Publications

Middle East region : a great opportunity for Quantum Technology

June 25, 2024

The Middle East is gradually making strides in the field of quantum technology, a new paradigm that is possible because of a unique political, business and ecosystem landscape, such as :

Quantum Politics:

Traditional geopolitics is evolving into a new paradigm known as “quantum politics” in the Middle East.
This shift involves partnerships that transcend geography, a lack of ideological alignment, and a focus on cooperation over defense.

Driving Factors:

Oil revenues drive investments in technology to diversify economies beyond oil dependency.
Political stability in countries like Saudi Arabia, the UAE, and Qatar encourages quantum initiatives.

UAE’s Quantum Efforts:

Abu Dhabi hosts the Quantum Research Center (QRC) at the Technology Innovation Institute.
The QRC collaborates with Qilimanjaro Quantum Tech to lay the foundations for producing quantum chips.
These capabilities unlock algorithmic possibilities that conventional computers cannot achieve in a lifetime.

The Middle East is catching up with international players and its commitment to quantum research is promising for an outstanding delivering; Middle East’s approach certainly lays ground for boosting the economy and in particular to bring business opportunities, for instance:

Quantum Computing Services:

Offer consulting, development, and implementation services for organisations looking to harness quantum computing power.
Develop quantum algorithms and software tailored to specific industry needs.

Quantum Cryptography:

Provide secure communication solutions based on quantum key distribution (QKD) protocols.
Quantum-safe encryption services for protecting sensitive data.

Quantum Sensors and Metrology:

Develop and commercialise quantum sensors for applications in navigation, geophysics, and medical imaging.
Explore opportunities in precision measurements and quantum-enhanced metrology.

Quantum Machine Learning:

Combine quantum computing with machine learning techniques.
Develop quantum algorithms for optimisation, pattern recognition, and data analysis.

Quantum Materials and Hardware:

Research and develop novel materials for quantum devices.
Explore partnerships with hardware manufacturers to create quantum processors and components.

Education and Training:

Offer workshops, courses, certifications, conferences, and webinars to educate businesses on quantum technologies.
Educate businesses and professionals about the potential impact of quantum computing.
Foster awareness among decision-makers and potential investors.

Research and Development (R&D):

Collaborate with universities, research institutions, and government bodies to advance quantum research.
Explore partnerships for joint R&D projects focused on quantum algorithms, materials, and hardware.

Startups and Entrepreneurship:

Establish startups that specialise in quantum software, consulting, or applications.
Leverage government support and incubators to foster quantum entrepreneurship.

Government Initiatives and Funding:

Stay informed about government initiatives promoting quantum technology.
Apply for grants, subsidies, or funding to accelerate quantum projects.

Industry-Specific Applications:

Identify sectors where quantum computing can make a significant impact:

Finance: Optimise portfolio management, risk assessment, and fraud detection.
Healthcare: Explore drug discovery, personalised medicine, and genomics.
Energy: Optimise grid management and resource allocation.
Logistics: Improve supply chain optimisation and route planning.

Collaboration with Global Players:

Partner with multinational companies investing in quantum research.
Explore joint ventures or technology transfer agreements.

A market size not to be overlooked.

When it comes to quantum technology, quantum computing comes first in mind; the Middle East and Africa quantum computing market is gaining momentum. According to Data Bridge Market Research, the market is expected to exhibit a CAGR of 25.20% from 2021 to 2028. Here are some key insights:

Market Segmentation:
System Types: The market includes both single qubit and multiple qubit quantum systems.
Qubits: These include trapped ion qubits, semiconductor qubits, and superconducting qubits.
Offerings: Quantum computing solutions are offered as systems and services.
Deployment Models: Quantum solutions can be deployed on-premises or in the cloud.
Application Areas: Quantum technology finds applications in cryptography, simulation, machine learning, and more.
Verticals: Industries such as banking and finance, healthcare, defense, and automotive are adopting quantum solutions.
Regional Focus:
Countries like the United Arab Emirates (UAE), Saudi Arabia, and Israel are actively participating in quantum research and development.
The UAE, in particular, is building its first quantum computer to compete globally.

Key drivers for quantum adoption

Even though companies and institutions are aware of the potential of quantum tech, the Middle East is actively embracing quantum technology and its adoption, thanks to several key factors:

Oil Revenues and Diversification:

Countries like Saudi Arabia, the UAE, and Qatar are investing petrodollars into technology to diversify their economies beyond oil.
Quantum research and development offer a strategic path for economic diversification.

2. Political Stability:

The region’s stability provides a conducive environment for long-term technological investments.
Governments recognise that quantum capabilities are critical for national security and economic development.

3. Strategic Vision:

Building a quantum computer is just the beginning. The UAE, for instance, aims to develop leadership in advanced technology.
Quantum initiatives are part of a broader vision to create sovereign technological strategies.

4. Education and Talent Development:

Quantum efforts must merge with universities and engage industry.
Educating the population ensures readiness for new technologies and fosters reasonable progress.

International positioning

While the United States and China currently lead in quantum computing and cryptography development, countries in the Middle East, namely the United Arab Emirates (UAE), Saudi Arabia, and Qatar, are quickly emerging as significant players in this field.

United Arab Emirates (UAE):

The UAE has established the Quantum Research Center (QRC) in Abu Dhabi. In collaboration with Barcelona-based startup Qilimanjaro Quantum Tech, the QRC is making strides in quantum research and aims to produce its first simple quantum chips.

Quantum Research Center (QRC):

The Quantum Research Center, part of the Technology Innovation Institute (TII), is driving quantum technologies in the region.
Led by globally recognized experts, they focus on quantum cryptography, quantum communications, and quantum sensing.
Their work spans basic research and pioneering new projects.

Building a Quantum Computer:

Abu Dhabi has embarked on building the region’s first quantum computer.
The project aims to compete with global players like Google and IBM, and giant cooling “chandeliers” will be constructed in UAE labs.

Milestone for the Region:

This effort marks an important milestone for the UAE in the breakthrough era of quantum computing.
The UAE recognizes the need to catch up with global investments in quantum technology.

2. Saudi Arabia:

Saudi Arabia is investing in quantum initiatives, driven by oil revenues and political stability.
Universities in Saudi Arabia have launched quantum computing research groups to cultivate homegrown knowledge of this transformative technology.

3. Qatar:

Qatar is also actively exploring quantum computing.
While these Middle Eastern nations are still catching up, their commitment to quantum research and development is noteworthy.

OUTLOOK : two important players

Mubadala, Abu Dhabi’s sovereign investment company, has shown interest in the field of quantum technology. Here are some relevant investments:

IonQ Investment:

Mubadala co-led a $55 million investment round in IonQ, a leader in universal quantum computing. IonQ’s trapped-ion quantum computer aims to make quantum capabilities accessible to businesses.

