems

and technologies such as combustion

engines. lthough power-to- en-

compasses e-fuels it also holds far

more scope to decarbonise the global

economy with alternatives to con-

ventional fuels. This includes new

fuels like pure hydrogen, base feed-

stock chemicals like methanol and

ammonia or direct energy resources.

f developed at sufcient scale, the

outcome of a power-to- economy 

coupled with other critical elements

of the decarbonisation toolbox like a

thriving renewables sector, carbon

capture and seuestration, and the

development of related industries

like heat pumps  is a successful

transition to a global green energy

system.

The tri-part value chain

The technologies to create e-fuels,

such as synthetic methane or e-

methanol from green hydrogen al-

ready exist.  demonstration plant

for a large-scale E electrolyser

from uest ne is currently being

built at the  Energy olutions

site in ugsburg, Germany, for ex-

ample. The modular and scalable

 E system being installed

features   blocks that can be

combined to create industrial green

hydrogen production plants with an

electrolysis capacity of several hun-

dred megawatts. This proect also

models an important and desirable

route for power-to- proect devel-

opment worldwide.

Another important demonstration

plant is located in atagonia, outh-

ern hile. The aru ni proect uses

wind power to produce hydrogen

and direct air captured 

to make

e-methanol in a reactor from 

Energy olutions. This e-methanol is

then transformed into e-gasoline.

owever, to create a sustainable

and comprehensive low-carbon

economy centred around green hy-

drogen, renewable electricity, and

carbon capture for the hardest to

abate industrial sectors, means creat-

ing more than the right technologies.

There are in fact three critical ele-

ments to the value chain beyond the

core technologies. n the rst in-

stance comes production of green

hydrogen and its derivatives. This

must be at the substantial scales

needed to the extent that the econo-

mies of scale are brought to bear

while delivering an abundant supply

of carbon-free or carbon-neutral al-

ternative fuels to market. econdly,

these green products must be trans-

ported to their point of use.

This reuires new infrastructure to

be developed. s part of Germanys

ational ydrogen trategy, for ex-

ample, measures are being taken to

ensure the development of hydrogen

infrastructure, including a total of

 km of pipelines  the so-called

German ydrogen ore Grid.

Finally, having delivered green hy-

drogen in bulk to consumption cen-

tres, the last piece of the pule is a

large consumer base and the devel-

opment of appropriate applications.

teel production is a suitable candi-

date for conversion to green hydro-

gen using a direct reduction process

rather than using carbon-based

agents such as coke.

Clearly then, these three critical

elements are actually coming to fru-

ition. ut to meet our most pressing

climate change targets and avert en-

vironmental catastrophe, all parts of

the hydrogen value chain need to be

simultaneously pushed much harder

and uickly ramped up.

E-fuels that can rely on existing

infrastructure are therefore more

than a bridging technology, but a

vital piece of the clean energy pu-

le and an essential enabler for the

ramp-up of a hydrogen economy.

They also serve as an important fac-

tor in overcoming the huge chal-

lenge of ramping up both supply

and demand simultaneously to build

a pure hydrogen economy, the so-

called chicken-or-egg dilemma.

Barriers to a power-to-X future

espite the fact that the core power-

to-X technologies are available, the

three separate parts of the value

chain are underway and the ultimate

desire to avoid climate change is in

ready abundance, it is nonetheless

evident that actual development of

the power-to-X economy is lagging

behind most expectations. Under

these circumstances its reasonable

to conclude that substantial barriers

are preventing the rapid take-off and

upscaling of power-to-x.

n Europe while there are very am-

bitious decarbonisation targets and

programmes in place such as it for

, the European Unions 2 tar-

get of reducing net greenhouse gas

emissions by at least 55 per cent,

certain rules in place within the

Union are acting as a barrier.

An example comes from legisla-

tion covering the validity of green

hydrogen with some very restrictive

parameters which have to be fullled

in order for hydrogen to be consid-

ered as green with regard to the Re-

newable Energy irectives E 

and .

imilarly, carbon sources used for

e-fuels or enewable uels of on-

iological rigin  can

only be considered green after 2041

if they are effectively derived from

biogenic sources and a few other

options that in practical terms are

scarcely available.

These highly restrictive measures

rule out 

captured from point

sources at Europes most polluting

industrial sites  which may be in

line with the ambitious targets but

potentially kills the ramp-up due to

long proect lead times.

eveloping a pragmatic approach

to green hydrogen and sources of

carbon used to create e-fuels will

help foster the industry and the green

transition far more than a dogmatic

response to the perceived purity of

feed stocks.

