Rare Earth Minerals

 Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) is pleased to announce that it has signed a binding Letter of Intent ("LOI") with a private US company, Coal Strategy Advisors, LLC, ("CSA") to earn up to a 50% interest in the Will Scarlett Rare Earths Recovery Project ("Will Scarlett") located near Marion, Illinois. Will Scarlett is a closed coal mine site where recent geochemical sampling has found elevated levels of rare earth elements (or "REE") and other metallic elements such as cobalt, nickel, lithium, manganese and zinc in mine waste materials.


The rare earths are found at Will Scarlett in the acid mine drainage ("AMD") and in the precipitates generated from lime treatment of the AMD to neutralize the acidity. Sampling of the precipitates and AMD has revealed high concentrations of total rare earth oxides in excess of 500 ppm. Also notable is that, unlike most hardrock rare earth resources, no significant uranium or thorium has been detected associated with the rare earths at Will Scarlett.


The potential for economic recovery of rare earths from coal mine wastes and fly ash has been receiving a lot of study in the United States. This has accelerated recently with the introduction of new US government initiatives to reduce reliance on China as a source of these critical minerals. These unusual occurrences represent an interesting opportunity to create a new primary rare earths supply relatively quickly and at a low cost compared to typical hardrock resources. CSA has made application for funding being made available by the US government for new rare earth supply chain projects.

Avalon and CSA plan to proceed immediately with analytical and process testwork to confirm concentration levels and the most efficient extraction process to recover the rare earths from the AMD and precipitates. Once this is confirmed, a detailed budget for construction of a demonstration plant can be established which will then determine what the Company's share of costs will be to earn its interest in Will Scarlett. Initial analytical testwork is already in progress. Avalon and CSA will enter a formal joint venture agreement once the full scope of work required to advance the project to initial production is determined. Avalon will also be providing its technical expertise to help manage the exploration and development work at the site in collaboration with CSA.

Commented Avalon President and CEO, Don Bubar, "In our research to date on rare earths in coal mine wastes, Will Scarlett stands out as exceptional in terms of the levels of rare earths present in the AMD. Like our East Kemptville Tin Project in Nova Scotia, Will Scarlett provides Avalon with an opportunity to extract value out of previously-mined waste materials at a relatively low cost, and potentially fully remediate the long term environmental liability associated with acid mine drainage at the site."

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on developing its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS to production, while continuing to advance its Nechalacho Rare Earths asset. Social responsibility and environmental stewardship are corporate cornerstones.

Approvals for new coal mine construction in China have surged in 2019, government documents showed, with Beijing expecting consumption of the commodity to rise in the coming years even as it steps up its fight against smog and greenhouse gas emissions.

Long-term cuts in coal consumption are a key part of China’s energy, environment and climate goals, but the fivefold increase in new mine approvals in the first-half of 2019 suggests China’s targets still provide ample room for shorter-term growth. China’s energy regulator gave the go-ahead to build 141 million tons of new annual coal production capacity from January to June, compared to 25 million tons over the whole of last year, Reuters analysis of approval documents showed.


The projects included new mines in the regions of Inner Mongolia, Xinjiang, Shanxi and Shaanxi that are part of a national strategy to consolidate output at dedicated coal production “bases,” as well as expansions of existing collieries, the National Energy Administration (NEA) documents showed.

The NEA did not immediately respond to a request for comment. Beijing aims to raise the share of non-fossil fuels in its overall energy mix to 15% by the end of next year from around 14.3% currently, and to 20% by 2030. It cut the share of coal to 59% last year, down from 68.5% in 2012.
 
It has also promised to adopt the “highest possible ambition” when it reviews its climate change pledges next year, with one government think tank recommending China imposes a mandatory cap on coal consumption in its 2021-2025 five-year plan. But while smog-prone regions like Hebei and Beijing have already cut coal use and shut hundreds of small mines and power plants, China is still allowing for significant increases in coal production and coal-fired power generation.

That has piled pressure on utilities to use clean combustion technology. Lauri Myllyvirta, senior energy analyst with environmental group Greenpeace, said many of the newly approved projects would likely replace small or depleted old mines.
 
“However, it is alarming that China’s energy planning seems to be driving at roughly maintaining current levels of coal output for the coming decade or two, which is very hard to reconcile with the goal of the Paris agreement (on climate change),” he said. “Especially given that oil and gas consumption is still increasing, it’s imperative that coal use starts falling again after rebounding for the past three years.”