2. Aligned Data Centres:

Mubadala invested in Aligned Data Centres, a pan-Americas data center company. The exact investment amount was not disclosed, but it establishes Mubadala as a minority partner in the company.

While Mubadala’s quantum involvement is still growing, these investments demonstrate their commitment to cutting-edge technologies.

Aramco, one of the world’s leading integrated energy and chemicals companies, has taken a significant step in the realm of quantum technology. Here’s what you need to know:

Agreement with Pasqal: Aramco has partnered with Pasqal, a global leader in neutral atom quantum computing, to install the first quantum computer in the Kingdom of Saudi Arabia.
Quantum Computer Details:
Pasqal will deploy a 200-qubit quantum computer in the second half of 2025.
Initially, the system will use an “analog mode”, and later, it will be upgraded to a more advanced “analog-digital mode” for solving complex problems.
Ambitious Vision:
Aramco and Pasqal aim to establish a powerhouse for quantum research within Saudi Arabia.
This collaboration could foster breakthroughs in quantum algorithm development, unlocking the true potential of quantum computing.

Surely a lot to look forward to!

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Focus on Corporate Venture Capital (CVC)

March 19, 2024

Corporate Venture Capital (#CVC) is the practice where a large firm takes an equity stake in a small but innovative or specialist firm with the objective in gaining a specific competitive advantage.

1/. Understanding CVC

CVC refers to the investment of corporate funds directly in external startup companies. It is different from venture capital (#VC); rather, it is a specific subset of venture capital.

2/. Objective of CVC

CVC has two hallmarks: its objective and the degree to which the operations of the startup and investing company are connected. It commonly strives to advance strategic objectives.

a/. Strategic Capabilities Development:

CVC aims to enhance the strategic capabilities of the parent corporation. By investing in startups or innovative ventures, the corporation gains exposure to new technologies, business models, and market trends.
Startups often operate at the forefront of emerging fields, and their insights can inform the parent company’s strategic decisions. CVC provides a way to stay informed about industry shifts and disruptions1.

b/. Financial Returns:

While strategic alignment is crucial, CVC investments are not purely altruistic. Corporations seek financial returns from their venture capital activities.
By investing in promising startups, the parent company aims to generate profits through equity appreciation, successful exits (such as acquisitions or IPOs), or dividends from portfolio companies2.

c/. Access to New Technologies and Markets:

CVC allows corporations to gain access to cutting-edge technologies, products, and services. Startups often pioneer innovations that can complement or enhance the parent company’s existing offerings.
Additionally, CVC provides an avenue for entering new markets or expanding existing ones. It’s a strategic way to diversify revenue streams and explore growth opportunities3.

d/. Insights into Disruptive Trends:

Startups operate in dynamic environments and are quick to adopt disruptive technologies. By investing in them, corporations gain insights into emerging trends.
These insights can inform the parent company’s product development, competitive positioning, and overall business strategy. CVC acts as a radar for identifying game-changing innovations2.

e/. Resource Access and Collaboration:

CVC facilitates collaboration between startups and the parent company. It opens doors to shared resources, expertise, and networks.
Whether it’s access to research facilities, manufacturing capabilities, or distribution channels, startups benefit from the parent company’s assets. In return, the corporation gains exposure to fresh ideas and entrepreneurial energy4.

In summary, CVC serves a dual purpose: strategic alignment with the parent company’s goals and the pursuit of financial returns. It’s a dynamic approach that combines innovation, investment, and strategic thinking to create value for both parties5.

3/. Benefits of CVC

CVC can accelerate internal innovation efforts2. It provides money, corporate resources, market access, and experience to help startups succeed5.

a/. Built-In Distribution Networks:

Startups often face challenges in reaching new users and expanding their customer base. Corporate venture capitalists (CVCs) provide access to established distribution networks. This can significantly accelerate a startup’s product reach and adoption.
Unlike traditional venture capital firms, CVCs can leverage their parent company’s existing customer relationships, sales channels, and industry connections to help startups distribute their products or services more effectively6.

b/. Access to Parent Company Assets:

CVCs have a unique advantage: they are part of a larger corporation. This means startups can tap into the resources, expertise, and infrastructure of the parent company.
Whether it’s technology, intellectual property, manufacturing capabilities, or research facilities, startups benefit from access to these assets. It can enhance their product development, reduce costs, and accelerate growth7.

c/. Increased Credibility with Other Investors:

When a startup secures investment from a reputable CVC, it gains credibility in the eyes of other investors. The endorsement from a well-established corporation signals confidence in the startup’s potential.
This credibility can attract additional funding from other venture capital firms, angel investors, or strategic partners. It validates the startup’s business model and reduces perceived risk7.

d/. Potential Built-In Exit Opportunity:

CVCs often invest with a long-term perspective. While traditional venture capitalists seek high returns through an eventual exit (such as an IPO or acquisition), CVCs may be more patient.
Startups backed by CVCs may have the opportunity to be acquired by the parent company itself. This built-in exit path can be advantageous, especially if the startup aligns with the parent company’s strategic goals7.

In summary, CVCs offer a unique blend of financial support, industry expertise, and strategic advantages. For startups, partnering with a CVC can open doors to growth, resources, and market opportunities that might not be available through other funding sources3 8.

4/. Challenges of CVC

Managing a successful CVC unit is difficult and involves many hurdles and often fails to deliver the expected outcomes.

a/. Internal Challenges:

Justification of Existence: CVC units often grapple with proving their “right to exist.” The impact of CVC investments is typically seen over the medium to long term, making it challenging to demonstrate immediate financial gains. Balancing the interests of various stakeholders within the organisation can be tricky.
Alignment with Company Priorities: As C-suite members’ average tenure shortens, CVCs must adapt swiftly to changes in the company’s strategic agenda. Keeping pace with shifting priorities can be demanding9.

b/. External Challenges:

Competition from Private Equity: Corporate investors are increasingly investing larger sums and focusing on later-stage deals. Simultaneously, private equity investors are moving toward smaller ticket sizes and earlier-stage deals. This overlap creates competition for the same startups.
Cost Pressure and Risk Aversion: The Covid-19 pandemic has intensified cost-cutting measures and reduced risk appetite. Companies have had to adapt to virtual interactions for finding investment targets, due diligence, and engagement with startups.
Innovation Strategy Rethink: Some companies have reevaluated their entire innovation strategy, given the shift to virtual interactions and changing market dynamics9 10.

c/. Operational Pitfalls:

Lack of Flexibility: CVCs may resist considering alternative approaches due to rigid processes.
Excessive Due Diligence: Lengthy due diligence processes can hinder agility.
Deal Negotiations: Focusing on long-term relationships (like venture capitalists) rather than short-term transactions can lead to difficult negotiations11.

d/. Superincumbent’s Dilemma:

The traditional venture capital model has a success rate of 20% to 30%. In contrast, a proven corporate venturing model achieves a success rate of 66%.
This model helps overcome the superincumbent’s dilemma: high market share, low revenue growth, and investor skepticism about corporate diversification12.

