Commentary: Heat pump-assisted water heater technology could make big lift

Energy News Beat

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Reliable hot water is critical for restaurants for preparing food and washing dishes and equipment, as well as hand washing.

However, water heating is one of the biggest energy users in restaurants. Heating water for restaurant use accounts for 16% of all commercial gas usage in California. Food service buildings are among the highest intensive energy users on a per-square-foot basis, largely because of their hot water usage. Foodservice operations may soon feel the pressure to electrify. The California Air Resources Board is analyzing proposed zero-emission GHG standards for new space and water heaters. It is currently planned for consideration in 2025 with any implementation beginning in 2030, and would only be applicable to the purchase of new equipment

Doing so will be difficult, particularly for existing restaurants. Many food service operations, especially small and independent businesses, do not have the space for the size of a storage tank that would be required for a heat pump water heater. Restaurants in California, as with most states, are legally required to have sufficient hot water to meet all these demands under peak conditions.

In response to these challenges, an emerging technology, the heat pump-assisted water heater, is gaining traction. It is designed to meet this existing gap between what the market needs and the cost and challenges of installing available heat pump water heaters. It is geared to meet the needs of existing food service businesses that want to be able to transition to a heat pump while still retaining the benefits of their current water heating system.

With funding from CalNEXT — California’s statewide emerging technology initiative — the TRC Advanced Energy team recently published a report, “Market Potential for Heat Pump Assisted Hot Water Systems in Foodservice Facilities.” This report, which TRC Advanced Energy developed with research support from Frontier Energy and Energy Solutions, assesses the benefits and challenges of adopting heat pump-assisted water heater technology for a range of food service establishments.

“Heat pump-assisted water heaters are a solution that we have available today,” said Amin Delagah, Associate Director of Research and Consulting for TRC Advanced Energy, an environmental services provider. “Heat pump water heater adoption rates in restaurants are still very low due to a lack of familiarity, space and electrical capacity requirements and primarily, the health department water heater sizing regulatory barrier, but the heat pump assist concept is a solution that we can move forward today to overcome these barriers.”

The heat pump-assisted water heater, as its name suggests, is designed to operate in series with an existing water heater, which makes it attractive for restaurants that do not want to overhaul their current system completely. During down times for the business, the existing heater would maintain the recirculation temperature of already heated water in its system. During off hours, the heat pump-assisted water heater would produce sufficient hot water to restock the system. Because the existing heater is already large enough to meet food service needs during business hours, the heat pump-assisted water heater system can be built to fit the available space, even if it is undersized.

The benefits of using a heat pump-assisted water heater are similar to those of a heat pump: improved energy efficiency and possibly lower long-term energy costs, although cost issues largely depend on the type of system being replaced. Natural gas fuel, which is used by 90 percent of food service operations for water heating, is currently cheaper than electricity in most of California.

Heat pump systems also provide cooling as a byproduct, which could be useful to counteract kitchen heat.

Heat pump-assisted water heaters are designed to address the big disadvantage of heat pump water heaters for restaurants — the longer time needed to heat the water from cold. One workaround is a much larger tank, but floor space is typically at a premium in restaurants, making this workaround unappealing for many food service operations. For a heat pump water heater to meet health department requirements, it would need a much bigger tank than its gas-fired counterpart (because the gas-fired water heater can heat water faster).

Heat pump-assisted water heaters may also be cheaper to install than a conventional, retrofitted heat pump water heater system, and the heat pump-assisted water heater does not need to meet these sizing regulations because the legacy water heater still functions as a backup system. At this point, the technology is still emerging and has not been installed commercially, but the authors estimate that initial costs for the heat pump water heater that acts as the assist, including installation, could range between $6,000 to $20,000. This amount, while significant, is still much cheaper than what it could cost a full-service restaurant to install a heat pump water heater capable of meeting water demands, which could well exceed $100,000.  

“The costs for heat pump assisted heat pumps are largely driven by the electrical work and the space required, and there may be incentives available to offset these,” Delagah said.

Another benefit is that because the heat pump-assisted water heater is a backup system, it does not require health department approval, making the process simpler.  

