Tag Archives: Shell

Economical Energy and its VIPER energy storage tech win Studio X recognition

Economical Energy announces that it has joined the third cohort of the Shell-powered Studio X Accelerator Program, a first-of-its-kind open global innovation company seeking to accelerate innovation in energy and climate tech.

ATP Fund, a venture capital partner of Studio X, has also invested in Economical Energy.

Economical Energy is developing the VIPER (Vertically Integrated Potential Energy Reservoir) energy storage technology, to help make renewable energy cheap, clean and continuous. The VIPER technology stores renewable wind and solar power when it’s available so that it can be used later during energy inadequacy to keep the lights on. It has potential applications in mining, representing an opportunity for companies to reduce their emissions and expand their portfolios.

Economical Energy expects its VIPER technology to become substantially cheaper than batteries, while having a significantly smaller environmental impact than batteries and pumped hydro.

It is considered a Long Duration Energy Storage (LDES) technology, as it is best suited for six to 12 hours of storage which is the optimal range for time shifting intermittent renewable energy. This differentiates it from the lithium-ion batteries installed on grids that typically only have two hours of energy storage.

It represents a reinvention of pumped hydro, using the same underlying physics, the force of gravity, but switching out the water used by pumped hydro with dirt, which is heavier and is not affected by drought or climate change. The VIPER also removes pumped hydro’s requirements for mountains and construction in ecologically diverse areas, by using deep holes in the ground like those provided by deep underground mines.

Max Gray, Director of the Studio X accelerator program, said: “The Studio X accelerator program is excited to have Economical Energy as part of the 2023 cohort. Their innovative solution to LDES will play a key role in meeting the future energy supply and demand equation, as well as adding stability to power grid infrastructure in times of energy instability. The next decades will need abundant LDES solutions and Economical Energy’s technology is poised to play a key role in that supply.”

Matthew Forrest, Managing Director of Economical Energy, said: “The level of technical due diligence from Studio X and ATP Fund was by far the most sophisticated we have encountered. Their understanding of the complexities of the underground environment were particularly relevant. I feel that their decision to invest is a strong vote of confidence in us and our VIPER technology.”

Shell to acquire biodegradable lubricants supplier

Wholly-owned subsidiaries of Shell plc in Switzerland, the UK, US and Sweden have entered into agreements to acquire the Environmentally Considerate Lubricants (ECLs) business of the PANOLIN Group, a transaction that brings with it an offering of biodegradable lubricants.

The transaction includes the PANOLIN brand, ECL product formulations, intellectual property, technical expertise and technology, international customer base and a portfolio of products – for hydraulics, gears, universal tractor transmission oils, biodegradable engine oils, turbine oils, chainsaw oils and greases for machine lubrication, including leading OEM-approved products, Shell said.

ECLs are biodegradable lubricants and can help contribute to a more sustainable future, offering greater protection for wildlife and ecosystems in the event that they come into contact with the environment, in comparison with conventional lubricants, the company explained. They enable customers to reduce the risks of operating in sensitive environments. The global market for ECLs is expected to grow significantly over the coming years, according to Shell.

Following completion of the transaction, Shell will manufacture, distribute and market the PANOLIN portfolio of ECL products alongside its Shell Naturelle branded products. The acquisition will strengthen Shell’s presence in the mining, construction, agriculture, renewable power, hydropower and offshore wind sectors, it said.

Shell expects to fully integrate the business into its global lubricants business within two years after completion, aligning with Shell’s Powering Progress strategy to accelerate the transition to a net-zero emissions energy business by 2050.

Machteld de Haan, Global Executive Vice President of Shell Lubricants, said: “We are entering into this strategic acquisition to grow our presence in the global industrial lubricants market, through differentiated, value-added propositions for our customers. Once completed, the acquisition will enable us to complement our existing range of sustainable products in response to increasing customer demand.”

All PANOLIN staff who currently support the ECL business in Switzerland, the UK, US and Sweden are expected to join Shell.

Subject to regulatory clearance and the satisfaction of closing conditions, the deal is expected to be completed by early 2023.

Shell Consortium previews Charge On haul truck electrification solution

Shell has become the latest Charge On Innovation Challenge winner to unveil details about its electric haul truck charging solution, outlining how its consortium of partners intend to combine an end-to-end and interoperable electrification system that reduces emissions without compromising on efficiency or safety, while aiming to be cost competitive versus diesel-powered operation.