In navigating these challenges, CVCs must strike a balance between strategic alignment, financial returns, and adaptability to thrive in the ever-evolving venture capital landscape9 10.

5/. Example of major players in the CVC world.

Let’s explore some of the major players in the CVC landscape:

GV (Google Ventures) (GV):

GV, the venture capital arm of Google’s parent company Alphabet, is one of the most active CVC investors. It has backed companies like Kensho Technologies, Flatiron Health, Blue Bottle Coffee, and Uber 13.

Intel Capital :

Intel’s investment arm, Intel Capital, focuses on technology startups. It has invested in companies such as One97 Mobility Fund, DocuSign, Razer Inc., and Virtustream 13.

Qualcomm Ventures:

Qualcomm Ventures, affiliated with Qualcomm Inc., supports startups in the tech and telecommunications space. Notable investments include Xiaomi Technology, Magic Leap, Fitbit (now part of Google), and CRUISE AUTOMATION LTD 13.

Salesforce Ventures:

Salesforce Ventures, associated with Salesforce, invests in cloud computing, enterprise software, and customer relationship management (CRM) startups. It has backed companies like Dropbox, MuleSoft, DocuSign, and Twilio 13.

Novartis Venture Fund :

Novartis Venture Fund focuses on healthcare and life sciences. Its investments include Intellia Therapeutics, Inc., AVILA THERAPEUTICS, INC., ALIOS BIOPHARMA, INC., and Aileron Therapeutics 13

Johnson & Johnson Innovation’s Science & Partnering Forum / Johnson & Johnson Innovation JJDC Inc :

Johnson & Johnson’s innovation arm invests in healthcare startups. Notable investments include Neotract, Protagonist Therapeutics, and Padlock Therapeutics, Inc.13.

Samsung Ventures :

Samsung Ventures, based in Asia, actively participates in CVC. It seeks opportunities in technology, consumer electronics, and related fields13.

Bertelsmann Investments :

Another Asia-based investor, Bertelsmann Asia Investments, focuses on media, entertainment, and technology startups13.

Mitsui & Co. Global Investment Ltd.:

Mitsui & Co., a Japanese conglomerate, engages in CVC to explore emerging technologies and markets13.

These companies play a crucial role in shaping the startup ecosystem by providing funding, expertise, and strategic support. Keep in mind that the CVC landscape is dynamic, and new players may emerge over time13 14.

Conclusion

1/. Current Trends in CVC: In the past two decades, a significant proportion of Fortune 100 companies have built corporate venture capital units1.

a/. Larger, Later-Stage Investments:

CVCs are shifting their focus towards larger, more mature companies. Unlike past strategies that emphasized early-stage startups, there’s now a clear preference for companies closer to maturity.
This trend reflects a desire for less risk and higher potential returns15.

b/. #AI Investments Remain Strong:

Despite global declines in venture capital funding, investments in artificial intelligence (AI) and #fintech start-ups have been a bright spot.
Europe saw modest growth (7% quarter over quarter) due to an influx of AI-related investments16.

c/. Seed-Stage Funding Resilience:

Seed-stage deals have emerged as the most robust funding stage, growing by 17%. The lower barriers to entry in generative AI applications have led to more startups sprouting up.
Investors are capitalising on this opportunity, even amidst macro uncertainty16.

d/. Corporate Venture Capital Participation:

Deals involving CVCs accounted for 20% of all funding in 2023, maintaining a steady share despite overall funding downtrends.
Both the number of CVC-funded deals and CVC investors increased in the fourth quarter of 2023, driven by strong participation in AI-focused funding rounds16.

d/. Foundational Technology Investments:

Investments in companies building foundational technologies, including large language models (LLMs), surged last year and continue to thrive.
LLMs and other transformative technologies are shaping industries across the board16 17.

In summary, CVCs are adapting to changing market dynamics, emphasizing AI, and seeking strategic investments that balance risk and potential rewards. The landscape remains dynamic, with ongoing shifts in funding preferences and technology-driven opportunities.

2/. Future of CVC

With the increasing pace of innovation and the broadening competitor landscape, external innovation becomes very important1.

The future of Corporate Venture Capital (CVC) holds both challenges and exciting opportunities.

a/. Resilience and Adaptability:

Despite the volatility of 2023, CVCs are demonstrating resilience. Unlike previous cycles, where economic downturns led to CVC retreat, today’s CVCs are cautiously opportunistic.
Corporations leverage their financial strength to spot and seize investor-friendly deals that emerge due to the overall retreat in the venture capital market18.

b/. Focus on Efficiency and Effectiveness:

Conversations among CVC leaders increasingly center on doing the work more effectively rather than mere survival.
The optimism and resilience within the CVC community suggest a productive year ahead. CVCs are adapting to market challenges and seeking ways to enhance their impact18.

c/. Strategic Resilience:

CVCs are no longer solely reactive during tough times. They strategically navigate economic uncertainty, identifying opportunities even amidst market fluctuations.
Rather than retreating, CVCs are cautiously investing, leveraging their financial positions to secure promising deals18.

d/. Emerging Sectors and Transformative Technologies:

The future of venture capital lies in dynamic adaptation. VC firms will continue to drive innovation and entrepreneurship by aligning with emerging trends, technologies, and global challenges.
Sectors like AI, fintech, and foundational technologies will shape the next wave of innovation and economic growth1.

e/. Collaboration with Startups:

Start-ups recognize the value of working with corporates. CVCs will increasingly collaborate with innovative ventures to access cutting-edge technologies and market insights.

In summary, the future of CVC involves resilience, adaptability, and strategic agility. As the venture landscape evolves, CVCs will play a pivotal role in shaping innovation and driving growth.

Last tips : A must read – the Boston Consulting Group (BCG) x Natixis Corporate & Investment Banking joined study here. You might also look at the work done at Bpifrance and Sequoia Capital .

