HOUSTON (PRWEB) September 26, 2022
The Energy Industries Council (EIC)--one of the world's leading energy trade associations and purveyor of world class industry data, events, and insights--concluded its EIC Connect conference in Houston, Texas, with a high note on energy transition.
This year's EIC Connect, Houston featured speakers from ExxonMobil, Siemens Industries Inc., among others. Panelists engaged in discussions around the state of U.S. offshore wind and hydrogen energy as well as the role of the oil and gas industry in the energy transition. Speakers agreed that aligning supply and demand while delivering reduced emissions is a critical challenge that the entire energy supply chain is grappling with today.
There was also a consensus that oil and gas remain vital for meeting today's energy demands, while wind, solar, and hydro unlock renewable sources of energy production. EIC Connect convenes every year and brings together energy producers with supply chain companies from around the globe.
Blessing in disguise: U.S. offshore wind supply chain challenges and opportunities
During a session on challenges and opportunities in the U.S. offshore wind market, panelists discussed the following points:
Hydrogen projects represent $45 billion in Capital
- Wind energy producers face challenges with storing and transmitting power output. In many areas, land grids cannot take the concentration of power from offshore wind. Turbines growing sizes, especially the 11-15 MW, present yet another challenge as they require larger ports, ships, and installation equipment.
- The U.S. Gulf Coast is well-positioned to become a leader in offshore wind due to the large port, favorable business environment, and energy talent pool. The energy talent pool is accustomed to global scale projects that require deep technical expertise, sophisticated commercial agreements, and project know-how that is unique to the energy industry.
- According to Grant van Wyngaarden, Head of Procurement, North America at Orsted, achieving an offshore wind capacity of "30GW by 2030 is possible but challenging."
- Diversifying offshore oil and gas into wind is an opportunity for the industry. Vessel owners, offshore services, and electrification of offshore platforms are tangible opportunities in the energy transition.
- Anthony Appleton, Offshore Wind Director at Burns & McDonnell stated "there is 20 years of experience from the UK and North Sea that needs to be leveraged by the U.S. market." For companies entering the U.S. market, it is an excellent time to engage the European market for lessons learned.
The following are key takeaways from conference discussions on hydrogen power production in the United States:
- The U.S. boasts 38 hydrogen projects valued at $45 billion in capital, according to EICAssetMap market intelligence.
- A 10-fold increase in hydrogen will require massive investment in projects and infrastructure. Panelists at EIC Connect, Houston, suggested we are on the verge of an important change for energy infrastructure.
- "It is an evolution, not a revolution" stated Richard Caputo, Corporate Account Manager - Siemens. He added "and we will see hydrogen demand grow in areas where it is difficult to electrify."
- Hydrogen demand often comes into question since it is a nascent market today. The majority of hydrogen demand is used in industrial processes; however, states are developing plans to build a hydrogen economy that could lead to demand from aviation, shipping, logistics, and transportation.
- Today, electrolyzers are a key constraint in the green hydrogen supply chain. Adding carbon capture to steam methane reformers and gray hydrogen facilities today, makes blue hydrogen available now as a pathway. Exploring these pathways through joint projects will help the industry and market learn is economic and achievable.
- Noureen Faizee, Director, Strategy & Growth – Hydrogen at Worley said "for companies producing gray hydrogen today, there is an opportunity to take advantage of the generous tax credit in the IRA" and expects "a lot of activity in the coming years."
About Energy Industrials Council (EIC)
EIC is a leading trade association for the energy industry, with a global membership of over 800 companies that cover the entire supply chain in oil and gas, power, nuclear and renewables. Founded in 1943, EIC promotes the interest of its members through working closely with governments and key stakeholders. Through our London headquarters and regional offices in Dubai, Houston, Kuala Lumpur, and Rio de Janeiro, EIC members enjoy access to world class products and services: EICDataStream is an unparalleled database of in-development energy projects worldwide. Our EICAssetMap provides comprehensive information on operating assets globally. EIC's event solutions feature conferences, training courses, industry awards, and networking events. Our expert analysts and consultants are spread across four continents, producing insightful reports and bespoke market intelligence for member companies and outside clients.
Visit https://the-eic.com to learn more.
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