The Charge On Innovation Challenge was launched in 2021 and invited vendors and technology innovators from around the world and across industries to collaborate with the mining industry to present novel electric truck charging solutions. The challenge received interest from over 350 companies across 19 industries, with more than 80 companies submitting expressions of interest. Twenty-one companies were then invited to present a detailed pitch of their solution, with the final eight – which included the Shell Consortium – chosen to progress from these 21.

The global challenge, launched by BHP, Rio Tinto and Vale, sought to accelerate commercialisation of effective solutions for charging large electric haul trucks while simultaneously demonstrating there is an emerging market for these solutions in mining.

The Charge On Innovation Challenge requested international solution providers to put forward charging concepts that are:

  • Designed with safety as the number one priority, using inherent defensive design and future-proof principles;
  • Able to supply a battery for 220-t payload electric haul trucks;
  • Capable of supplying 400 kW hours of electricity to a truck during each haul cycle;
  • Able to provide battery charging, or both propulsion and battery charging;
  • Cost effective, minimising complexity without reducing productivity; and
  • Interoperable, allowing different haul truck manufacturers to utilise the same charging infrastructure.

On a media call this week, Shell highlighted how its consortium of nine partners was working on a solution that could not only meet this brief, but also provide a commercial offering to electrify mining and other industries.

Skeleton, Microvast, Stäubli, Carnegie Robotics, Heliox, Spirae, Alliance Automation, Worley and Shell have come together to introduce Shell’s mining electrification solutions for off-road vehicles. This consists of:

  • Power provisioning and microgrids, with the aim to provide a consistent and reliable supply of renewable power in a safe and stable manner;
  • Ultra-fast charging whereby an approximate 90-second charge via flexible, hardwearing and resilient, on-site, ultrafast charge-points can provide assets with continuous operation of some 20-30 minutes depending on the haulage profile; and
  • In-vehicle energy storage: through a combination of advanced battery and capacitor technologies that aim to deliver long lifetimes, ultra-fast charging and high performance.

Some of the key components of the power provision and energy management solution come from Alliance Automation, a multi-disciplined industrial automation and electrical engineering company; Spirae, a technology company that develops solutions for integrating renewable and distributed energy resources within microgrids and power systems for economic optimisation, resiliency enhancement and decarbonisation; Worley, an engineering company that provides project delivery and consulting services to the resources and energy sectors, and complex process industries; and Shell Energy, which provides innovative, reliable and cleaner energy solutions through a portfolio of gas, power, environmental products and energy efficiency offers to businesses and residential customers.

The ultra-fast charging element involves solutions from Carnegie Robotics, a provider of rugged sensors, autonomy software and platforms for defence, agriculture, mining, marine, warehouse and energy applications; Heliox, a leader in fast charging systems within public transport, e-trucks, marine, mining and port equipment; and Stäubli, a global industrial and mechatronic solution provider with four dedicated divisions: electrical connectors, fluid connectors, robotics and textile.

Finally, Skeleton, a global technology leader in fast energy storage for automotive, transportation, grid and industrial applications, and Microvast, a leader in the design, development and manufacture of battery solutions for mobile and stationary applications, are in charge of the in-vehicle energy storage side of things.

As a result of this collaboration, mining operators, Shell says, are set to benefit from an integrated electrification solution that:

  • Is end-to-end, covering the full journey of the electron from generation to delivery in the drivetrain;
  • Is interoperable between different original equipment manufacturer make and models, giving mining operators greater flexibility;
  • Is modular in design to allow mining customers the opportunity to tailor solutions to their specific needs; and
  • Reduces emissions without compromising on operational efficiency or safety.

Sebastian Pohlmann, Skeleton Technologies’ Vice President Automotive & Business Development, revealed more details about the plans for the in-vehicle energy storage part of the equation, confirming that the fast energy storage solution set to be fitted on these 220-t payload haul trucks would leverage its SuperBattery.

The SuperBattery, Pohlmann said, offers a 100 times faster charging option compared with standard lithium-ion batteries, while also being free of cobalt, nickel, graphite and copper materials. He also mentioned that a SuperBattery-equipped haul truck could, in the right situation, offer higher utilisation than its diesel-powered equivalent.

The SuperBattery is due to start production in 2024, with Pohlmann saying the battery lined up for a prototype system as part of the Shell Consortium would weigh in at just over 12 tonnes. He also highlighted the potential for other applications in mining outside of 220 t haul trucks with this platform.