References :

1. Corporate venture capital: Three keys to success | McKinsey

2. What is corporate venture capital? – PitchBook

3. Corporate Venture Capital – What Is It, Examples, Advantages

4. Guide to Corporate Venture Capital – BVCA

5. Corporate Venturing – Definition, Benefits, Examples

6. The Three Benefits Of Corporate Venture Capital (And How To … – Forbes

7. Corporate Venture Capital: Unique Benefits of CVC Funds

8. Making Sense Of Corporate Venture Capital: How Fortune 500 Companies …

9. Challenging times for corporate venture capital | Roland Berger

10. How To Bypass The Usual Operational Pitfalls Of Corporate Venture Capital

11. Steer Clear of Corporate Venture Capital Pitfalls

12. A Proven Model for Corporate Venturing – Boston Consulting Group

13. The Top 20 Corporate Venture Capital Firms – CB Insights

14. 15 Top Venture Capital Firms in the World (2024 Updated) – DealRoom

15. Global Venture Capital Outlook: The Latest Trends

16. Corporate Venture Capital Trends: Insights & Future Outlook

17. Corporate Venture Capital Trends – Morgan, Lewis & Bockius

18. Riding the Wave: The Changing Face of Corporate Venture Capital in 2024

Image credit : Freepik.

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Vertical Farming : an urban solution.

January 2, 2024

1/. Vertical farming, a new way of growing plants.

Vertical farming is a method of growing plants indoors, using artificial lighting and controlled environments. It has many advantages over traditional farming, such as saving water, land, and energy, reducing pesticide use, and increasing crop yield and quality. Vertical farming is also a way to address the challenges of food security, climate change, and urbanisation.

Vertical farming is growing rapidly around the world, especially in regions with high population density and limited arable land. Some of the factors driving this trend are:

We can highlight some examples of vertical farming projects that are attracting worldwilde attention:

ECO1 from Crop One Holdings, Emirates Crop One (Bustanica) ( Craig Ratajczyk ) in #Dubai: This is claimed to be the world’s largest vertical farm with a capacity of 900 tonnes per year. It produces leafy greens such as spinach and arugula without using any pesticides or chemicals. It supplies fresh produce to Emirates passengers from July 2022.
Bowery Farming in #New York: This is one of the first commercial vertical farms in the US that uses hydroponic systems to grow tomatoes indoors. It has a capacity of 10 tonnes per year and sells its produce to local restaurants and retailers.
Plenty® in #California: This is a company that operates several vertical farms across the US that use aeroponic systems to grow microgreens indoors. It has a capacity of 100 tonnes per year and sells its produce to various customers through online platforms or direct delivery.

Despite the anticipated bright future of Vertical farming, it does not come without challenges or limitations. Some of the issues that still need to be addressed are:

Worth noting Vertical farming is an emerging trend that has the potential to transform agriculture in the future. It offers many benefits for both producers and consumers who want to enjoy fresh, local, organic food while reducing their environmental footprint. However, it also faces some challenges that need to be overcome before it can become widely adopted.

2/. A solution for Food security

Vertical farming has many benefits for food security, such as:

Saving water: Vertical farming uses much less water than conventional farming, as it recycles the water used for irrigation and reduces the evaporation losses. According to one study, vertical farming can reduce water consumption by up to 90 percent.
Saving land: Vertical farming uses much less land than conventional farming, as it can grow crops in vertical layers or stacked structures that occupy less space. According to another study, vertical farming can increase the land use efficiency by up to 50 percent.
Reducing pesticide use: Vertical farming eliminates the need for chemical crop protection, as it creates a sterile and controlled environment that prevents pests and diseases from spreading. This also reduces the environmental and health risks associated with pesticide residues.
Increasing crop yield and quality: Vertical farming allows multiple harvests of a crop year and can produce higher yields per unit area than conventional farming. It also improves the quality and freshness of the produce, as it minimizes the exposure to sunlight, temperature fluctuations, and weather conditions that can affect the ripening and shelf life of the crops.
Improving food equity: Vertical farming makes healthy food choices more accessible and affordable for consumers who live in urban areas or have limited access to fresh produce. It also reduces the transportation costs and emissions associated with delivering food from distant farms.

3/. Vertical farming has mostly positive environment impact

Vertical farming, a method of growing crops indoors in controlled environments, has several environmental impacts, being positives or negatives:

a/. Positive Impacts:

b/. Negative Impact:

Energy Consumption: While vertical farms are more water-efficient, they can consume more energy than traditional farms, especially if artificial lighting is used extensively.

It’s important to note that the environmental impact can vary depending on the specific practices and technologies used in each vertical farm. Overall, vertical farming represents a promising innovation in sustainable agriculture.

4/. A lifetime investment opportunity.

The investment situation in the vertical farming industry is a topic that many investors are interested in, as it involves the cultivation of crops indoors, using controlled environments such as greenhouses, warehouses, or shipping containers. Vertical farming has many advantages over traditional farming, such as saving water, land, and energy, increasing crop yield and quality, reducing pesticide use and food waste, and enhancing food security and sustainability.

According to various sources, the vertical farming market size was around USD 4.16 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27.3% to reach USD 27.42 billion by 2030. The market growth is driven by several factors, such as:

The increasing demand for organic and fresh food among consumers, especially in urban areas where land is scarce and expensive.
The rising awareness of the environmental and social impacts of conventional agriculture, such as greenhouse gas emissions, water pollution, soil degradation, biodiversity loss, and human rights violations.
The technological innovations in vertical farming systems, such as hydroponics (water-based cultivation), aeroponics (air-based cultivation), aquaponics (combination of fish farming and hydroponics), LED lighting (energy-efficient artificial light sources), climate control (temperature and humidity regulation), sensors (data collection and monitoring devices), and automation (robotic harvesting and sorting).
The supportive policies and initiatives from governments and organizations to promote vertical farming as a solution for food security challenges, such as climate change adaptation, disaster relief, rural development, education, health care, and social inclusion.

Major players in the vertical farming market are Intelligent Growth Solutions (IGS), AeroFarms, BrightFarms, Plenty®, Urban Crop Solutions, Freight Farms, INFARM, Sky Greens Pte Ltd. from Sky Urban Solutions Holding, Jones Food Company, GoodLeaf Farms, TruLeaf, among others. These companies offer various products and services related to vertical farming applications. Some examples are:

Intelligent Growth Solutions (IGS) – David Farquhar: A Scottish company that provides comprehensive, modular, scalable and embedded solutions.
Aerofarms: A company that operates indoor vertical farms using aeroponics technology. It produces leafy greens such as kale.
BrightFarms: A company that operates indoor vertical farms using hydroponics technology. It produces leafy greens such as spinach.
Plenty: A company that operates indoor vertical farms using hydroponics technology. It produces leafy greens such as kale.
Urban Crop Solutions: A company that provides end-to-end solutions for urban agriculture projects using hydroponics technology. It offers platforms for indoor farms.
Freight Farms: A company that operates shipping container-based vertical farms using aquaponics technology. It produces leafy greens such as kale.
Infarm: A company that operates indoor vertical farms using hydroponics technology. It produces leafy greens such as spinach.
Sky Greens: A company that operates indoor vertical farms using hydroponics technology. It produces leafy greens such as lettuce.
Jones Food Company: A company that operates indoor vertical farms using hydroponics technology. It produces leafy greens such as kale.

