hydrogen and the transition to net-zero energy systems

Hydrogen and the Transition to Net-Zero Energy Systems

David B. Layzell, PhD, FRSC.Energy Systems Architect, The Transition AcceleratorProfessor & Director, Canadian Energy Systems Analysis

Research (CESAR) Initiative, U. Calgary, E: [email protected]; W: www.transitionaccelerator.ca

Dan Wicklum, CEO, TAJessica Lof, Transport LeadCameron Young, ES Analyst Song Sit, Senior Assoc.Feb 17, 2021

mailto:[email protected]

http://www.transitionaccelerator.ca/

Outline1. Net-zero emissions: the role for hydrogen2. The economics and environmental footprint of low

carbon hydrogen production3. Towards a vibrant hydrogen economy: The HYER Hub4. Magnitude of the opportunity & challenge over the next

10 years5. Conclusion & Discussion

…COMMITTED TO BY CANADAAND 72+ OTHER COUNTRIES*

NET-ZERO EMISSIONSBY 2050

q How can Canada ‘win’?q What are the best transition pathways?

3

Existing Energy System

End Use Demand

NG

GasolineDiesel

Jet

CoalOther

Electricity

Low C Generation

Biom

ass

Fossil Fuels

GHG

GHG

GHGGHG

GHG

GHG

GHG

The Transition Accelerator

Hydrogen

Electricity

End Use Demand

C Capture & Storage

Low C Generation(Wind, Solar, Tidal, Hydro, Geothermal,

Nuclear)

Efficiency & Conservation

Atmos-pheric

CO2

Fossil Fuels


Net-Zero Energy System

GHG

GHG

Biomass

Fossil Fuels

* https://sdg.iisd.org/news/73-countries-commit-to-net-zero-co2-emissions-by-2050/

https://sdg.iisd.org/news/73-countries-commit-to-net-zero-co2-emissions-by-2050/

…COMMITTED TO BY CANADAAND 72+ OTHER COUNTRIES*

NET-ZERO EMISSIONSBY 2050

q How can Canada ‘win’?q What are the best transition pathways?

4

Hydrogen

Electricity

End Use Demand

C Capture & Storage

Low C Generation(Wind, Solar, Tidal, Hydro, Geothermal,

Nuclear)

Efficiency & Conservation

Atmos-pheric

CO2

Fossil Fuels


Net-Zero Energy System

GHG

GHG

Biomass

Fossil Fuels

Why Hydrogen (H2)?1. Some sectors need

chemical, not electrical energy carriers

2. Complements low carbon electricity generation

3. Supports biofuel production

4. More resilient, interconnected energy system (One, not three energy systems of today)

Ø Freight transportØ Heavy Industry Ø Space Heating (esp. cold regions,

large buildings)

e- H2

H2O O2

Storage

New mkts

H2 Fuel

Transport Buildings Industry Power

Industrial Feedstock

Fertilizer for Agriculture

Fuels for Transportation

Materials & Chemicals

Export

H2 Today (Can: ~8.2 kt H2/d)

H2Fossil Fuels

Industrial Feedstocks




CO2 (a GHG)

GRAY H2

The

Tran

sitio

n Ac

cele

rato

r

H2O

5

Towards a New Hydrogen (H2) Economy

from Layzell et al. 2020

Renewables

NuclearH2OO2

GREEN H2

H2 in a New, Net-Zero Energy System (Can: 60+ kt H2/d)

CO2Sequestered

H2Fossil Fuels

Biomass

BLUE H2

BYPRODUCT H2

Chlor-alkali Plants, etc

H2O

https://transitionaccelerator.ca/towards-net-zero-energy-systems-in-canada-a-key-role-for-hydrogen/

UPGRADING AND TRANSPORTING

Blending

Grid

HEAT & POWER GENERATION

Pipeline

H2 in NG (up to 20% (v/v) H2)Natural

GasPower Gen

H2 Pipeline

6

Key Value Chains in a Hydrogen Economy

Ammonia Prod’n

NH3

Pipeline

LH2 LH2

NH3

Export Markets

EXPORTING

Fuel H2

FUELING STATION

LH2 Prod’n

Tube Truck

Liquid H2

PRODUCTION

NG Oil

Biomass

Water

Low C power

Electro-lyzer

H2

Gasifier/ Reformer

CCS


TRANSPORT DEMAND

Ø Research Centre. 2018. Perspectives on

Canada:Among the world’s lowest cost producers of low/zero C H2.

