Scandinavian hydrogen cooperation

NSP 06-10-2017
Hydrogen Truck – Nikola

The Nordic countries have been joining forces in the Scandinavian Hydrogen Highway Partnership, SHHP, since 2006 with the purpose of deploying hydrogen fuel cell vehicles and constructing and clustering hydrogen refueling stations. Thanks to this, the region has distinguished itself as one of the earliest areas in the world where the latest hydrogen technology is demonstrated.

Why hydrogen?

One of the advantages of hydrogen is that it can store energy from all sources, including renewable energy sources. Hydrogen as an energy carrier is a very flexible alternative. Therefore hydrogen will play a key role in the necessary transition from fossil fuels to a sustainable energy system.

And at the moment it seems like the transportation sector can use renewable energy produced hydrogen to replace fossil fuel – as the market experience roll outs of both refueling networks and transportation vehicles.

Electrolysis – where electricity splits water to hydrogen and oxygen, is a useful method for producing hydrogen from renewable energy sources like wind, solar and hydro power. In this way hydrogen can play a role to balance the grid.

As with other fuels and energy carriers, hydrogen must be handled with special requirements. Since hydrogen has been used in the industries for over a century, we have very good knowledge of how to deal with it in order to minimize the risk of incidents.

Modern batteries have less energy loss than fuel cells and will play an important role in future transport. But the disadvantages with batteries are that they demand long charging times and are quite heavy. The combination of fuel cells and batteries in vehicles has proven very beneficial. Supplemented with fuel cells, electric cars will dramatically increase range and the refuelling takes only a few minutes, but in the transportation sector you also would need a lot of power to move heavy cargos – that means a lot of battries in each vehicles, not a problem for long distance trucks.

Network of refueling stations

The Scandinavian hydrogen cooperation consists of regional clusters involving major and small industries, research institutions, and local, regional and national authorities – Showing a multitude of pathways for hydrogen supply using local resources. The national networking bodies – Norsk Hydrogenforum in Norway, Hydrogen Sweden in Sweden and Hydrogen Link in Denmark – act as coordinators.

The Scandinavian hydrogen cooperation has as it’s goal to create one of the first regions in Europe where hydrogen is available and used in a network of refuelling stations.

All activities are based on effective collaboration across the borders and are backed with strong public and private support in terms of funding, attractive financial tax exemption schemes and investments. The main goal is to create one of the first regions in Europe where hydrogen is available and used in a network of refuelling stations. The first step is to connect the largest city in Scandinavia in a network of refueling stations:

  • Oslo
  • Stockholm
  • Copenhagen

The challenge would be to move this network of refueling stations further north. The plan is to move the hydrogen corridor further north – step by step.

Hydrogen – a solution for the transportation sector

The EU-parliament passed the directive Clean Power for Transport in September 2014, which will secure the roll out of alternative fuels such as methane, hydrogen and electric charging infrastructure with common standards throughout the EU. Plans on a national level for fossil free energy systems are in place both in Sweden, Norway and Denmark – and all of the Scandinavian countries have ambitious goals for replacement of fossil fuels in the transportation sector.

The dependence of fossil fuels in the transport sector is the single largest source of greenhouse gas emissions in Scandinavia. To be able to lower carbon dioxide emission, the overall energy consumption needs to decrease and the use of renewable energy increase.

The Hydrogen value chain

The Scandinavian hydrogen cooperation will strive to build up knowledge of strategies for business models for development and operation of hydrogen infrastructure for vehicles, as well as for establishing production and distribution of hydrogen. In this situation it would be necessary to look closer into the hydrogen value chain: solutions within production, storage, distribution and use of hydrogen that meets the renewable society challenges.

The Scandinavian hydrogen cooperation wants to strengthen the use of hydrogen in the transportation sector – so that hydrogen could be a replacement for fossil fuels in the transportation sector in the future – also in the northern parts of Norway.

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What is going on in the Arctic?

The Arctic is still a cold place, but it is warming faster than any other region on Earth. Over the past 50 years, the Arctic’s temperature has risen by more than twice the global average. In 2016, the annual mean temperature in Svalbard was 6 degrees higher than normal – so we are already witnessing actual consequences of global warming to Arctic life. These rapid changes have consequences well beyond the Arctic.

