• Uses a risk-based approach to implement an inspection plan that is tailored to the specific condition, service environment, and operating life of the mooring system, potentially leading to considerable savings in operational expenditure (OPEX) and avoid component failure in operation.
• Allows optimisation over various RBI updates and Class reviews
• Is simple to implement and handover to operations
• Is designed to interface with output from digital twins and as required analysis
• Is designed to integrate into:
  • Inspection and repair planning 
  • Work packs for inspection (cut and paste modules)
  • Emergency Response Plan
  • Emergency Repair Response Plans
• Can be applied to other floating facilities such as CALM buoys, MOPUs and floating wind, encompassing any offshore moored assets.

The RBI Process and Methodology:

The RBI process, as applied to an FPSO mooring system, follows a structured five-phase approach in line with API-RP-580/581:

• Phase 1: Mooring System Review: This initial stage involves gathering and reviewing all relevant information, including design documents, historical inspection data, and industry updates. The goal is to establish a comprehensive understanding of the mooring system and identify potential limitations and inspection acceptance criteria.
• Phase 2: RBI Setup: Here, credible threats to each component of the mooring system are identified and reviewed. Semi-quantitative risk matrices are established and calibrated based on these threats and experience from similar RBI assessments. The risk matrix maybe further calibrated as an outcome of periodical reviews .
• Phase 3: RBI Assessment: This core phase involves assessing each part of the mooring system against the identified threats to determine the associated risk. This includes evaluating the consequence of failure, based on the Clients operational risk matrix, financial implications, and the likelihood of failure, which takes into account the specific threats to the mooring system’s operating performance. The unmitigated risk is then determined, and appropriate IMM activities are assigned to reduce this risk.
• Phase 4: IMM Plan Update: The outcomes of the RBI assessment are used to update inspection criteria and the overall Inspection Maintenance Monitoring (IMM) plan. This also involves developing or updating Inspection Scope Sheets and engaging with Class for approval.
• Phase 5: Periodical Review: The RBI assessment is recognised as a continuous improvement process. Regular reviews are performed, triggered by new inspection data, changes in operating conditions, or incidents. These reviews ensure the RBI plan remains current and effective. Review workshops, involving key stakeholders such as the Operator, Class, and regulator are crucial for aligning on the RBI setup, assessment, and findings.

Potential for OPEX Cost Savings:

The adoption of an RBI strategy for an FPSO mooring system holds significant potential for OPEX cost savings by:

• Optimising inspection frequencies: Instead of adhering to fixed time intervals, inspection frequencies are determined by the level of risk associated with each component and potential threat. This allows for less frequent inspections of low-risk areas and more focused attention on critical components.
• Tailoring inspection methods: The RBI can inform the selection of the most appropriate inspection methods for specific threats and components. This ensures that inspection efforts are effective and cost-efficient.
• Reducing unnecessary interventions: By focusing inspections on areas of higher risk, the RBI approach can help avoid unnecessary maintenance or replacement activities on components that are still in good condition.
• Improved planning and resource allocation: A clear understanding of the risks and associated inspection requirements allows for better planning of inspection campaigns and allocation of resources.
• Extending asset life safely: By proactively managing risks and intervening only when necessary, an integrated RBI system can contribute to safely extending the operational life of the mooring system, deferring potentially large capital expenditures for replacements.

BE&R’s integrated proactive approach
BE&R recommend an integrated proactive approach to developing a robust and structured RBI System to managing the integrity of critical infrastructure. By focusing inspection efforts based on a thorough assessment of risk, this methodology offers a clear pathway to achieving significant OPEX cost savings while ensuring the continued safe and reliable operation of a Client’s FPSO. The iterative nature of the RBI process, with its emphasis on regular reviews and updates based on new data, further enhances its potential to deliver long-term cost efficiencies.

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One promising development is Total Recovery Facilities (TRFs), which transform municipal solid waste (MSW) into low-carbon fuels such as sustainable aviation fuel (SAF), renewable diesel, and biochar. This approach not only diverts waste from landfills but also aligns with Australia’s Net Zero by 2050 commitments.

What is a Total Recovery Facility?

A Total Recovery Facility (TRF) is an advanced waste processing plant that integrates multiple technologies to recover materials and convert waste into usable fuel. TRFs are designed to handle complex waste streams and maximise energy recovery through:

• Material Recovery Facility (MRF): Separates recyclable materials.
• Refuse Derived Fuel (RDF) Processing: Converts non-recyclable waste into a high-energy feedstock.
• Pyrolysis & Gasification: Breaks down organic and carbon-containing waste at high temperatures to produce syngas, a key fuel precursor.
• Fischer-Tropsch (FT) Technology: Converts syngas into market-ready SAF and renewable diesel.

TRF technology is already being implemented in countries like the United Kingdom and the United States, and Australia is well-positioned to adopt similar innovations to address its waste and energy challenges.

As global demand for biofuels surges, Australia has a prime opportunity to invest in SAF and renewable diesel production. BE&R see a role in regional, smaller scale, efficient TRFs, as opposed the Large Scale units suited to densely populated Europe and Asia, Working to optimise the trade off between economy of plant scale vs cost of road transportation of waste. Enabling Australia to produce renewable fuel products in regions remote from ports, already paying elevated diesel prices, and to provide for more jobs in regional areas.

The Sustainable Aviation Fuel (SAF) Opportunity in Australia

The Australian Renewable Energy Agency (ARENA) has announced total funding of $33.5 million across five projects under the SAF Funding Initiative launched in 2023. This initiative aims to support the development of domestic SAF production to accelerate aviation decarbonisation. Additionally, ARENA has signaled further investments beyond the previously allocated $30 million, highlighting the growing commitment to scaling up Australia’s SAF industry.