The ultra-fast charging solution that the consortium partners were working on assumed a peak power delivery of 24 MW, Pohlmann said, explaining that the charge points would be positioned around areas where haul trucks normally come to a stop – during dumping or loading, for instance – meaning charging would not interrupt the haul cycle and ensure high utilisation of the truck at all times.

With such a high power draw envisaged by the partners, Grischa Sauerberg, Vice President, Sectoral Decarbonisation & Innovation at Shell, explained that a stationary power element – renewable energy and battery storage – may also be provided if the grid power available cannot support such a peak draw.

The commercial offering from the partners is expected in 2025, however Sauerberg confirmed a pilot solution was set to be tested at a Shell facility in Hamburg, Germany, next year, followed by final field trials at selected mine sites in 2024.

Shell on the future of fuel switching

Mark Hannan, General Manager for Mining Decarbonisation at Shell, explores how mining operators can switch their fleets from diesel to low-carbon fuels as part of a wider transition to zero-carbon fuels.

The mining industry is in need of decarbonisation but delivering change at pace is a real challenge. There is huge pressure to achieve this when, it is estimated, 10% of the world’s energy-related greenhouse gas (GHG) emissions come from primary minerals and metals production, according to Nature Geoscience Magazine (2020).

For a mining company to achieve their decarbonisation goals, it is beneficial to maximise the benefits in the short term while providing greater flexibility for the long term. One such area that offers opportunities for this is fuel switching in mining fleets.

Decarbonisation drives the need for alternative fuels

No matter what stage a mining business has reached on its pathway to decarbonisation, it is important to review how its mobile assets impact the environment. McKinsey shows that between 40-50% of CO2 emissions in mining come from the diesel used for mobile assets.

Due to concerns around diesel fumes in confined spaces, the problem is largely being solved in underground sites – with some due to run entirely on battery-electric assets in the near term. In open-pit mines, where equipment is larger, emissions from diesel fuel are a challenge still to overcome, which is why fuel switching is essential to decarbonisation.

However, there are still many elements to consider when making the business case for alternative fuels. This includes the performance of alternative fuels in comparison with diesel, the capital investment needed to implement them and how widely available they are. That is before analysing the benefits of meeting emissions targets against the higher cost of using low-carbon fuels.

A net-zero future is coming, but it is not here yet

In the longer term, there are two diesel alternatives that will offer key routes to effective fuel switching: hydrogen and electricity.

Hydrogen is set to play a significant role in the decarbonisation of every industry – not least those featuring hard-to-abate sectors like mining. As well as reducing emissions in overall energy use across sites, hydrogen will provide a low-carbon alternative to diesel that also delivers higher energy density to drive the performance of mobile assets.

Government support for hydrogen power is growing rapidly and it is an area in which Shell is working closely with customers and original equipment manufacturers (OEMs) to drive innovation and deliver supply at scale. However, with hydrogen supply dependent on elements such as the availability and cost of technology, land, water, storage and transport, it is an alternative that will only start to present real impact from 2030 and beyond.

For off-highway equipment in mining, fleet electrification is often seen as a more relevant near-term solution. This is not surprising as electric power can not only contribute to reduced emissions but also help businesses shift away from their exposure to volatile diesel prices – potentially leading to a positive impact on total cost of ownership (TCO).

To help deliver on the mining industry’s longer-term aspirations for fleet electrification, Shell is developing a suite of modular end-to-end solutions for mining heavy-duty vehicles that decarbonises haul trucks while minimising the operational impact of electrification in a scalable, interoperable and sustainable way.

When looking to make the switch to electrification, mining companies must address the significant escalation in power demand that would come with full-scale electrification. Also, they will want to know the electricity is generated from renewable sources – helping them to reduce their Scope 1 and 2 emissions. Electrification powered by renewable energy will be a significant driver of change for mining sites, which is why Shell is working to overcome the barriers to increasing its renewable capacity – such as the need for upgrades to the grid and storage capabilities.

Low-carbon fuels offer an immediate next step for mining businesses

Hydrogen and electrification represent the future of fuel for mobility in mining. But, in the short term, there is another alternative that can act as a transition fuel and help lower emissions while businesses wait for hydrogen and electricity to become viable at scale: low-carbon fuels.