Existing legislation that can kill in-

dustrial investment and the momen-

tum behind the sector before it has

even started in earnest have to be re-

thought and adapted to effectively

encourage the industry instead. This

practical approach must also extend

to all elements of the clean energy

toolbox. E-fuels should be acknowl-

edged as an important enabler for the

hydrogen industry and wholly col-

laborative, its simply not a case of

eitheror.

n addition, we must not forget that

there is also the price issue with

many green products. s long as

green energy sources are signicant-

ly more expensive than their fossil

counterparts, there can be no real

and not purely publicly funded mar-

ket development. ossible solutions

and policy levers to address this ‘ele-

phant in the room include ramping

up green fuel uotas that cannot be

circumvented and an effective 

tax to pave the way for a level play-

ing eld.

t the same time, carbon capture

and utilisation U should be em-

braced as a critically important ele-

ment in the ght to address climate

change and to supply the huge

amounts of carbon that will be need-

ed to produce e-fuels alongside

green hydrogen in the power-to-X

process.

Another aspect to consider is the

opportunity for power-to- to be-

come an important wealth-generat-

ing industry for European economies

based on this multi-pronged ap-

proach. The technologies are avail-

able, the production capacity poten-

tial is there and the desire for change

cannot be denied.

e do not have to wait to embrace

power-to- but we do have to ur-

gently establish the value chain as a

sustainable and economically viable

alternative to the status uo. tart

now.

Dr.-Ing. Florian Gruschwitz LL.M.,

is Senior Business Development

Manager, Power Segment at MAN

Energy Solutions SE.

Power-to-X holds the

promise to transform

the global economy

onto a green

footing, but to do so

means adopting a

pragmatic approach

and breaking down

barriers to the

widespread adoption

and development

of a much more

hydrogen-centric

energy system. MAN

Energy Solutions

SE’s Dr.-Ing. Florian

Gruschwitz explains.

Power-to-X and the H

economy: a

snap-shot on the state of play

TE EEG UT TE -  22

Technology Perspective

Dr Gruschwitz: E-fuels

that can rely on existing

infrastructure are a vital piece

of the clean energy puzzle

and an essential enabler for

the ramp-up of a hydrogen

economy

The Haru Oni project uses wind power to produce hydrogen and direct air captured CO

to make

e-methanol in a reactor from MAN Energy Solutions

THE ENERGY INDUSTRY TIMES - MARCH 2025

Final Word

wo recent studies published in

the Nature journal have said

that the exceptionally hot year

of 2024 signals a sooner than ex-

pected breach of the Paris accord.

orryingly, the ndings came as

most of the worlds big polluters

missed a U deadline for setting new

climate targets.

Last year saw the global average

temperature rise exceed . for the

rst time annually, the threshold

needed to avoid irreversible climate

change. Examining 22, the rst

study by Alex Cannon, a research

scientist at the Environment and li-

mate hange anada government

department, found that if  consecu-

tive months of temperatures at or

above . of warming occur, con-

tinued warming is virtually certain.

This was under a so-called middle of

the road” scenario, where social,

economic and technological trends do

not shift markedly.

n the other study, German and

ustrian researchers claimed that

without deep cuts in emissions, the

world was most probably now

within the two decades where the

global temperature rise, compared to

pre-industrial levels, would exceed

the . limit set under the aris

agreement.

hen the agreement was signed, the

world was projected to reach the

. threshold by arch 2, but

the ntergovernmental anel on li-

mate hange , has since said

it expects the threshold to be passed

around 2.

ommenting on the two studies,

Piers Forster, Professor of physical

climate change at the University of

Leeds, UK, and one of the authors of

the IPCC report, said the world was

now at the start of a period of tem-

peratures above . of warming.

ut despite the gloomy outlook, a

handful of countries continue to lead

the effort to keep a lid on global warm-

ing – unphased by US President

onald Trumps withdrawal from the

aris limate greement.

The UK led a handful of countries

that submitted carbon emission tar-

gets by the ebruary th deadline,

with its plan to reduce greenhouse gas

to  per cent below  levels by

2. This is in line with its promise

to reach net zero by 2050. Along with

countries including Brazil, Japan,

New Zealand, Switzerland and the

UE anada submitted a draft plan,

the U has made good on an impor-

tant pledge. The Nationally Deter-

mined ontributions s  com-

mitments that countries make to

reduce their greenhouse gas emissions

as part of climate change mitigation

– include the necessary policies and

measures for achieving the global

targets set out in the aris greement

and are crucial to progressing the

actionable outcomes needed at the

 limate hange meeting to

be held later this year in Brazil.

s some countries begin to falter on

climate commitments, demonstrating

how targets can be achieved is now

more important than ever.

ust weeks after submitting its

s, the U limate hange om-

mittee , an independent, statu-

tory body established to advise the

government on emissions targets,

presented its Seventh Carbon Budget

detailing ‘a new pathway to a decar-

bonised U. The  says that in

order to decarbonise by 2050, the

country must reduce emissions by 

per cent compared to  levels by

2040.

