-based energy storage solutions electrolysis &electrolysis ...€¦ · electrolysis &...

LEADING THE ENERGY TRANSITION

HYDROGEN-BASED ENERGY STORAGE SOLUTIONSElectrolysis & FlexibilityElectrolysis & Flexibility

SBC Energy InstituteIEA Workshop on Hydrogen Technology Roll-Out in Europe 10th July, 2013

1© 2013 SBC Energy Institute. All Rights Reserved.

Electrolysis & Flexibility

More than a storage carrier, hydrogen is a bridge between energy systems

SIMPLIFIED VALUE CHAIN OF HYDROGEN-BASED ENERGY CONVERSION

Refueling StationsOxygenWater

SURPLUSPOWER-TO-POWER POWER-TO-MOBILITY

POWER GRID

Wind Turbine

Solar PV

Fuel cells

Upgraded & synthetic fuels

Refineries

Fuel Cell Vehicle

Internal Combustion E i V hi l

Electric Vehicle

Electrolysis Hydrogen Storage

Optional

Combustion turbines

Fuel cells

Chemical

Blended gas

Engine Vehicle

Natural Gas Vehicle

Carbon POWER-TO-CHEMICAL

POWER-TO-GAS

GAS GRID

Chemical plants

Ammonia

Petroleum ProductsMethanationCO2

Carbon Capture

Injection of hydrogen in the natural gas grid

POWER TO CHEMICAL


Note: Simplified value chain. End uses are non-exhaustive. Note that the power and gas grids are the main supplier to the residential and commercial end-uses (lighting, heating and cooling, cooking…)

Source: SBC Energy Institute analysis

GAS GRID


Electricity price spreads are too small to enable significant hydrogen production cost reductions through price arbitrageproduction cost reductions through price arbitrage

LEVELIZED COSTS OF HYDROGEN FOR A GRID-CONNECTED ELECTROLYSIS PLANT$/MWhch,

Assumed electricity price distribution

120

160

200

Assumed electricity price distribution ($/MWhe)

300

320

280 Efficiency + 10% with price arbitrage stragegyReference plant buying electricity at annual spot mean

CAPEX - 20% with price arbitrage strategyReference plant with price arbitrage strategy

-40

0

40

80260

240

220

p y g y pAnnual spot mean: $77/MWhe

400% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Hours of the year (in % of the year)Hourly prices ranked in chronologic order

Hourly prices ranked in ascending order

Cumulated average of the hourly prices ranked in

200

180

160

140

-12%

Cumulated average of the hourly prices ranked in ascending order

090% 100%80%70%60%50%40%30%20%10%

140

BaseloadProduction excess monetization

Plant load factor / utilization rate(operational hours in % the year)


Note: Illustrative example based on 8.5MWch electrolysis (5 alkaline stacks of 1.7MWch each), with total installed system CAPEX: $765/MWhch, Efficiency: 79%HHV, Project lifetime: 30 years and real discount rate after tax:10%.

Source: SBC Simulation based on US DoE H2A Model

monetization (operational hours in % the year)


Injection of hydrogen into gas networks provides a large end-market in the short to mid term for electrolytic hydrogenshort to mid term for electrolytic hydrogen

HYDROGEN INJECTION INTO THE GAS NETWORK: GERMAN POTENTIAL AT 5VOL.% BLENDING0.04 TWh

Current Electric Storage

Electric grid: 550TWhe/year (65GWe on average)

TWh7.6

GWe

Capacity*

Existing gas caverns

H2 (1.7 TWhch)Electrolysers1.1 to 2.2 GWe

Gas plants20 GWe (installed)

1.5 GWe (flexible reserve)

Existing gas caverns212 TWhch total

incl.109 TWhch in salt caverns

H2 Injection0.870 GWch average

Gas grid capacity 1,000TWhch/year (114 GWch on average)

0.870 GWch average2.25 GWch in winter


Note: Order of magnitude for 5% blending in volume (i.e. ~1.5% in energy) where it does not affect the grid nor the end-use applications. It takes into account the dynamic of the seasonality of the grid (lowest demand in summer of 58 GWch) for the injection rate (58 GW * 1.5% = 0.870 GW). Electrolyzer could act as negative control reserve (9GW in Germany currently, including 7.6 GW of Pumped Hydro)Current Electric Storage capacity corresponds mainly to Pumped Hydro Storage capacity, on top of the Hunthorf Compressed Air Energy Storage Facility.



