Europe Looks Overseas to Buy Green Energy as Startups See Opportunities in Natural Hydrogen

The transition to renewable energy has become a major focal point for governments around the world. This news update brought to you by Ideal Power offers a round-up of some of the most important headlines on renewable energy and the market opportunities associated with them.

This month, we'll look at how European leaders are tapping their neighbor to the south for much-needed sourcing of renewable energy and how a facility previously used to refine oil is being repurposed as a green-energy storage facility. Additionally, most of the residents in eight western U.S. states support a transition to 100% renewable energy, and a new study suggests oil drillers may one day be exploring for an entirely new green-energy resource.

Europe looks to sun-rich North Africa to source its renewable energy

Some European leaders trying to replace Russian energy sources are looking across the Mediterranean Sea for solutions, creating a new way for northern Africa to monetize its massive solar and wind farms.

According to the Yale School of the Environment, solar panels in northern Africa generate up to three times the amount of solar energy that panels in Europe do, making them an excellent source of renewable power for Europe. Additionally, northern Africa is much more sparsely populated than Europe, with its population density of 87 people per square mile.

In the Moroccan desert, a proliferation of wind and solar farms was originally aimed at providing massive amounts of renewable energy to North Africa. However, as Europe deals with its energy crisis, a growing number of deals is leading to submarine cables connecting Africa's energy mega-farms to various parts of Europe.

Morocco had already been exporting solar energy to Spain via underwater cables, and it signed another agreement with the European Union to increase its energy exports last year. Meanwhile, Egypt is now looking at three proposals to build underwater cables to link its green energy sources to Greece.

Yet another planned underwater cable would link new solar farms in the Tunisian desert to the electric grid in Italy. The World Bank and European Union have already promised to fund construction of that cable.

However, the largest and most ambitious project yet calls for building the longest high-voltage underwater cable in the world, running from Morocco's massive energy farms, along the coastlines of Portugal, Spain and France, and to southwestern England, where it would supply 8% of the U.K.'s electricity. Executives at Xlinks have said the submarine cable could begin providing power to the U.K. as early as 2027 and be finished by 2030.

Oil refinery to be repurposed as storage for renewable energy

One potential concern for oil majors is what will happen to their equipment and other assets once the transition to clean energy is complete. However, those assets could find new life supporting the renewable energy economy.

A former oil refinery in Lancashire, England is slated for repurposing as a storage facility for electricity produced via green energy. The 100 MWh storage facility would store energy generated by solar panels, wind farms and tidal energy and then supply it to the U.K.'s national grid whenever needed.

A report provided to the planning committee stated that renewable electricity is a critical part of the U.K.'s plan to be net-zero by 2050. Among the facilities proposed for the site by Infrabalance New Energy are storage and battery equipment, a welfare cabin for use by workers, control rooms, and security cameras and fencing. The facility is located near a nuclear power station and a port that serves as a supply base for major offshore wind farms and gas fields.

U.S. Westerners support transition to 100% green energy

Meanwhile in the U.S., officials are also driving ahead the transition to clean energy. A recent survey of residents in several western states indicates that the majority support 100% renewable energy and less oil drilling.

Colorado College's "Conservation in the West" poll has surveyed registered voters in Arizona, Colorado, Utah, Idaho, Nevada, Wyoming, Montana and New Mexico for more than 10 years. The results of the 2023 survey show that two-thirds of voters in those eight states want 100% of their energy to come from "clean, renewable sources like solar and wind" within the next 10 to 15 years.

Additionally, 68% said they want Congress to prioritize clean water and air, recreation, and local wildlife habitation rather than fossil fuel extraction on public lands.

Tapping hidden geological hydrogen

Amid the soaring commodity prices in 2022, some investors might be interested in the possibility of a new energy-related commodity emerging.

A recent article on Science.org highlighted the discovery of a store of geological hydrogen in Mali that backs up a model presented by the U.S. Geological Survey at a meeting of the Geological Society of America in October. The U.S. Geological Survey had suggested that the Earth could hold enough natural hydrogen to meet the burgeoning demand for energy for thousands of years.

In 2022, the American Association of Petroleum Geologists created its first committee to study natural hydrogen, and the USGS started to look for promising zones for hydrogen production in the U.S. Natural Hydrogen Energy, a startup exploring for natural hydrogen stores, completed the first hydrogen borehole in the U.S. in 2019.

Today, dozens of startups are now grappling for the rights to explore for hydrogen in various parts of the world as interest in natural hydrogen as a clean, carbon-free energy source is skyrocketing. Official efforts to search for hydrogen were galvanized in 2022 when Russia shut off its supply of natural gas to Europe.

If natural hydrogen can be found in sizable reserves, oil and gas drillers may find a new, more eco-friendly use for their skills and experience.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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