– Future Made in Australia:
The Albanese government is backing Australian steelmakers and manufacturers with a $500 million investment through the Future Made in Australia Innovation Fund. This initiative aims to boost local manufacturing capabilities, including those involved in sustainable fuel production, ensuring Australia remains competitive in the global energy transition.

– ARENA’s Role:
ARENA (Australian Renewable Energy Agency) is investing in projects seeking to develop domestic sustainable aviation fuel production. These investments aim to accelerate innovation and scale up Australia’s capability in low-carbon liquid fuels.

– Economic Benefits:
A local SAF industry could add nearly 18,000 jobs and significantly reduce Australia’s dependency on liquid fuel imports. Developing a domestic biofuel market would not only enhance energy security but also create employment opportunities across the entire value chain, from feedstock collection to fuel refinement and distribution.

– Other Initiatives:
The Australian government has also allocated $18.5 million over four years to develop a certification scheme for low-carbon liquid fuels, including SAF. This certification framework will ensure compliance with international aviation standards, helping to position Australia as a leader in sustainable aviation fuel production.

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The BE&R Cast dives into the world of microreactors and their potential role in Australia’s energy future. These “nuclear batteries,” as they’re sometimes called, could be game-changers, especially for off-grid applications like mining.

We’ll explore what microreactors are, and how they differ from small modular reactors (SMRs) and traditional large nuclear power plants. In detail we’ll cover:

• Advantages of microreactors – From their compact size and transportability to their potential for low-emission power and heat, we’ll cover the key benefits. They can even work with renewable energy sources in a microgrid.
• Technological development – We discuss the technology behind microreactors, including high-temperature gas reactors (HTGR) and TRISO fuel.
• Cost competitiveness – We analyze how microreactors stack up against diesel in terms of cost, particularly for remote communities and industrial users.
• Specific microreactor technologies – We explore designs from companies like Westinghouse, Ultra Safe Nuclear Corporation, BWX Technologies, Oklo, Nano Nuclear Energy, and Radiant Industries.
• The regulatory landscape – We discuss the regulatory hurdles facing nuclear power in Australia, including existing bans and the need for a clear permitting process.
• Workforce development – We touch on the importance of building a skilled workforce to support a nuclear industry in Australia, potentially leveraging the AUKUS submarine program.
• Public opinion – Finally we address public concerns and the need for education on the safety and benefits of nuclear energy.

Full Disclosure – This Podcast discussion was generated by AI using the BE&R Nuclear Roadmap and public source inputs, including Australia’s Nuclear Energy Inquiry: A Renewable Future with comments from Dr Monique Ryan MP. We believe this format is a great way to present and digest the complex landscape and open up the discussion for debate.

BE&R’s Nuclear Roadmap is available for download here:

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Small-scale Power Potential

Twenty years ago, as a young engineer, one of BE&R’s Directors was in the UK designing nuclear submarines, he was enamored by how compact the submarine reactors were and their potential for use in other small-scale power applications. Unfortunately, at the time the cost of nuclear versus conventional fuels, the lack of drive for emission reductions, and public perception were showstoppers for further development outside the military sphere.

Fast forward to now; declining fossil fuel energy production, emission reduction targets, ever-increasing energy demand, and technological innovation are creating the perfect storm for the revival of micro (~1MW to 20MW) to small (~20MW to 300MW) modular reactor energy solutions with commercial potential. Companies such as Westinghouse, Rolls-Royce, Mitsubishi Heavy Industries and many others are now promoting exciting new micro-reactors and small modular reactor (SMR) technology that will be available to the market by the early 2030s.

In Australia, nuclear power is banned, except for the Lucas Heights facility, which is primarily used for medical purposes. There is also strong public and political opposition at all levels to developing grid-scale nuclear power in Australia, with recent proposals by the federal opposition for seven small modular reactors (SMRs) being ridiculed. Opponents of nuclear power often cite high development costs versus renewables, safety concerns and decades of approvals and development to deliver something the public does not want. Despite the strong opinions against nuclear energy, Australia is the 4th largest producer of uranium globally, holding around one-third of the world’s reserves.

The Federal Government plans to base a fleet of nuclear submarines at its naval base in Western Australia in the early 2030s (including hosting US and UK nuclear submarines as early as 2027). These submarines are powered by “micro-reactors”. A bold yet complementary step would be to supplement power at the naval base with one or more onshore micro-reactors (~10MW each). These micro-reactors only require refuelling every 3 to 5 years (some designs claim up to 10 years). This would complement the planned renewable energy supply by providing baseload power for the naval base and reducing dependence on the dwindling domestic gas supply for power.

Unlike larger SMRs, micro-reactors can be designed to be transported in a containerised format (canned fission), allowing easy deployment in remote locations. Some designs also operate at low pressures, reducing the emergency planning safety zones around operating reactors. The manufacturers claim the emergency safety zones can be contained within the reactor housing (ship hull or reinforced building) instead of a radius of 1km or more.

The cost of building, operating and fueling micro-reactors should reduce significantly from the early units due to their small size and focus on factory fabrication as opposed to large-scale nuclear reactors, which have, in many cases, gone up in cost.

Rosatom has demonstrated an example of the potential of micro-reactors. In 2019, they started the Akademik Lomonosov floating nuclear power plant using two KLT-40S reactors, typically used in ice breakers, generating 35 MWe each. By the end of 2024, the plant had generated 1 billion kWh, successfully mitigating the challenges of diesel fuel logistics and traditional power generation operation in the very remote and harsh Chukotka Autonomous Area of the Russian Far East Arctic.