The  stressed that electrication

must make  per cent of emission

reductions by 2040. It also noted that

investment this decade in electrica-

tion and technologies to cut emissions

would create savings over time. These

savings are realised on a cross-econo-

my basis during the Us eventh

arbon udget period 2  22

and grow to 2050 and beyond. It also

estimates the net costs of delivering

this are 0.2 per cent of GDP per year

on average.

mportantly, rofessor orster, who

is also the s nterim hair, said

“Our analysis shows that there is no

need to pitch action on climate change

against the economy. e will need

government and business to deliver the

investment, but we are condent that

this Seventh Carbon Budget offers a

secure, prosperous future for the UK.”

The s advice on the level of the

Seventh Carbon Budget is based on its

alanced athway an emissions re-

duction pathway from 22 to et

ero by 2.

Emissions in the U in 22 were

around half the levels they were in

. The pace of emissions reduction

has more than doubled since the intro-

duction of carbon budgets in 2,

driven by the phase-out of coal and the

ramp-up of renewable electricity

generation.

y 2, the alanced athway

sees offshore wind grow six-fold

from  G of capacity in 22 to

 G by 2. nshore wind capac-

ity doubles to 32 GW by 2040 and

solar capacity increases to 2 G.

Alongside renewables, “storable

forms of energy including nuclear,

low-carbon dispatchable generation

either gas with carbon capture or

hydrogen, and batteries, as well as

interconnections to neighbouring

markets, ensure a reliable supply of

electricity even in adverse weather

years. These technologies need to be

accompanied by rapidly expanding

the transmission grid, upgrading the

distribution network, and speeding up

the grid connection process.

hile much of this appears feasible,

making nuclear part of those plans is

questionable especially when consid-

ering the timeframe. The  says

nuclear and low-carbon dispatchable

generation provide a relatively small

portion of generation  per cent in

2 and notes that the amount

needed would be the equivalent of half

a new large nuclear plant or around

three small modular reactors. This, it

said, would be “a challenge before the

2040s”.

ir ave ewis, hair of links,

commented The  report shows

the opportunity for the UK is huge

but the government needs change fast

 and has to keep an eye on the cost.

The U cant afford to wait for nu-

clear proects struggling with mas-

sive delays and spiralling costs or pay

really high prices for edgling

technologies.”

Frazer-Nash Consultancy, a KBR-

owned company, was more welcom-

ing of nuclear but said the focus

should be on to ready-to-deploy nu-

clear technology.

Kevin Murray, Senior Business

Manager, Nuclear at Frazer-Nash

onsultancy, said e welcome the

Seventh Carbon Budget and its call

for new nuclear energy facilities.

However, we disagree that rolling

out nuclear energy by the 2040s is

unrealistic.

“The UK possesses a rich nuclear

heritage, and a skilled supply chain

that is ready to accelerate the deploy-

ment of new nuclear capacity. e ur-

gently need a nal investment decision

on new large-scale nuclear at Sizewell

C which is set to provide low-carbon

energy to  million homes over its

-year life.

ike the U, apan also sees nucle-

ar as important to its climate ambitions.

While setting a goal for renewables to

be the countrys largest source of

production by 2040, in its latest en-

ergy plan the government also plans

to see nuclear generation return to

almost the same level as before the

ukushima accident.

Putting renewables and nuclear at the

heart of energy policy is increasingly

being seen as a way of improving

energy security, especially in the wake

of ussias invasion of Ukraine.

The U  stated f the country

decarbonises against our ‘Balanced

athway and there was a spike in gas

prices like the one following ussias

illegal invasion of Ukraine, average

household energy bills in 2040 would

be  times less sensitive.

ut despite the sense this all makes,

many governments still cannot still see

past the immediate challenge.

ith the withdrawal of the U from

the aris greement and industries

that are struggling with high energy

prices, even the EU appears to be

faltering on climate commitments.

European ommission ice-resi-

dent Teresa Ribera, who oversees the

green transition and competition,

spoke of the need to strike a balance

between climate goals and improving

the blocs global competitiveness.

She recently told the Financial Times

“The global reality has evolved, and

we may need to think to what extent

these things that were there need to

be updated.”

n the hakespeare play enry the

ifth, about the medieval king of

England, Henry battle-cries to his

soldiers nce more unto the breach,

dear friends, once more n these

difcult times  some of the most

geopolitically challenging we have

seen in decades – the UK has stepped

up to show its resolve in tackling cli-

mate change, as well as in its effort to

support an embattled Ukraine. et us

hope the EU and the rest of the world

remains eually stalwart on both

fronts.

Once more unto the breach…

Junior Isles

Cartoon by Jem Soar