Investing in the vertical farming industry is certainly an option to considered, followings are couple of points to keep in mind :

The growth potential of the market, which is expected to reach USD 27.42 billion by 2030, with a CAGR of 27.3 %.
The competitive landscape of the market, which features several established players with different strategies, products, services, locations, customers, etc.
The risks involved in investing in the market, which include technical challenges, regulatory uncertainties, environmental issues, consumer preferences, public perception, etc.

The opportunities available for investors, which include diversifying their portfolio, accessing new markets, supporting innovation, contributing to sustainability, etc.

Hereafter several readings for you to elaborate on the above:

Vertical Farming Market Size & Growth | Report & Forecast [2023 – 2030]

Vertical Farming Market – Report, Size & Trends & Share

Is Vertical Farming the Investment of the Future? – AskMoney.com

Investment in Vertical Farming Market Continues Steady Rise

Global Vertical Farming Market Report 2023: Accelerating Investment

5/. A focus on private equity

The sector has seen substantial investment from private equity and venture capital due to its potential for high growth and innovation. Hereafter are some key trends:

Increasing Funding Rounds: Vertical farming companies have been successful in raising significant amounts of capital. For instance, Bowery Farming raised $300 million in a funding round, valuing the company at $2.3 billion. The funds are typically used to build more indoor farms, recruit and hire staff, and support ongoing research and product innovation efforts.
Public Listings via SPACs: Some vertical farming companies are going public through Special Purpose Acquisition Companies (SPACs). For example, AeroFarms announced its plans to go public via a SPAC, which is expected to value the company at about $1.2 billion.
Rising Market Value: The market value of the vertical farming industry is expected to increase significantly. In 2022, the vertical farming market reached approximately $5.6 billion and is expected to increase to over $35 billion by 2032.
Global Venture Capital Investment: Nearly $1.9 billion of global venture capital was invested in indoor farming in 2020, nearly tripling the level in 2019.
Strategic Partnerships: Vertical farming companies are expanding their market through strategic partnerships. For example, AeroFarms has partnered with Chile’s Hortifrut S.A. to explore blueberry and caneberry production.

6/. A factor not to be overlooked: people perception

People perception is the way that people form opinions, beliefs, attitudes, and feelings about something or someone. People perception can be influenced by many factors, such as personal experiences, social norms, cultural values, media exposure, and cognitive biases. People perception can also vary depending on the context, situation, and perspective of the observer.

Despite the obvious advantages from vertical farming, the industry might also face some challenges and criticisms from people perception. Some of the common questions or concerns that people might have about vertical farming are:

Is vertical farming safe for human health? Some people might worry that vertical farming could pose health risks due to the use of chemicals or genetically modified organisms (GMOs) in the cultivation systems. However, there is no conclusive evidence that vertical farming produces harmful substances or affects human health negatively. On the contrary, some studies suggest that vertical farming could reduce exposure to pathogens and pollutants in the air.
Is vertical farming ethical? Some people might question the morality of growing food in artificial settings that do not resemble natural ecosystems. They might argue that vertical farming could undermine the value of nature and biodiversity in agriculture. However, there are different ethical perspectives on this issue. Some people might view vertical farming as a way to protect nature from degradation and exploitation by conventional agriculture. Others might see it as a way to promote innovation and efficiency in food production.
Is vertical farming sustainable? Some people might doubt the environmental benefits of vertical farming compared to conventional agriculture. They might claim that vertical farming consumes more energy and resources than traditional methods due to the need for artificial lighting and climate control systems. However, there are also arguments in favour of vertical farming’s sustainability. Some studies indicate that vertical farming can reduce greenhouse gas emissions by using renewable energy sources such as solar panels or wind turbines. Moreover, some experts suggest that vertical farming can improve soil quality by recycling nutrients from wastewater.

People perception on vertical farming is not uniform or simple, it depends on various factors such as knowledge level, personal preference, cultural background, media exposure, etc. Therefore, it is important to educate people about the advantages and disadvantages of vertical farming, as well as to address their doubts and concerns. This way, we can foster a more positive and informed attitude towards this innovative technology.

7/. Market forecast to 2030 : eye opener.

The vertical farming market is expected to grow at a compound annual growth rate (CAGR) of 27.3% to reach USD 27.42 billion by 2030 . This growth is driven by factors such as increasing demand for fresh and organic food, rising awareness of the environmental impacts of conventional agriculture, technological innovations in vertical farming systems, and supportive policies from governments and organisations. However, the actual market size in 2030 could be higher or lower than the forecast, depending on various factors such as market trends, economic conditions, technological advancements, policy changes, and consumer behaviours.

As idle as it seems, vertical farming will never totally replace the conventional farming but will be key in urban area, in niche plants demand, or in urgent demand for scalable trees nursery. However, what we are certain is that the industry will grow from the point it is now paving the way for opportunities.

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General consensus that Low Carbon Hydrogen will be part of the future of energy.

October 31, 2023

1/. Hydrogen landscape in the UK

The hydrogen landscape in the UK is quite promising and is at an early stage with significant prospects for growth over the coming years. The UK’s Hydrogen Strategy, published in August 2021, has set ambitious targets for the development of a thriving low-carbon hydrogen economy.

Here are some key points about the UK’s Hydrogen Strategy:

The goal is to increase low carbon hydrogen production capacity to 10 GW by 2030, with at least half of this coming from electrolytic hydrogen.

The strategy includes measures such as launching a call for evidence on ‘hydrogen-ready’ industrial equipment, a £55m Industrial Fuel Switching competition, and establishing a Hydrogen Regulators Forum.
The UK government has also set out further details on the revenue mechanism which will provide funding for the Low Carbon Hydrogen Business Model.
The strategy outlines a comprehensive roadmap for the development of the wider hydrogen economy over the 2020s to deliver the 10 GW 2030 ambition.

The Energy Systems Catapult has identified over 60 companies working in the emerging UK hydrogen market, mapped into six subsectors: Production, Storage, Distribution & Transportation, Applications, Safety, and Financial. This shows that there is a growing interest and investment in this sector. However, challenges such as political uncertainty and an increasingly competitive global hydrogen landscape will have to be faced in 2023/2024.

Focus : Pink hydrogen

Pink hydrogen is generated through electrolysis powered by nuclear energy. In the UK, EDF Energy is discussing the idea of pink hydrogen production at its recently approved 3.2 GW Sizewell C nuclear plant. EDF states on its website, “At Sizewell C, we are exploring how we can produce and use hydrogen in several ways.” “Firstly, it could help lower emissions during the construction of the power station.”

