Smart Energy Aaland
A Presentation to theBSPC WG on climate change and biodiversity 2020-2022Berndt Schalin, CEO FlexensMay 9th, 2022Project background and timelineDriving the energy transition with a society scale demonstration as reference2019– Growth engine finance2018 secured– Flexens2015- 2018founded–FlexE demoand creation ofecosystemBackground in strategic research, 2014Tekes SHOK programs: –”Aloitetaan2010-2015 Smart Grids and Energy Markets energiakäänne2010-2014 Future Combustion Engine Power Ahvenanmaalta”Plants2012-2016 Efficient Energy Use2015-2016 Future Flexible Energy Systems09/05/2022 2Åland as the test and demo location▪ Åland – the ideal place▪ Best wind and solar conditions in the region▪ Self-governed (own energy market regulation) and own grid area▪ Ambitious and rewarded sustainability agenda▪ Ideally positioned for Nordic cooperation▪ Full society scale▪ 30.000 inhabitants, industry & service sector - Results applicable to large markets▪ Operating in a deregulated environment connected to the efficient Nordpool market▪ Adopting future EU regulation▪ Current and future market models enabling investments in flexibility sources in focus▪ In the tempered climate zone▪ Heating and cooling central part of the energy mix▪ A platform supporting open innovation▪ Cooperation with leading R&D&I operator09/05/2022 3Smart Energy ÅlandThe project▪ Project goals• Build a full society scale demonstration of an affordable and self sustained energysystem based on 100% renewables• Provide a unique piloting platform for solutions supporting the implementation ofvariable renewable energy sources• Accumulated knowledge that can be utilized in other regions▪ Flexens tasks & responsibilities• Lead the energy system development• Lead multiparty projects to provide holistic solutions• Engage local citizens and decision-makers• Raise capital and project financing09/05/2022 4A CO2 free energy system – the challengeThe Åland viewGreenhouse gas emissions in ÅlandWaste and Electricitysewage 8 %2 %Road traffic22 %Agriculture15 %HeatOther local15 %shipping29 %Air traffic1 %Archipelagoferries8 % 250 000 ton CO2-eq(2015)09/05/2022 5The 100% renewable system; case ÅlandSpecific e-Solar and Wind 70-90% storage Direct electrical loads• Residential• As the availability of • Commercial &bioenergy is limited, and Industrialgeothermal energyNetworks and gridstypically is costly to• Gas / NG, H2, CO2?convert to electricity or Heating and cooling• District Heatingfuels most of the primary • Residential• Electricity Systemrenewable energy in any • Commercial &storagesociety must come from IndustrialMarket models capacitysolar and wind• Energy communities• Flexibility markets• Peer to peer tradingBioenergy 5-20% System Transportation sector• Availability depending on Production of synthetic storage • Roadsociety fuels capacity in: • Rail• BEV’s • Maritime• Fuel • AviationGeothermal 10-20%tanks• Economically feasible onlyas heat CO209/05/2022 6Demonstrating the technologies in the systemStorage and sector coupling in focusEnergy Island communityHydrogen ferry running onlocally produced greenhydrogenPumped hydro energy storage09/05/2022 7Archipelago ferry lines as pilots for Power to X in the maritime sectorExpected route for thefirst fuel cell ferryPotential location #2 forhydrogen productionPotential location #3 forhydrogen productionEarly-stageplanning of 100MW wind parkLångnabba 42 MWwind park, entryinto operation inspring 2022Potential location #1 forhydrogen production09/05/2022 8Åland as a society is at the forefrontLocal wind power now covers 65% of the local electricity consumption▪ Including latest additions the local windpower producers have an installedcapacity of over 60 MW▪ As an example, the 24h average productionlast week exceeded the local demand forelectricity▪ A planned 30 MW solar park will furtherincrease self sufficiency▪ Areas allocated to offshore