Newsletter Winter 2024

View of Turin

The past year has been very active and productive as we show in our Newsletter Winter 2024. We have created the TIMES-KUWAIT model and further developed the TIMES-Vietnam, TIMES-Jordan, and TIMES-NEU models. The latter covers Northern Europe. We have also embarked on several research projects. One focuses on PtX, another on modelling the AFOLU sector. A third project is focusing on supporting local authorities to speed up the green transition.

Inspired by community

We were pleased to attend the Semi-annual ETSAP meeting in Turin in November. Our consultant Till Ben Brahim made a presentation on the possibility for the Nordic countries, especially Denmark, to become a green hub for the export of green hydrogen and electricity to Europe. He showed scenarios generated by the TIMES-NEU model that we have used to analyze future energy markets in the Nordics.

Furthermore, we had the opportunity to network and agree with colleagues from Italy, Belgium, and the Nordic countries to team up regularly and share results from our work.

View of Turin
Kuwait City skyline
Creating the TIMES-KUWAIT model

We have contributed to the first steps of strategic energy planning in Kuwait as consultants on the project Developing Kuwait’s Long-Term Climate Pathways. In the first place, we developed a database for energy and GHG emissions. Next, we created the TIMES-KUWAIT model and generated different scenarios including rapid expansion of the renewable fuel market and reduced exports.

The government of Kuwait has pledged to reach net-zero emissions in the oil and gas sector by 2050 and by 2060 for the whole country.

Best location of PtXplants

As part of MissionGreenFuels, EML is collaborating with 13 partners on the PtX Sector Coupling and Life Cycle Assessment Project. The expected result is to create better ways to determine optimal ways of integrating PtX into the green transition. To this end, we are developing and updating the TIMES-NEU model.

Iconic portray of PtX

Please find the Newsletter 2024 below.

Hydrogen fuel cells in shipping

It’s necessary to ban the use of fossil fuels to complete the green transition in shipping. To put it short, this is the main finding of our research study: “Hydrogen fuel cells in shipping: A policy case study of Denmark, Norway, and Sweden”. The study resulted from a collaboration with colleagues in Iceland. It was published in the leading journal Marine Policy (May 2024).

The study aims to identify the policy instruments needed to accelerate the uptake of hydrogen fuel cells for the shipping industries in Denmark, Norway, and Sweden.

Hydrogen fuel cells are promising for reducing emissions from shipping. However, their adoption is limited by high costs, lack of regulations, and lack of infrastructure. This is why there is a need for policies that spur investments in hydrogen fuel cells.

The three policy packages

Together with our fellow researchers, we tested three policy packages with different degrees of ambition (low, medium, and high). Our findings indicated that the proposed taxes on CO2 emissions and fossil fuels can help drive the transition away from fossil fuels. Meanwhile, the complete transition requires a ban on the use of fossil fuels.

The three policy packages were formulated based on discussions during workshops with key stakeholders from Nordic Shipping. During the workshops, we also learned that the participants are paying high attention to a “chicken and egg” paradox: Without the demand for green hydrogen, no supply, and vice versa. This has not been reflected in previous studies.

Correspondingly, a coordinated regional approach and cross-sector and cross-industry collaboration are needed. Otherwise, we cannot overcome the paradox and help balance the supply and demand for Nordic shipping

Modelling

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MODEL

We used the TIMES-NEU model, an economic model generator for energy systems, to evaluate the three different policy packages. EML has developed the TIMES-NEU model.

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SCENARIOS

Estimated total fuel consumption in PJ/year; CO2 emissions by fuel in thousand tons of CO2 emissions/year; revenue from the tax on fossil fuels in million Euros/year; ferry segment fuel consumption in PJ/year.

RESULTS

The main finding was that policies are needed to spur investments. Meanwhile, it’s necessary to ban fossil fuels to complete the green transition of shipping.

Other scenarios included in the study show estimated CAPEX and OPEX in million Euros/year, estimated CAPEX and OPEX for the ferry segment in million, and estimated CAPEX and OPEX of the mandate of ferries to use hydrogen in comparison to the policy packages in million Euros/year.

The research study is part of the HOPE Project: The authors of the article are:
Mauricio Latapí, Brynhildur DavidsdottirDavid Cook, Lara Johannsdottir, MBA, Ph.D., Andrea Marin Radoszynski, and Kenneth Karlsson.

We are grateful for the financial support towards the HOPE project provided by the following organizations: the Nordic Energy Research, the Norwegian Research Council, the Swedish Transport Administration, the Icelandic Centre for Research, Business Finland, the Danish Energy Agency, Stena Rederi AB, and PowerCell Sweden AB.