However, there has been some criticism of this approach. For example, Michael Liebreich, CEO of Liebreich Associates, has dismissed EDF’s plans to produce pink hydrogen at the proposed nuclear plant as “daft”. He argues that the economics won’t work if hydrogen is produced only with excess power on sunny or windy days.

Despite these criticisms, the future of pink hydrogen in the UK looks promising. The UK government is investing in the development of small modular reactors (SMRs) and a total of eight large reactors could be built to meet a target of 24 GW by 2050. This could potentially provide a significant source of nuclear energy for pink hydrogen production.

2/. Key private sector players identified

There are several companies already playing an important role in the development of the technology, for example :

ITM Power: Founded in 2001, ITM Power became the first hydrogen company on the London Stock Exchange when it listed in 2004. It has developed and manufactures proton exchange membrane electrolysers, which create green hydrogen using only renewable electricity and water. It has a partnership with Linde, the world’s largest industrial gas company, which also owns 16% of ITM’s shares.

Ceres Power Holdings: This company is a developer of solid oxide fuel cell technology.

AFC Energy: AFC Energy is a developer of alkaline fuel cell systems.

Proton Motor Power Systems: This company is a developer of an electric fuel cell hybrid system.

HydrogenOne Capital Growth: This is an investment company with a portfolio of holdings in the hydrogen market.

Clean Power Hydrogen: This company is a developer of membrane-free electrolyser technology.

And also more global companies with presence in the UK.

EDF/Hynamics: it will be a major player in achieving 10 GW hydrogen by 2030.

Bloom Energy: Bloom Energy focuses on the manufacturing of industrial-sized hydrogen generators.

Cummins Inc: Cummins is a global power leader that designs, manufactures, sells and services diesel and alternative fuel engines.

Linde PLC: Linde is a leading global industrial gases and engineering company.

Plug Power Inc: Plug Power is an innovator of modern hydrogen and fuel cell technology.

Powerhouse Energy Group: Powerhouse Energy Group is installing a technology that turns waste into a gas that can be converted into hydrogen.

HyCap: A UK hydrogen investment fund set up by Jo Bamford, heir of the JCB diggers empire, and Vedra Partners, a boutique private equity firm. It has already identified more than 40 companies in the hydrogen space which will be evaluated for investment.

Cadent Gas, National Grid Network, Northern Gas Network, SGN, and Wales & West Utilities: These are all part of the Energy Networks Association and have set a target of one fifth of gas used in UK homes to be hydrogen by 2023.

These companies represent a diverse range of sectors within the hydrogen economy, from production to storage and distribution, as well as applications and financial services.

3/. Key R&D public sector players

The academic excellent of the UK is none to be proved, and the hydrogen sector does not make exception, herein are some of the top academic research labs in the UK that are focused on hydrogen:

Energy Institute at the University of Sheffield: The Energy Institute has the facilities and expertise to enable the deployment of a UK hydrogen economy. They have specialist hydrogen R&D facilities in the newly-built Translational Energy Research Centre.

Brunel Hydrogen at Brunel University London: Brunel Hydrogen brings significant, unique capabilities that meet specific industry challenges. They have significant existing engineering research that is applied, practical and enabling, and a suite of research that supports and enables others’ technologies to operate in practice.

Lancaster University: While not specifically mentioned in the search results, Lancaster University is known for its strong engineering department and could potentially be involved in hydrogen research.

These labs are contributing significantly to the advancement of hydrogen technologies through their innovative research and development efforts.

4/. Investment in UK Hydrogen industry

The UK government has been actively investing in the hydrogen sector as part of its commitment to achieving net zero emissions. Here are some key points about the investment in hydrogen in the UK:

The UK government’s Hydrogen Strategy aims to unlock £9 billion investment into the UK. The Business and Energy Secretary has been meeting with industry to accelerate private investment in hydrogen.

The government has opened applications for the £240 million Net Zero Hydrogen Fund. This fund is expected to support hydrogen production equivalent to fueling 45,000 buses a year.

The government has published the Hydrogen Investor Roadmap and set out details for the Hydrogen Business Model and Low Carbon Hydrogen Standard.

The UK government hopes to attract at least £4 billion of investment to the hydrogen economy by 2030.

Government analysis suggests that by 2030, the sector could support over 12,000 jobs and unlock up to £11 billion in private investment.

The government has also provided £102 million backing for nuclear and hydrogen innovation in the UK, which includes £25 million for technologies that can produce hydrogen from sustainable biomass and waste.

These investments are expected to help develop a thriving low-carbon hydrogen economy in the UK.

5/. R&D UK strategy

Research and development (R&D) in the hydrogen sector is a key focus in the UK. The following initiatives demonstrate the UK’s commitment to advancing hydrogen technology through significant investment in R&D.

Here are some highlights:

The UK government has recognized the importance of R&D in developing the hydrogen economy and capturing economic potential for the UK.

The UK public sector investment in internationally recognized hydrogen R&D projects has already enabled the development of many key hydrogen technologies.

Through the Department for Science Innovation and Technology (DSIT) £60 million Industrial Fuel Switching competition, hydrogen is being researched and demonstrated in the steel, chemicals, glass, and the food and drinks sectors.

Industrial sites are upgrading plant equipment to enable the use of hydrogen, for instance at the Stanlow refinery.

The UK Hydrogen Strategy outlines how the government will support innovation and stimulate investment in the 2020s to scale up low carbon hydrogen.

The government has provided £102 million backing for nuclear and hydrogen innovation in the UK, which includes £25 million for technologies that can produce hydrogen from sustainable biomass and waste.

6/. Comparison between Fr, Germany, and UK

Both countries are making significant strides in developing their hydrogen economies, with substantial investments and strategic plans in place. However, the specific targets and approaches vary, reflecting the unique circumstances and resources of each country. Both the UK and France have ambitious plans for the development of a hydrogen economy, but there are some differences in their approaches and progress:

UK:

The UK’s Hydrogen Strategy aims to increase low carbon hydrogen production capacity to 10 GW by 2030, with at least half of this coming from electrolytic hydrogen.
The strategy includes measures such as launching a call for evidence on ‘hydrogen-ready’ industrial equipment, a £55m Industrial Fuel Switching competition, and establishing a Hydrogen Regulators Forum.
The UK government has also set out further details on the revenue mechanism which will provide funding for the Low Carbon Hydrogen Business Model.
The strategy outlines a comprehensive roadmap for the development of the wider hydrogen economy over the 2020s to deliver the 10 GW 2030 ambition.

