Shell 'Prelude' Floating Liquefied Natural Gas Terminal
The natural gas industry is booming, but it's not just shale that’s getting energy investors excited. Offshore natural gas reserves are massive, and Australia in particular is gearing up to exploit such resources. The only problem, however, is that offshore liquefied natural gas (LNG) production can prove difficult and costly, shying many energy companies away from large-scale ventures. Royal Dutch Shell, however, has created a solution that will make offshore LNG production economical.
Shell has spent the last 15 years and $500 million on research and development to create its ‘Prelude’ Floating Liquefied Natural Gas (FLNG) terminal. Once completed, the Prelude will be the world’s largest offshore facility. The craft—essentially a gigantic ship with LNG storage capability—will be six times larger than the world’s largest aircraft carrier and weigh 600,000 tons.
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Prelude is expected to begin service in 2016, moored 125 miles off the coast of northwestern Australia to exploit the major reserves held in the Browse Basin. The basin is presumed to hold as much as 100,000 billion cubic feet of natural gas (equivalent to five times the average annual gas consumption of the U.S.).
Shell estimates that there is roughly 300,000 cubic feet of large recoverable offshore LNG reserves globally. LNG demand is predicted to grow at a conservative rate of five percent per year, with other estimates looking at double-digit growth.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.