Both heat pump water heaters and heat pump-assisted water heaters also have the additional operational benefit of being able to benefit from time-of-use rates and the additional cooling they could provide for kitchens.

“This year in October, it was 95 degrees in the Bay Area,” Delagah said. “There are new California OSHA rules on the books for indoor temperatures — if your facilities are over an 82°F temperature indoors, you have to provide cooling centers for employees. That’s becoming an emerging concern for restaurants to meet a new heat illness standard.”

On the downside, the higher upfront costs will likely still be a significant barrier to the adoption of heat pump-assisted water heaters, even if they are relatively less expensive than heat pump water heaters.

One big hurdle is that health departments, by and large, are not familiar with the technology — and may be more resistant to its approval. The relatively high price of electricity in California, compared with gas, may be another barrier. 

Yet regulations and the need to decarbonize are moving closer, with California’s 2030 deadlines for reducing its overall greenhouse gas emissions by 40%, in comparison with 1990 levels. Restaurants are well positioned to be the public face of doing their part.

“This is great equipment for restaurants that are thinking about positioning themselves for where things are going in terms of air quality regulations,” Delagah said. “If you’re a chain restaurant, you should probably be trying this out, kicking the tires a bit, and preparing for what your solution is going to be when there is a mandate.”

To learn more about this project, read the report on the CalNEXT website, calnext.com  

About CalNEXT: CalNEXT is a statewide initiative to identify, test, and grow electric technologies and delivery methods to support California’s decarbonized future. CalNEXT is funded by the ratepayers of California investor-owned utilities and provides a means for studying emerging technologies and energy-efficiency innovations that have the potential to save energy via utility programs and/or market support.

Article written by Emily Pickrell, Energy Solutions

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Paper and pulp mills produce half of Maine’s industrial CO2 emissions. Could lasers help slash their climate impact?   

Energy News Beat

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A Massachusetts university is developing technology that aims to use lasers to drastically cut emissions and energy use from Maine’s paper and pulp industry. 

Worcester Polytechnic Institute recently received a $2.75 million U.S. Department of Energy grant to help ready the industrial drying technology for commercial use.

“We are all excited about this — this is potentially a groundbreaking technology,” said Jamal Yagoobi, founding director of the institute’s Center for Advanced Research in Drying.

In Maine, the paper and pulp business generates about 1 million metric tons of carbon dioxide emissions each year, roughly half of the state’s industrial emissions. Much of these emissions come from the process of drying mashed, pressed, and rolled wood pulp to yield paper products. The emissions come mainly from three major operations across the state; three additional facilities contribute smaller amounts.

These plants’ emissions will need to be addressed if Maine is to reach its goal of going carbon neutral by 2045. Furthermore, each of these plants is located in an area with an above-average population of low-income residents, according to data assembled by Industrious Labs, an environmental organization focused on the impact of industry. And two are located in areas with a higher-than-average risk of cancer from air toxins, suggesting a correlation between their operations and the incidence of cancer in the area. 

At the same, the paper and pulp industry remains economically important to Maine, said Matt Cannon, state conservation and energy director for the Maine chapter of the Sierra Club. 

“It’s got real union jobs — the paper industry is still very important to our community,” he said. 

Worcester Polytechnic’s drying research center has been working on ways to dry paper, pulp, and other materials using the concentrated energy found in lasers. The lasers Yagoobi’s team is using are not the lasers of the public imagination, like a red beam zapping at alien enemies. Though the lasers are quite strong — they can melt metal, Yagoobi says — they are dispersed over a larger area, spreading out the energy to evenly and gently dry the target material. 

Testing on food products has shown that the technology can work. Now, researchers need to learn more about how the laser energy affects different materials to make sure the product quality is not compromised during the drying process. 

“For paper, it’s important to make sure the tensile strength is not degrading,” Yagoobi said. “For food products, you want to make sure the color and sensory qualities do not degrade.”

Therefore, before the system is ready for a commercial pilot, the team has to gather a lot more data about how much laser energy is incident on different parts of the surface and how deeply the energy penetrates different materials. Once gathered, this data will be used to determine what system sizes and operating conditions are best for different materials, and to design laser modules for each intended use. 

