Shell, Equinor, Uniper & the Global Energy Storage Problem

Wind, solar, tidal, wave, renewable gas, nuclear — these energy sources will form the driving force of our future mixed energy landscape as we bid farewell to fossil fuels.  

Yet one significant challenge remains: energy storage.

Solar panels depend on sunlight, wind turbines on breezes and tidal and wave power on specific marine conditions.  

Essentially, this means that these power sources cannot provide energy 24/7. In other words, the world will remain reliant on fossil fuels during peak energy demands until we find a way of storing renewable energy. 

As Neel Dhanesha of Harvard University’s Nieman Journalism Lab says: “If we don’t figure out a way of storing renewable energy, there’s a chance we’re still going to be dependent on fossil fuels.”

How do we solve this problem? 

In theory, there are lots of solutions to this problem, ranging from the conventional to the esoteric.

Currently, batteries are one of the simplest solutions. They can be used to store all forms of renewable energy and are already in use in homes around the world in conjunction with solar.  

But the lithium required to make them is a scarce resource in high demand and the mining of these minerals has significant environmental and social impacts, often in less economically developed countries. 

Pumped storage hydropower is another solution that is already widely used.

It works by pumping water uphill using renewable energy. Then, when the grid requires electricity, the water is released downhill, spinning a turbine to create energy. 

This solution is expensive and obviously doesn’t work in flat landscapes. However, it has fast become the world’s largest renewable energy storage solution by capacity. 

China leads the way on this front, and with the completion of the new Fengning Pumped Storage Hydropower Plant — which can store 3.6GW— global capacity for this solution has surpassed 200GW, or around eight times the UK’s average energy demand.

Scientists are developing other ideas too, including gravity energy storage, geomechanical pumped storage and superheated salt batteries, but these are still all a long way from a rollout.

The promise of renewable gas

One of the most straightforward and versatile solutions gaining traction is renewable gas, particularly biogas and green hydrogen.

There are lots of upsides to renewable gas. Like traditional fuels such as gas or oil, these fuels can be stored as liquids or gases and used for electricity generation, heating and transportation.

Maarten Wetselaar, Shell's Director of Integrated Gas and New Energies, emphasises the potential of hydrogen: “Hydrogen is one of the key technologies that will help decarbonise heavy industry, transport and power generation.

“It has the potential to play a major role in the energy transition and we are focused on making it a core part of our future energy system.”

The role of biogas is simple: it produces around 80% fewer greenhouse gas emissions than natural gas, so it is a much more sustainable choice. The one real problem is scaling up production and feedstocks.

As for hydrogen, things are a little more complicated since it has several different classifications when used in the context of energy production. 

While it is the Earth’s most abundant element, converting hydrogen into a usable fuel is complex.

The most sustainable way — and the best way in terms of renewable energy storage — is to electrolyse water using renewable energy. 

This separates the hydrogen and oxygen atoms from one another, leaving producers with a usable hydrogen fuel. Essentially, scientists can use any surplus energy created by wind, solar or any renewable source to store that energy in hydrogen fuel, which is not ephemeral and can be used at any time.

As Dennis Schulz, CEO of ITM — a British market leader in energy storage and green hydrogen production — says: “Green hydrogen will play an important role in the energy transition.”

Corporate commitments and innovations

Global energy giants are making significant strides in addressing the energy storage challenge.

Shell, for instance, is investing heavily in green hydrogen and thermal energy storage. Its involvement in the NortH₂ project in the Netherlands demonstrates a commitment to producing green hydrogen using offshore wind energy.

Uniper is similarly focused on hydrogen as a key enabler of energy transition.

Andreas Schierenbeck, Uniper's former CEO, once said that “hydrogen is a crucial part of our decarbonisation strategy”. 

He continues: “We believe it will be the backbone of a sustainable energy future, especially for sectors where electrification is not an option.”

Equinor is also at the forefront of hydrogen development and CEO Anders Opedal is keen to emphasise the importance of hydrogen R&D.

“Hydrogen is essential to meeting the world’s climate goals,” he says.

“We are working to accelerate the development of hydrogen technologies, which will be critical to decarbonising heavy industry and long-haul transport.”

Can hydrogen ever be a scalable storage solution?

As well as devotees, hydrogen has many detractors, including several high level energy experts.

This is particularly the case when hydrogen is mooted as a solution for heating buildings. The issue, experts say, is the inefficiencies in the green hydrogen creation process.

Jan Rosenow, the Vice President and European Programme Director of the Regulatory Assistance Project (RAP), explains: "It's deeply problematic to think about using hydrogen at large scale to heat buildings. It's very, very inefficient compared to heat pumps.

"You need five to six times more electricity if you use green hydrogen to create heat, five to six times more renewables, five to six times more land, facilities and everything else."

Appearing on an energy-themed talk show in March 2023, Jan highlighted the fact that, at the time of his statement, 33 independent studies had been conducted to investigate the feasibility of using hydrogen as a heating fuel.

All 33 came to the same conclusion — it is simply not feasible.

"The evidence is crystal clear," he says. "The debate is still ongoing. We're still seeing people everyday championing that idea of using hydrogen for heating, and why is that? Basically, because there are very strong vested interests in keeping the gas grid running."

A patchwork solution

Experts agree that no single technology will solve the energy storage dilemma. Instead, a combination of solutions will likely form the backbone of our future energy systems. 

As political and business leaders navigate this critical juncture in our energy transition, one thing is clear: the solution to our energy storage dilemma will have to be as diverse and innovative as the renewable sources we seek to harness.

As Maarten says: “We need a portfolio of solutions — hydrogen, renewable gas, energy storage and carbon capture technologies — to build the future energy system. 

“By working together, we can unlock the potential of these technologies to decarbonise and create a more resilient, sustainable energy system.”

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