France:

France has a Green Hydrogen Plan for 2020-2030, aiming to shape France as one of the most competitive, innovative, and decarbonised economies.
The plan includes achieving mass-production of hydrogen by electrolysis with a capacity of 6.5 GW and saving 6 MT CO2 by 2030.
It also aims to promote carbon-free hydrogen-fueled heavy mobility and develop a fully integrated and competitive sector with 50 to 150K jobs.
France is investing €7.2 billion to support all actors involved in the green hydrogen sector.

Germany

Germany is also making significant strides in the hydrogen sector. Here are some key points about the hydrogen landscape in Germany:

Germany has defined an ambitious hydrogen strategy, with planned incentives for hydrogen production and usage in industry.
The German government foresees a hydrogen demand of about 90 to 110 TWh by 2030. In order to accommodate this demand, electrolysers with a total capacity of up to 5 GW are to be built in Germany by 2030 (including the offshore and onshore energy production required for providing electricity for the electrolysis).
The first fleet of hydrogen fuel cell trains started operating in Germany. There are also more than 100 pilot and demonstration projects for using hydrogen and its derivatives in shipping, and major companies are already signing strategic partnerships to secure the supply of these fuels.
Germany is emerging as the most attractive market to invest in hydrogen in Europe. Future growth in green hydrogen will be facilitated by strong growth in solar and wind capacity.

In addition, the UK and Germany have signed an agreement to help accelerate the development of an international hydrogen industry. This Joint Declaration of Intent will see the UK and Germany work together to underpin the international trade in hydrogen. The two governments will also accelerate the role of low-carbon hydrogen in their nations’ energy mix, showing the world how to expand new, net zero-friendly markets.

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Strategy for reducing costs and minimising company’s carbon footprint in aviation.

September 27, 2023

Despite its only 2% of the global CO2 emission, greenhouse gas emission in aviation is a pressing enviromental side effect of our society to tackle, yet to be fully adressed without provoking business breakdown and turmoil, several strategy considerations can be put forward :

Optimise Flight Paths: Utilising advanced navigation technologies can help optimise flight paths, reducing fuel consumption and emissions, this is what flight commender does before any flight.
Fleet Modernisation: Consider investing in newer, more fuel-efficient aircraft. Although this requires upfront investment, the long-term savings and reduced emissions can be substantial. Airfrance industries klm and its CEO Benjamin Smith has announced on the 25th September the purchase of 50 new Airbus A350 – more efficient and quieter.
Weight Reduction: Every kilogram counts in aviation. Consider lightweight materials for seats, cargo containers, and even utensils used on board. In addition the weight reduction goes also through a fine tuned pricing of weight/passenger.
Alternative Fuels: Biofuels and synthetic fuels can reduce carbon emissions. Exploring partnerships with alternative fuel providers could be beneficial. This is one of the most impactful modification thanks to European Union policies and key tech companies like Global Bioenergies.
Maintenance & Operations: Regular maintenance ensures optimal engine performance and fuel efficiency. Additionally, ground operations can be optimised to reduce engine idle time.
Supplier Sustainability: Work with suppliers who prioritise sustainability. This could range from catering to aircraft parts manufacturers.
Carbon Offsetting: While this does not reduce emissions directly, investing in carbon offset programs can compensate for carbon footprint.
Staff Training: Ensure that all staff, from pilots to ground crew, are trained in fuel-efficient practices.
Collaboration & Innovation: Collaborate with other airlines, governments, and research institutions to drive innovation in sustainable aviation.

Let’s take a look at the Sustainable Aviation Fuels (SAF) as a promising solution for reducing the carbon footprint of the aviation industry. Hereafter some key points to be taken into account.

What is SAF? SAF is jet fuel made from alternative sources and processes than those for fossil-based fuels, such as oils from plants, algae, greases, fats, waste streams, alcohols, sugars, and captured CO2.
Benefits of SAF: The widespread use of SAF has the potential to dramatically reduce fuel lifecycle carbon emissions up to 80% compared to jet fuel produced from petroleum. SAF made with new approaches such as power to liquids has the potential to eliminate carbon emissions.
All GE Aerospace and CFM International engines can operate on approved SAF today.
Future of SAF: GE Aerospace is supporting industry initiatives to approve and adopt 100 percent Sustainable Aviation Fuel (SAF) and is partnering on a new flight demonstration program to test zero-carbon hydrogen fuel combustion.
Challenges: Currently, SAF approved for use is a blend of petroleum-based Jet A or Jet A-1 fuel and a SAF component with a maximum blend limit of 50%. However, efforts are underway to develop standardized industry specifications supporting adoption of 100% SAF.
Other Alternative Fuels: Apart from SAF, other alternative fuels like Biofuels : these are made from crops and waste vegetable oils; Synthetic Fuels : also known as “e-jet” , these are made using renewable electricity, hydrogen, and CO2. They can lower the CO2 output of airplanes while also reducing the production of contrail cirrus clouds; Hydrogen and Ammonia: These are being considered as potential alternative fuels.

GE Aerospace is leading initiatives to approve and adopt 100% SAF and is testing zero-carbon hydrogen fuel combustion. More than 400,000 commercial flights have been operated using SAF since 2011.

It’s important to note that if low carbon emission jet fuels are to have a strong positive impact on the fight against climate change, it’s crucial that the alternative fuels adopted do not cause unacceptable collateral ecological damage.

Hydrogen powered aviation : a key component for net-zero aviation.

hydrogen is increasingly being considered as a promising solution for achieving zero-emission in aviation. Here are some key points for the use of it:

Energy Density: Hydrogen has an energy-density-per-unit mass that is three times higher than traditional jet fuel.
Zero Emissions: Hydrogen removes carbon dioxide emissions entirely and also has the potential to reduce other greenhouse gas emissions.
Hydrogen Storage: One specific challenge is how to store hydrogen on board the aircraft. Today, liquid hydrogen storage is among the most promising options.
Safety: Future hydrogen-propulsion systems will need to achieve equivalent or better safety levels before hydrogen-powered aircraft can take to the skies.
Cost and Infrastructure: Another key challenge for widespread adoption is liquid hydrogen availability and cost at airports.
Fuel Cells or Combustion: Two main options for hydrogen-fueled aircraft exist – hydrogen combustion aircraft and hydrogen fuel cell (HFC) aircraft. HFC aircraft could offer a “true zero” solution for greenhouse gas emissions as the only output of fuel cells is water vapor.

Despite these challenges, research into hydrogen as a potential energy carrier to power future zero-emission aircraft has been intensifying in recent years. It’s important to note that transitioning to hydrogen would require significant effort inside the aviation industry and beyond, from hydrogen storage, cost and infrastructure to public perceptions about safety.

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The business case for hydrogen to power large airliners

The business case for hydrogen to power large airliners has become compelling and it is down to economics.

