The global challenge of climate change has created an extraordinary level of opportunities and challenges
New businesses are being formed to capture value in emerging markets and shifting customer preferences
Established equipment manufacturers are modifying products and targeting new opportunities
Existing energy, process and chemical plants and facilities are shifting investments to reduce emissions through process improvements and new technology integration
New regulations and incentives are creating opportunities to produce lower carbon energy and fuels
The level of activity and capital investment taking place around the world associated with the great global transition is beyond unprecedented
Electric Grid Transformation - The growth in solar, wind power, energy storag eElectricity generation –
Electrification -
Transportation
Heating
Process shifting
New fuels and fuel synthesis
Carbon capture
The level of activity and capital investment taking place around the world associated with the great global transition is beyond unprecedented
Electric Grid Transformation - The growth in solar, wind power, energy storag eElectricity generation –
Electrification -
Transportation
Heating
Process shifting
New fuels and fuel synthesis
Carbon capture
The level of activity and capital investment taking place around the world associated with the great global transition is beyond unprecedented
Electric Grid Transformation - The growth in solar, wind power, energy storag eElectricity generation –
Electrification -
Transportation
Heating
Process shifting
New fuels and fuel synthesis
Carbon capture
Challenges and key questions remain
New technologies, changing market preferences, new regulations, and a shifting competitive frame create complexity of where to focus
Market demand and take-up rates uncertain, uncertain
The value proposition and solution economics uncertain
Designs and equipment availability and performance
Which regulations apply and what circumstances / how to meet requirements
Partnering
Sources of capital
Solutions
1)
Hydrogen Webinars & Presentations Available Online
Mr. Bradshaw, in association with the Hydrogen Energy Center, has conducted a series of hydrogen webinars which are available online. Topics range from Hydrogen Hubs to Hydrogen Fuel Cells for Transportation.
Improving business performance and identifying growth opportunities in changing markets
Velerity is a research and consulting firm that generates unique data and actionable insights that senior managers leverage for competitive advantage in fast moving energy and telecommunications’ markets. Velerity is laser focused on the timely delivery of unique data and insights covering customer preferences, disruptive technologies, changing regulations, competitors’ offerings, and emerging investment opportunities. Expertise in Hydrogen, Ammonia, Renewable Natural Gas, Synthetic Methanol, and Renewable Energy. Feel free to contact Brad Bradshaw to turn opportunities into results: brad@velerity.com
Hydrogen - Unparalleled Experience and Knowledge
Velerity has been extensively involved in hydrogen for the past 22 years, helping companies and governments understand markets, technologies, regulations and economics. Our work cuts across the entire hydrogen value chain, from production, to distribution and end-use, including the production of hydrogen derivatives. Preparing a winning hydrogen strategy requires having a severe understanding of hydrogen economics, system configurations, mass and energy flows, the selection and performance of equipment, and an understanding of what customers are willing to pay. Recent projects include:
Hydrogen Strategy for Puerto Rico - Developed Puerto Rico’s hydrogen strategy including: assessing Puerto Rico’s energy, environmental and economic circumstance; identifying and characterizing potential hydrogen initiatives for Puerto Rico; conducted stakeholder workshops to encourage input and feedback; prepared detailed financial and economic analysis of high priority use-cases; and prepared the hydrogen roadmap.
Preparation of $1.25 Billion Proposal for DOE Regional Hydrogen Hub - Participated in the development and preparation of the HALO (Hydrogen Arkansas Louisiana Oklahoma) proposal including: market, technology and economic analysis of individual projects; identifying key performance metrics to differentiate the proposal in line with the DOE’s FOA; and structured and prepared the first twenty pages of the proposal.
Hydrogen Strategy for $7 Billion Global Materials’ Manufacturer - Provided insight and information to senior leadership on the hydrogen market and specific business opportunities to identify potential hydrogen businesses.
Hydrogen Project Prioritization - Worked with a consortium of companies including natural gas, industrial gas, and power and electric companies to identify, characterize and select potential viable hydrogen projects. Analyzed the market demand and economics of several potential hydrogen projects, developed evaluation criteria, and screened potential projects, identifying the highest priority projects. Economic evaluations included understanding hydrogne production economics associated with wind, solar, hydro and nuclear hydrogen production pathways. Developed a particular expertise in understanding the North American ammonia market from production through distribution and use, including competition, production economics and end-user pricing.
Green Hydrogen and Renewable Natural Gas Project Development – Conducted detailed scoping studies for multiple green hydrogen and renewable natural gas projects in the Northeastern United States. Identified host properties, characterized feedstocks, and identified off-takers for project outputs. Modified project designs to optimize financial returns.
Preparing a Decarbonization and Hydrogen Plan for Fifth Largest Wastewater Treatment Plant in the United States - Conducting a detailed engineering and financial analysis of the opportunity to capture and reuse carbon emissions of a very large wastewater plant to reduce carbon emissions of the plant’s gas turbines. Evaluating the opportunity to generate hydrogen onsite to synthesize methane and methanol, Conducting detailed technical and financial analysis of the facility’s decarbonization pathways.