NSP 08-09-2017

What Arctic change does to the world

Once Arctic warming gets going, it has two important dynamics with unpredictable effects.

  • As the Arctic warms and sea-ice and snow-cover retracts, this weakens surface reflectivity. The bare ground and open water absorb more heat from the sun and amplify warming further. This feedback is an important reason why the Arctic warms at twice the rate of the global average.
  • The Arctic permafrost is a storehouse for trapped greenhouse-gases such as methane and CO2. When the permafrost is thawing, these greenhouse-gases could be released to the atmosphere, amplifying global warming further. These secondary effects are adding unpredictability. Unpredictability in terms of consequences – but also unpredictability in terms of the pace of climate change. As we know, unpredictability means enhanced risks.

Arctic warming is accelerating

A new scientific assessment of climate change in the Arctic, by the Arctic Council’s Arctic Monitoring and Assessment Programme (AMAP), concludes that the Arctic is now shifting — rapidly and in unexpected ways — into a new state.

If we allow current trends to continue, they will have profound and accelerated impacts on ecosystems, human health and safety, industries and economies around the world. Certainly, this will also influence our security environment. Recent research indicates that this could increase risk levels not only in the Arctic, but in regions very far from the Arctic areas. This is due to the climate system – It is highly interconnected on the global scale. The Arctic region acts as a global cooling system by drawing warm ocean water from the south and cooling it down. This movement of warmer ocean waters to the north has a major influence on climate outside the Arctic; it accounts for northern Europe’s relatively mild climate, and it keeps the Tropics cooler than they would otherwise be.

The rapid melting of Arctic ice and snow is likely to weaken this global cooling system, amplifying global warming, and intensifying its consequences throughout the world.

Artic warming will amplify security risks

So while global warming is a multiplier of existing security risks and threats, the Arctic is an amplifier of global warming. Indirectly, a warmer Arctic will indeed also amplify security risks worldwide. We are seeing, and will see ever more extreme weather events. We are seeing more stress on critical ecosystems, including oceans, freshwater, and biodiversity. These changes, in turn, will have direct and indirect social, economic, political, and security effects.

Extreme weather can trigger crop failures, wildfires, energy blackouts, infrastructure breakdown, supply-chain breakdowns, migration, and infectious disease outbreaks. We can expect climate change to exacerbate current conditions: making hot, dry places hotter and drier, for example. Over the longer term, global climate change will change how and where people live, where they can produce food, as well as the diseases they face.

Science is increasingly concerned that more sudden, dramatic shifts could be possible. Such shifts in the climate or climate-linked ecosystems could have dramatic economic and ecological consequences.

Accelerated climate change

Accelerated climate change, therefore, is not only a significant risk factor in its own right – it is a factor that can interplay with and magnify other risk factors: economic, technological and demographic.

  • Economic risk – The globalised economy, the risks to free trade and the global economy are real.

The physical risks that arise from the increased frequency and severity of climate- and weather-related events that damage property and disrupt trade. The liability risks – the risks posed to companies business models by climate change. The transition risks which could result from the adjustment towards a lower-carbon economy. Changes in policy, technology and physical risks could prompt a reassessment of the value of a large range of assets. Just as we can have climate shocks and technological disruptions, we may also have “policy shocks” in response to dramatic climate events.

  • Technology induced risks – Combatting climate change will require faster technological change.

Technology is accelerating the pace of change around us, and in the process it is triggering new complex challenges, disruptions and tensions.

  • Demographic risks – Risks associated with demographic shifts.

Urbanization is a welcome trend in terms of more climate friendly living with regard to housing, transport systems and other public infrastructure. At the same time, with more extreme weather events, rising sea levels and pressure on critical infrastructure, urban centres are increasingly vulnerable.

Climate action is of high strategic importance

Climate change is a security challenge, and hence climate policy is of high strategic importance. The work in the GREBE project workpackage 4 is a small contribution to the strategic work on climate policy and security challenges – with a practical focus on business strategy models.

Climate policy matters!

New support program for hydrogen in Norway

NSP 13-07-2017
A hydrogen fuel station in Reykjavik (Iceland)

The national public financial support agency Enova, has launched a new support program for a national rollout of hydrogen refuelling infrastructure.  Enova will now support faster growth in the use of hydrogen vehicles, and assess the growth pace and support scheme annually in accordance with vehicle development in the coming years.