The chart below depictes a study from Clean Aviation and from McKinsey & Company‘s latest forecast for aircraft fuels for the period up to 2050. It shows that the price of wind-derived liquid #hydrogen in Europe is likely to have fallen to around $120 per MWh as early as 2030. With each kilogram of hydrogen containing 33.3 kWh, this translates to a price of less than $5 per kilogram. And its price in #Europe is expected to have fallen to around $3/kg by 2040. A calculation based on hydrogen containing 2.8 times as much energy per kilogram as kerosene would suggest that a large airliner needing 125 tons of conventional aviation fuel or #SAF for a flight of 16,000 km will require only 45 tons of hydrogen. However, the actual amount needed may prove to be less than 30 tons, because of three additional factors explained below. Consequently, the cost of refuelling the first large hydrogen aircraft may be less than using Jet A-1 even before they can be brought into service, so the business case for developing and using the new airliners will be based mainly on the costs they save, with ‘green flying’ just an attractive bonus. According to the Clean Aviation chart below, by 2034 the cost of the fuel needed by a large hydrogen airliner for a 16,000 km flight will be around $120,000. But its conventional equivalent will cost much more to fill with Jet A-1 in Europe, even if kerosene still costs only one dollar per kilogram, because the new European aviation fuel tax will have reached its full level of €10.75/GJ – Key plain blue and red dotted line crossing at 2033-2034 when it will be more expensive to fill a tank with Kerosene than hydrogen, naturally pushing companies to shift -. This translates to $0.46 per kg, which will add over $50,000 to the price of 120 tons of Jet A-1. And note that $0.46/kg is considerably less than the average level of tax on petrol and diesel across Europe, which is likely to provoke political pressure to increase it. So 120 tons of Jet A-1 will probably cost at least $1.50 per kg including tax, i.e. $180,000, but 30 tons of liquid hydrogen is expected to cost less than $120,000 by then. With 400 passengers, that’s a potential saving of $150 per passenger. Meanwhile, the cost of refuelling with hydrogen is predicted to have fallen to less than $100,000 by 2035 for flights from the Middle East, probably beating even untaxed kerosene. It is now clear that hydrogen’s high specific energy will make it more financially attractive to the aviation industry than to any other sector. This should give investors in hydrogen production increased confidence that demand from the airlines will grow fast, and that they will perhaps be prepared to pay a premium to ensure supply priority.

Technical details

For over fifty years (first scientific paper describing an hydrogen airplane engine was published in 1975), aircraft designers have been convinced that hydrogen should replace kerosene as soon as it becomes cheap enough, mainly because it contains 2.8 times as much energy per kilogram. So its cleanliness was originally seen just as a nice bonus. Currently, an Airbus A350-1000 has to be filled with 125 tons of conventional fuel for a flight of 16,000 km. However, it would need less than 33 tons of liquid hydrogen, not 125/2.8 tons, because of the massive reduction in takeoff weight, which means less energy would be needed to reach cruising altitude, and for most of the rest of the flight. However, liquid hydrogen will need at least three times as much space to store it as kerosene or SAF, because of the thick tank walls needed to insulate the hydrogen. Consequently, a novel design of airframe is required, see top picture.The conceptual large hydrogen airliner outlined in this article retains a familiar pressurized tubular passenger compartment, but it is enclosed in an unpressurized ‘blended-wing’ skin to provide the extra space needed for the cryogenic tanks. The image above shows a Hybrid Wing-Body design by Lockheed Martin from 2016 for a large tanker/freighter. The airliner proposed here will look similar from this angle, but have a longer fuselage. The two turbofans will be mounted above the wings, rather than below them. This engine position is not only more efficient but it will be quieter during takeoff. Also, the proposed blended-wing airframe should prove some 10% more efficient than an A350’s conventional tube-and-wing shape. And Rolls-Royce expects its new #UltraFan engine to be 10% more energy-efficient than the Trent XWBs currently fitted to all A350s when running on kerosene, with an additional 10% saving from the hydrogen version. So the new airliners may actually use only 25 tons of liquid hydrogen to cover 16,000 km! But because liquid hydrogen has a density of only 71 kg per cubic metre, a hydrogen volume of over 350 cubic metres may still be needed, more than double the 159 cubic metres of kerosene volume in an A350-1000. Because the takeoff weight will be so much lighter, the HWB airliner will need less wing area, reducing the wing span required, which will mean a lighter structure, particularly at the wing roots. This all adds to the credibility of the startlingly low hydrogen weight. When the major European airlines have done their own parallel calculations and reviewed the price forecasts for liquid hydrogen during the 2030’s, it will be time for chocks away.

Co-written by Chris E.

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UK catching up on Hydrogen energy sources–but not on white hydrogen.

The UK government has published its Hydrogen Strategy in 2021 that sets out the approach to developing a thriving low carbon hydrogen sector in the UK to meet UK increased ambition for 10GW of low carbon hydrogen production capacity by 2030¹. The strategy outlines how the UK will rapidly and significantly scale up production and lay the foundations for a low carbon hydrogen economy by 2030¹, one means offered is the £240 million Net Zero Hydrogen fund, supporting commercial deployment of new low carbon hydrogen production.

There is already a significant pipeline of new projects, totalling 1.3 GW in the construction and late development phase. For exemple Bessemer Park in Sheffield (1GW from ITM Power, world largest electrolyser started in 2020) is under expansion and aims to reach 5GW annual production by 2024. This project will bring UK hydrogen production ambition beyond expectation.

On the side, one promising source of hydrogen that has largely been overlooked is naturally occurring or geological hydrogen or also called white hydrogen. If natural hydrogen can be exploited economically, it would remove the need for clean water, which is used during green hydrogen electrolysis, and eliminate the need for expensive Carbon Capture and Storage (CCS) associated with blue hydrogen. As consequence the costs of producing natural hydrogen will be low, with estimates ranging from $1.0–0.5 per kg ($6-8 for green hydrogen and $4-8 for blue hydrogen).

ITM Power Hydrogen UK France Hydrogène Shell TotalEnergies bp Dennis Schulz Viacheslav Zgonnik Frederic Victor Donze Helios Aragon H2Au.co Owain Jackson Hydroma Inc NATURAL HYDROGEN ENERGY LLC

#strategy #energy #hydrogen #uk

Source:

(1) UK hydrogen strategy – GOV.UK. https://lnkd.in/dR5xAJTq.

(2) Natural hydrogen: the new frontier – GEOSCIENTIST. https://lnkd.in/d5BtB7Un.

(3) The global race to produce hydrogen offshore – BBC News. https://lnkd.in/en-KvBk.

(4) Powering the UK green revolution | News and insights | Home – bp. https://lnkd.in/ereWtFrf.

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