Early Action on Energy Efficiency

Energy Modelling Lab has contributed to the background study “The Value of Early Action on Energy Efficiency”. The study is focusing on buildings and industries. We identified key energy efficiency messages that we presented at the IEA Energy Efficiency Conference 2022 (see full presentation below). The conference took place in the Danish city of Sonderborg.

In collaboration with our partners, we examined the importance of early action on energy efficiency. We considered the costs of delayed progress. Furthermore, we looked into the benefits of achieving energy efficiency milestones on the way to reaching net zero emissions by 2050. The study was contracted by the International Energy Agency and financed by Danfoss.

Key findings on early action

Early action matters. A low energy efficiency pathway would increase final energy consumption by 39%. CO2 emissions increase by 16% if action is delayed by 10 years.

Energy efficiency is the most effective measure to quickly improve energy security and lower electricity prices.

Reduced air pollution in a global net zero emissions scenario can reduce the cost of global health impacts by almost €500 bn in 2030.

Water heaters provide the biggest shifting potential and thereby CO2 emission reductions. Due to high savings and load-shifting potential, water heaters should be one of the first products to be digitized.

In process industries maintenance and simple upgrade of process plants can save 5 to 10% with very short payback time.

The use of electromagnetic sources for process heat is in an early stage but holds promising potential for saving energy with a factor of 10 or more.

We used the IEA’s Net Zero Emissions by 2050 Scenario as a central focus and reference case for the analysis. Correspondingly, we focused on the implications and impacts of action within this decade, in all major energy-using regions globally.

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Scenario analyses

We analyzed scenarios of low energy efficiency and high energy efficiency and estimated the accumulated final energy consumption, CO2 emissions, and air pollution.

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Results

We presented the key findings at the International Energy Agency (IEA) Energy Efficiency Conference 2022 in the Danish city of Sønderborg.

Duration: January-April 2022

Client: International Energy Agency (IEA) and Danfoss

Budget: DKK 596,000

Partners: Energiforsk, Viegand Maagøe

Reference: Markus Wråke, CEO, Energiforsk

EML team: Kenneth Karlsson and Ida Græsted Jensen

Analysis of future energy market

Mix of solar parks and wind parks to produce green hydrogen
Mix of green energy production from sun and wind used for producing hydrogen

Energy Modelling Lab has made an analysis of the future energy market in Northern Europe that will develop under the green transition. The analysis was an assignment from COWI. It has been used as a reference in the report Roadmap to a Future, Danish hydrogen infrastructure, published by the CIP Foundation in May 2023.

The analysis focuses on Denmark, Norway, Sweden, Germany, Poland, Holland, Belgium, and UK. It probes the potential future markets of energy and fuels including PtX fuels from now on and until 2050.

Based on data from the Danish Energy Agency, the Danish production of electricity is expected to increase by almost 900 % by 2050. The increase is primarily due to offshore wind parks. It’s assumed that the offshore wind parks will be established in connection with planned “energy islands”; two to three in the North Sea and one in the Baltic Sea. Also, there are plans to establish electrolysis facilities and we assume they will be established on the energy islands.

Domestic demand

Domestic electricity demand is expected to remain almost constant due to energy-saving measures. But the overall expected increase could be about sevenfold from now on and until 2050, due to the planned expansion of PtX facilities. The bulk of the potential electricity production would thus be used for the production of green hydrogen for export. Denmark could potentially produce one-third of the total green hydrogen produced in the area, that our analysis covers.

The demand for hydrogen in Northern Europe is estimated to grow dramatically. According to the prognosis in the analysis, Holland, Belgium, and Germany will be the main purchasers. The estimated value of the potential, Danish green hydrogen export is 100 billion DKK pr. year.

Germany or Sweden

The prognosis is based on the assumption, that Germany’s capacity for hydrogen production will remain rather limited. This assumption relies on calculations showing that Danish offshore wind parks will produce slightly cheaper electricity than German facilities. Meanwhile, the likelihood that Germany will establish a large-scale production remains high.

An alternative scenario not included in the published analysis showed that Sweden could become the main purchaser of Danish-produced hydrogen by 2050. This is mainly due to estimates showing that production costs in Sweden are higher than in Denmark.

Energy Modelling Labs has updated the TIMES energy system model for the analysis. We developed it further to cover Northern Europe which resulted in developing the TIMES-NEU. The TIMES model is internationally recognized and developed by an IEA working group.

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MODELLING

Energy Modelling Lab has updated the Open Nordic TIMES model (ON-TIMES) and developed it further to the Northern Europe TIMES model (TIMES-NEU).

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SCENARIO ANALYSIS

Energy Modelling Lab has probed on the future energy market that will develop under the Green Deal on climate neutrality by 2050.

