The story of the Three Musketeers, originally told by Alexandre Dumas, has become part of our folklore. The Three Musketeers, has been translated in numerous languages and been the basis of a variety of Hollywood films.
The essence of the Three Musketeers, is that on an individual basis they may be strong and capable of many things, but collectively the Three Musketeers can move mountains.
Translated to our Energy Transition the Three Musketeers can be identified as:
1st Musketeers: Big Oil/Big Energy
2nd Musketeer: Storage Operator
3rd Musketeer: Renewable Energy
In our story each of these musketeers does not yet know the role he will play in the Energy Transition.
We welcome you to become a ‘Musketeer- in Learning’ and welcome your participation in the Global Energy Village 2018, scheduled for Barcelona 17, 18 & 19 April 2018.
Welcome to GEV 18!
Gerard Kreeft, Managing Director
1st Musketeer: BO= Big Oil/ Big Energy
2nd Musketeer SO= Storage Operator
3rd Musketeer RE= Renewable Energy
In our story each of the above mentioned musketeers does not yet know that they will play a key role in the struggle which is happening…
The struggle is called the Energy Transition.
Each of these 3 musketeers are currently fighting their own private battles:
Our story will show how on their own each musketeer will continue to fight his own private battles if he continues the road they are now following.
Alternatively, if they unite in a common cause they could make a difference and possibly cause an ‘Energy Tsunami’.
Let’s take the case of the North Sea…
The oil and gas industry can unleach a tsunami in Europe’s offshore wind energy. if offshore wind capacity was expanded to 100GW, 4x more than what WindEurope (Europe’s wind trade association) is predicting for 2020 (25GW). Such a plan could provide a key stimulus in making the North Sea countries, fossil free by 2050.
Why is it not possible to put together a North Sea Consortium, from the oil and gas sector, a sector which has deep pockets and extensive project management experience? Such a consortium could bring together the broad technical and strategic expertise of the sector.
It is important that both Statoil ( Hywind Offshore Windpark) and Shell ( Borssele’s 2 Offshore Windpark) see these projects as important milestones in the energy transition. Their new energy policies will only gain legitimacy if renewable energy becomes part of the energy reserve mix. An expansion to 100GW is equivalent to approximately 500.000 boe per day. A significant contribution to any company’s bottom line.
Today BO= Big Oil can only count fossil-based fuels as part of their reserve count…in the trade known as Reserve Replacement Ratio. Today’s wind energy projects are not counted as part of the energy reserves of big oil…in other words a complete waste of shareholder capital.
Making energy reserves more diverse-including wind and solar- will only increase the reserve count and the shareholder value…and even help prop up the value of the oil and gas assets.
Let’s now examine the case of the Storage Operators:
Is the Storage Business in crisis or is it a case of the glass being half full/half empty? True the summer/winter spreads are at an all time low and there is no evidence to suggest that this is likely to change in the medium-term.
Yet the real strategic opportunity of the storage business is not waiting for the gas price to rise, but making Power-2-Gas an integrated part of the business. Conversion of H2 (via electrolysis) has been tried and tested and found viable to be blended in the gas storages of Europe.
True there are still technical issue, in particular, the extent of how much hydrogen can be introduced in the gas grid. Yet the Sun Project (RAG) has demonstrated that it is technically feasible to store hydrogen in existing gas storages: up to 10% within the current energy norms. The challenge for the industry to stretch this so that 100% green energy can be produced.
But the time has come to take some giant steps. Power-2-Gas has for too long become a fashionable point of discussion at technical conferences. Power-2-Gas must become part of an energy strategy. Wind and Solar energy provide the energy sources and Europe’s gas storages provide the storage capacity!
The key question is whether storage operators have the vision to develop and implement such a strategy. Or will they continue to reduce storage capacity or shut down more storages? True the headwinds of consolidation are upon the sector, but does the sector recognize this? Or will the storage business become part of a larger energy consolidation within the energy transition?
RE: Capital and Project Management are required…something that the oil and gas sector has….for example:
Large investments and buy-ins would have to be done. A large share of renewable energy could help add value, for example, to Shell’s oil and gas reserves; thus reducing the chance that these reserves be viewed as ‘stranded assets’.
Project management teams from Shell and other companies, such as Dong, should work together to ensure that renewals can be completed on time and under budget.
Total energy reserves be converted to energy units or converted to ‘Barrels of Oil Equivalent’ in order to arrive at a basket of energy equivalents.. Enabling projects such as Borssele 2 to be part of the energy mix. Activating their value on the company balance sheet.
Finally will the oil and gas sector, storage operators and renewable sector continue to fight their own private wars or will they combine their strengths and become the 3 musketeers of the Energy Transition.
Interested persons are invited to submit presentation proposals relevant to the subject areas listed below:
We offer various sponsor possibilities;
Will a Global Energy Village Knowledge Centre parallel to the Summit. Booth space will be sold in units of 6m2. Costing is € 5000 per booth which includes:
To participate as a delegate the registration fee is € 1950 per participant for the tour on the 17th and the 2 day summit on 18 & 19 April (which includes the reception/lunches/ documentation and attendance).
To register online please click on the 'online registration' button.
Would you like to be part of the Global Energy Village Community, a platform which brings together Europe’s Storage and Renewable Experts, either on a virtual platform or participating at our Annual Summit? Please contact us to discuss the possibilities.