Program Goals: Emission free transport sector

When the cost of hydrogen vehicles become competitive, hydrogen can be an important contributor in making the transport sector emissions free. Therefore, Enova now wants projects that help reduce costs and build experience. Enova earlier this year made it possible for the professional market to get support for the purchase of hydrogen fuel cell vehicles, and the support for filling stations is well suited to this.

Targeted infrastructure development program

Enova wants to contribute to a customized and targeted infrastructure development:

Hydrogen stations that have a customer base will be given priority in the competition for the funding available. It improves the profitability of the project, and enables the Enova hydrogen program to get usage experience as early as possible. Particularly stations whose attributed to larger car fleets in commercial and public transport can provide useful operating experience quickly.

Facilitation of a faster growth

Projects which are economically successful could show both private and business professionals that hydrogen is a real alternative. In this way, the support offer facilitates a faster growth in the hydrogen market when access to hydrogen cars is increasing. If you can demonstrate that selling hydrogen is profitable, the commerical investment would take place.

Support opportunities

The program for a national rollout of hydrogen refuelling infrastructure is part of the range of support opportunities Enova has for using hydrogen in the transport sector, and Enova believe that the range of support programs will help realize a number of good hydro projects in the coming years.  Support opportunities include:

  • Innovative hydrogen technology
  • Hydrogen vehicles
  • Building of hydrogen fuel station  

New offer to public players

A new offer is that public and private players seeking support for hydrogen vehicles can also get support to build filling stations at the same time. In addition, Enova can support municipalities and county municipalities that wish to build hydrogen stations to electrify public transport services.

Business motivation

The Norwegian hydrogen business community welcomes this new national support scheme, and the country’s Hydrogen business sector is fully motivated to maximise the impact of hydrogen-based transport in Norway. But the hydrogen business sector believe even stronger actions and a clearer commitment on national level is needed for a stronger growth:

Build more and faster

Hydrogen is a competitive energy storage medium for large scale integration of renewable electricity that can be used in the Norwegian transport sector. The European Commission made this conclusion already in 2012 – let’s go for Hydrogen together with private and public players and with targeted support programs.

Hydrogen 13-07-2017

The GREBE Project meets with renewable energy companies in Norway

IMG_5955

As part of the GREBE Project meeting in June, the Norwegian partner, Narvik Science Park, organised visits to hydropower installations and wind parks, as well as meetings with companies operating in the renewable energy sector in Norway.

The first meeting was held with Dag Smedbold of Statkraft (https://www.statkraft.com/).  Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3800 employees in more than 20 countries.   Dag outlined their development and the leading role they play in renewable energy in Norway and in Europe, particulary in the hydro sector.

Following our meeting with Statkraft, we met with Matthew Homola of Nordkraft (http://www.nordkraft.no/).  Nordkraft is an energy group focusing on the development, development, production and distribution of all natural renewable energy. The group also has interests in power sales and other energy-related businesses.  The renewable energy production comes from magazine power plants, small hydro and wind power. The distribution network covers Narvik Municipality, as well as wall in Evenes Municipality.

The group’s history dates back to 1913, when the first power plant was put into operation in Håkvik valley in Narvik municipality. It has mainly been public or publicly-owned owners all the time, except for some years in the 2000s when Danish E2 / Dong Energy were owners. As a result of this came the wind power initiative.

Matthew brought us Nygårdsfjellet wind farm, which was acquired by Fortum  along with two other wind power projects in late 2016.  Nordkraft continue to manage and operate this project. This wind farm consists of 14 turbines with a total capacity of 32,2MW.  Windmills have an installed capacity of 2,3MW each. The entry of Nygårdsfjellet wind farm was done in two stages. The first 3 turbines were put into operation in 2006 and the last 11 in 2011. Average annual production is 105GWh, corresponding to normal consumption of about 5200 Norwegian households.

Our last visit was to Nordkrafts first power plant in Håkvik valley.  Fred Johansen of Narvik Science Park outlined the history of the development of this hydropower plant and the development of renewable energy in northern Norway.

The climate affected economy in the NPA-Regions

The second report from Work Package 4 in the GREBE Project was presented at the GREBE partnership meeting in Narvik this week. The results from the survey shows that the extreme climate has an affect on the economy and the financial outcome for businesses in NPA GREBE partner regions. Impacts of extreme weather / weather events on infrastructure is estimated to cost around €11 million only in Norway. This will give an estimated cost for the 6 NPA regions included in the GREBE project a weather dependent cost for the SMEs of approximately €60 – 80 million each year.