Micro Nuclear Reactor Application

Taking a micro-reactor approach with canned fission would be highly suited to remote locations and industrial areas that may not be able to be fully supported by renewables or require fast deployment. Some examples:

• New fast-track green commercial port developments, with limited access to renewable or conventional power generation, that have surrounding supporting industries with high power demands would benefit from canned fission. Generally, ports are already set up to handle hazardous goods.
• Canned fission shore-to-ship power could be provided to berthed ships (cold ironing) to eliminate the largest segment of CO2 emissions in ports. The containerised micro-reactor could be located onshore or on a barge away from other port users.  
• Remote mining operations would benefit from canned fission, significantly reducing the challenges associated with fuel logistics (diesel and LNG), fuel availability and firming of renewable power. Mines nearby could benefit from sharing combined power resources through local grids.
• Industrial areas typically have periodical electrical loads and require heat for processes. A canned fission solution could complement renewable and battery power and provide a heat source. When renewables and batteries are expanded to fully cater for the load, the power plant could be moved to another location.
• Regional towns supplied with canned fission could operate off-grid, eliminating the need to build and maintain major transmission infrastructure to low-population centres.
• Remote islands with insufficient natural resources for power generation would benefit from canned fission, onshore or floating, eliminating the significant cost of importing fuel. Other benefits will include cheaper desalination for freshwater supplies.
• Highly mobile canned fission modules could be deployed as part of emergency response units to get power to essential systems for fire, flood and storm recovery events.

Conclusion

Australia has the potential to fully vertically integrate across the nuclear industry from source to deployment and become a world leader. With no changes to the existing prohibitive legislation Australia will continue to be nothing more than a quarry for the rest of the world’s energy developments.

Enabling a small-scale approach to the introduction of nuclear energy, such as using canned fission micro-reactors, which are suited to a wide range of applications and benefit from the significant advances in nuclear technology, will quickly demonstrate the huge opportunity for Australia and pave the way to a new era of abundant sustainable energy.  

BE&R’s approach to small-scale nuclear

BE&R’s extensive experience in energy infrastructure projects is poised to support Australia’s emerging small-scale nuclear industry. Our expertise encompasses concept development, project execution, and consulting services across the energy sector. We are ready to tackle the unique challenges facing the build-out of a new energy industry, including regulatory barriers, cost management, and developing the specialized skills, vendor partnerships and infrastructure requirements to realise the nacent nuclear industry.

• Technology Partnerships: BE&R are actively fostering close relationships with the leading vendors and technology providers in the small nuclear and micro-reactor sector
• New skillsets: BE&R are bolstering the nuclear skillgap by developing the critical knowledge neccessary to support Australia’s nuclear capability
• Project Management and Execution: Leveraging BE&R’s project execution skills to oversee the development of nuclear facilities, ensuring adherence to timelines and budgets.
• Regulatory Compliance and Safety: Applying BE&R’s knowledge of energy regulations to navigate the complex nuclear regulatory environment, ensuring projects meet all safety and compliance standards.
• Stakeholder Engagement: Utilizing BE&R’s experience in managing stakeholder relationships to facilitate community acceptance and address public concerns regarding nuclear energy projects.

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Benefits of Agrivoltaics

The core concept of agrivoltaics is to optimise land use efficiency and productivity. Leveraging the same land for both solar energy production and agriculture addresses competing land use challenges and offers numerous benefits, such as:

• Enhanced crop productivity: Agrivoltaics improves land productivity by providing shade to crops, reducing evaporation, and decreasing water requirements. This is particularly advantageous in arid and semi-arid regions with limited water resources. The panels act as a protective canopy, moderating temperature extremes and acting as a windshield to enhance crop yields.
• Clean energy generation: Solar panels in agrivoltaic systems produce clean, renewable energy, contributing to the overall energy supply. This reduces greenhouse gas emissions and decreases dependence on fossil fuels.
• Economic benefits: Agrivoltaics offers additional income streams to farmers through the leasing of land for the agrivoltaic systems or enabling them to generate electricity themselves and sell it back to the grid. It also lowers direct energy costs for farmers, increasing the financial sustainability of their operations.
• Land preservation: Utilising the same land for agriculture and solar energy production helps preserve agricultural land that may otherwise be converted for solar installations or urban development. It also aids in biodiversity preservation.

While agrivoltaics presents numerous advantages, there are challenges to address. Careful planning is required to design and manage agrivoltaic systems to ensure optimal plant growth, resource use efficiency, solar panel maintenance, selection of crops suitable for the shaded conditions and evaluation of the economic viability of the combined system.

Constraints of Agrivoltaics

• High Initial Costs of Raised Solar Panels: A 2016 study in Germany projected significant financial losses, around €80,000 per hectare annually, in agrivoltaics under free market conditions. (Trommsdorff, 2016). If not thought through and optimised, additional costs for poorly designed structures can add to the PV costs substantially. Government incentives were suggested to promote the uptake by farmers.
• Ongoing Expenses: Ongoing costs include maintaining electrical infrastructure and dealing with potential damage to solar arrays by farm machinery.
• Complex Operations Lead to Higher Labour Costs: Technical expertise beyond farmers’ capabilities may elevate skilled labour expenses.
• Agricultural Land Loss: Despite enhancing solar panel efficiency, agricultural land loss is inevitable in agrivoltaics due to the required supporting infrastructure.
• Ideal Circumstances for Agrivoltaics May Be Limited: While certain crops thrive in shaded environments, others can decrease yield in shaded conditions.

How do Agrivoltaics Work?