Chinese coal output rose 2.6% in the first-half of 2019 to 1.76 billion tons.
 
MORE TO COME?

Industry groups still expect coal-fired power capacity to increase over the next few years, with investments in nuclear and renewables still insufficient to cover rising energy demand. The research unit of the China State Grid Corporation last month forecast that total coal-fired capacity would peak at 1,230-1,350 gigawatts (GW), which would mean an increase of about 200-300 GW.
 
A study published earlier this year also suggested China’s targets would allow the construction of another 290 GW of coal-fired capacity in the coming years. China is convinced it can continue to raise coal production and consumption while significantly reducing emissions. It has made “ultra-low emissions” technology mandatory in all new coal power plants an is also improving mine zoning regulations to ensure pollution is minimized.

By the end of last year, 80% of total coal-fired power capacity had installed “ultra-low emissions” equipment, amounting to 810 GW, the government said. Michelle Manook, chief executive of the World Coal Association, an industry lobby group, told Reuters that coal remains a crucial element in the world’s transition to cleaner energy, and the focus should be on cutting emissions rather than banning coal entirely.

“It’s not about transitioning away from any one source of energy. it’s about transitioning to cleaner energy. And with investment, coal has a significant role,” she said.

The oil crisis in 1973 gave a new start to coal liquefaction

 The oil crisis in 1973 gave a new start to coal liquefaction, a process of converting coal to liquid fuel. The coal liquefaction industry had earlier lost its competitiveness to oil industry after WWII. In the 90s the efforts to reduce greenhouse gas emissions drastically decreased the interest in coal liquefaction. The reason is that about two units of coal are needed to generate enough heat for converting one unit of coal to one unit of fuel. This means that the produced liquid fuel give rise to about three times higher emission of carbon dioxide than fuel from refined crude oil – writes Mikael Ros.


The emergence of advanced nuclear technologies, such as Molten Salt Reactors (1) and High Temperature Gas Reactor (HTGR), can provide new opportunities for coal liquefaction industry. Poland is participating in the development of HTGR that is scheduled to build the first reactor in the 2030s (2). These types of reactors can produce the required high temperature heat for the liquefaction process. Thus, the required heat will be produced by the nuclear reactor instead of burning of coal.


Furthermore, high temperature heat has many more industrial applications than just coal liquefaction. However, a conventional nuclear plants can only generate heat at about 300 °C which is neither sufficient for liquefaction process nor for many industrial chemical processes. High temperature heat is widely used in refineries, petrochemical and chemical plants. One of the largest applications is in production of ammonia which consumes around 3 to 5 percent of the world’s natural gas. Ammonia is mainly used in the production of fertilizers. In Poland the 13 major chemical plants are using 6500 MW of heat in the temperature range of 400 to 550 °C. (3)

The Institute of Chemical Processing of Coal (Instytut Chemicznej Przeróbki Węgla, ICPW) has been studying coal gasification processes for 40 years and have the expertise to investigate the use of heat from nuclear energy in the production of synthetic fuel.(4,5) It could be the case that a  process can be designed for synthetic gasoline that emits less greenhouse gases than gasoline from crude oil.

Nuclear energy can thus be used in more than one way to reduce greenhouse gases and even enable Poland to find new application of coal. This will improve the long term energy security.


Poland opened its first coal mine since 1994 near the town of Jastrzebie Zdroj in south Poland on Wednesday. PM Mateusz Morawiecki, who attended the ceremony, said the new facility will build up the strength of the Polish industry.

The Bzie-Debina mine was built by Polish mining company JSW, the biggest producer of coking coal in the EU.

Morawiecki recalled that the EU had defined coking coal as a strategic resource.

"One should have a comprehensive view of the economy. We can't have a modern economy without steel, and we can't have steel without coking coal. If we want to promote renewable energy and boost the development of the automotive industry, we need to have very good quality steel," the head of government argued.


The mine is expected to start extraction of coking coal in 2022. Local deposits of the resource, which is indispensable in steel manufacturing, are estimated at some 180 mln tonnes.

JSW CEO Wlodzimierz Herezniak said that the company will invest more than PLN 3 bln (EUR 684 mln) in the new facility by 2030, including more than PLN 900 mln (EUR 205 mln) in 2019-2022. The first longwall will be operational in 2022, he added.