Hydrogen Strategy Development
Hydrogen and Hydrogen Derivatives Market Assessment - Core to the development of a hydrogen strategy is having a firm understanding of hydrogen and hydrogen derivatives’ markets, including hydrogen, ammonia, methanol, sustainable aviation fuel and methane. An understanding of markets requires aligning segment information and insights with key use-cases, including truck fueling, ammonia for fertilizer and power generation, shipping fuel, aviation fuel, energy storage, and backup power among others.
Clean Hydrogen Production Economics - Critical to the development of hydrogen markets and businesses is having a detailed understanding of the economics of hydrogen production. Hydrogen production costs vary widely depending on the source, scale and configuration. Large scale steam methane reformation is the dominant method of hydrogen production, and delivers the lowest cost. Hydrogen can be produced from renewable and nuclear energy using electrolysis, and it can be derived from biomass-based feedstocks as well as biogenic sources. Clean hydrogen can also be produced through SMR with carbon capture and sequestration as well as methane and biomass pyrolysis.
Hydrogen Distribution - Currently most hydrogen in the world is consumed in the same place it is produced. This is due to the great difficulty associated with cost effectively transporting hydrogen. The development of infrastructure is a critical part of connecting low cost sources of hydrogen with hydrogen markets, and the great interest in converting hydrogen to ammonia, methanol and sustainable aviation fuel to facilitate connecting supply with ready markets.
Technical Design & Configuration - Modeling hydrogen use cases requires beginning with a design basis and configuration, followed by building our single line drawings that map out energy and mass flows and balances through a system. The design of a hydrogen system requires identifying specific pieces of equipment as part of the design, including knowing equipment operating performance.
Financial Modelling & Optimization - Velerity has significant experience preparing detailed operating and financial models of hydrogen and related system designs and use cases. The modelling requires detailed inputs including income statement covering revenues and operating costs, as well as detailed investment and capitalization.
Equipment Sourcing & Supplier Selection - The selection of equipment and suppliers is a critical step in developing hydrogen projects. This is particularly critical given the relatively early stage of much of the industry, and the potential for taking on certain risks associated with equipment efficiency and performance over time.
Partnering & Project Management - The implementation phase of hydrogen projects is critical in terms of meeting deadlines and getting to desired outcomes.
Services for Equipment Manufacturers
Business Planning and Raising Capital - Significant investments in time and resources are required to move products from the lab bench to commercial readiness. The development pathway cannot risk having any missteps in market targeting or beta customer selection. Having a firm understanding of customer preferences and buying decisions can benefit early stage companies in developing financeable and actionable business plans. Velerity has written over fifty business plans and helped clients raise over a quarter billion dollars to fund their businesses.
Sourcing & Manufacturing - Building out production capacity can be accomplished with a “capital light” approach, leveraging extensive local, national and global production capacity through partnerships and alliances.
Partnering, Pilots and Demonstrations - Building a business is all about establishing credibility with customers and investors. The development of sub-scale pilots and demonstrations is a critical step to prove out technical capabilities and economic business cases.
Sales, Marketing and Distribution - Developing an effective marketing and sales plan must consider using existing market channels and partners, to leverage limited resources and accelerate market adoption. Velerity has experience developing and implementing effective sales and marketing plans including channel partnering.
Services for Gas LDC’s
Gas local distribution companies are facing significant challenges to their core business model, with twenty-four states legislating significant carbon emission reductions by 2050. Current initiatives around the country that are contrary to gas company interests include cities disallowing new gas hookups, and pipelines extensions to add new customers being thwarted. There are loud calls around the country for broad electrification, including transportation and building heat, to address carbon emissions and global emissions.
Future Visioning and Stakeholder Assessment - Establishing a shared vision and commitment is critical to support execution of any strategic plan. Gas companies are facing an uncertain future, with many perspectives perhaps contributing to limited action in the short term.
Leveraged Growth Strategies - There are many potential regulated and unregulated products and services that a gas LDC can offer customers. The key is to institute a process by which the highest priority products and services can be identified for development and implementation. Each potential product and service can be characterized based on the attractiveness of the opportunity, as well as the fit with each LDC’s unique skills and capabilities. The key is to apply a robust process by which LDC’s can focus on the most valuable growth initiatives.
Policy Development - The development of a consistent and targeted policy strategy is critical for LDC’s to remain whole through the energy transition, and to make sure that customer and societal needs are met. The playing field for gas LDC’s is not even with the electric power industry, with significant incentives tied to renewable electricity, with mechanisms such as the federal solar investment tax credit, the regional greenhouse gas incentive (RGGI) program, and various state-level solar incentive programs (Solar Renewable Energy Credits, etc.). The gas industry will benefit from policies such as (1) Rate-basing RNG interconnection and upgrading costs; (2) Implementing a gas RPS with a credit trading program; (3) Federal and state tax incentives for RNG project investments; (4) Allowing tariffs for RNG gas purchasing; and (5) Funding for RNG demonstration and pilot programs.
RNG Sourcing & Supply - The early stage of the RNG supply market requires applying a systematic approach to driving down cost as quickly as possible. This requires finding optimal RNG project opportunities within a region and leveraging market players to develop that resource cost effectively. Project development has a long time scale and requires significant capital expenditures for equipment and the build out. Consequently, developers will benefit from long term gas purchase agreements (GPAs) and strong partnerships.