Agrivoltaics operates by merging solar panels with agricultural methods to maximise the advantages of both systems. Following is a general outline of how agrivoltaics work:

• Site selection: Suitable locations for agrivoltaic systems are identified based on land availability, solar resource potential, soil quality, and proximity to existing grid infrastructure.
• Solar panel installation: Solar panels are installed above or alongside agricultural fields, mounted on structures like poles, frames, or racks, or integrated into existing agricultural infrastructure such as greenhouses or shade structures.
• Design considerations: Various factors such as panel tilt angle, height, spacing, and orientation are considered in the design of agrivoltaic systems. These factors are optimised to balance maximising solar energy generation while minimising shading impacts on crop growth.
• Crop selection: Crops suited for agrivoltaic systems are chosen based on their capacity to tolerate or benefit from the shading provided by the solar panels. Leafy greens, herbs, and shade-tolerant plants thrive in these systems.
• Shading and microclimate effects: Solar panels shade the crops, reducing excessive sunlight and moderating temperature extremes. This promotes a favourable microclimate for crop growth, enhancing water efficiency and reducing evaporation.
• Resource management: Irrigation, nutrient management, and pest control practices are adjusted to accommodate the shading effects and altered microclimate in agrivoltaic systems. Water use may decrease due to the shading effect, necessitating careful monitoring and management for optimal crop growth.
• Energy generation and management: The solar panels produce electricity, which can be utilised on-site to power agricultural operations and fed into the grid for distribution.
• Maintenance and monitoring: Regular maintenance of the solar panels is crucial to ensure optimal energy generation. Monitoring systems are commonly employed to track the solar panels’ performance and crop growth, enabling adjustments as necessary.

Agrivoltaic systems can be adapted to various agricultural practices, including row crops, orchards, vineyards, and greenhouse cultivation. Design and management techniques may vary based on climate, crop type, and regional conditions.

Challenges and Opportunities in Agrivoltaics

Co-locating agricultural and energy systems offers farmers, solar developers, and governments a promising path but requires careful planning and integration. The adoption of agrivoltaic systems in Australia has been slow due to technical knowledge gaps, economic hurdles, inadequate planning, and unclear policy guidance. To facilitate the widespread adoption of agrivoltaics, there is a need to address restrictive insurance requirements, leverage the power distribution network to benefit horticultural regions, increase the planning of solar grazing/crop systems, prioritise biodiversity in low rainfall zones, and establish user-friendly best practice guidelines.

Government policy and incentives will play an important role in successfully implementing agrivoltaics. The recent release of benefit-sharing guidelines by the NSW government is a positive step that proposes a rate for benefit sharing per megawatt per annum for solar energy development paid over the life of the development and indexed to the Consumer Price Index. (Department of Planning and Environment, 2023)

Agrivoltaic developers must also earn community trust and engage in meaningful and mutually beneficial discussions. If developed equitably, these developments can greatly benefit rural towns.

What Can BE&R Do for You

BE&R can analyse the right fit technology, identify potential partners, undertake land assessments and conduct feasibility studies to develop investable business cases. BE&R has worked with solar technology vendors and developers, assessing their application and effectiveness, and has developed business plans for international developers. Most important, is exploring the proposed development for innovations that can reduce costs and vastly improve the economics and other benefits of the project.  For more information, please follow us on LinkedIn and contact us.

Conclusion

Agrivoltaics offers a promising solution towards a more sustainable energy future in Australia. These systems can provide significant benefits such as enhanced crop productivity, clean energy generation, and increased economic opportunities for farmers. Challenges include high initial costs, ongoing expenses and a lack of government policy guidance for the industry. By overcoming these challenges through collaboration amongst system developers, governments, researchers, farmers and communities, we can move closer to a cleaner and greener Australia.

References

Retrieved from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://shared-drupal-s3fs.s3.ap-southeast-2.amazonaws.com/master-test/fapub_pdf/NSW+Planning+Portal+Documents/Draft+Benefit+Sharing+Guideline+(2).pdf

Fraunhofer Institute for Solar Energy Systems ISE. (2022, April). Agrivoltaics: Opportunities for Agriculture and the Energy Transition. Retrieved from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ise.fraunhofer.de/content/dam/ise/en/documents/publications/studies/APV-Guideline.pdf

Trommsdorff, M. (2016, December 30). An economic analysis of agrophotovoltaics: Opportunities, risks and strategies towards a more efficient land use. Retrieved from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.econstor.eu/bitstream/10419/150976/1/879248831.pdf

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The shipping industry serves as the backbone of global trade and the accessibility of reliable bunkering hubs is paramount for efficient operations. As we reflect on the developments of 2023, significant strides have been made in the LNG bunkering business within the Australia-Asia shipping corridor. This vital route, connecting the resource-rich landscapes of Australia to the busy markets of Asia, has seen a notable increase in the availability of LNG bunkering facilities. This growth emphasises a key shift towards sustainable fuel alternatives, driven by both regulatory pressures and industry initiatives.

Shipping lines traversing this corridor have been actively seeking new supply sources, diversifying their options beyond traditional hubs like Singapore and China. The emergence of LNG bunkering opportunities in the Pilbara region of Western Australia adds a new dimension to the landscape, offering a distributed and diverse supply network. This enhances the resilience of the bunkering infrastructure and fosters a more competitive market environment where ship owners can benefit from greater choice and flexibility.

LNG Bunker Fuel Market

BE&R, based in Perth, Western Australia, has thoroughly analysed the LNG bunkering landscape in Port Hedland. The study aimed to collect industry data and forecast the growth of LNG bunker fuel demand in Port Hedland until 2040 without assessing the impact of LNG availability on demand growth. According to the study, the global adoption rate for LNG as a marine fuel currently stands at 47% of orders (as a percentage of gross tonnage). While interest in ammonia as a fuel is growing among bulk carrier ship owners and charterers, at-scale ammonia supply chains have yet to reach Final Investment Decision (FID). LNG remains the dominant alternative to low sulphur marine fuel oil and is witnessing significant demand growth.

A recent surge in LNG dual fuel orders by shipping companies servicing the Australia–Asia trade route has further increased the forecast LNG bunker demand. Currently, there are 70 vessels either operating or on order that are LNG dual fuel capable, with between 17 and 31 (Low to High case) likely destined to service the Port Hedland to Asia route. This translates to a potential demand of up to 0.5 MTPA by 2028.

