ASX Renewable Energy Stocks: WoodMac sees US$1 trillion flowing into offshore wind industry over next decade
Offshore wind is poised to become one of the key technologies powering the decarbonisation of the global economy and WoodMac estimates a whopping US$1 trillion will flow into the industry over the next decade.
As public policy support and investor confidence continues to build for offshore wind as an alternative source of carbon-free generation in land constrained areas, WoodMac says the number of countries with large-scale wind farms will continue to increase from 9 today up to 24 by 2030.
“Total capacity is likely to reach 330GW, up from 34GW in 2020 and by 2030, as much money will be invested in offshore wind as in onshore wind,” the research consultancy firm said.
“There is further upside potential to our outlook, too, such as Europe’s accelerated push to capitalise on offshore wind and other renewable technologies to reduce its dependence on Russian gas and coal.
“Similarly, competitively priced offshore wind is likely to play an important role in powering electrolysers to produce hydrogen, so some of its growth will be tied to the scaling up of the green hydrogen industry.”
The project pipeline grew 66% last year and it is now nearly three times WoodMac’s forecast offshore wind capacity for 2030.
IRD has engaged WSP Australia to begin a market process to gauge commercial interest in the development of Cape Hardy as a Green Hydrogen and Industrial precinct.
Technical support and extensive market reach of WSP Australia will be employed to target a shortlist of domestic and international green hydrogen proponents and associated entities.
The 1200Ha gulf front greenfield site at Cape Hardy is wholly Iron Road-owned and both WSP Australia and the South Australian Government have recognised Cape Hardy as a credible, future green hydrogen production hub.
Iron Road has primary development approval for the port site as a high-grade iron concentrate and multi-commodity export facility.
The Central Eyre Iron Project (CEIP), including the proposed logistics chain, may ultimately provide off-take for hydrogen and derivative products
A formal Expression of Interest process for the green hydrogen opportunity will follow in H2 2022.
FHE has selected Alkaline Water Electrolysis as its preferred technology to produce green hydrogen at the company’s Bristol Springs Solar Project (the BSS Project).
Th company said this technology was selected due to its lower cost and technical robustness compared to other currently available technologies.
A Memorandum of Understanding (MOU) with global hydrogen experts, Nel Hydrogen (Nel) and ENGV was also signed to support its hydrogen production strategy and assist with the development of the green hydrogen production plant and market distribution.
FHE remains on track to release both the Renewable Expansion and the complete Green Hydrogen Study by mid-2022