wind in theMaritime Spatial Plan could enablemore the 6 GW of capacity09/05/2022 9Replicating the results as a businessUtilising the testbed – as a project developerBuilding flexible energy systems based on 100% renewables▪ The company Flexens, that wasfounded to implement the SmartEnergy Åland project has startedWe are herereplicating the identified solutions innew locations▪ The company is taking a leadingposition as a developer of storageand sector coupling solutions, suchas hydrogen and power to X09/05/2022 11Replicating the solutionsThe Power to X opportunityThe power sector will run future logisticsPOWER GRIDBattery powerEnergy efficiency 90%H22 H O →2H + 2 O2 2+CO/CO2 CH4Fuel cell powerH METHANATION+N Energy efficiency 60%2 NHRenewable 2 3AMMONIA SYNTHESISelectricity+CO/CO2CH OHproduction 360-65 %METHANOL SYNTHESISenergy efficiency +CO/CO2e-Diesel, e-KeroseneICE (engines)Heat recovery 30%ELECTROLYSIS FISCHER-TROPSCH Energy efficiency 35-40%09/05/2022 13Baltic Sea for Power-to-XKey conditions in the Baltic Sea Region• Solar power highly seasonal: Low potential in winter• Strong bioindustry and biofuel production• Denmark, Germany and Norway are advanced withdevelopment of hydrogen technologies and projects,also with integration to off-shore wind power• Natural gas grids cover only minor area• 14 million tonnes CO emissions from IMO-registered2vessel in Baltic Sea in 2019. In Finland total CO2emissions were 53 million tonnes.• Great wind power potential at coastal areas• Scattered population and industry• Strong maritime industries, “Finland is an island”https://static1.squarespace.com/static/5d3f0387728026000121b2a2/t/5e85aa53179bb450f86a4efb/1585818266517/2020-04-01_Dii_Hydrogen_Studie2020_v13_SP.pdf09/05/2022 14Vision: Interconnecting Baltic Sea Region through networkofPower-to-X fuel plants at ports and vessel connections.1. Vessels using and transporting Power-to-Xfuels2. Power-to-X fuel production and logisticsOn-going development: x00 MW offshore and coastalwind parks around Baltic Sea3. Power connections and smart grids4. Off-shore and coastal wind powerhttps://www.4coffshore.com/offshorewind/BotH nia2Hydrogen bay of the North09/05/2022 17BotH nia highlights Scandinavia in H -Europe2 2BotH nia is an open network for cooperation of industrial2investment and research projects around the Gulf of Bothniaand later even the whole Baltic SeaAim is to ease financing possibilities for industry and enablecooperation on education, research, infrastructure, etc.International approach – led by both Finnish & Swedishstakeholders1809/05/2022European Hydrogen Backbone; vision 2035Current scopeFinnish hydrogenBig companiesclusterInvest inCLC P2XLKAB NorrbottenSSABSwedishVattenfall Start-upsHydrogenNational hydrogenGreenE2DevelopmentCenter networkVätgas SverigeFin H2 hubRegionalRegionalhydrogen projectshydrogen projectsCrossing boundaries to build hydrogenPlanned wind power capacity on the Finnish side of the Gulf ofBothnia is 300-350 TWhOn shore wind costs half as much as off shore wind that is commonin Europe (20 € resp. 40 € / MWh)There are big industrial hydrogen consumers in the area▪ SSAB, Kemira, Kokkola Industrial Park...Bio-based CO is being generated in multiple bio product plants2The Finnish power grid is stable in north-south -directionThere are examples of successful cross border projects and public-private cooperation2009/05/2022Map of Finnish wind power projects through the courtesy of EthawindSource: Mikko Heikkilä from Fingrid at BotH2nia goesKokkola 16.3.202209/05/2022 21Hydrogen in Finland today andtomorrowThank you MattiMalkamäki /Hycamite TCDTechnologies andGasgrid FinlandGasgridFinland jaNordionEnergiselvittävätyhteistyömahdollisuuksiavetyinfrastruktuurinjamarkkinoidenkehittämisessäPerämerenalueella–GasgridFinland09/05/2022 22Berndt SchalinCEOberndt.schalin@flexens.com+358 40 8429469Thank youFIND US ON SOCIAL MEDIA AND AT FLEXENS.COM