Once these details are worked out, the laser technology can be installed in new commercial-scale drying equipment or existing systems. “This particular technology will be easy to retrofit,” Yagoobi said. 

Industrial sources were responsible for about 1.3 billion metric tons of carbon dioxide emissions in the United States in 2023, about 28% of the country’s overall emissions, according to the U.S. Energy Information Administration. Heating processes, often powered by natural gas or other fossil fuels, are responsible for about half of those emissions, said Evan Gillespie, one of the co-founders of Industrious Labs. Many industrial drying processes require high temperatures that have traditionally been hard to reach without fossil fuels, giving the sector a reputation as hard to decarbonize, Gillespie said.

“The key challenge here is: How do you remove natural gas as a heating source inside industrial facilities?” said Richard Hart, industry director at the American Council for an Energy-Efficient Economy. “The scale of what is happening in industry is enormous, and the potential for change is very powerful.”

To make the new technology effective, industry leaders and policymakers will need to commit to reinvesting in old facilities, Gillespie noted. And doing so will be well worth it by strengthening an economically important industry, keeping jobs in place, and creating important environmental benefits, he added.

“There’s often this old story of tensions between climate and jobs,” Gillespie said. “But what we’re trying to do is modernize these facilities and stabilize them so they’ll be around for decades to come.”

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Dali arrives in China for repairs

Energy News Beat

ContainersGreater China

This year’s most infamous ship, the Dali containership, has completed its voyage from the US and China and is now at one of the top repair yards in Asia.

The ship, which took out Baltimore’s largest bridge in March, arrived at Fujian Huadong Shipyard yesterday where it will undergo significant repairs. It had left the US on September 19. 

Legal cases surrounding this year’s most high-profile shipping accident are expected to run for many years costing hundreds of millions of dollars.

The National Transportation Safety Board (NTSB) in May released a preliminary report into the Dali’s fatal allision with Baltimore’s largest bridge.

The vessel, on charter to Maersk, experienced electrical blackouts about 10 hours before leaving the Port of Baltimore and again shortly before it slammed into the Francis Scott Key Bridge in the early hours of March 26 with the thousands of tons of the fallen bridge then wedging themselves onto the vessel’s prow.

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Dayang lands Petronas Carigali contracts

Energy News Beat

AsiaOffshore

Malaysia’s Dayang Enterprise has secured two contracts from Petronas Carigali for the provision of pan-Malaysia offshore maintenance, construction, modification, and hook-up services.

Both contracts have been firmed up for five years, with extension options attached that could see the deals lasting by up to 10 years, the parent company said in a stock exchange filing.

Potential value was not disclosed as the contracts will be based on call-out work orders. However, Public Investment Bank Berhad told investors it estimates both five-year contracts at about RM3bn ($675m).

Earlier this month, Dayang also landed a similar services deal with Shell, estimated at $225m for the first five years.

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Welsh offshore wind could bring in $41bn of investments by 2035

Energy News Beat

New research shows that Wales could attract £46.8bn ($59.6bn) in investments from renewable energy by 2035, the majority of which would be directed towards offshore wind.

In its research, BiGGAR Economics projected an annual average investment of almost £4bn, peaking at £7bn in 2028.

According to the research, offshore wind – forecasted to account for £32.4bn ($41bn) of this total – could become the backbone of Welsh economic growth by 2035.

The analysis further claimed that Wales must urgently create an effective industrial strategy and port infrastructure upgrades to capture the maximum local investment.

While offshore wind promises long-term gains, BiGGAR Economics said that onshore wind represents Wales’s fastest path to growth. A projected £4.5bn in investment could enable onshore wind capacity to reach just over 3GW by 2035.

The recently released NESO 2030 Clean Power report shows that Welsh interest in developing renewable energy has surged, with the Welsh pipeline of projects up by 18% this year – from 9GW in 2023 to more than 10.5GW in November 2024.

However, with delays in consenting and a constrained grid network, at the current rate of deployment, the Welsh wind portfolio is forecast to make up only 5% of the UK’s total capacity by 2035, lagging far behind Scotland’s ambitious 64GW projection, it warns.

