rethink sustainability

    From hot sand to liquid air – 5 early stages energy storage solutions that could help underpin the electric economy

    From hot sand to liquid air – 5 early stages energy storage solutions that could help underpin the electric economy

    After centuries of dominance, fossil fuels are set to lose their spot at the top of the energy podium.

    According to Jeremy Oppenheim, Partner at systems change company Systemiq, “We are hitting peak oil. Over the next 20 to 30 years there will be a rewiring of the economy on the basis of clean electrons and electrification. This will change everything.”

    This rewiring is already well underway. In the decade between 2010 and 2020, solar and wind together went from producing 1.7% of the world’s electricity to 9.3%1, a rise that far outstripped industry expectations. With renewable power now outcompeting fossil fuels on price, this rapid growth looks set to continue.

    Missing from these impressive figures, though, is the vital question of how to store all this energy over long periods of time. Unlike fossil fuels, renewable generation cannot simply be turned on and off at will – for renewables to successfully kick fossil fuels into touch, we must have a way to store the excess energy generated on blustery and sunny days, ready for days when the wind is resting or the sun reluctant to shine.

    For energy storage to match the growth of renewable production, rapid scale-up of new long-duration storage methods is needed

    Read also: Energy – crisis or opportunity?

     

    Rapid scale-up needed

    Since 2010, as electric vehicles (EVs) have gone from niche to mainstream, the cost of lithium-ion batteries has fallen 90%2. This sharp drop is now enabling the mass adoption of batteries in the power grid3. But while lithium-ion batteries are widely accepted as the best solution for short-duration storage (under 4 hours of continuous discharge) there remains heated debate about the best way to store electricity at low cost over days, weeks and even months, with long-term storage having an essential role to play in minimising the system-level costs of the switch to renewable energy, ensuring the profitability of renewables projects4.

    By far the most widely-used long-duration energy storage solution today is pumped-storage hydroelectricity (PHES), which accounts for 99% of large-scale storage. In PHES, excess energy is used to pump water to a reservoir at elevation and then, when power is needed, the water is released to flow downhill through hydro-electric turbines. PHES has constraints however – it is difficult to install in an urban context, lacks economic efficiency at small scale5, and in flat landscapes it simply won’t work.

    For energy storage to match the growth of renewable production, rapid scale-up of new long-duration storage methods is needed. Here, we take a look at five early-stage technologies that could one day help to underpin a new economy powered by near-limitless zero-carbon renewable energy.

    Green hydrogen, with its high energy-density and zero emissions, is now offering a carbon-free alternative

    1. Green hydrogen

    Green hydrogen – hydrogen produced via the renewable-powered electrolysis of water – is already set to play an essential role in decarbonising heavy industries. Until recently, burning fossil fuels had been the only way to reach the high temperatures needed for many manufacturing processes. Green hydrogen, with its high energy-density and zero emissions, is now offering a carbon-free alternative.

    Hydrogen could also, it is hoped, provide long-term energy storage for use outside of heavy industries. Hydrogen has a significantly better energy to weight ratio than chemical batteries and can be transported from high-renewable capacity areas to places where renewable infrastructure is either not viable or not yet fully developed. There, the renewably-produced hydrogen can be used to power turbines or converted directly to electricity via hydrogen fuel cells.

    In January of this year, Norwegian state-owned Equinor announced plans to build a hydrogen pipeline from Norway to Germany. While the pipeline will begin operation transporting so-called ‘blue’ hydrogen – hydrogen produced using natural gas combined with carbon capture technology – the firm will later switch to ‘green’ hydrogen produced using renewables.

    Green hydrogen brings with it the benefit of being able to store energy for near-indefinite periods. It is, however, the least efficient of all viable storage solutions, with a round-trip efficiency of just 30% of ‘energy-in’ being recoverable as ‘energy-out’6.

    Finnish start-up Polar Night Energy’s novel technology uses excess renewable energy to heat sand to upwards of 500 degrees Celsius

    Read also: Green hydrogen – the key to decarbonising heavy industry

     

    2. (Very) hot sand

    At first glance, the municipal swimming pool in Kankaanpää, Finland, looks like any other public pool. It is, however, unique – the only one in the world to take its heating from a new commercial energy storage solution: hot sand.

    Finnish start-up Polar Night Energy’s novel technology uses excess renewable energy to heat sand – any sand will do, “someone else’s dirt could be our heat storage medium,” the company says – to upwards of 500 degrees Celsius. Held in large, thermally insulated silos, the sand can retain heat for several months. When power is needed, air is passed through pipes that run through the silos – the air can then be used to heat water for district heating systems, or to produce steam to run turbines.

    One major advantage of the system is its flexibility, with silos sized to fit the users’ needs, and capable of being built in most locations, above or below ground. The company founders estimate that a silo 40 metres in diameter and 25 metres high would be sufficient to store and balance the renewable supply for a population of 35,000 people.

    Polar Night is now in talks for larger installations across Finland, and hopes to expand internationally in 2024. As they do, the technology may come under scrutiny due to its reliance on sand, the world’s most mined material. To feed the construction and digital communications industries as much as 50 billion tonnes of sand and gravel are extracted from deserts, riverbeds and beaches each year, often in lower and middle-income nations. In places this trade is unsustainable, damaging ecologies and local livelihoods. To avoid contributing to this trade, Polar Night say they prefer to use sand that is not suitable for construction.