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RESULTS

Results and scenarios are collected in the report mentioned above.

Duration: 2022-2023

EML Team: Kenneth Karlsson, Ida Græsted Jensen and Andrea Marin Radoszynski

Client: COWI

Budget: DKK 450,00

Reference: Claus C. Rebien, Vice President, Cowi

Collaborators: Brinckmann

Model: TIMES-NEU

Report: Baggrundsnotat – Analyse af efterspørgsel efter PtX produkter

Newsletter winter 2023 – An inspiring visit to NY

During the past half year we have developed new features for the TIMES model framework, dived into PtX and biogas, and begun the development of a new clean model structure.

Inspired by community

The ETSAP meetup for TIMES-modellers in New York was a great inspiration. During the conference we learn of a UN-database that contains data for all countries of the world. So our new dream is to use the database to automate the model creation and build TIMES-models for all countries in the world.

Read more about the vision in the full newsletter below.

Maabjerg Bioenergy in Holstebro, Denmark.
New biogas-module

Biogas will play an increasing role in the Danish energy system. Therefore we have developed a new biogas module for the Danish Energy Agency, to ensure a detailed representation of biogas in their future mode work.

Read more about the new biogas module right here.

flows of ptx-fules

To analyse the demand and supply of green hydrogen and other synthetic fuels, we have developed a new model of Northern Europe.

The model is a combined TIMES-model that includes Denmark, Sweden, Norway, Germany, and Poland. The model also includes external trade-links to UK, Belgium, and the Netherlands.

We hope to publish some results from the analysis soon.


If you want to read the full newsletter, you can find it here:

The future of district heating

What will the future of district heating look like when wind and solar dominate the electricity market as is expected within the coming decade?

In this analysis for Dansk Fjernvarme, Energy Modelling Lab has dived into the details of the future of district heating in Denmark. We have explored where the heat will come from, and whether our energy system will get too vulnerable without the thermal powerplants.

Our results show, that the thermal power and district heating plants will close down faster than projected by the Danish Energy Agency.


Key findings

In the future district heating will primarily come from large-scale heat pumps and waste heat from PtX plants and data centers.

The thermal power and heat plants are being phased out faster than the Danish Energy Agency projects.

An energy system with a low diversity comes with an increased risk of failure.


Read the full analysis here (in Danish):


Building DK-BioRes

MODELLING
Energy Modelling Lab has updated the Danish TIMES model (TIMES-DK) to include 23 individual district heating areas and four aggregated areas.

SCENARIO ANALYSIS
Energy Modelling Lab has investigated the consequences of an upper limit in biomass used for power and heat and an upper limit in the number of PtX plants.

REPORT
All results and scenarios are collected in the report above.


Duration: 2022

EML TeamMikkel Bosack Simonsen, Ida Græsted Jensen, Alexandra O’Sullivan Freltoft and Kenneth Karlsson

Client: Dansk Fjernvarme

Budget: DKK 350,000

Reference: Thorbjørn Nejsum, Head of Department, Dansk Fjernvarme

Model: TIMES-DK

IEA-ETSAP Newsletter Spring 2022

In this ETSAP Newsletter Spring 2022, we share the activities that we have carried out as an active member of the modelling community. As part of the ETSAP community, Energy Modelling Lab is developing the TIMES model framework, using it for a range of projects, and sharing our experiences within the network.


PROJECTS AROUND THE GLOBE

Energy Modelling Lab has worked on models for countries around the world.

In the Nordic countries, we have both investigated paths to a climate-neutral future and dived into the shipping industry, to investigate which fuels will power the future sea transport.

In Vietnam, we have supported the local modelling team, and in Azerbaijan, we have built a full-country model from scratch, facilitated workshops with the key stakeholders with the key stakeholder in energy planning in the country, and trained local modelers to run the model.

New features in TIMES-DK

Inspired by the discussions at the ETSAP meeting in Oslo 2021, we have added energy storage in TIMES-DK.

Additionally, we have added different ancillary services to the model, such as balancing the electricity grid when the demand is greater than the supply.

Giving back to the community

We are always happy to participate in the ETSAP-community activities. After a long period of webinars, it was a relief to join the biannual ETSAP meeting in Oslo in November 2021.

Over the past year, we have also expanded the modelling community by training two new employees in the TIMES-model framework. Other than that we have supported a bachelor student from the University of Southern Denmark in a project on energy islands, three students from the Technical University of Denmark in a project on German hydrogen demand, and a Swedish PhD student on a new model of Gothenburg.

The community is growing, one modeler at a time.