Accounting for the increased efficiency of new ship designs, technology and operational practices, a potential opportunity of 20 to 40% reduction in fuel consumption and emissions is possible. However, this efficiency enhancement does not apply to the majority of existing tonnage, typically using 16,000 kW engines operating at a speed of 13.5 knots.

LNG Bunkering Vessel & Operations

Oceania’s LNG Bunker Vessel Specification

Oceania Marine Energy, a sister company of BE&R, has developed an LNG bunker vessel specification tailored to meet the requirements of the Port Hedland bunking operation. The bunker vessel is designed with simplicity in LNG handling, manoeuvrability, and environmentally friendly port operations in mind. Featuring reduced energy consumption and enhanced fuel efficiency, the vessel incorporates a hybrid energy supply comprising 2 x gas turbine generators and 2MWh battery packs for in-port operations. An essential aspect of the optimised design is the one-section mono-tank, along with modular machinery systems and subsystems, simplifying the building process for fast-track construction and low-cost operation and maintenance.

While Oceania’s base bunker vessel design is for a capacity of 6,000 m³, plans for expansion to meet growing demand include designs for 8,000 m³ and 12,500 m³ bunker vessels, maintaining alignment with the established design principles.

Competitive Analysis: LNG vs. Other Low Carbon Fuels

Amidst the increasing interest in low carbon fuels, LNG stands out as a frontrunner in the bunkering sector, thanks to its proven operational history and robust regulatory framework. One of the key metrics driving its adoption is its cost competitiveness, with LNG prices recently aligning closely with Very Low Sulphur Fuel Oil (VLSFO) on a $/MMBtu basis. This parity has been a significant driver for ship owners, incentivising them to invest in LNG dual-fuel tonnage. The steady growth in the LNG-powered bulk carrier fleet, with over 70 ships currently on the order book, attests to this trend.

In contrast, alternative fuels such as methanol and ammonia face considerable challenges, particularly in safety, supply chain scalability and price competitiveness. While technological advancements in ammonia engines and regulatory frameworks are underway, LNG maintains a distinct advantage in terms of market maturity and infrastructure development. However, collaborative efforts and regulatory support are ongoing and will be essential in addressing these challenges and fostering a level playing field for all low carbon fuel options.

Technological Innovations and Operational Strategies

Technological innovation lies at the heart of the LNG bunkering industry, driving efficiency gains and environmental sustainability. BE&R and Oceania’s development of LNG bunker vessel specifications tailored to the Port Hedland bunkering operation exemplifies this commitment to innovation. By incorporating hybrid energy supply systems and optimised vessel designs, Oceania aims to reduce energy consumption and enhance operational efficiency, while also ensuring environmentally friendly port operations.

Operational strategies such as bunkering during cargo loading and considerations for in-port bunkering highlight the industry’s focus on maximising efficiency and minimising downtime. These initiatives will streamline logistics and contribute to the reduction of emissions and environmental impact. As the industry continues to embrace technological advancements and operational best practices, LNG bunkering will undoubtedly emerge as a cornerstone of sustainable maritime transportation.

Ammonia Bunkering

Ammonia bunkering remains in the developmental stage and faces challenges similar to those faced by LNG in its early years, particularly in building supply chains alongside securing offtake contracts. Collaboration is increasing, notably with the establishment of Green Corridors between Singapore and Australia. Nonetheless, the price discrepancy and safety regulation remains a significant obstacle.

Sustainability leaders are urged to take the lead and invest in the entire value chain, spanning from production to bunker operation and ship delivery, to ensure readiness across the board. While initial pre-commercial demonstration pilot projects are underway, spearheaded by the Singapore Maritime & Port Authority (MPA) and Global Centre for Maritime Decarbonisation (GCMD), broader geographic efforts are needed to foster industry development along the green corridor. The Pilbara Port Authority is leading this effort in Australia’s Pilbara region.

Environmental Impact and Sustainability Initiatives

Beyond regulatory compliance, the LNG bunkering industry is increasingly focused on environmental impact and sustainability initiatives. The transition to LNG as a marine fuel represents a step towards reducing greenhouse gas emissions and mitigating climate change. However, achieving long-term sustainability goals will require a combined effort across the entire value chain, from production to bunkering operations.

Outlook for 2024: Opportunities and Challenges Ahead

The LNG bunkering business in the regions where operations have started, such as in Singapore have shown promising progress. The availability of LNG along the Australia to Asia shipping corridor is growing, with multiple shipping lines seeking new sources of supply. Collaboration efforts, such as the joint feasibility study with Oceania, Registro Italiano Navale (RINA), and Pilbara Clean Fuels (PCF) for the Port Hedland to Asia shipping route, indicate a commitment to further develop LNG bunkering infrastructure.

While challenges remain, the industry’s commitment to innovation, collaboration, and sustainability promises well for its continued growth and success. The LNG bunkering industry is ready to play a pivotal role in shaping the future of sustainable maritime transportation.

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On October 18^th 2023, the BE&R team had the privilege of being invited by Michael Wake of The Green Energy Company to visit the AFB (Australian Flow Batteries) Henderson Pilot trial. AFB was testing a 200 kW.hr Vanadium Flow battery powered by a 100 kW Solar Wing.

The commercial and technical potential of this integrated technology is exciting. The key take-aways were:

• The 100kW solar PV (photovoltaic) panels were installed on retractable tracks, allowing them to be stowed in a 20ft sea-container in under 30 minutes, making them cost-effective and resilient for installation in storm-prone areas.
• The 200 kW.hr flow battery neatly fits into a 20 ft sea-container and has a 20-year lifespan, limited only by the standard electrical inverter, not the battery itself.
• Vanadium is the only significant exotic material in the battery system, providing a clear alternative to graphite, cobalt, lithium and nickel dependent battery tech.
• The cost of this unit is comparable to a lithium battery pack. As technology production scales up we expect costs to plummet.
• In the Pilot unit, a graphene capacitor type battery was added to test the handling of impulse loads – the short few second duration power spikes seen when starting large electrical motors.