Synthesis of methane is promising but constrained by affordable CO2sourcessources

SIMPLIFIED MASS FLOW CHART OF HYROGEN-ENRICHED BIOMETHANE PLANTkg/h

Waste Heat (230kW )Electricity (1MW ) Electrolysis Waste Heat (230kWth)Electricity (1MWe) Oxygen

156 kg/h O2

Electrolysis

14087.2 kg/h of H2O

19.5 kg/h H2

Biogas unit

106.7 kg/h of CO2140

dry kg/hof biomass

38.8 kg/h of CH4

54.5 dry kg/h of60 kg/h

110 ha. of land

Methanation77.7 kg/h

of CH4

~ x2

54.5 dry kg/h of biomass residues4

gwater

Biogas generates an excess of CO2 mixed with …Enriching biogas with methane doubles the output while ff

Recycled heat for the biogas reaction


Notes: 1: Biomass feedstock is a maize silage of 5kWhch/kg of dry matter, cultivated with a land yield of 0.63MWch per km². 2: The anaerobic digestion of maize silage requires heat and has an total efficiency of 68.7%; 3: Thermochemical methanation at 300°C and 77.7% hydrogen-to-methane efficiency

Source: SBC Energy Institute Analysis

methane… increasing the efficiency and mutualizing the injection costs


Fuel synthesis from water, electricity and carbon, extends the market potential for electrolysispotential for electrolysis

POWER-TO-SYNFUELS1 PATHWAYS FOR H-C-O SYNFUELS PRODUCTION

CO2 HYDROGENATION OXYGENATED SYNFUELS

H O

Formic acid synthesis

Dehydration

Formic acid(HCOOH)

DME(CH3OCH3)

2

ELECTROLYSIS

H

Electricity

H2O electrolysis Methanol

synthesis

CO2Methanation

Methanol-to-gasoline (MtG)

MethanolCH3OH

CO2 + H2CO2

Reverse Water Gas

H2

CO2 + H2O l t l i

CO + H2( )

Methanation

Methane CH4

CO Methanation

Water Gas Shift

Water (H2O)

co-electrolysis

O2

(syngas)

Fischer-Tropsch (FT)

Alcohols synthesis

CnH2(n+1) liquid hydrocarbon

Methanation

HYDROCARBON SYNFUELS

BiomassGasification

CO

CO

Coal H


Source: SBC Energy Institute Analysis

synthesis

CO HYDROGENATION

Coal H2


Hydrogen is an essential energy carrier to facilitate the energy transition

Hydrogen is an enabler for high intermittent renewable penetration:y g g p Balance deficit (directly or coupled with gas) Ensure security of supply with massive storage Monetize intermittent surplus

Hydrogen facilitates the decreased carbon intensity of fossil-fuel based energy systems: Hydrogenate fossil fuels and maximize land use for biofuel / biogas production Recycle carbon captured from CCS Leverage current infrastructure

Hydrogen business cases are not yet profitable in the absence of green supports except forHydrogen business cases are not yet profitable in the absence of green supports except for a few early markets: A few early markets can provide short-term business cases (e.g. back-up for telcom towers) Costs reduction on electrolysis side are a pre-requisite (learning curve, manufacturing…)




SBC Energy Institute is a non-profit organisation that promotes understanding of key global energy issues

HYDROGEN STUDY

understanding of key global energy issues

INSTITUTE IDENTITY

Focused on crossover technologies related to the energy space

Registered as a non-profit organization: all studies publicly available

One year effort on electrolytic hydrogen

Release expected Q4 2013

For more information: studies publicly available

Governed by its own Board Members, including external people:

Cl d M dil F E ti Di t f th

Benoit [email protected]+33 (0)6 77 01 04 82

Claude Mandil, Former Executive Director of the International Energy Agency

Dr. Adnan Shihab-Eldin, Former OPEC Acting Secretary General.