If you want to read the full newsletter, you can find it here:

Net zero by 2050 in Vietnam

The Vietnamese economy is growing, and so is the demand for energy. As the country moves forward new investments in clean energy and infrastructure are highly needed. Energy Modelling Lab has developed scenarios to reach the target of net zero by 2050 in Vietnam.


The power generation and storage capacity should be 30 times higher than the current capacity.

Electricity should primarily come from solar power combined with batteries.

Power transmission should be increased by 40% compared to the present capacity.

The Vietnamese economy and energy consumption is growing.

Download the Energy Outlook Report 2021 for Vietnam

The report is written by the Electricity and Renewable Energy Authority in Vietnam (EREA) along with the Danish Energy Agency. Energy Modelling Lab has contributed to both the analysis and the report.

Duration: 2020 – 2022

EML Team: Ida Græsted Jensen, Till ben Brahim and Kenneth Karlsson

Client: This project is part of the Framework contracts with Global Cooperation at the Danish Energy Agency

Budget: DKK 410,373

Reference: Ole Emmik Søresen, Head of Divison Corporation the Danish Energy Agency

Collaborators: Ea Energy Analyses, Institute of Energy, E4SMA, Aarhus University

Model: TIMES

The role of fossil gas in the Nordics

We participated in a research project exploring the role of fossil gas in the Nordics. The challenge of reducing the dependency on fossil gas differs between the Nordic countries. Therefore each country has its own set of challenges to solve.


Norway exports while Sweden and Finland import gas

Denmark is connected to central Europe and receives the gas mix in the grid from both Russia and Norway. (The Danish gas production is temporarily low due to maintenance of the Tyra Field).

Finland gets gas directly from Russia and through Estonia.

Norway exports a large amount of gas mainly to central Europe and partly to the Danish grid.

Sweden gets gas from the European grid through Denmark.

The import and export of fossil gas in the Nordic countries (2020). Source: Eurostat

Fossil gas use differs between the nordic countries

In Denmark around 350,000 buildings are heated by gas, and switching to district heating or heat pumps is a major task in the years to come.

Finland primarily uses gas for electricity and heat production and industry, especially pulp and paper and iron, and steel production consumes large amounts of gas. Switching to green energy sources in these processes is the primary task for Finland.

Norway does not have a high domestic gas use in the society as such, but fossil fuel extraction uses a large amount of gas today. Electrification of energy production can reduce fossil gas consumption substantially.

Sweden mainly uses gas for non-energy purposes such as fertilizer and plastics, but also for process heat in iron and steel production, chemical industry, and pulp and paper production.

The use of fossil gas differs between the Nordic countries. Source: Eurostat

If you want to dive into more details on the role of fossil gas in the Nordic countries, you can find the full analysis here. The analysis is made in collaboration with IVL and Energiforsk.

Duration: 2022

EML team: Kenneth Karlsson

Climate neutral agriculture in Denmark

The Danish agricultural sector is facing the green transition and many ideas have been proposed to reach climate-neutral agriculture in Denmark by 2050. In this brief, we suggest two pathways to climate neutrality to follow the general goals of a 70% reduction in 2030 and a 100% reduction in 2050.


70% greenhouse gas reduction by 2030

100% greenhouse gas neutral by 2050

No animal feed import by 2050

Technology-optimistic or technology-independent

The first scenario is a technology-optimistic scenario, while the second scenario to a larger extent can reach the goals without technological development. In both scenarios, a large increase in the forest areas is necessary such that the forest area in 2050 is approximately double the area of today.

In the technology-optimistic scenario, the amount of farm animals can be kept at the same level as today because the biogas and pyrolysis plants can reduce part of the emissions and the forests compensate for the rest of the emissions. In the technology-independent scenario, it is necessary to reduce the amount of farm animals to reach the climate targets.

Key figures

FOREST
1.000.000 ha, roughly 23% of the Danish land mass, must be covered in forest by 2050.

The forestation should happen sooner rather than later so 160.000 – 200.000 ha should be converted into forest already by 2030.

LOW LAND AREAS
100.000 ha of carbon-rich lowland soil should be converted into natural areas by 2030.

All 178.700 ha low land soil must be converted into nature by 2050.

ANIMALS
In a technology-optimistic scenario, with a sharp increase in forest area, animal production can remain the same size as today.

In a technology-independent scenario a 15% reduction in animal production by 2030, and a 30% reduction in 2050 relative to today is necessary.

If the steep forest area does not happen, a further reduction in animal production is necessary.

Read the full analysis


The model is open-sourced

Make scenarios yourself. Download the full model used for the brief from our GitHub repository.

Duration: 2021

EML-Team: Kenneth Karlsson and Ida Græsted