Energy Minister Krzysztof Tchorzewski said that over the past four years of the Law and Justice government, JSW has been transformed from a troubled company into a vigorous one.

The Bzie-Debina mine will reach full capacity in 2025, he added.

Currently, the mine has 223 employees but their number will grow to 300 by the end of the year and will reach the target headcount of 2,000 in a few years' time.

JSW produces more than 15 mln tonnes of coking and hard coal annually and plans to increase production to 18 tonnes by 2030, focusing on coking coal. Bzie-Debina's ultimate capacity is set at 2.2 mln tonnes of coal annually.

PPI PE Civil Reference Manual, 16th Edition (Hardcover)

Comprehensive Reference Manual for the NCEES PE Civil Exam 


CERM16 - The Reference Manual Every PE Civil Examinee Needs!

Michael R. Lindeburg, PE’s PE Civil Reference Manual, 16th Edition (Also known as CERM16) is the only reference you need to prepare for the Breadth portion of the PE Civil exam. 

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This comprehensive manual follows NCEES PE Civil exam specifications and addresses complex topics by parsing them into condensed, understandable, readable sections. 

Offering a complete review of all exam topics, this reference manual is up-to-date to the current exam specifications and design standards, and employs instructional design to enable comprehensive understanding that builds exam confidence. 

The PE Civil exam is an 8-hour, open book exam. Use this reference manual to fully prepare for the exam, and bring it with you on exam-day for your must-have reference.



Also available is the new PE Civil Companion for the 16th Edition, which offers a convenient side-by-side companion offering a comprehensive index with thousands of entries covering all topics; over 100 appendices; and over 550 common civil engineering definitions.

Key Features:

  • Complete exam review for the Breadth portion of the PE Civil exam: 

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    • Means and Methods

    • Soil Mechanics

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    • Geometrics

    • Materials

    • Site Development

  • Brief overview of each afternoon Depth exam.

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PE Civil Reference Manual, 16th Ed. (CERM16) will serve as an invaluable reference throughout your civil engineering career.

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The PE Civil exam is an 8-hour exam. All examinees take a common 4-hour breadth section and then are separated into their chosen depth section for the remainder of the exam. Examinees have the option to choose the construction, geotechnical, structural, transportation, or water resources & environmental depth. When the PE Civil exam is passed, the examinee will then be considered a professional civil engineer. 

Fossil Fuels versus renewable energy

Eco-warriors are besotted with the myth that energy can be clean and renewable. The truth is that any "renewable" energy requires massive environmental impacts.

These impacts consume enormous amounts of environmental resources, which would make the most ardent environmentalist blush with shame if they only knew about them. Greens have so ensconced themselves in a humongous bubble of ignorance that it's doubtful if any but a handful know what I'm about to tell you.

And if that handful does in fact exist, they are keeping what they know to themselves as a closely held secret. Because if the truth got out, it would be the end of the environmental movement.


The vision of environmentalists is a peaceful, harmonious world in which human beings tool along on wind and solar energy alone, burn not an ounce of fossil fuel, and leave no human imprint on the environment at all. It's a beautiful, serene picture which has absolutely nothing to do with reality.

In this mythical world, the energy of the wind and the sun is captured and stored in batteries. There's your first problem, right there. As Mark Mills and Alexander Ackley write in The International Chronicles, "A single electric-car battery weighs about 1,000 pounds. Fabricating one requires digging up, moving and processing more 500,000 pounds of raw materials somewhere on the planet." If, however, you burned gasoline, you could deliver the same number of vehicle-miles over the battery's life span of seven years at 1/10 the total tonnage.

The green machines at some point must be decommissioned, which will generate millions and millions of tons of waste. By 2050, the International Renewable Energy Agency calculates that disposing of old solar panels alone will constitute more than double the tonnage of all today's global plastic waste. And waste is the word. A solar or wind farm that stretches as far as the eye can see can be replaced by a handful of gas-fired turbines, each about the size of a tractor trailer.

Both wind and solar require far more in the way of materials and land than fossil fuels. Just one wind turbine takes 900 tons of steel, 2500 tons of concrete, and 45 tons of plastic THAT CANNOT BE RECYCLED. Wind turbines last about 20 years, and since there is no way to recycle the materials, they have to be dumped in landfills. And with blades that are 120 feet long, they're too big for convenient disposal even there.