“Wales stands at the threshold of a historic opportunity. But to channel this investment into tangible progress, we need stronger, immediate support from both the UK and Welsh governments. That is why we are calling for a coordinated, four-nation approach to accelerate wind deployment and grid upgrades. With strategic investment in grid capacity and planning, Wales can place wind energy at the heart of its clean energy future—achieving impactful results for our climate, economy, and communities,” said Jess Hooper, RenewableUK Cymru director.

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Belships adds to ultramax orderbook

Energy News Beat

Dry CargoEurope

Norwegian bulker owner Belships has expanded its newbuilding campaign with one more ultramax.

The Oslo-listed company revealed in its quarterly earnings results the 64,000 dwt newbuild would join the fleet in 2027 and be named Belcargo.

The Lars Christian Skarsgård-led outfit added the unit would be financed on a similar structure as the previous newbuilds—through time charter lease agreements, each for a period of seven to 10 years, with purchase options during the charter.

Belships took delivery of its first newbuilding, the Belgrace, in September and chartered it out for 18 months. Following the latest orderbook boost, the company has 12 ultramaxes delivering between 2025 and 2028.

Belships said it would be taking delivery of the new vessels while the orderbook and the supply growth rate approach the lowest levels in 30 years, adding that these Japanese-design bulkers entering the fleet “represent the highest quality and lowest fuel consumption available in the market today”. The company’s fleet on a fully delivered basis currently stands at 42 ships.

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Sedna buys email management specialist Nordic IT

Energy News Beat

EuropeTech

UK-based technology firm Sedna, whose platform helps maritime companies streamline communication, has acquired Copenhagen-headquartered email management specialist Nordic IT.

Sedna said the move reinforces email’s position as the primary protocol in maritime while advancing the company’s delivery of AI-powered, connected solutions for the industry.

“By bringing Nordic IT into our organisation, we’re combining decades of maritime expertise with next-generation technology. This will further our ability to transform email into an intelligent platform tailor-made for the industry,” remarked Bill Dobie, founder and CEO of Sedna.

Founded in 2017, Sedna launched to reduce present email challenges—like inbox overload, lost data, and siloed operations. The company, backed by Insight Partners, GK Goh Ventures, Stride.VC, Chalfen Ventures and SAP, counts many leading shipping and logistics companies as its clients, including Bunge, FedNav, Glencore, Oldendorff, Norden, Stena Bulk and MOL Chemical Tankers.

The acquisition for an undisclosed sum will take Sedna’s portfolio to over 500 companies. Nordic IT’s customers will experience uninterrupted service and support of their reMARK, reMARK Cloud, and MARK5 platforms while gaining access to Sedna’s AI capabilities, the company noted.

In addition to the Nordic IT takeover, Sedna has made two strategic leadership appointments in Copenhagen and Singapore to strengthen its regional presence, with Norden’s operations lead Jacob Koch Blicher and former Monson Agencies CEO Travis Monson heading operations in Europe, the Middle East, and Asia Pacific, respectively.

Martin Hvass Mørup, who since 2021 has led Nordic IT, will continue as strategic advisor to Blicher, while Monson will oversee the integration of Nordic IT’s Singapore operations into Sedna’s established presence in the region.

“These appointments reflect how important strategic maritime expertise has become to our regional leadership,” said Leigh Steed-Middleton, president of Sedna, adding: “As our reach in the industry grows, having leaders with deep shipping experience running our regional hubs ensures we truly understand and serve the complex needs of maritime organisations.” 

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TechnipFMC, Saipem score huge deals for work on TotalEnergies Suriname field

Energy News Beat

French energy major TotalEnergies has awarded TechnipFMC and Saipem billions in contracts for its GranMorgu project in Block 58 offshore Suriname.

TechnipFMC’s contracted scope for the project includes Subsea 2.0 tree systems, manifolds, connectors, and topside control equipment. The company will also supply umbilicals, flexible jumpers, and flexible risers.

No precise financial details for the deal were revealed but since TechnipFMC claimed this was a ‘major’ deal, that means it is worth more than $1bn. This award will be included in inbound orders in the fourth quarter of 2024.

As for Saipem, its scope of work entails the engineering, procurement, supply, construction, installation, pre-commissioning, and assistance for the commissioning and start-up of the SURF package. The company said that the contract is worth $1.9bn.

