Energy transition and its impact on the welding industry

The electricity generation sector is experiencing a significant shift towards low-emission sources, such as nuclear and renewables like solar, wind and hydro power. These sources are expected to meet all global demand growth over the next three years, with renewables projected to surpass coal and contribute more than a third of total electricity generation globally by early 2025.

Additionally nuclear power generation is expected to reach a new record high by 2025, with Asia leading the way in growth in this sector. In terms of regions where we will see the highest investments: China is projected to have the largest increase in electricity demand, while India is experiencing the fastest growth in this area.

The welding industry plays a vital role in this transition. For example, wind energy production involves a shift from creep-resistant materials, commonly used to produce power boilers, to carbon-manganese (CMn) steels for manufacturing wind turbines. While CMn steels are easier to weld, the size of wind energy components requires specific welding consumables. Our factory in Hamm in Germany has developed dedicated welding consumables meeting the most stringent technical requirements of the market. In addition to the SAW process, our factory in Cittadella in Italy has a great expertise in terms of seamless core wires for the GMAW welding of wind power components. But of course wind power is not the only answer to the energy transition, as its availability is intermittent. Measures are of course needed to achieve a net zero target, such as hydrogen production, ammonia or other measures such as CO₂ capture.

Hydrogen is seen as the solution to ensuring stable energy production for renewables and it is expected to become a popular energy carrier in an integrated cycle of renewable sources.

Green hydrogen produced by using electrolytes, connected to green electricity production will be used by many industry sectors in the future. Today, its use is based on the needs of industry, such as the steel industry for the production of green steel or refining processes, but in the future it will be used as an energy source for electricity generation – newly developed gas turbines – as a fuel for the transportation sector or for the production of green ammonia.

For this transition to be successful, pipelines, tankers and storage facilities for hydrogen and ammonia will be needed, which is a major challenge. voestalpine Böhler Welding is developing welding consumables suited for this new industry challenge to support the future of hydrogen transportation and storage. Hydrogen is particularly challenging for the welding industry. Indeed, to become liquid, it must be cooled down at extremely low temperatures (-253°C).

The main materials used in tanks for the storage of liquid hydrogen are cryogenic stainless steels. Welding these tanks requires welding solutions that have a high level of toughness at this design temperature. voestalpine Böhler welding has developed solutions for all welding processes that meet both the ASME and EN ISO design standards.

There are different requirements for the welding consumables when they are stored or transported in a gaseous state. In fact, mainly CMn steels are then used. voestalpine Böhler Welding has developed and evaluated several of its welding solutions under high pressure and temperature of hydrogen and has proven to be the market leader for the welding of these applications.

Green ammonia is an essential part of the hydrogen economy, both as a raw material for chemical production and as a hydrogen carrier. Ammonia is safer to store and transport than hydrogen due to its reduced risk of explosion. After transportation, it can be converted back into hydrogen or used directly in applications such as turbines for CO₂-free electricity generation.

To ensure safe storage and transport, welding engineers must address stress corrosion cracking in condensed, anhydrous ammonia. They select materials with ultimate tensile strengths up to 70KSi (485 MPa) and carefully weld them using the appropriate filler materials. voestalpine Böhler Welding has the experience and portfolios for ammonia storage tank construction.

Ammonia will see its production multiplied by a factor three from now until 2050. In addition, it is used as a hydrogen carrier, to overcome the challenges of hydrogen storage and distribution. It is considered a carbon-free fuel for the maritime sector and as a fuel for stationary power generation. By 2050, the ammonia transport infrastructure must increase by a factor of 10-15, requiring tens of billions of USD in annual investment in the ammonia supply chain for storage and transport.

For example, around 235 ships with a capacity of 85,000 cubic metres (m³) (58 kt of ammonia) are required by 2050 to accommodate 354 Mt of additional ammonia shipped around the world, assuming a voyage every two weeks. This means that by 2050, a ship for ammonia transport will have to be built or converted from a liquefied gas transport ship every two months.

Ammonia causes specific corrosion in steels, so the choice of steel and the design of the tanks is crucial. voestalpine Böhler Welding has been working with an industry leader to further enhance its welding solutions for welding these tanks and to meet the design requirements for strength and hardness of the weld material.

CCUS will be essential in achieving net-zero emissions, particularly for industries like cement, petrochemicals, and fossil fuel power generation. The welding industry will be involved in manufacturing pipelines, storage facilities, and vessels for transporting CO₂. Existing gas systems may be repurposed, but additional infrastructure will also be required.

From now until 2030, global CO₂ capture capacity is estimated to grow elevenfold, under the leadership of USA and Europe. Consequently, the CO₂ storage capacity is also expected to grow about tenfold from now. The majority of the CCUS projects are still in the pre-FID phase but definitively moving closer to the final investment decision.

Existing gas systems, pipelines will be used in the future for CO₂ transport and depleted oil and gas fields or saline aquifers will be used for storage as well. Reusing existing gas systems will save on investment costs, but at the same time they will not be sufficient to cope with the expected quantities of CO₂ to be transported and stored. Depending on the distance to be covered, CO₂ will be transported either by pipeline or by specifically designed vessels.

Our steel plant in Linz, Austria – has been working on the topic of CO₂ transport and storage for many years and has developed specific steels for these applications. Together with voestalpine Böhler Welding, we together are now able to offer a complete solution for the manufacturing of these components.

In the medium term, the oil and gas industry are still expected to see growth in demand, particularly shifting towards petrochemicals. However, oil and gas companies are also investing in renewable energy sources like hydrogen, CCS  and wind, accounting for about 5% of their capital expenditures.

We will then see some additional opportunities in this industry segment in the future. In fact, typical manufacturers of blowout devices or valves will also be involved in the supply of equipment for carbon capture. Injecting CO₂ into a depleted gas field requires equipment similar to that used to drill these fields.

In summary, the oil and gas industry segment will become more complex in terms of welding solutions. As for the gas- and coil-fired power plants: No new investments in fossil fuel power generation are being made. All new investments in power generation are being made in green energy or nuclear power. Yes, this will have an impact on the welding industry, with a clear shift towards green solutions, but voestalpine Böhler Welding is prepared for it.