Wärtsilä pioneers future-fuel technology to drive global energy transition

In an exclusive interview with Energy Connects ahead of World Utilities Congress 2024, Håkan Agnevall, President and CEO of Wärtsilä, outlines how the company is adapting to the energy sector’s rapid transformation by offering flexible engines and energy-storage solutions that support the integration of renewable energy, particularly in regions like the Middle East. The company is also developing future-fuel technologies, aiming for a zero-carbon-ready product portfolio by 2030.

The energy sector is undergoing significant transformations globally. What are the key developments you foresee shaping the future of the energy industry, and how is Wärtsilä preparing to adapt to these changes?

The increasing share of renewables is accelerating the pace of decarbonisation. The 2050 goal of net zero is now only 25 years away, which is the lifespan of a single power plant. This means the decisions and actions to drive the energy transition need to be taken now.

We must also be ready to face the challenges along the way: electricity demand is growing sharply, driven by economic growth but also factors such as the surge in data centres and the increasing electrification of industries such as transport. Deepening geopolitical tensions will mean even more global uncertainty.

At Wärtsilä our focus is on helping our customers navigate this complex energy landscape. Our flexible engines and energy-storage solutions provide reliable grid balancing, enabling modern, renewables-heavy power systems to keep up with changing demand. The high efficiency and output of our solutions, even in hot and humid conditions, makes them ideal for the Middle East, and a more reliable choice than traditional peaking gas turbines.

Our pioneering future-fuel technology will be key to enabling an affordable and reliable energy transition. Already today, Wärtsilä has solutions and technologies that facilitate the transition to 100% renewable power systems. These can be taken into use now but adapted to run on the relevant green fuels of the future. 

No single solution will carry us through the green transition alone. Fossil fuels will still play a role for many years, and gas will be needed as a transition fuel for balancing power until more sustainable fuels are sufficiently available.

And while fossil fuels are still in the energy mix, we focus on technologies that allow our customers to optimise their power systems, improving efficiency and minimising emissions.

What are some of the key initiatives or projects you have been working with recently?

We were recently selected to deliver one of Australia’s largest energy-storage installations, the second stage of Origin Energy’s Eraring battery facility. Our next-generation solution provides increased performance, lower cost and maintenance requirements, and faster rollout.

And in May, we signed a co-operation agreement with AVK, the largest and fastest-growing supplier of power solutions for data centres in Europe, to deliver on-site power generation for European data centres.

We are committed to providing our customers with a product portfolio ready for zero-carbon fuels by 2030. We are well on our way: since November 2023, we have launched an engine-based ammonia solution for our marine business, as well as a 100% hydrogen-ready power plant concept, and our innovation work continues.  

Partnerships are vital for driving the decarbonisation transition, and this year we announced a five-year collaboration with 200 companies and organisations, called WISE, to develop innovative clean-energy concepts.

Wärtsilä is known for its technological innovations in the energy sector. What are some of the recent technological advancements or solutions that Wärtsilä has introduced or plans to introduce in the Middle East market?

In June we reached a significant milestone by launching the world’s first large-scale 100% hydrogen-ready engine power plant concept. This solution can use natural gas today to provide flexibility and balancing, and can be converted to run on hydrogen, thereby future-proofing the journey to net-zero. The new engine power plant is a significant step beyond existing technology, which can run on natural gas and 25 vol% hydrogen blends.

Scaling up renewables alone to reach net zero is not enough to reach targets. Flexible power generation solutions, like engine power plants, are needed to balance fluctuating renewable energy sources. It is crucial that these solutions are futureproof and ready to run on sustainable fuels when they become available, to fully decarbonise the energy sector.

Wärtsilä's participation in the World Utilities Congress 2024 is highly anticipated. What makes you excited about the market in UAE?

The UAE’s power system is transforming rapidly. The deployment of nuclear energy, giga solar PV parks and reverse osmosis desalination has now been followed by the emergence of wind power. Power demand is growing with the connection of industrial load to the main grid and with the rollout of data centres.

Our simulations show that the UAE’s grid needs additional power supply, and it must be firm, dispatchable and capable of minute-level balancing. We are pleased that in its last capacity development outlook, EWEC is willing to consider not only open cycle gas turbines, but other balancing technologies as well, given that engines have been shown to outperform gas turbines in many metrics.

• World Utilities Congress 2024 will be taking place from 16–18 September 2024 in Abu Dhabi. Book your conference delegate pass: https://bit.ly/4cwsSYM