This includes the EPCI of approximately 100 km of 10” to 12” subsea production flowlines, 90 km of 8” to 12” water and gas injection lines, and the transport and installation of flexible risers, umbilicals, and associated structures at water depths ranging from 100 to 1,100 m.

For the offshore campaign, taking place in 2027 and 2028, Saipem will deploy a combination of S-Lay and J-Lay vessels.  

The full project, expected to last five years with first oil in 2028 is aimed at expanding the production of the block central area through a system of subsea wells connected to an FPSO set to be built by SBM Offshore. The contract will also contribute to the Italian firm’s overall fleet booking until 2028.

The GranMorgu project is located 150 km off the coast of Suriname and is the first oil and gas development off the country’s shores.

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MISC and Bumi Armada weigh up offshore merger 

Energy News Beat

AsiaOffshore

Malaysia’s top shipping line, MISC, has moved to combine its offshore business with fellow floating production storage and offloading (FPSO) vessel specialist Bumi Armada. 

The two companies have entered into a non-binding memorandum of understanding to explore a prospective share-based merger, following market talk of a potential tie-up earlier this year. 

“The proposed merger will establish a Malaysian-based sector-focused entity which leverages the combined talent pool, project development and engineering capability, and know-how of both MISC’s offshore business and Bumi Armada,” the companies said in separate filings with Bursa Malaysia, adding that the merged entity would be among the leading floating production businesses globally with the scale, resources and financial capacity to compete in the growing and capital intensive offshore floating production segment.

Bumi Armada, whose largest shareholder is Malaysian tycoon Ananda Krishnan, counts three owned and four jointly owned FPSOs, one LNG FSU, and two offshore construction vessels. The company also has a CO2 shipping and injection solutions joint venture with handysize gas carrier owner and operator Navigator called Bluestreak CO2. Meanwhile, MISC, which is controlled by the Malaysian state energy firm Petronas via a 51% stake, has seven FPSOs, five FSOs, and the first and largest semi-submersible floating production system in Asia, the Gumusut Kakap, as part of its offshore assets.

The merger is at an “early stage of evaluation and there is no certainty that the ongoing discussions will lead to an agreement,” the companies, which will have nine months to close the deal, added. The merged entity is expected to remain listed on Bursa Malaysia.

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President Trump to Immediately Eliminate Joe Biden’s Disastrous Electric Vehicle Tax Credit

Energy News Beat

President Trump will eliminate Joe Biden’s disastrous electric vehicle tax credit that raised the prices of EVs.

Reuters reported:

President-elect Donald Trump’s transition team is planning to kill the $7,500 consumer tax credit for electric-vehicle purchases as part of broader tax-reform legislation, two sources with direct knowledge of the matter told Reuters.

Ending the tax credit could have grave implications for an already stalling U.S. EV transition. And yet representatives of Tesla – by far the nation’s largest EV seller – have told a Trump-transition committee they support ending the subsidy, said the two sources, who spoke on condition of anonymity.

Recall that Joe Biden’s “Inflation Reduction Act” – which was really the Green New Deal – gave a tax credit up to $7,5000 for people who purchased new electric vehicles through 2032.

Under Biden’s plan, if you bought an electric vehicle averaging $62,893, you might have been eligible for a tax credit of up to $7,500 until the year 2032.

$62,893 is the average price of vehicles sold only through dealerships and does not account for direct-to-consumer sales of more expensive electric vehicles. This number also accounts for all-electric vehicle transactions, both new and used.

The Biden Regime and the Democrats in Congress wasted billions of dollars on the electric vehicle scam.

In 2021, the Democrat-controlled Congress gave Joe Biden $7.5 billion to install electric vehicle chargers all over the country and only 7 or 8 EV charging stations have been built. It’s a total scam.

According to 2021 analysis from the New York Times, $1.2 trillion of the ‘Infrastructure’ bill would be spent over 8 years and $550 billion will go to roads, bridges, rail lines, electric vehicles, water systems and other programs.

Electric vehicles are unpopular, expensive and bad for the environment but the Biden Regime is going into overdrive to force car companies to produce more EVs while they crack down on gas-powered vehicle tailpipe emissions.

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