The global energy transition necessitates the defossilisation of the energy-intensive industry and hard-to-abate transport sectors, where direct electrification falls short due to limitations in energy density. Electricity-based fuels and chemicals (e-fuels and e-chemicals) emerge as a viable alternative, offering high energy density and compatibility with existing infrastructure. However, their production hinges on access to vast amounts of low-cost renewable electricity, a challenge for regions with limited land. This study explores wave power as an underexplored source for e-fuel production, focusing on regions with exceptional wave energy: New Zealand, Chile, and Ireland. Using energyHub-LUT, a newly developed optimisation model, the research evaluates the techno-economics of wave power, alongside solar photovoltaics and wind power, for producing e-fuels and e-chemicals. The results show that wave power supplies more stable power for e-fuel production compared to onshore wind power and solar photovoltaics, cutting the need for batteries by 25-100%, depending on location. Chile produces the lowest cost e-fuels when wave power is integrated alongside solar photovoltaics and onshore wind power, thanks to over 7000 full load hours, but its higher capital expenditures render it less competitive than onshore renewable energy. The study concludes that wave power's economic viability is limited even in regions with very high full load hours but also highlights its potential as an alternative where land scarcity hinders large-scale renewable energy projects or in cases of near baseload direct electricity need. ... Read more

The best wave energy resources are typically found far from land, especially in the far southern latitudes. However, these optimal locations often lie outside any single nation's exclusive economic zone (EEZ) and are located in deep ocean waters, though a few places stand out, namely Kerguelen Islands, the southern coast of Chile and the southern tip of New Zealand. The Kerguelen Islands are situated in a prime wave energy location, with a potential capacity factor exceeding 90% when using best of breed point-absorber wave energy converters (WECs). This could result in a levelised cost of electricity of 31.4 €/MWh by 2050. An earlier study showed that the Kerguelen Islands could support up to 7 GW of installable wave power capacity, utilising only 15% of the EEZ.

To evaluate the feasibility of establishing an energy hub on Kerguelen Islands, a scenario was developed using the EnergyPLAN modelling software. The scenario involves producing e-fuels and e-chemicals, which will be essential for sectors like marine and aviation transportation and chemicals as the world transitions to a defossilised economy. This analysis assumes that the islands could supply fuel for East Asia, particularly Japan, South Korea, and Taiwan. By 2050, the 7 GW wave power system could meet 3% of the demand for e-fuels and e-chemicals in these countries, producing 3.5 TWhth,LHV of e-kerosene, 2.6 TWhth,LHV of e-diesel, 19 TWhth,LHV of e-methanol, 2.5 TWhth,LHV of e-LNG, and 4.9 TWhth,LHV of e-ammonia. The cost projections for 2050 suggest that e-fuels and e-chemicals produced from Kerguelen Islands could be highly competitive, with projected costs of 95.0 €/MWh for e-kerosene and e-diesel, 78.7 €/MWh for e-methanol, 64.5 €/MWh for e-LNG, and 68.4 €/MWh for e-ammonia.

In addition to wave power, the system would incorporate 2 GWhcap of battery storage and 50 GWh of underground rock cavern hydrogen storage, further enhancing the energy hub's capacity and flexibility. These costs, assumed for 2050, are projected to be competitive compared to leading global sites, such as the Atacama Desert, which has excellent solar PV resources. For comparison, the Atacama Desert’s e-fuels production cost is estimated to range from 70-75 €/MWh, e-methanol is between 49-57 €/MWh and e-ammonia at 53 €/MWh.

However, the costs mentioned above do not include shipping costs. Shipping costs for ammonia for 10,000 km to East Asia could add up to 8 €/MWh, while shipping costs for methanol could add up to 4 €/MWh. For the Kerguelen Islands an attractive business model could be established to diversify the global e-fuels and e-chemicals production that may largely shift towards solar energy. This creates a promising opportunity for investment in a gigawatt-scale energy hub for e-fuels and e-chemicals on Kerguelen Islands, including the necessary infrastructure for shipping and workforce to maintain such a system. ... Read more

Climate change is driving the adoption of sustainable energy, with low-cost solar photovoltaics and wind power at the forefront. However, land-constrained regions and islands have a limited onshore renewable energy potential. Wave power may prove useful for such regions, supported by growing literature in the field. This study delves into wave power's techno-economic potential, addressing a gap in previous assessments focused solely on theoretical or technical prospects. Utilising hourly wave data and a wave energy converter manufacturer's power matrix, global wave electricity yield is estimated. Considering projected costs, levelised cost of electricity is used to gauge economic viability. Although wave power is currently expensive, the results suggest that it could become cost-competitive with offshore wind power in the 2030s, with levelised cost of electricity below 70 €/MWh by 2035 in areas with good wave energy resources. Finally, the paper contributes openly accessible, hourly capacity factor data of global wave power generation, empowering further energy system modelling research. This study paves the way for informed decision-making on wave power's role in a diversified, sustainable energy future. ... Read more