Energy transition – challenges and prospects
Expert: Kinga Świerad, Specialist in EU chemicals strategy for sustainability, BASF Polska
Faced with the growing challenges of climate change, the energy sector is confronting the need for a transformation. One of its main aspects is bridging the carbon gap, i.e. replacing traditional carbon-based energy sources with more sustainable and renewable alternatives.
As innovative systems are developed, it is becoming equally important to focus on energy efficiency, which aims to minimise energy loss by optimising production processes, adapting low-energy buildings and using energy-efficient equipment or systems.
Alternative energy sources such as wind, solar, hydroelectric, geothermal, the use of biomass and the development of hydrogen technologies are all gaining popularity. These are not only environmentally friendly, but also increasingly economically competitive.
RES – Harnessing the Potential of Wind Energy
In order to pursue climate neutrality and remain competitive in global markets, the European Union is introducing a number of legislative initiatives to accelerate the energy transition. Last October, the European Commission published the Wind Power Action Plan, which outlines 15 urgent actions that need to be implemented and aim to strengthen the European wind power value chain. However, it is necessary to transform top-down actions into local initiatives that will ultimately result in increased installed capacity. Although 2023 was a record year in terms of installed wind power capacity, only 19% of the European Union’s electricity originates from wind, which is still not enough to meet the targets.
In order to meet the ambition of closing the carbon gap, it is necessary to develop projects such as the 1.5 GW Hollandse Kust Zuid offshore wind farm – currently the largest in the world, developed by Sweden’s Vattenfall in partnership with BASF and Allianz. The estimated capacity of this project is to produce electricity equivalent to the consumption of 1.5 million households.
What is important from the point of view of a chemical manufacturing company, is that almost half of the electricity from Hollandse Kust Zuid will be used to reduce the carbon footprint of BASF products.
During the construction of the Hollandse Kust Zuid wind farm, innovative techniques were used to also minimise the impact on the marine environment. A double bubble screen was used to attenuate underwater noise and protect porpoises. In addition, enlarged refill holes in the foundations provide shelter for other marine organisms. This is the first time that a turbine design itself has taken into account environmental concerns. Different sizes of boulders have been employed to counteract erosion, and artificial reefs of stones have been added to attract more fish, crabs and crustaceans. The three turbines have been equipped with newly developed recyclable blades with consideration of the closed-loop approach. The resin used to ‘glue’ the blades together will be more easily dissolved at the end of the turbines’ life, enabling the various components to be reused. All of these activities indicate a consideration for the environment in line with the principle of safe and sustainable design of a product or solution throughout its life cycle.
Green Hydrogen
In addition to investments in wind farms, key projects under BASF’s green transformation strategy include hydrogen generation through methane pyrolysis and water electrolysis, the development of technology for steam cracking process furnaces powered by renewable energy, and carbon capture and storage.
BASF has received funding approval for the construction of a 54-megawatt water electrolyser that will generate up to 8,000 tonnes of hydrogen per year. The proton exchange membrane (PEM) electrolyser is designed to significantly reduce carbon dioxide emissions by up to 72,000 tonnes per year. The hydrogen will mainly be used as a raw material for products with a smaller carbon footprint.
The electrolyser is scheduled to be commissioned in 2025. It is important to note that the German Federal Ministry for Economic Affairs and Climate Protection is contributing to the funding of the project to the tune of €124.3 million, of which Rhineland-Palatinate will contribute up to €37.3 million. This financial support is an extremely important aspect for investors in cutting-edge technology and accelerates the process of closing the carbon gap.
On the Road to Transformation – What Do We Need?
An energy transition driven by closing the carbon gap aims to not only reduce greenhouse gas emissions and environmental impact, but also to provide a sustainable and secure source of energy for future generations. The shift from coal to sustainable energy sources is gaining momentum and innovation in the energy sector plays a key role in achieving this goal.
Key needs on the path to a green transition are energy, hydrogen and closed-loop infrastructure, access to investment and financing, effective, consistent legislation and regulation, development and commercialisation of new technologies, technological advancement, economic sustainability as well as digitisation support measures.
Implementing the energy transition is essential in order to protect the environment and combat climate change, while also opening up new opportunities for economic development and job creation in the renewable energy sector. In addition, investing in sustainable energy sources will not only benefit the environment, but will also increase the country’s energy independence and minimise the risks associated with fluctuating energy commodity prices. It is extremely important to consciously approach the challenges raised by the European Green Deal, which can result in long-term benefits not only for business, but also for society and the environment.
Last Updated on July 12, 2024 by Anastazja Lach