Adapted from Asia Pacific Energy Research Centre. 2018. Perspectives on H2 in the APEC Region. (Figure 3.4) https://aperc.ieej.or.jp/file/2018/9/12/Perspectives+on+Hydrogen+in+the+APEC+Region.pdf The Transition

Accelerator

From fossil fuels (NG) coupled to carbon capture

and storage (CCS)

8

Canada:Among the World’s

Lowest cost producers of ‘Blue’ & ‘Green’ H2

From water electrolysis

using very low C electricity (wind, PV,

hydro, nuclear)

https://aperc.ieej.or.jp/file/2018/9/12/Perspectives+on+Hydrogen+in+the+APEC+Region.pdf

9

~3 kg CO2e

kg H2

Life Cycle GHG Intensity

~0.8 to 3kg CO2e

kg H2

Life Cycle GHG Intensity

80% to 95%

Reduction in Life cycle C Emissions

67% to 90%


For more details:https://transitionaccelerator.ca/towards-net-zero-energy-systems-in-canada-a-key-role-for-hydrogen/

Canada has low-cost Blue & Green H2…But what about the environmental footprint?

H2 Fuel

Transport Buildings Industry Power

Industrial Feedstock




Export

Renewables

NuclearH2OO2

GREEN H2

CO2Sequestered

H2Fossil Fuels

Biomass

BLUE H2

BYPRODUCT H2

Chlor-alkali Plants, etc

https://transitionaccelerator.ca/towards-net-zero-energy-systems-in-canada-a-key-role-for-hydrogen/

$0

$1

$2

$3

$4

$5

$6

$7

$8

TT LH2

Pipe

line TT LH2

Pipe

line TT LH2

Pipe

line TT LH2

Pipe

line TT LH2

Pipe

line TT LH2

Pipe

line

2 t/day 10 t/day 2 t/day 10 t/day 2 t/day 10 t/day

Supp

ly C

hain

LCO

H (C

$/kg

H2)

H2 Production Purification LH2 Compression Trucking Pipeline Purification (HFS) HFS

40 km5 km 300 km

10

The Cost of Blue H2 at a Fueling Station (HFS)

Prod

’n

Liqu

efac

tion

Com

p Tru

ckH

FS HFS

HFS

Liqu

efac

tion

Liqu

efac

tion

Prod

’n

Prod

’n

Com

pTr

uck

Com

pTr

uck

2 t H2/d 2 t H2/d 2 t H2/d10 t H2/d 10 t H2/d

5 km from supply 40 km from supply 300 km from supply

10 t H2/dAssumptions:

q No taxes/credits for H2q Current taxes on FFq 8% ROI, built at scale

$0

$10

$20

$30

$40

$50

Fuel Cost (C$/GJhhv )

H 2Fu

el ce

ll el

ectr

ic (H

FCE)

repl

acin

g di

esel

H 2Fu

el ce

ll el

ectr

ic (H

FCE)

repl

acin

g ga

solin

e

H 2-D

iese

l Dua

l fue

l (HD

2F) V

ehicl

es

For price parity with existing ICE vehicles

+ a

C ta

x on

die

sel w

ill in

crea

se th

e pr

iceth

at ca

n be

cha

rged

for H

2

Calculations adapted from https://hdsam.es.anl.gov/index.php?content=publications

https://hdsam.es.anl.gov/index.php?content=publications

What is Needed to Build New H2 Energy Systems?

Challenge with Hydrogen:q Its a gas: more difficult to move and store

than liquids, especially in small quantitiesMUST BRING TOGETHER:q Low-cost waste, blue or green H2;q Substantial nearby markets for the H2 (esp.

transport and heating fuel markets)q Ability to connect the two (ideally pipelines);q Scale of supply/demand where the economics

works without sustained public investment;q Engaged industry, governments and academics

The optimal strategy varies with region of Canada:

There must be a focus on Hydrogen Hubs!