A wind farm in Minnesota trucked more than 100 of these monster blades to the Sioux Falls Sanitary Landfill in South Dakota. But the director of the Sioux Falls Public Works Department says they're done. "We can't take any more unless they process them before bringing them to us. We're using too many resources unloading them, driving over them a couple of times, and working them into the ground."

If a wind farm includes 100 turbines, that means there are 500 million pounds of concrete which has been poured into what used to be farmland. How is that concrete going to be disposed of?

There is not even a moderately inexpensive way to get the energy that wind farms generate to the cities which need them. Cities are built near flat farmland, while the wind blows on high ridge lines.

And there are health hazards to these giant bird blenders. Germany, which is shifting radically to wind, has discovered these wind farms produce so much noise that, according to one poor unfortunate soul, it "drives you insane at night." Germany is actually now paying hush money to people who live near these farms. They're getting direct handouts from the government essentially to keep quiet. So the turbines can keep making noise, but the people can't.

Building enough wind turbines to supply one-half the world's electricity needs would require nearly two billion tons of coal to make the concrete and steel, and two billion barrels of oil to make the composite blades. We'd consume immense amounts of hydrocarbons in a radically stupid attempt to avoid consuming hydrocarbons.

Well, at least that leaves solar as an environmentally friendly, sustainable, and renewable source of energy. Except of course for the MINING of silver and indium, which will jump 250% and 1200% respectively in the next several decades. Demand for rare earth minerals required for the manufacture of solar panels will rise 300% to 1000% by 2050 to meet the goals of the Paris Accords.

The production of electric cars will require a 2000% percent increase in the production of cobalt and lithium. This will require mining operations in remote wilderness areas with a high degree of undisturbed biodiversity, which is where the cobalt and lithium are found.

One of the dirty secrets is that wind farms must be heavily propped up with taxpayer subsidies because no one in his right mind would build one otherwise. Warren Buffet, for instance, owns MidAmerican Energy. Said Buffett, "On wind energy, we get a tax credit if we build a lot of wind farms. That's the only reason to build them. They don't make sense without the tax credit."

Engineers joke about discovering "unobtanium," a magical energy-producing element that "appears out of nowhere, requires no land, weighs nothing, and emits nothing."

Bottom line: "clean, renewable" energy is neither. It's an environmental disaster. Fossil fuels, on the other hand, are readily accessible, affordable, and have a much, much smaller environmental footprint than all renewables. Gentlemen, start your engines.

Because RE zealots crowed about Germany’s ‘inevitable transition’ to wind and solar from the outset, it’s no surprise that its disastrous conclusion is attracting attention, much like a freeway pileup.

Germany’s so-called Energiewende (energy transition) has turned into a power pricing and supply calamity. Which was as perfectly predictable as it was perfectly avoidable.

Jonathan Tennenbaum is one smart cookie. He received his PhD in mathematics from the University of California in 1973 at the tender age of 22. He’s also a physicist, linguist and pianist and the former editor of FUSION magazine, lives in Berlin and is a frequent visitor to Asia and elsewhere, consulting on economics, science and technology.

Jonathan reaches the inevitable conclusion that the ‘inevitable transition’ to wind and solar was a disaster just waiting to happen. And points out that the inevitable solution was staring Germans in the face all the time: nuclear power.

Germany’s overdose of renewable energy

Germany now generates over 35% of its yearly electricity consumption from wind and solar sources. Over 30 000 wind turbines have been built, with a total installed capacity of nearly 60 GW. Germany now has approximately 1.7 million solar power (photovoltaic) installations, with an installed capacity of 46 GW. This looks very impressive.

Unfortunately, most of the time the actual amount of electricity produced is only a fraction of the installed capacity. Worse, on “bad days” it can fall to nearly zero. In 2016 for example there were 52 nights with essentially no wind blowing in the country. No Sun, no wind. Even taking “better days” into account, the average electricity output of wind and solar energy installations in Germany amounts to only about 17% of the installed capacity.


The obvious lesson is: if you want a stable, secure electricity supply, then you will need reserve, or backup sources of electricity which can be activated on more or less short notice to fill the gaps between electricity demand and the fluctuating output from wind and solar sources.