    GraviStore uses renewable energy to winch weights…to the top of disused mine shafts or purpose-built towers – the weights are later allowed to fall, driving turbines as they go

    3. Gravity power

    Scotland-based Gravitricity aims to harness the power of gravity with their proprietary GraviStore technology. GraviStore uses renewable energy to winch weights of up to 12,000 tonnes, equivalent to 60 Boeing 747 jets, to the top of disused mine shafts or purpose-built towers – the weights are later allowed to fall, driving turbines as they go. The firm promises a long life-cycle of up to 50 years, with no degradation across time, and long-term storage at a cost well below that of centralised lithium-ion batteries.

    Following a successful pilot project in Edinburgh, Gravitricity has now signed a memorandum of understanding with Czech state enterprise DIAMO for re-purposing the disused Darkov coal mine into the first non-hydro-electric large-scale gravity battery in Europe. Once up and running, the Darkov mine will store enough energy to support 16,000 homes.

    The firm has grander plans, however. Around the world they have identified 14,000 disused mine shafts that could be swiftly turned over to gravity-based energy storage, many of them supporting renewable power rollout in emerging markets and developing economies. They are also working on a first ever “multi-weight” system that could lead to storage capacity at least twelve times greater than that at the Darkov project.

    When energy is needed, the liquid air is allowed to return to ambient temperature. As it reaches its gaseous state, the resulting high pressure drives turbines, generating electricity…

    4. Liquid air

    In late 2022, following success at their demonstration plant near Manchester, England, UK-based Highview Power announced plans to build the world’s first commercial-scale liquid air energy storage (LAES) plant7. Due to be completed by the end of 2024, the new site will store sufficient energy to power 600,000 homes for one hour.

    LAES works by using renewables – in the Highview demonstration plant energy is harvested from nearby wind turbines at night, when domestic demand is low – to refrigerate air to -196 degrees Celsius, when it becomes liquid. When energy is needed, the liquid air is allowed to return to ambient temperature. As it reaches its gaseous state, the resulting high pressure drives turbines, generating electricity without burning fuel and with no toxic emissions.

    LAES is hampered by its relatively low efficiency, with an ‘energy-out’ of just 50% of that needed to liquefy the air. But with no geographical constraints, easy scalability, high energy density, long-duration capability, and use of off-the-shelf components, it is increasingly being considered a serious solution for the world’s storage needs.

    As adoption of electric vehicles and home solar panels picks up, small domestic batteries could become nationwide, distributed battery packs, reducing the pressure on centralised storage

    5. A nationwide battery pack

    As adoption of electric vehicles and home solar panels picks up, small domestic batteries could become nationwide, distributed battery packs, reducing the pressure on centralised storage. According to new research, EV batteries alone could satisfy short-term grid storage demand by as early as 20308.

    In the latest generation of Vehicle to Grid (V2G) batteries, EVs are charged automatically using smart-grid software to ensure charging takes place at the cheapest off-peak times. The system then sells electricity back to the grid at moments of peak demand, providing revenue for the EV-owner and boosting grid resilience. Analysis by the University of Warwick even found that using EV batteries in this way can increase their useful lifespan9.

    A recent pilot V2G scheme by the UK’s energy regulator found that participants earned as much as GBP 725 per year from selling electricity to the grid merely by leaving their cars plugged in when not in use, and estimated that national adoption of V2G could save the UK Government GBP 3.5 billion per year in power generation and storage costs10.

    The rise of renewable generation is no passing trend. In some places renewables are already replacing fossil fuels

    The electric economy

    The rise of renewable generation is no passing trend. In some places renewables are already replacing fossil fuels – in the UK for instance, in 2020, renewables produced more electricity than fossil fuels for the first time, and in 2022, more than 25% of the nation’s electricity came from wind power alone.

    As the electrification of the economy continues, the need for storage will grow. We estimate that in order to hit the Paris temperature target, 70% of the economy must be electrified by 2050, and that USD 24.5 trillion of capex11 will be spent over just the next seven years in order to accelerate this transition.

    Some of this spend will go on cabling – around 140 million kilometres of new cables will be needed, enough to reach from Earth to Mars. Some will go on achieving a 30-fold increase in battery grid storage, or on electrifying more than 1 billion petrol and diesel-powered vehicles. And some will go on more surprising solutions, such as heating silos of sand, raising vast weights in disused mine shafts, or liquefying air.


     

    Renewable Energy - Our World in Data
    Race to Net Zero: The Pressures of the Battery Boom in Five Charts | BloombergNEF (bnef.com)
    The-Breakthrough-Effect.pdf (Systemiq.earth)
    Energy storage important to creating affordable, reliable, deeply decarbonized electricity systems | MIT News | Massachusetts Institute of Technology
    Is energy storage via pumped hydro systems is possible on a very small scale? -- ScienceDaily
    Energy storage technologies and real life applications – A state of the art review - ScienceDirect
    Highview Power plans to raise £400m to build LAES plant in UK - World Construction Network
    Electric vehicle batteries alone could satisfy short-term grid storage demand by as early as 2030 | Nature Communications
    V2G found to improve the lifetime of electric vehicle batteries - Current News (current-news.co.uk)
    10 Case study (UK): Electric vehicle-to-grid (V2G) charging | Ofgem
    11 Capital Expenditure are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology or equipment. Source: Investopedia 

    Important information

    This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.

    Read more.

     

    let's talk.
    share.
    newsletter.