Understanding Vanadium Flow Batteries

The technology for redox reaction-based flow batteries was developed and patented in Australia in the 1980’s. The catholyte and anolyte are tanks of liquid pumped past a simple carbon-coated exchange plate. While various redox chemistries have been proven effective, the original V₂O₅ solution remains the most reliable, transforming into V₄/V₅ in the catholyte tank and V₂/V₃ in the anolyte tank.

The advantages are immense: a high-capacity battery system without deterioration or fire risk, in contrast to the dendritic crystal growth that continues to be a main challenge with lithium-ion batteries. In a flow battery, ions remain in solution, rendering it as stable as a tank of seawater.

Though the liquid involves some level of hazard due to its strong acidity, the units operate sealed and do not generate gas. Flow batteries run cooler than lithium-ion counterparts, tolerate heat and cold better and avoid the high parasitic loads associated with cooling systems, resulting in a simpler and more cost-effective battery system.

Why Now is the Right Time

Until recently, flow batteries had been trailing behind lithium batteries in terms of power input/output speed. The BE&R Team enquired with Mark Reynolds from AFB about the circumstances regarding the delayed widespread adoption of flow batteries. His response was clear, that the affordability of Solar PV had significantly altered the dynamics. It has become so affordable that it can outperform the capital and operating costs of diesel-based power generators.

Moreover, China is now installing hundreds of MWs of Vanadium flow batteries to meet internal Chinese demand, leaving no capacity for equipment export. The cost of solar PV power, when utilized directly, has plummeted to approximately 2.5 cents per kw.hr, making it the most cost-effective power source. In contrast, transmission costs alone for power are usually quoted around 15 cents/kW.hr. The supply of vanadium will need to increase, with China being the largest producer, followed by Russia, and Australia also possessing substantial reserves.

The Downsides

Flow batteries do come with some drawbacks. Once installed and filled with liquid, a 20 ft container exceeds 15 tonnes in weight, occupying three times the space of a lithium-ion unit. It is worth noting that you can transport the flow battery to site first and then fill up the tanks. Due to the liquid nature of flow batteries, it’s advisable to avoid using them in vehicles like cars, trucks, or tractors. However, the positive aspect is that, despite the larger footprint per unit compared to lithium-ion, flow batteries can be stacked without posing heat or fire risks. As a result, the footprint of a large installation is approximately the same as an equivalent lithium unit. Dust accumulation can also be problematic, especially if the units are inadequately located, such as those around mine sites.

Drivers for Adoption

There are clear factors driving the uptake of flow batteries which include:

• Minimal operating costs for power, offering freedom from fluctuating fuel prices.
• Competitive advantage, providing more reliable and cost-effective power.
• Battery systems that can be moved, installed, and commissioned by non-electrical trades due to their plug-and-play design.
• Weather-resistant, enabling storage during storms and designed for the demanding Australian climate.
• Low capital costs, comparable to diesel plants.
• Meeting CO₂ emissions regulations under the federal Safeguarding Mechanism.
• Generating carbon credits.
• Grid independence, as the units can be tailored to operate off-grid or assist in stabilizing the grid, especially in remote areas.

Applications and Future Potential

The potential for flow batteries in Australia is vast. They are ideally suited for remote sites that currently rely on diesel generators, eliminating the need for spinning reserve generators or enabling the construction of new power stations without the requirement for standby units. They are also a valuable addition for operations transitioning to electric vehicles, allowing for vehicle recharging with green power at night and cost-effective Solar PV during the day. With the affordability, low operating costs, and long lifespan of energy storage, the adoption of solar PV is expected to surge.

What about Individual Consumers?

There is a 20 kW.hr unit tailored for residential use now available, on comparable pricing to Tesla’s Powerwall. As adoption rates rise, price reductions are expected, promising quicker investment payback, especially as rebates for residential rooftop power diminish.

BE&R Advantage

BE&R are deeply connected to the rapidly developing technologies that support the energy transition. By engaging with early technology developers BE&R connect our clients to leading vendors. Enabling confidence in selecting the right fit technology to succeed in economic and environmental performance.

Conclusion

In summary, the rise of vanadium flow batteries in Australia signals a promising shift in the energy storage landscape, offering cost-effective, reliable, and sustainable solutions for a variety of applications, from remote sites to residential and industrial sectors. As technology evolves and production scales up, the future of energy storage in Australia looks brighter than ever.

References

Electricity storage and renewables: Costs and markets to 2030, https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2017/Oct/IRENA_Electricity_Storage_Costs_2017.pdf, IRENA (International Renewable Energy Agency), 2017.

Modification of Nafion Membrane via a Sol-Gel Route for Vanadium Redox Flow Energy Storage Battery Applications, Journal of Chemistry, Shu-Ling Huang, Hsin-Fu Yu, and Yung-Sheng Lin, 2017.

Vanadium redox flow batteries: A comprehensive review, https://www.sciencedirect.com/science/article/abs/pii/S2352152X19302798, Journal of Energy Storage, 2019.

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Prioritising the extraction of maximum value from ageing facilities makes sense from both an environmental and an economic standpoint. It can delay or even eliminate the CO₂ emissions associated with constructing new infrastructure. Given that the transition from traditional fuels to cleaner alternatives is a gradual process, efficiently utilising existing resources is pivotal in avoiding excessive investments in new projects.

Scenarios for Ageing Assets

Soft Landing: In the ideal scenario, a company predicts a final depletion target to be achieved next year and schedules the final operation accordingly. The operations teams transition from maintenance and upkeep tasks to preparations for shutdown, where they focus on maintaining critical systems for decommissioning while minimising investments in integrity-related maintenance. The outcome is a cost-effective execution of the decommissioning process.