The more wind and solar energy a nation decides to generate, the more backup capacity it will require. On “bad days” these backup sources must be able to supply up to 100% of the nation’s electricity demand. On “good days” (or during “good hours”) the backup sources will be used less, or even turned off, so that their capacity utilization will also be poor. Not very good economics.

Much better would be to limit wind and solar to a relative minimum, and rely instead upon controllable, non-fluctuating power sources operating with a high capacity factor, to meet the nation’s base load electricity requirements and to adjust total output in accordance with varying demand. This corresponds to world-wide practice prior to the recent huge buildup with renewable energy.

In theory the ideal backup for wind and solar energy would be to store excess electricity produced when the Sun is shining and strong winds are blowing, and inject it back into the grid when needed. Unfortunately, electricity is a difficult and expensive commodity to store.

By far the most efficient presently available solution for storing excess electric power is to use it to pump water against gravity into a reservoir. When electricity is needed again, it is produced by letting water flow down again via a turbine generator. In this process about 25% of the energy is lost.

Naturally, the costs of construction and operation of such pump storage plants will add to the real costs of providing electricity. Plus, these installations use up a large amount of land area.

Here, too, Germany provides an instructive example. A 2014 study by the Bavarian Ministry of Energy came to the conclusion that pump storage plants were not an economically viable solution. Much better would be to exploit already existing water reservoir resources in Norway and Sweden, where the capacity of pump storage plants can be greatly expanded and new ones built at much lower cost.

This “solution,” however, would require transporting large amounts of electricity over long distances back and forth between Germany and those countries – which in turn would require additional high-voltage lines and cables that have not been built and that no one wants to pay for.

Given the high costs and other obstacles to creating large electricity storage systems, it is not surprising that Germany’s electricity storage capacity amounts today to less than 2% of total electricity output.

There has been much discussion and research concerning alternative ways to store electricity. Theoretically one could be to use excess power to produce hydrogen, store it somehow and then use fuel cells to generate electricity back from the hydrogen. This would be vastly more expensive than pump storage, however, and with much greater losses.

Overdose of renewables?

Today, in order to guarantee stable baseline power and fill the gaps left by its fluctuating wind and solar generators, Germany is forced to rely on (1) CO2-spouting coal and natural gas power plants; (2) its remaining handful of nuclear plants, which it plans to shut down by 2022; and most notably (3) importing electricity from other European nations.

On “good days” Germany floods the rest of Europe with excess power from its wind and solar installations, often at dumping or even negative prices. In this way Germany has turned its huge amounts of wildly fluctuating renewable power sources into a European-wide problem.

Even with the flourishing European electricity trade, however, Germany is still far from being able to close down its coal and gas power plants.

The German Energy Agency (DENA) published a long-term scenario for electricity production in Germany, based on the assumption that so-called renewable sources should account for 80% of total electricity consumption by the year 2050.

Among other things DENA concluded that in order to insure a stable electricity supply, Germany would still need to maintain 61 gigawatts of conventional power plant capacity “in reserve” and for a remaining portion of base-load production. Electricity storage systems would provide only 9% of reserve capacity in 2050.

Despite – and to a large extent because of — the massive expansion of renewables, conventional power capacity could only be reduced by 14% up to 2030 and by a maximum of 37% by 2050.

Given the government’s commitment to shut down nuclear energy in Germany, this would mean keeping a large reserve of CO2 -emitting, fossil fuel-based generation capacity. At the same time the political decision has been made to phase out the coal-power stations which up to now have produced the largest part of Germany’s electricity.

That leaves essentially only petroleum (heating oil) and natural gas as realistic fuels for backup power. Natural gas would take first place because it generates about 50% less CO2 per kWh of electricity than coal or petroleum-powered plants.

With this background one can appreciate the German government’s concern to guarantee long-term supplies of natural gas at stable prices. Hence also the government’s insistence on the North Stream 2 project to build a system of offshore natural gas pipelines from Russia to Germany.

The good news, so to speak, is that for most of the time the backup plants would operate at only a fraction of their installed capacity, with many even standing still on “good days.” That way they would release much less CO2 to the atmosphere.

That’s nice for the environment, but not a very efficient way to utilize equipment, infrastructure and manpower – and not very attractive for investors. Also it’s still far from the green dream of a CO2-free energy system.

Preserving the stability of Germany’s electricity grid while at the same time integrating tens of thousands of fluctuating energy sources distributed over the entire country has been a major technical challenge. It has meant reorganizing much of the electricity transmission and distribution system, which was designed and built to operate in a completely different regime.

