2022 06 16 hcss

European tank storage in transition: Multi-stakeholder alignment and cooperation Irina Patrahau 16 June 2022 -- 1 of 14 -- HCSS | FETSA Conference 2 Timeline -- 2 of 14 -- HCSS | 3 Integral part of domestic and global supply chains FETSA Conference -- 3 of 14 -- HCSS | 4 Independent storage sector in Europe FETSA Conference 1. Logistics 2. Supporting regional industry 3. International trade 4. Strategic storage -- 4 of 14 -- HCSS | 5 1. Logistics FETSA Conference • Homes, offices and cars • Ports, airports, defense sector • Part of the energy, manufacturing, transport, food supply chains -- 5 of 14 -- HCSS | 6 2. Supporting regional industry FETSA Conference • Efficient and integrated clusters of import terminals, storage facilities, oil refineries and (petro)chemical factories • Thousands of manufacturing companies depend on oil products and natural gas for their industrial processes -- 6 of 14 -- HCSS | 7 3. Trade FETSA Conference • Tank storage contributes to commodity trading • By holding inventories of liquid products, tank storage acts like a buffer in the physical market • ARA region trade hub for crude oil, refined products and chemicals • Geographical location • Well-developed infrastructure • Low transport and handling costs • The energy transition shifting trade centres away from Europe? -- 7 of 14 -- HCSS | 8 4. Strategic storage FETSA Conference • Independent storage companies hold strategic stocks acc. to IEA agreement and EU directive • So far, only oil was held as strategic stocks • Since war in Ukraine, natural gas too • Later: different hydrogen carriers? -- 8 of 14 -- HCSS | FETSA Conference 9 Outlook to 2030 -- 9 of 14 -- HCSS | • New energy sources • New players • New dependencies 10 Outlook to 2050 FETSA Conference -- 10 of 14 -- HCSS | 11 Energy carriers and infrastructure requirements Compressed hydrogen: lowest energy density, large spatial requirements for storage Liquid hydrogen: most mature for transport on large distances today Methanol: E-methanol (made from hydrogen with CO2) not yet mature (Green) Ammonia: High energy density compared to other carriers but highly toxic. LOHC: Expected to become a cheap form for transporting hydrogen >1500km. Synthetic fuels will most likely play a role in the fuel supply for the transport sector. FETSA Conference Can make use of retrofitted natural gas infrastructure. Cannot use LNG infrastructure. Methanol infrastructure exists. Ammonia infrastructure exists. Can use diesel and gasoline infrastructure. Sustainable aviation fuels can use existing kerosene infrastructure with modifications. -- 11 of 14 -- HCSS | 12 Energy carriers and technologies Battery storage: lithium-ion, lithium-iron-phosphate, flow batteries, saltwater batteries Carbon capture, utilization and storage can enable the production of low-carbon hydrogen and can help decarbonize the industrial sector Recycling: The global consumption of plastics makes it likely that in the long- term recycling will become indispensable. FETSA Conference -- 12 of 14 -- HCSS | • Today, tank storage is an important component of energy supply chains • The energy transition requires a balancing act of the old and new systems • Many pathways to 2050 and beyond • New players, new trade hubs, new products, new dependencies? • New products in strategic storage • Expanding services further than storage • Broadening expertise into new liquid and non-liquid carriers and products • The energy transition requires multi-stakeholder cooperation along supply chains and with legislators 13 Conclusion FETSA Conference -- 13 of 14 -- -- 14 of 14 --