OMNI Features｜China Approves $2.9 Billion "Green Hydrogen" Investment Project．WindEurope: Offshore Wind FIDs Reached EUR 30 Billion in 2023．BOEM Initiate Environmental Review of Proposed 157-Turbine Offshore Wind Project in New Jersey

｜China Approves $2.9 Billion "Green Hydrogen" Investment Project－Inner Mongolia Poised to Become Largest Hydrogen Energy Production Area
Infrastructure development for green hydrogen is proceeding rapidly in China. Authorities in the Inner Mongolian city of Ulanqab, known for its expansive grasslands, approved a RMB 20.5 billion (USD 2.9 billion) green hydrogen investment project from oil major China Petroleum and Chemical (SINOPEC/ China Petroleum) this January.

Planned Chinese production of green hydrogen appears to be concentrated in inland regions, based on targets announced by local governments. Inner Mongolia is seen becoming the top producer, with a planned annual output of 500,000 tons. PetroChina and partners agreed in late 2022 to start building a hydrogen pipeline between Wuhai and Hohhot in Inner Mongolia. Sinopec in April 2023 began planning a 400-kilometer pipeline connecting Inner Mongolia and Beijing that will eventually be able to transport 600,000 tons of hydrogen a year.

Green hydrogen is positioned as a next-generation alternative energy source for decarbonization. Until now, hydrogen has typically been produced by burning fossil fuels, resulting in the emission of carbon dioxide. Electricity generated onsite using solar and wind power will be used to electrolyze water and produce an annual 100,000 tons of green hydrogen. The central government plans to increase production of green hydrogen to between 100,000–200,000 tons per year by 2025 and aims to be fully operational in June 2027.

According to the International Energy Agency (IEA), to achieve net zero CO2 emissions by 2050, the ratio of green hydrogen among all environmentally friendly forms of hydrogen energy must rise to 77.8%. The IEA has estimated that China had 1.2 GW in installed capacity at the end of 2023—already half of the global total. Growth has been rapid, with the share rising from less than 10% in 2020 and 30% in 2022.

｜WindEurope: Offshore Wind FIDs Reached EUR 30 Billion in 2023
Last year was a record year for offshore wind projects reaching a final investment decision (FID), with nearly 9 GW of capacity hitting this milestone in 2023, according to WindEurope’s annual report, issued on 28 February. The European wind energy industry organisation also released a new report, which anticipates the European wind energy sector, including both onshore and offshore industries, to employ more than 500,000 people.

The investments from FIDs in new offshore wind reached a record EUR 30 billion, a major rebound from 2022 when there were hardly any, WindEurope states in its “Wind energy in Europe: 2023 Statistics and the outlook for 2024-2030” report.

New wind energy installations in Europe totalled 18.3 GW in 2023 (the EU installed 16.2 GW), with offshore wind accounting for 21 per cent of this with 3.8 GW of wind farm capacity connected to the grid. Nearly half of the newly connected capacity was in the Netherlands (1.9 GW) with the remainder coming from the UK (833 MW), France (360 MW), Denmark (344 MW), Germany (329 MW) and Norway (35 MW).

In the outlook for new wind installations from 2024 to 2030, WindEurope says that the EU will install 29 GW a year on average over this period and bring the EU’s installed wind capacity to 393 GW in 2030. This figure based on the project pipeline, announced investments, permitting data and government auction volumes – is lower than the EU target of 425 GW, for which 33 GW need to be installed annually.

Over the 2024-2030 period, two-thirds of new installations will continue to be onshore but offshore wind will rapidly pick up towards the end of the decade, with new offshore installations expected to be almost the same as new onshore installations in 2030, according to WindEurope.

｜BOEM Initiate Environmental Review of Proposed 157-Turbine Offshore Wind Project in New Jersey

The US Bureau of Ocean Energy Management has revealed that it will initiate the environmental review of a proposed wind project offshore New Jersey, the US, known as Atlantic Shores North, that would feature up to 157 wind turbines. This is the 12th offshore wind energy Construction and Operations Plan (COP) environmental review initiated under the Bidden-Harris administration, BOEM said.

BOEM published a Notice of Intent (NOI) to prepare an Environmental Impact Statement (EIS) for the Construction and Operations Plan (COP) submitted by Atlantic Shores Offshore Wind, a 50:50 partnership between Shell New Energies and EDF Renewables.

At its closest point, the approximately 81,129-acre lease area, OCS-A 0549, known as Atlantic Shores North, is located 8.4 miles from the New Jersey coast and approximately 60 miles from New York. The proposal currently includes the installation of up to 157 wind turbines, 8 offshore substations, 1 permanent meteorological tower, and 2 temporary metocean buoys – for a total of up to 168 offshore structures.

Reference: KrAsia｜offshorewind.biz