4.2 report cover 2

GREBEs Report on the Influence of Environmental Conditions in NPA and Arctic Regions and the next steps

Rural businesses in the energy sector as well as other sectors provide an important liveihood in the northern peripheral areas of Europe. The harsh climatic conditions experienced in many NPA regions, particularly high north and arctic regions, present significant challenges to SMEs and start-ups that can seriously impact on the viability of their businesses. In the Report on the Influence of Environmental Conditions in NPA and Arctic Regions there was findings that indicate that there exists significant climate challenges in the partner regions with different types of harsh weather. Low temperature, hard winds, and rain / snow conditions can be extreme in the NPA regions.

In the GREBE Report on Innovations from Local Technology and Business Solutions the question is: How do businesses located in these areas compensate or cope with unforeseen climate change effects?

What is extreme weather?

An extreme weather occurrence can be defined in different ways and the metrological institutes in each GREBE partner region have their definition made to optimize the specific conditions in each region. A broad institutional indication is often presented when life and values may be lost caused by the extreme weather condition. However, in this report the definition used is:

“Extreme weather conditions are weather that most likely provide problems for people, business and infrastructure”. 

“Local extreme weather” is the weather impact on societal infrastructure in the different NPA regions and is considered to affect the business activities. The phenomenon of “local extreme weather” is serious for the single business when it occurs and may have serious consequences for a business competing in an open market.

NSP 21-06-2017

Climate effects on society and business:

The impact of “local extreme weather” is considered manageable and moderate in most of the northern EU regions, and structural activities that can minimize the negative effects of harsh weather on small, rural energy companies:

  1. Regional cooperation – The diverse geographical areas of northern Europe, are experiencing a number of joint challenges in relation to location, but also possible opportunities that can be overcome and realized by regional cooperation. The experience from each region may be introduced to other Northern European areas and innovations from different parts in society can be used to create specific growth initiatives and common efficient business opportunities of the European Northern and Arctic regions in a climate efficient way. One major impact of challenges and initiatives in business operations is the influence of weather conditions on society and in the extension of SME business operations and productivity located in these areas.
  2. Strategic handling – Today, many operators in society refer to weather as a restriction in budget and argue that it is a phenomenon that has an actual impact on business. However, the weather can be a strong benefit for the business when an updated insight into the specific local conditions is available and by using a strategic handling document based upon regional knowledge and experience from other businesses. Even national weather organizations are today providing companies this service.
  3. Variety of weather – The final implication is that a change in weather pattern will result in a variety of weather phenomenon that can affect the NPA regions in a different matter. There are different effects on the society, depending upon the specific region, i.e. flooding, wind, and disturbance on roads by fallen trees or avalanche.

Results from the GREBE survey

As part of the GREBE Report on Innovations from Local Technology and Business Solutions, it was found that SMEs compensate for weather constraints and disruptions by:

  • Timing, operational planning and using experienced contractors
  • Compensating investments in fertiliser storage capacities
  • Avoiding challenging times in transportations (thaws)
  • Planning in construction phase (needed insulations) for arctic conditions
  • During processes by preventing freezing (heating, antifreezes)

 Business strategy – A minimal planning strategy for weather related disturbance in business are generally lacking both in long and in short seasonal terms. The absence of business strategies tends to characterise SMEs in rural GREBE regions both in limited financial contingency as well as in maintaining physical systems and services.

There are some cost related economic factors that will affect the small business in a rural areas of Northern Europe and it may be time to consider a new weather and climate economy that compensates the businesses that are fighting against the nature and experience higher costs in their energy operations. These companies are strategically located in rural areas which require entrepreneurs, employments opportunities and an innovative environment.

The full Report on Innovations from Local Technology and Business Solutions can be downloaded from the GREBE website HERE

The third energy market package agreed between EU and EEA/EFTA states

The Third Energy Market Package – EU energy market rules, were incorporated into the EEA/EFTA Agreement last week. Norway and the EU are closely connected through the energy market – by including the Third Energy Market Package into the EEA/EFTA Agreement, Norwegian actors are secured access to the EU-market. 