If an abrupt failure of a critical asset does occur during this process, resulting in a full production shutdown, and consequently, the decision is made to permanently shut down the facility, the effective planning at higher levels and the emphasis on sustaining vital systems can yield valuable benefits.

Hard Landing: A significant crisis emerges when a pivotal asset experiences a catastrophic failure, leading to a complete production standstill. Operations teams are immediately thrust into action, working tirelessly to initiate necessary repairs. This urgency prompts an accelerated engineering response and the swift procurement of essential equipment, albeit at escalated costs. However, as the repair process unfolds and additional faults surface, compounding the complexity of the situation, it reveals a disconcerting reality, the facility can no longer maintain a positive cash flow and the asset must be decommissioned.

Managing Key Risks for Ageing Assets

Identifying and effectively managing risks is important in the management of ageing facilities. Practising decision-making strategies for all scenarios is essential. Here are some of the key risks and recommended approaches for managing them:

Risk 1: End-of-life trigger event

Example End-of-Life Triggers events:

• Minimum economic production rate
• Catastrophic well failure
• Gas turbine major failure, requiring replacement
• Production riser failure
• Control system failure with no replacement hardware available due to obsolescence
• Loss of structural integrity in key platform or hull structure components
• For floating facilities – requirement to dry-dock to complete repairs

Manage this risk by: Identifying and monitoring the top 10 End-of-Life Triggers.

Risk 2: Unmanageable maintenance backlog

The accumulation of a maintenance backlog is common as the facility confronts the challenges presented by the increasing frequency of equipment failures. As the demand for repairs and corrective actions surges, the workforce availability for preventive maintenance and less critical tasks naturally decreases.

Manage this risk by: Implementing a method for prioritising tasks. Conduct an annual assessment of both the backlog and planned maintenance items to reduce the maintenance workload to the lowest feasible level, while ensuring minimal effects on overall facility safety or production risk.

Risk 3: Assets exceeding their rated service life

In the span of 10 to 20 years of a facility, key components must undergo either replacement or a comprehensive examination to seek recertification from the vendor or a certified body.

Manage this risk by: Developing a life extension strategy that guides the timing of the essential component replacements, proactively schedules actions to maintain certification, and integrates these actions into the operational budget. Essential components of the life extension strategy should be incorporated into a 10-year plan, providing management with a clear cost projection for key item replacements or recertification over the next decade.

Risk 4: Loss of Key Personnel

Retaining valuable personnel is a challenging endeavour for any operating asset, particularly in times of low unemployment. Experienced staff who are well-acquainted with the facility and possess strong teamwork skills play a pivotal role in maintaining the ongoing performance of the facility.

In contrast, an inexperienced team lacking historical knowledge and facility-specific insights might inadvertently overlook critical nuances. When teams are replaced on ageing facilities, the newcomers may find themselves grappling with issues they are not equipped to handle, leading to an upswing in operational cost and production downtime.

Manage this risk by:

• Implementing knowledge management systems and databases to centralize critical information and ensure regular updates.
• Implementing knowledge transfer programs that encourage experienced employees to document their knowledge and share it with colleagues.
• Identifying key personnel in critical roles within your organization and develop a succession plan.

Do you have an Action Plan?

BE&R provides a proactive approach, integrating with client teams to curate action plans to suit each prospective scenario that are ready to be deployed at immediate notice. The BE&R team is interested in achieving positive outcomes for its clients, not in implementing over-the-top, complicated and costly add-on processes for investigating every possible system and equipment failure. At BE&R we pride ourselves on our proactive and fit-for-purpose approach to helping our clients.

Conclusion

Effectively managing ageing facilities is crucial for optimising value and mitigating risks. By adopting a soft landing strategy, organisations can extend the life of their facilities, reduce their environmental impact and enhance their financial gains. In an era marked by the shift toward cleaner energy resources, meticulous management of ageing facilities delivers dual advantages, benefiting both the environment and the economy.

References

Ageing assets and life extension, https://www.nopsema.gov.au/sites/default/files/documents/A783718.pdf, NOPSEMA, 2021.

A Risk Based Approach To Managing The Integrity Of Ageing FPSO Topsides, https://onepetro.org/OTCONF/proceedings-abstract/13OTC/All-13OTC/OTC-24151-MS/37672, OnePetro, 2013.

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Over the past five years, there has been a surge in proposals for Green and Blue Hydrogen projects in Australia. Technically, these projects are sound and feasible. However, despite their promise, a puzzling trend has emerged: many of these projects are stalling or getting halted altogether. What is causing this setback in an industry that appeared poised for growth?

Supply is Not the Issue

Various supply schemes have been proposed, including Blue Hydrogen produced from natural gas with carbon sequestered as CO2 and Green Hydrogen generated through the electrolysis of water using renewable sources like solar, wind, or hydroelectric power.

The Missing Piece – Demand

Numerous applications for Hydrogen have been proposed, from powering Fuel Cell Electric Vehicles (FCEVs) including cars, trucks, and trains to serving as a precursor for ammonia or methanol, which can be used in fuels, fertilizers, or petrochemicals.

Hydrogen could find application in power generation, particularly in Asian countries like Japan and South Korea, as well as in serving as a feedstock for Green Steel plants. Australia and Japan have collaborated on a demonstration hydrogen shipping run from Victoria to Japan to test the feasibility of hydrogen transportation.

No ambitious hydrogen supplier has secured a sales contract to underpin their projects thus far. What is holding back the hydrogen-consuming industry?

The Energy Cost Conundrum

At the 2022 AFR Climate and Energy Summit, Saul Griffith drew attention to a relatively unexplored issue with green hydrogen—it’s remarkably energy-inefficient. While modern batteries offer an overall efficiency of 90% or better in storing solar energy, hydrogen lags behind at less than 40% efficiency.