It means also the construction of thousands of kilometers of new high-voltage lines, including four projected long-distance transmission lines which are needed to move electricity from the windy north to the industrial west and south of the country. This again adds to the real (systemic) costs of supplying the country with electricity.

There is no doubt that the attempted transition to renewable sources as the foundation of Germany’s energy system – Angela Merkel’s famous “Energiewende” – has already significantly reduced the country’s economic efficiency. The constantly rising electricity prices, taxes and levies only begin to reflect the true costs of the government’s policy. There is also a debate concerning the future stability of the electricity grid.

Merkel and others often argue that a successful “Energiewende” would place Germany in a unique position to export know-how and technology for the ongoing “green transformation” of the world economy. Increased income from export of green technology is supposed to compensate for the costs of the Energiewende. This calculation assumes that the other countries will choose to follow the radical German example in reorganizing their power sectors, which is doubtful.

Meanwhile resistance has been growing inside Germany itself, as local environmental groups and citizens’ initiatives mobilize to block construction of wind turbines, transmission lines, pump power stations and other renewable energy projects.

The environmentalist ideology is coming into contradiction with itself. The unprecedented scale of destruction of the natural landscape by 30,000 gigantic wind turbines has brought a growing realization, that reliance on renewable energy is by no means friendly to the environment – and not necessarily safe.

People don’t want to live near wind turbines, because of unpleasant noise and possibly dangerous infrasound emissions, disturbing optical effects, reports of fires, broken-off turbine blades flying through the air, ice throws, etc. And the dead birds.

In Germany there is political pressure to increase the legally-set minimum for the distance between wind turbines and houses to 1 or even 1.5 kilometers, which would drastically reduce the availability of construction sites. Already, protests and law suits have brought the construction of new wind turbines in Germany to a near-standstill.

Solar energy has encountered much less resistance, no doubt to a large extent because only a few large solar farms have been built in the country. Most of the present capacity comes from roof-mounted solar cells, especially on private houses, where they have become quite popular.

The big problem is how to store the electricity, which is generated only during daylight hours and fluctuates according to the cloud cover. So far relatively few house owners have been willing to pay for batteries and other storage devices. Instead, excess electricity is taken up by the grid at a subsidized price.

Projects for pump storage stations, and for new transmission lines have met with such intense resistance, that there is little chance of fulfilling the original goals of the Energiewende.

The question is, whether it makes sense at all to depart from the tried-and-proven model of a stable electricity system based on continuously functioning sources, a large percentage operating in base load mode.

battery-based transportation technologies.

For decades climate change was a topic for predominantly environmentalists. Since the early 2010s, this has changed dramatically. The transformation culminated in the Paris Climate Agreement of 2015 where the world agreed on a comprehensive path to tackle an existential threat. Consequentially the energy transition has strongly gained in importance as countries around the world are racing to replace their carbon-intensive economies with green alternatives.

The massive installment of wind turbines and solar PVs is the first step. As the energy transition progresses, countries across the globe are confronted with challenges of an energy mix dominated by renewables. The intermittent nature of wind and solar electricity production affects the reliability of the power grid. A solution could be the storage of energy into hydrogen through the process of electrolysis.

Furthermore, the rapid development of electric vehicles has exposed the limitations of battery-based transportation technologies. The significant decrease in the battery production costs has, for the first time in history, made it affordable for the wider public to switch to EVs. Environmental considerations have even pushed the EU towards regulations obliging the car industry to develop more sustainable products. However, the technological limitations of EVs require an alternative.



While battery-vehicles have become the way forward for smaller vehicles, the technology doesn't seem fit for heavy duties and long-range transportation. The characteristics of fuel cell-based vehicles make hydrogen, potentially, a suitable alternative.

The lowering of costs remains the biggest challenge, as was the case with renewables. To make hydrogen a plausible choice to complete the energy transition, the production costs of fuel cells need to be decreased significantly. Already the price of electrolysis-produced hydrogen has decreased by 60 percent in the past 10 years from $10-$15 to approximately $4-$6/kg. While it is a significant development, more needs to be done.

The decreasing costs are not a coincidence as governments and companies are responding towards an urgent challenge and changing attitudes towards hydrogen. The massive global attention for the energy-carrier has even spurred some to indicate a potential ‘hydrogen hype’. The coining of this term shows that the future isn’t fixed yet.