NSP 18-05-2017

The aim of the Third Energy Package is to improve the functioning of the Internal Energy Market. The package separates energy supply and generation from the operation of transmission networks, and strengthens the independence and cooperation of energy regulators. It also covers cross-border cooperation between transmission system operators and increases transparency in retail markets to benefit consumers. The Joint Committee Decision (JCD) contains substantial adaptations necessary for the participation of the EEA EFTA States in the Internal Energy Market. The approval of the Third Energy Package – by both sides – is the result of constructive discussions between the EU and the EEA EFTA States.

25th anniversary – The EEA Joint Committee provides a forum for the EEA EFTA States and the EU to exchange views and take decisions by consensus to incorporate EU legislation into the EEA Agreement. The meetings last week marks the 25th anniversary of the signing of the EEA Agreement since the first one in Porto, Portugal. The Agreement brings together the EU and EEA EFTA States in a Single Market, ensuring legal homogeneity. Since its entry into force in 1994, a lot of  acts have been incorporated.

EEA – The European Economic Area (EEA) brings together the EU Member States and three of the EFTA States (Iceland, Liechtenstein and Norway). It was established by the EEA Agreement, an international agreement which enables these three EFTA States to participate fully in the Single Market. The objective of the EEA Agreement is to create a homogenous European Economic Area. All relevant EU legislation in the field of the Single Market is integrated into the EEA Agreement so that it applies throughout the whole of the EEA, ensuring uniform application of laws relating to the Single Market.

NSP 18-05-2017 - v2

Renewable energy sector – The Third Energy Package Agreement between EEA/EFTA and EU is also of importance for the renewable sector in Norway – this means that there will be a close connection to the EU renewable energy market.

NPA funded GREBE and TARGET Projects meet at the Technology Festival of Northern Norway (TINN)

Target & GREBE
Norwegian project leaders, both from Narvik: Dr. Wei Deng Solvang (TARGET) and Fred R. Johansen (GREBE)

TARGET is a NPA-project designed to enhance the capacity of manufacturing companies to innovate and embrace new technologies – making regional manufacturing globally competitive. Partners of the TARGET Project were recently in Narvik to discuss how to deliver state-of-the-art technological supports to local businesses in the NPA-regions. This time, in collaboration with the GREBE project partner – Narvik Science Park at the  Technology Festival of Northern Norway (TINN). Partners concluded that renewable energy (GREBE) and digitalization (TARGET) represent two key factors in the global market competition.

Bulding regional competencies

Manufacturing in the NPA region has many important strengths. These include regional and niche specific competencies that are world leading in specific sectors unique to the region. However, the majority of manufacturing companies are predominately small in size and face considerable challenges like geographical isolation from major markets and a lack of the benefits offered by more populous and urbanised economic urban clusters. When combined with global trends that see a shift in manufacturing to lower cost and developing economics with rapid advances in new technologies, this means that support measures are needed to strengthen the manufacturing sector.

TARGETs Partners are:

  • South West College, Northern Ireland (Lead Partner)
  • UiT – The Arctic University, Campus Narvik – Norway
  • Centria University of Applied Sciences, Finland
  • Luleå University of Technology, Sweden
  • Cavan Innovation and Technology Centre, Ireland
  • Local Enterprise Offices Cavan and Sligo, Ireland

Target project

A collaborated competence platform

The focus area in the TARGET- project is to provide a toolbox to facilitate manufacturing companies´ application of innovation and embracing new processes and practices such as virtual and parametric design and simulation, reverse planning, modelling and 3D printing, remote monitoring and programming of NC machines and robots, 3D measurements, application of digital data and vision based quality assurance. Coupling these with key market analysis skills such as trending, testing and integrating products into a whole cycle of service delivery will build the competitive advantage and value of manufacturing firms. The key is to converge all of these technologies to produce an integrated, automated and highly efficient manufacturing environment – putting the knowledge economy into manufacturing.

Target project - image1

Global competitiveness

The TARGET project will develop supports to build future global competitiveness of NPA region manufacturers giving them a new influx of innovation, technology and novel processes. This will open up new and promising opportunities and reduce the competitive and knowledge gap through the introduction of new processes, techniques, knowledge and skill and will demonstrate the benefits to be gained through the application of these supports to position NPA manufacturing industries as world leaders in their sectors and building sustainable competitive advantage.