RNG Project Development - Services include (1) market assessment and site qualification; (2) technical design and configuration; (3) financial modelling and optimization; (4) equipment sourcing and supplier selection; and (5) partnering and project management.
Partnering and Capital Raising - LDC’s can benefit from jointly developing RNG projects, to reduce capital requirements, reduce single project risk, to gain project experience without much exposure or high capital investment requirements, and to aggregate needed project, capital and technical competencies, capabilities and resources. Services include (1) developing and implementing a partnering program; and (2) preparing project documents to facilitate partnering and raising capital.
Services for RNG, Biogas & Hydrogen Project Developers
Market Assessment & Site Selection - Site selection and customer host selection is a critical first step in RNG project development. The development of sites requires integrating and modelling an array of dynamic project variables that impact project economics, considering biomass sources, transportation costs, scale efficiencies, biomass processing and digestion solutions, gas upgrading solutions and costs, and pipeline interconnection requirements and costs.
Technical Design & Configuration - RNG can be sourced from a variety of biomass sources, including (1) biogas from anaerobic digesters using sewage sludge, agricultural manure and food waste; (2) biogas from landfills; (3) a wide spectrum of pyrolysis of biomass sources and waste. Each of these configurations has a variety of commercial readiness and dynamics regarding biomass sources, technical efficiencies, and cost characteristics. Optimizing across these technologies and making strong design choices is critical at the outset as a key ingredient to determining project cost effectiveness and ultimate success.
Financial Modelling & Optimization - Velerity has been evaluating multiple RNG project opportunities over the past five years, building complex financial and technical models in order to design projects that maximize project returns. these evaluations have included wood waste pyrolysis, sewage sludge digestion, cow manure digestion, and green hydrogen integration. Critical to building a profitable RNG project is the identification of off-takers for the renewable gas attributes, including the EPA RIN market, California’s Low Carbon Fuel Standard market, and the Oregon Low Carbon Fuel Standard market.
Equipment Sourcing & Supplier Selection - The evaluation and selection of equipment and suppliers is a critical step in developing RNG projects. This is particularly critical given the relatively early stage of much of the industry, and the potential for taking on certain risks associated with equipment efficiency and performance over time. this includes the selection of digester equipment and suppliers, gas upgrading equipment, and electrolyzer selection, as examples.
Partnering & Project Management - The implementation phase of an RNG project is critical in terms of meeting deadlines and getting to desired outcomes. Permitting requirements, for example, are broad and varied, requiring patience and persistence, covering site specific permitting as well as transportation requirements. The integration of equipment delivery and contractor and construction teams needs to be well orchestrated to ensure smooth project progress.
Management Consulting
Velerity helps clients create and implement actionable strategies to accelerate performance. Velerity works with senior managers to quickly establish strategic and tactical clarity, facilitate broad based organizational commitment and excitement, and develop and implement practical action plans. Our consulting practice is unique and differentiated by an emphasis on fact-based decision making, and side-by-side strategy development. Velerity’s management consulting practice areas include:
Leveraged Growth – Velerity’s Leveraged Growth practice is predicated on finding growth opportunities which best leverage your organization's key competencies, specific assets, and unique capabilities. Success in the marketplace requires structural competitive advantage, and having a leveraged growth strategy will give you that advantage.
Product and Market Strategy - Market success requires knowing the voice of the customer. Velerity Consulting's Market Strategy practice starts by establishing a deep understanding of customer needs and interests. Customers needs are then translated into winning product and service requirements. Requirements for success are defined and made clear. For more information on Velerity Consulting's Market Strategy practice, please click here.
High Performance Enterprise - Establishing a high performance enterprise requires aligning your organizations strategy and ambitions with your organization's business processes, technologies, and human resources. Velerity Consulting's High Performance Enterprise practice begins with completing a thorough organizational audit and the development of an action plan. For more information on Velerity Consulting's High Performance Enterprise practice, please click here.
Benchmarking and Scoping Studies – Velerity also performs benchmarking and scoping studies for clients, helping clients quickly assess market, technology, regulation and competitive circumstances. These scoping studies are quick-turn around custom analyses that focus on a particular area of interest for clients.
Financial and Business Case Modelling – Velerity also provides clients custom business case analyses for specific market and technology applications, and prepares financial pro-formas for business plan development and capital raises.
Energy Storage Strategies
Energy storage is at the core of the most radical market transformation roiling energy and transportation industries. Energy storage provides a solution for smoothing out variable renewable energy and variable demand, enabling higher penetrations of renewable energy, helping customers reduce their demand charges, while giving utilities the opportunity to defer T&D investments while lowering the cost of ancillary services. Entire asset classes worth billions of dollars will be stranded while billions of dollars in capital investments will be made throughout energy and transportation value chains to capitalize on this unprecedented business and investment opportunity.
Velerity is your partner to help you navigate the risks and capitalize on the opportunities in energy storage. Energy Storage Strategies addresses key industry questions and topics