However, that hasn’t stopped a bull market on shares of hydrogen cell-producing companies. According to Adam Collins, an analyst at Liberum, "after years of false dawns, investors are realizing clean hydrogen and fuel cells have an important part to play in the energy transition, particularly heavy-duty mobility and heavy industry."

ITM Power’s share value, for example, are up by more than 45 percent this year, which is their highest since 2007. Swedish Powercell’s value has risen 28 percent in the same period and over 342 percent in the past year. This shows the enormous expectations of investors. And to some extent, there is a solid base for these forecasts to become reality.

There are several reasons why the current cycle is much more promising than in the past where a looming hydrogen economy did not materialize. First, there is a consensus in much of the world that climate change is an existential threat right on our doorstep. This asks for rigorous efforts to limit the most damaging effects of global warming.

Second, the massive installment of wind turbines and solar PVs is creating an abundance of electricity, which at certain moments threatens the stability of the power grid. Hydrogen is touted as a solution for energy storage and the flexibility of the grid to solve the problem of intermittency. Also, the availability of cheap electricity improves the business case for green hydrogen.

Furthermore, it is encouraging that the technology for the creation of a hydrogen economy already exists. The production of fuel cells, for example, is largely done by hand due to the current size of the market which is relatively small. This doesn’t justify the massive investments necessary for automatization and mass production. Therefore, it seems a matter of time before the combination of regulations and market developments create the right environment for the development of a hydrogen-based economy.

primary energy sources

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The production of hydrogen from gas and coal may be necessary to fill a potential gap in the global supply energy in the future, and Australia may be ideally placed to emerge as a major player in the global hydrogen market, Australia’s chief scientist, Dr Alan Finkel has told the clean energy sector at a conference in Sydney.

Speaking at the 2019 Australian Clean Energy Summit, Finkel said that wind and solar have emerged as the most viable new sources of zero-emissions energy going into the future, as the sources have overcome the cost, scale and social challenges faced by other energy sources, including nuclear, biofuels and wave or tidal energy.

Finkel was confident that Australia was well-positioned to become a major global supplier of clean hydrogen, with the abundance of sun, wind resources and land necessary to produce sufficient levels of clean energy that Australia could be in a position to export clean energy overseas.


While Finkel remains confident that clean energy resources will be sufficient to meet the world’s future energy needs, there is still a long way to go before renewables become the dominant source of primary energy.

Fossil fuel supplies still represent around 81% of the global primary energy supply, with renewables from sources like wind and solar needing to grow by 70-times their current levels before they will match current contribution of sources like coal, gas and oil.

However, Finkel recognised a gap in the current supply of clean energy, the ongoing need for a storable transport fuel and suggested that hydrogen would be the best placed to meet that need.

While hydrogen is able to be produced directly via renewable energy sources, using electricity generated by wind and solar projects to convert water to hydrogen via electrolysis, Finkel questioned whether it would be possible to produce hydrogen with the scale and diversity of supply needed to meet the needs of a global energy market.

In raising the question of whether the production of hydrogen from coal or gas would be necessary, Finkel raised concerns about the prospect that the global energy market may become reliant on two sources of primary energy, being wind and solar.

Finkel suggested that the use of coal and gas for the production of hydrogen, when paired with the total, or near total capture of emissions from the production process, could serve as a third primary energy source in the future.

“There are two things that concern me, one is scale, and the other is diversity,” Finkel said.

“It scares me to think in the future we may only have to primary energy sources,”

“Now, the sun will always be shining, and the wind will always be blowing. But who knows what the challenges may be for land access rights, transmission rights, climate change impacting weather patterns, or one of those spectacular volcanos like Krakatoa, that could lead to a month of shade.

“Is there a third? Could we increase our diversity? Well hydrogen from coal and natural gas could be something that has to be given consideration, as it is not reliant on solar and wind as an input, its using fossil fuels repurposed to produce a clean fuel.”

“Of course, it will need carbon capture and storage to work”.

As the chief scientist, Finkel previously completed a review of the national energy market, which recommended the implementation of a Clean Energy Target to support investment in new electricity generation capacity in Australia, while reducing emissions. A recommendation that was ultimately rejected by the Turnbull Government.

Finkel is currently leading the development of the National Hydrogen Strategy, which is expected to the delivered by the end of the year.