Global wind capacity to double by 2027, according to MAKE
According to the consulting firm, MAKE, the world’s total wind capacity is set to double by 2027.
The world is set to receive an additional global capacity of 65GW within the next nine years, increasing at a Compound Annual Growth Rate (CAGR) of 4%.
The industry is expected to have a high momentum between now and 2020, with annual capacity additions increasing by 30% between 2017 and 2020.
The second wave of momentum is forecast between 2023 and 2027, growing at more than 30% in the time frame.
The rate of growth depends on the industry’s ability to continue winning capacity awards at auctions, and to remain on time and budget when executing awarded capacity.
The US’s wind industry is currently under strain due to new policies pushing project timelines into 2019 and 2020.
MAKE has forecast that the nation’s new capacity will decline by almost three times as much between 2022 and 2027 compared to the four previous years, due to the value of production tax credit.
Latin America is anticipated to have a CAGR of more than 14% during the review period, due to auctions in Brazil, Mexico, Argentina, Columbia, and Peru this year.
Europe’s wind output is reliant on the success of its offshore wind capacity, MAKE claims, as over the next 10 years it will make up more than 25% of new capacity.
In the Middle East and Africa, additions of annual capacity are set to triple by 2027, with Saudi Arabia expected to be awarded 1.2GW of wind contracts.
China’s recent NEA warning mechanism has impacted the growth of wind capacity in Asia and Oceania, but even so capacity is still expected to rise.
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.