There are two types of low-carbon fuels relevant to mobility in mining:

  • Biodiesel – also known as Fatty Acid Methyl Ester (FAME); and
  • Renewable diesel – also known as Hydrotreated Vegetable Oil (HVO)

Though both are derived from organic biomass like waste vegetable oils and animal fats, there are differences in their chemical composition owing to a different manufacturing process that impact their use. For instance, biodiesel is the more affordable choice, yet most OEMs place a limit on the percentage it is possible to blend with conventional diesel due to quality concerns such as storage stability and performance in cold temperatures. Renewable diesel more closely resembles the composition of conventional diesel, meaning it can be blended in any ratio up to a concentration of 100%, but is more expensive due to the complexity in refinery processing. Crucially, both fuels offer a route to emissions reduction in mining – and a combination of the two is likely to be needed.

These low-carbon fuels offer a more immediate solution to the challenges of fleet decarbonisation in mining, without making costly investments in infrastructure. Not only can they be used in existing heavy-duty diesel engines, but, as long as they are in accordance with manufacturer advice, they also require no infrastructure investment. This makes them a more affordable short-term option that enables businesses to reduce emissions today while working to implement the ecosystem needed to transition to hydrogen and electricity tomorrow.

Overcoming the challenges of availability at scale

The merits of low-carbon fuels for a sites’ mobility needs might already be clear. After all, the technology is mature and it is easy to implement – certainly compared with hydrogen and electricity. However, there are still barriers to overcome before we see widespread adoption in the mining industry.

Availability and affordability are the two critical challenges. Despite its maturity, supply of low-carbon fuels is tight – especially given the remote regions that mining operations usually take place in. The need to comply with regional regulations on renewable fuels is also driving rising demand. For example, the EU Commission’s renewable energy directive has proposed increasing its target for renewable energy sources consumption by 2030 to 45% (up from its current goal of 32%).

Also, mining is not the only sector looking to alternative fuels to drive decarbonisation, meaning businesses will need to compete and trade with areas like commercial road transport to source low-carbon options. With more users needing access to alternative fuels, premiums for low-carbon fuels remain high. This can make low-carbon fuels less affordable and risks undermining any TCO improvements businesses can expect to realise from fuel switching.

It means that businesses are hesitant to act today as they wait for more capacity and greater competition to arrive – even though mining cannot afford to delay its emissions reduction efforts. That is why, at Shell, we are working to deliver additional capacity and competition. As well as investing in new production facilities (including a new biofuels facility in the Shell Energy and Chemicals Park Rotterdam, which will produce sustainable aviation fuel and renewable diesel made from waste in The Netherlands once it comes onstream), we are using our existing relationships with OEMs to help mining businesses get the most out of the low-carbon fuels they do have access to.

Collaboration will be critical to fuel switching success

Ultimately, if mining businesses are to meet their regulatory responsibilities while driving performance, they will need to unlock the opportunity that fuel switching provides. From low-carbon fuels to electrification to hydrogen, there is huge potential to reduce emissions while improving the TCO of mining mobility.

Successful fuel switching will require close collaboration with partners and suppliers to create a new fuel ecosystem by improving the availability and affordability of alternatives to conventional diesel. Only by working together will we deliver a new fuel future for mining, which is why Shell Mining is committed to supporting the industry on every step of its decarbonisation journey.

Photo credit: Getty Images

Shell to supply BHP’s LNG-fuelled Newcastlemax bulk carriers

BHP says it has awarded its first LNG supply agreement for five LNG-fuelled Newcastlemax bulk carriers, which will transport iron ore between Western Australia and China from 2022.

Shell has been awarded the contract to fuel the vessels, which BHP will charter from Eastern Pacific Shipping for a five-year term as part of a previously announced arrangement confirmed in September.

BHP Chief Commercial Officer, Vandita Pant, said: “The LNG bunkering contract marks a significant step in how BHP is working with our suppliers to reduce emissions across the maritime supply chain.

“LNG fuelled vessels are forecast to help BHP reduce CO2-e emissions by 30% on a per voyage basis compared to a conventional fuelled voyage between Western Australia and China, and contribute to our 2030 goal to support 40% emissions intensity reduction of BHP-chartered shipping of our products.”

Steve Hill, Executive Vice President, Shell Energy, said: “I would like to congratulate BHP on reducing emissions in their maritime supply chain with the world’s first LNG-fuelled Newcastlemax bulk carriers. Decarbonisation of the shipping industry must begin today and LNG is the cleanest fuel currently available in meaningful volumes.

“This LNG bunkering contract strengthens the bunkering market in the region and we look forward to working with BHP and other customers in the maritime sector on their journey to a net-zero emissions future.”

The contract is the result of a tender process that included potential suppliers across several geographies. Technical capability, available infrastructure and cost competitiveness were among the stringent criteria.