Alberta Makes a Lot of Hydrogen

13

The Transition Accelerator The Transition

Accelerator

THE ALBERTA INDUSTRIAL HEARTLAND (AIH)

Estimated Annual Production in AIH:Total: ~2250 t H2/dBlue: ~937 t H2/d

Towards a ‘Hydrogen in the Edmonton Region’ (HYER) Hub

14

Pipeline

Existing or New Industrial

Feedstock Demand

ü 1+ t H2/dayü <$2/kg H2

ü 2-10 t H2/dayü FC qualityü ~$3.50/kg H2

CO2

H2

Industrial Scale ‘Blue’ H2

Productionü 100’s t H2/dayü ~$1.50/kg H2

H2


1. ‘Piggy-back’ on low cost industrial blue H2 production.

3. Rapidly grow H2 demand

2. Pipeline H2 to new fuel markets

4. Attract H2-using industries & OEMs

LH2

LH2 Productionü 10+ t LH2/dü Adds ~$3+/kg

ü ~4 t LH2/truckü HFCE ready

Strategically located stations to build demand & justify

future pipeline connection (fuel for

station needs subsidy)

With C taxes going to $170/t CO2, price target could be higher.

Edmonton’s Markets for

Fuel Hydrogen

Private Trucking Fleets

Private Fueling Stations

H2pipeline

Natural Gas ‘Gates’ to

residential and commercial

heating network

Airport

EDMONTON

Municipal Vehicle Fueling

Transportation:~670 t H2/d

Building Heating:~1500 t H2/day

+ Export

…on two corridors

A. Abandoned NG Pipelines B. Discontinued NG Pipelines C. Discontinued Jet Fuel Pipeline

There may also be Discontinued Pipelines that Could be Repurposed to Carry Hydrogen

ALBERTA’S MAJORTRANSPORT ROUTES

q Two HFCE HD (63.5 tgross) vehicles

q Edmonton à Calgary return;q 700 km between refuelingq Road trials: Nov. ’21- Mar ‘23

Initial Pilots to Engage Vehicle OEMs & Operators

17

H2-Diesel dual-fuel Projectq Retrofit of diesel vehicles to take

~40% of energy from H2;q Important ‘bridge’ technology;q Valuable in creating fueling

station demand for H2.

HFCE Municipal Bus Fleet Project

H2 Train Project

LEAD BY

ALBERTA’S MAJORTRANSPORT ROUTES

Current centresof H2 Production

Goal: Create Corridors for H2 Production & Demand

18

Greater Edmonton Region H2 Node

Fort McMurray/ Fort McKay H2 Node

Greater Calgary H2 Node

H2 or NH3 to west coast for export to Asia

H2 pipeline to USA H2 pipeline to E Canada

Export Markets

q Attract investmentq Create Jobsq Attract OEM companiesq Reduce GHGs

q Reduce C intensity of SCO productionq Create potential for H2 exportsq Alberta leads the transition to net-zeroq Create new export markets …

Similar hydrogen node models can

be deployed across Canada

A. Alberta Transportation Fuel MarketB. Natural Gas DecarbonizationC. Export by pipelineD. Export by ship

20

Magnitude of the Opportunity (Challenge?)for Hydrogen to Help Canada Achieve

Its Paris-2030 Commitment(30% Reduction in GHG Emissions by 2030)

A. Alberta Transportation Fuel Market: 30% reduction by 2030

0

100

200

300

0

100

200

300

HDV

MDVRail

Passenger

Other uses

PJ d

iese

l/yr

PJ g

asol

ine/

yr

Freight

Cars

Lt Trucks

Other uses

DIESEL

GASOLINE

ALBERTA (2017)% TO H2

35%

5%

DRIVE TRAINEFFICIENCY

(J H2/J DIESEL)

0.86

0.56

H2 DEMAND(PJ H2/YR)

85

0.9

IMPLICATIONS BY 2030…Blue H2 production

q 1,668 t H2/dq 31% incr. in AB H2 productionq ~4 new 400 t H2/d SMR or ATRq CCS: 5 Mt CO2/yrq WTW GHG red’n: 9.5 Mt CO2/yrq 30% reduction in fuel GHGs