SBC Energy Institute website & reports:www.sbc.slb.com/SBCInstitute.aspx


Appendix


Wind and Solar PV are challenging to integrate on the power grid

MW, December 2012 on the 50Hertz Operated GridWIND & SOLAR GENERATION VS. DEMAND IN NORTHERN GERMANY

14 000

12,000

14,000 VARIABILITY & NON-CONTROLABILITY GENERATES

SURPLUS & DEFICIT

8,000

10,000

6 000

8,000

10,000

12,000

4,000

6,000

0

2,000

4,000

6,000

0

2,000Focus on 27th December

0h 24h12h6h 18h

01 3105 10 15 20 25 3002 03 04 06 07 08 09 11 12 13 14 16 17 18 19 21 22 23 24 26 27 28 29


Source: SBC Energy Institute Analysis based on 50Hertz data archive (Wind and Solar Actual In Feed 2012, Control Load 2012)

Solar PV Wind Demand

01

Electricity price spreads are too small and not frequent enough to enable significant hydrogen production cost reductions through price arbitrageg y g p g p g

LEVELIZED COSTS OF HYDROGEN FOR A GRID-CONNECTED ELECTROLYSIS PLANT€/MWhch, based on EPEX Spot price 2012 for Germany

150

200

350

400

450

Fixed elec. cost at annual meanPrice arbitrage strategy

German electricity price distribution (€/MWhe)

50

100

150

200

250

300

-50

0

0% 20% 40% 60% 80% 100%Hours of the year ranked by increasing order of prices

(in % of the year)50

100

150

124

0

50

100%90%80%70%60%50%40%30%20%10%0%

utilization rate (in % of the year)

Spot price arbitrage leads to an optimal plant utilization rate of 80% and LCOH only reduced by 4% compared


Note: EPEX SPOT intraday trading “index price for each hour of 2012. Intraday SPOT and day-ahead SPOT auctions have been found to give very similar price duration curves. Electrolysis assumptions is based on the US for a 10MW alkaline plant with total installed system CAPEX: $848/MWhch.Efficiency: 78%. Project lifetime: 30 years. Real discount rate after tax:10%.

Source: SBC Simulation based on EPEX Market Data, US DoE H2A Model

with baseload.

Due to a poor round-trip efficiency, power-to-power is likely to be limited to niche applications

LOSSES ALONG THE RE-ELECTRIFICATION VALUE CHAIN OF A H2-BASED STORAGE In MWh, based on a 100MWh storage system, with no hydrogen transport

pp

100 MWh

75% P d h d t (t d )

Underground storage95% eff.

84% eff.

100 MWh

Additional losses of current technologies (low range)Process energy loss (mid-term achievable efficiencies)Electricity input

48% Hydrogen forecast55% Compressed air energy storage (today)

75% Pumped hydro storage (today)

Turbine60% eff.Pressurized tanks

85% eff.

77% eff.

20% Hydrogen today low range

48% Hydrogen, forecast

Fuel Cell30% eff.

Round-trip efficiency20% Hydrogen, today, low range

Re-electrificationHydrogen storageElectrolyzerIntermittent


Notes: Mid-term (<10 years) realistic target for efficiencies.Source: SBC Energy Institute Analysis; NREL (2009), “Lifecycle cost analysis of hydrogen versus other storage options”

Re electrificationHydrogen storageElectrolyzerIntermittent electricity

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