Hydrogen’s key advantage as an energy store is its longevity; it doesn’t lose charge over months like batteries do. However, while the cost of storing energy in hydrogen is cheaper than in equivalent batteries, that cost hasn’t yet offset the energy loss incurred during hydrogen production.

The Profit Challenge

The high energy cost directly impacts profit drivers. For hydrogen to gain rapid and widespread industrial and commercial adoption, businesses must find it more profitable than existing energy sources. Currently, that’s not the case. As Saul Griffith points out, why convert your solar power into hydrogen and lose half of the energy before it powers your vehicle or AC units when direct solar offers 95% efficiency and solar-to-batteries-then-use exceed 90% efficiency with fewer moving parts and safety concerns? Few individuals and businesses are willing to pay a significant premium for hydrogen-based power.

Historically, energy transitions have been driven by inherent profit drivers, whether it’s the reliability of supply, lower capital or operating costs, or ease of use. The advent of modern energy sources of coal, oil, natural gas, LNG and nuclear fission were all driven by strong profit and operating advantages over the incumbent sources. Think diesel power trains vs wood fired steam versions or steam powered ships vs sailing ships.

The only precedence for the world’s industries absorbing an additional cost to transition on behalf of climate has been the elimination of CFC refrigerants to protect atmospheric ozone.  And why was that possible? Because in large part no country’s economy was based on producing CFCs, the cost impact was marginal and CFC users were able to easily pass the cost onto end consumers.

Hydrogen needs to demonstrate a clear commercial advantage over incumbent fossil fuels or battery alternatives to drive uptake. And one that is palatable to end consumers, the energy consuming public.

Safety and Regulation

Safety is a significant concern with hydrogen, as it is inherently more dangerous than natural gas. Hydrogen can self-ignite when leaking, is prone to detonation, burns with a clear flame, and can easily permeate solid materials. As the industry matures, safety and regulation standards for hydrogen manufacture should be developed, similar to existing standards for storage, piping, transport, and fuel dispensing. It’s worth noting that current electric vehicles (EVs) are not without safety issues, primarily related to fires, which are expected to improve with advancements in battery chemistry.

Navigating the Hurdles

For hydrogen to thrive it must demonstrate a clear commercial advantage over fossil fuels and battery alternatives. How can this be achieved? Here are some potential pathways:

• Government incentives, such as CO2 penalties or subsidies, like those offered by the USA via the Inflation Reduction Act.
• Technological breakthroughs in hydrogen production and storage that improve round trip efficiency, closing the gap with batteries.
• Development of robust safety standards and technical solutions that make hydrogen as safe, or safer, to handle than petrol (gasoline) or battery charging.
• Mass adoption of fuel cell vehicles to create economies of scale and drive infrastructure development.
• Maintaining a competitive advantage over battery-based transport.
• Implementing strict city regulations on air quality that favour hydrogen (or electric) solutions over diesel-fuelled transport for trucks, buses, and trains.
• A shortage of battery metals that increases the cost of FCEVs, home batteries, and grid batteries, making hydrogen-based solutions more attractive.
• Development of a close to zero-cost energy supply to negate the impact of energy losses in producing hydrogen. The Nuclear Fusion promise.

BE&R’s view on further considerations

Here is an overview of the challenges related to hydrogen projects, specifically in the context of blue and green hydrogen:

• Availability of Carrier Ships: The availability of carrier ships is a critical factor for transporting hydrogen, especially for export or long-distance transportation. The demand for carrier ships may outstrip the shipbuilders’ capacity to construct them. This can pose a logistical challenge for the efficient transportation of hydrogen to markets.
• Finding Skilled Personnel: Hydrogen projects require specialised knowledge and expertise in handling hydrogen production, storage, and transportation. Finding individuals with prior experience in these areas can be challenging, as the hydrogen industry is still evolving.
• Regulatory Approvals: The production and distribution of hydrogen involve new technologies and processes. Consequently, obtaining regulatory approvals and navigating the regulatory landscape can be complex. Regulators may not have established guidelines or standards for certain aspects of hydrogen production, which can lead to delays and uncertainty in project development.
• Supply Chains for Electrolysers and Hydrogen Equipment: The production of green hydrogen often relies on electrolysis technology, which requires specialised equipment such as electrolysers. Establishing reliable supply chains for these components can be challenging, particularly when there is a surge in demand for green hydrogen projects. Ensuring a stable supply of electrolysers and other hydrogen-related equipment is crucial for project success.
• Customers Receiving Facilities: To bring hydrogen to end-users or customers, there must be facilities capable of receiving, storing, and utilizing hydrogen. This includes not only industrial facilities but also infrastructure for hydrogen refuelling stations in the case of hydrogen for transportation. Developing a network of facilities that can handle hydrogen safely and efficiently is essential for the widespread adoption of hydrogen as an energy carrier.

In summary, these challenges represent key considerations in the development and scaling of blue and green hydrogen projects. Addressing these issues effectively is essential for the growth of the hydrogen industry and its role in the transition to a more sustainable energy future.

Conclusion

The path to a hydrogen-powered future is filled with challenges, but with the right combination of innovation, regulation, and market incentives, the industry can overcome these hurdles and realize its full potential.

Let’s start this conversation and explore the possibilities together. How good can hydrogen efficiency get, and how can we get there?

References

Green Hydrogen, chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Nov/IRENA_Green_hydrogen_policy_2020.pdf, International Renewable Energy Agency (IRENA), 2020.

Saul Griffith – https://www.afr.com/companies/energy/an-investment-opportunity-the-likes-of-which-we-ve-never-seen-20221012-p5bp77, October 2022.

The difference between green hydrogen and blue hydrogen, https://www.petrofac.com/media/stories-and-opinion/the-difference-between-green-hydrogen-and-blue-hydrogen/, Petrofac, 2023.

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