LNG bunkering – the process of fuelling ships with LNG – will take place through the first LNG bunker vessel in Singapore, ‘FueLNG Bellina’. The vessel is operated by FueLNG, a joint venture between Shell Eastern Petroleum and Keppel Offshore & Marine. The bunker vessel will be able to bunker fuel at a rate of 100-1,000 cu.m/h.

“The LNG bunkering contract will enable BHP to manage fuel supply risk, build LNG operational capability internally, and also help to strengthen the emerging LNG bunkering market in the region,” Pant said. “This contract is expected to form up to 10% of forecasted Asian LNG bunker demand in FY2023 (financial year 2023).”

Victoria brown coal to hydrogen pilot project takes off

Construction has started on a A$500 million ($353 million) pilot project looking at the feasibility of turning brown coal from the Latrobe Valley, in Victoria, Australia, into hydrogen for liquefaction and export to Japan.

Works have begun on liquefaction facilities linked to the Hydrogen Energy Supply Chain (HESC) project at Port Hastings, Victoria, which the government says has the potential to create A$2 billion in exports for Australia.

On the other side of Australia, Fortescue Metals recently partnered with CSIRO on hydrogen technologies to support the development of new industries, create jobs and pave the way for low emissions export opportunities for the country.

Hydrogen production operations for the pilot phase of HSEC have been established at the AGL Loy Yang mine, with operations leveraging existing coal gasification technologies adapted specifically for Victorian brown coal. Hydrogen will then be transported to a liquefaction and loading terminal at the Port of Hastings Victoria, Australia.

“Once converted to liquid, hydrogen will be shipped to Japan using a world-first, innovative liquefied hydrogen carrier, purpose built for hydrogen transport,” the HESC said.

Australia’s Minister for Resources and Northern Australia, Matt Canavan, said today’s sod turn symbolised new job and investment opportunities for the region, as well as the nation.

“Australia is well placed to become a global leader in hydrogen production and this pilot project is a crucial step towards making this vision a reality. The Australian and Victorian Governments have committed A$50 million each to the A$500 million project, which is also supported by the Japanese Government and Japanese industry,” he said.

“This project promises to be of huge benefit to both nations and particularly the state of Victoria, which has the opportunity to develop an alternative and value-adding use of its abundant brown coal reserves in the Latrobe Valley.

“The use of hydrogen is part of Japan’s vision of a clean energy future and any emissions from the pilot project will be fully offset, with commercial scale operations required to use carbon capture and storage to ensure a low emission source of hydrogen.”

Minister for Trade, Tourism and Investment, Simon Birmingham, said the project was the first of its kind in Australia and was built on the strong and long-standing trade partnership between Australia and Japan.

“This pilot project is the first step in creating a commercial scale hydrogen supply chain which could lead to billions of dollars in export earnings for Australia and help Japan meet its strategic energy targets for 2030 and beyond,” he said.

“As global demand for hydrogen continues to grow, strategic investments such as this one have the potential to turn Australia into a major global exporter of hydrogen, particularly to countries such as Japan and South Korea.

“Australia has long been a reliable supplier of energy needs and there is no doubt that we are uniquely placed to continue to meet those global needs by becoming a leader in hydrogen energy. Future commercial scale operations in the Latrobe Valley and around the country will help transform Australia into a hydrogen powerhouse, delivering significant economic benefits and thousands of extra jobs for Australians.”

For funding purposes, the pilot phase is split into different delivery portions – a Japanese funded portion and an Australia funded portion.

The Australia funded portion is coordinated by Hydrogen Engineering Australia (HEA), a consortium comprised of project partners including Kawasaki Heavy Industries (KHI), J-POWER, Iwatani Corporation, Marubeni Corporation and AGL. This portion involves refining the hydrogen gas in the Latrobe Valley, transporting it to the Port of Hastings, converting it to liquid and then loading it onto the marine carrier.

The Japan funded portion of the HESC pilot phase is coordinated by the CO2-Free Hydrogen Supply Chain Technology Association (HySTRA), acting on behalf of KHI, J-POWER, Iwatani Corporation and Shell. The Japanese funded portion includes converting brown coal to gas in the Latrobe Valley, transporting liquid hydrogen by sea and then unloading it in Japan.

The HSEC project will be developed in two phases:

  • The pilot phase will demonstrate a fully integrated supply chain between Australia and Japan over one year by 2021;
  • The decision to proceed to a commercial phase will be made in the 2020s with operations targeted in the 2030s, depending on the successful completion of the pilot phase, regulatory approvals, social licence to operate and hydrogen demand.