Fueling Stations/Vehiclesq 167 stations @ 10t H2/d/stationq Serving ~111,000 vehicles using

average of 15 kg H2/veh/dayq <3.4% of registered vehicles in AB

would convert to either:Ø H2-diesel dual fuel or Ø H2 fuel cell electric

0

1000

2000

3000

4000

B. NG Decarbonization for Use in Alberta (~2%)

ALBERTA (2018)NG PRODUCTION

PJhh

vN

atur

al G

as/y

r

Industrial

ResidentialCommercial

FRACTION FORDECARBON-

IZATION(PJ NG/YR)

1000

H2BLENDING

q 15% of volume

q 5.23% of energy

H2 DEMAND(PJ H2/YR)

52.3

IMPLICATIONS BY 2030…

Blue H2 productionq 1011 t H2/dq 19% incr. in AB H2 productionq 2-3 new 400 t H2/d SMR or ATRq CCS: 3.2 Mt CO2/yrq LC GHG red’n: 2.1 Mt CO2/yr

0%

2%

4%

6%

8%

10%

12%

0 50 100 150 200Fu

el c

ost i

ncre

ase

$/t CO2 Tax (Federal)

203020

28202620

24

2022

NOTE: The H2 infrastructure (pipelines) needed for fueling

stations could also support NG decarbonization and ‘buffer’

fueling station demand.

Assumes:NG: $2/GJhhvH2: $10.50/GJhhv

% Increase in cost of 15% (v/v) H2 in NG blend

Exported to other

Jurisdictions

0

1000

2000

3000

4000

C. Export by Pipeline

ALBERTA (2018)NG PRODUCTION

PJhh

vN

atur

al G

as/y

r

Industrial

ResidentialCommercial

POTENTIAL NEW NA FUELMARKETS FOR HYDROGEN(E.G. DIESEL ALTERNATIVE)

(PJ H2/YR)

167

IMPLICATIONS BY 2030…Blue H2 production

q 3237 t H2/dq 60% incr. in AB H2 productionq 8 new 400 t H2/d SMR or ATRq CCS: 10 Mt CO2/yr

Exported to other

Jurisdictions10%

Green H2 production: From dedicated wind à H2 (@ 38% CF):

q 3237 t H2/dq 18.4 GW new wind generationq 11X current wind capacity in ABq ~3100 large (6 MW) wind

turbines, dedicated to H2 prod’nq Require ~11 Mm3 water/yr (<10%

of water use in Calgary)

OR

California wants Green Hydrogen

Exporting by Ship: As Ammonia to Japan

Japan’s 2030 Import Target:

300,000 t H2/yrEnergy

equivalence:1.94 Mt Ammonia

(NH3)/yr(easier to transport, esp. long distances)

Edmonton

Prince Rupert

Japan

South Korea

Image from Google Earth


Saudi Arabia, Australia, etc?

IMPLICATIONS BY 2030…q 968 kt NH3/yrq ~411 t H2/dayq ~1 new large NH3 facilityq CCS: 1.4 Mt CO2/yr

NH3 can be used directly as a C free fuel,

or converted back to H2

Assume 50% from Canada

OPTION 1: RAIL BLUE NH3 TO COAST

OPTION 2: PIPELINE BLUE H2, MAKE NH3 AT COAST

q 110 t NH3/rail carq 100 cars/unit trainq 88 unit trains/yrq ~1 train every 4 days

Conclusions

David B. Layzell, PhD, FRSC.Energy Systems Architect, The Transition AcceleratorProfessor & Director, Canadian Energy Systems Analysis

Research (CESAR) Initiative, U. Calgary, E: [email protected]; W: www.transitionaccelerator.ca

Dan Wicklum, CEO, TAJessica Lof, Transport LeadCameron Young, ES Analyst Song Sit, Senior Assoc.

AGMJan 28, 2021

q Many nations of the world, including Canada, are committed to transitioning to net-zero emission energy systems;

q Alberta is poised to lead this transition given its ability to produce, use & export low-carbon (Blue & Green) hydrogen;

q The focus needs to be on Nodes/Hubs as well as hydrogen corridors;q We need to start now!

Feb 17, 2021

mailto:[email protected]

http://www.transitionaccelerator.ca/

hydrogen and the transition to net-zero energy systems

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