Power to Gas: Energy Storage and Methanation

Transcription

1 Representing the UK Hydrogen and Fuel Cell Industry Power to Gas: Energy Storage and Methanation Webinar 20th February 2014 Celia Greaves

2 Representing the UK Hydrogen and Fuel Cell Industry Energy Generation & Supply KTN A dynamic network delivering strategic value to the UK energy sector by enabling accelerated innovation access to funding partnerships international engagement cross-sector links technology deployment over 4,500 members

3 Offshore Wind Representing the UK Hydrogen and Fuel Cell Industry EG&S KTN Priority Areas Carbon Abatement Technologies Large Power Stations Nuclear Maximising Oil & Gas Resources Wave & Tidal Fuel Cells & Hydrogen Future & Emerging Opportunities

4 Representing the UK Hydrogen and Fuel Cell Industry Benefits of membership Membership of the EG&S KTN is free of charge and allows you access to multiple benefits: greater awareness of developments in the energy space, particularly cross-cutting issues, the opportunity to attend regular workshops and networking events, the opportunity to participate in webinars, access to reports and other KTN materials, participation in focus working groups, and insights into new funding opportunities and key developments across the fuel cell and hydrogen landscape

5 Representing the UK Hydrogen and Fuel Cell Industry Events: Stimulating access to funding Joint EG&S KTN and EU Energy Focus webinar on the FCH JU 2013 Call, December 2013 Fuel Cell Manufacturing Competition Scoping Workshop, September 2013 Joint TSB, SHFCA and EG&S KTN workshop on Fuel Cell Manufacturing and Supply Chain, August 2013 Joint TSB, EG&S KTN and RCUK workshop on Outstanding Business and Research Challenges for Hydrogen, May 2013 EG&S KTN: Activities Events: Exploring specific themes Power to Gas: New Opportunities - webinar, 20 th February 2014 Fuel Cell Material Handling: U.S. success and European growth, November 2013 Facilitating on-line collaboration Expanding your reach into energy we can help you: Find new partners / build new relationships Gain deeper understanding of challenges and opportunities and how you can respond Access new funding Focus work groups to support new Calls and provide a focus for specific interests / activities Private groups to allow sharing and exchange

6 Focus working groups FCH JU Calls 2011, 2012 and 2013 (Funding) Building a fuel cells manufacturing and supply chain (Funding) Private members groups Not visible to anyone except selected colleagues Allow sharing and storing documents, posting updates, publishing Partner search alerts Representing the UK Hydrogen and Fuel Cell Industry One-to-one introductions Mass-mail out of new opportunities Online collaboration

7 Representing the UK Hydrogen and Fuel Cell Industry Representing the UK Hydrogen and Fuel cell industry. Accelerating the commercialization of fuel cell and hydrogen energy. Helping fuel cells and hydrogen energy to become a key component of a low carbon economy reducing greenhouse gases, enhancing energy security and delivering green collar jobs. We cover: All fuel cell types and applications; The full fuel cell supply chain (from research into material science through to systems integration and distribution); Hydrogen production and storage; Hydrogen infrastructure; and Other issues around the delivery, storage and use of associated fuels. UK HFCA

8 Representing the UK Hydrogen and Fuel Cell Industry

9 Representing the UK Hydrogen and Fuel Cell Industry Webinar tips Please type any questions that arise during the presentations in the chat box. These will be addressed to speakers during the Q&A part of the webinar. If you face any technical difficulties please send Nikoleta a private note via the chat box by choosing her name from the list, give her a call on or send an at n.piperidou@synnogy.co.uk. Please keep your microphones muted throughout the session to avoid interference.

10 Representing the UK Hydrogen and Fuel Cell Industry Agenda 14.00pm 14.15pm 15.00pm 15.30pm Introduction, Celia Greaves, Energy Generation and Supply KTN and UK Hydrogen and Fuel Cell Association Power to Gas: Energy Storage and Methanation, Dr Graham Cooley, ITM Power Q&A session chaired by Adam Chase, E4Tech Closing comments, Celia Greaves, Energy Generation and Supply KTN and UK Hydrogen and Fuel Cell Association

11 POWER-TO-GAS WEBINAR 20 TH FEBRUARY 2014

12 POWER-TO-GAS WEBINAR 20 TH FEBRUARY 2014 Contents: Introduction P2G Energy Storage Rationale P2G Economics Compliance Additional applications Summary

13 INTRODUCTION P2G RATIONALE ENERGY STORAGE RENEWABLE HEAT

14 GROWING WIND GENERATION Evidence of grid balancing problems from Germany and Denmark Problems start at 20% capacity; UK hits this threshold by the end of 2013 Energy Storage is a Market Pull 20% of peak capacity (55GW) in Winter 20% of peak capacity (40GW) in Summer Source: ITM Power plc, data from BWEA ENERGY STORAGE: THE NEED HYDROGEN ENERGY SYSTEMS

15 UK WIND CURTAILMENT Evidence of grid balancing problems from Germany and Denmark Problems start at 20% capacity; UK hits this threshold by the end of 2013 Energy Storage is a Market Pull ENERGY STORAGE: THE NEED HYDROGEN ENERGY SYSTEMS

16 BALANCING SUPPLY AND DEMAND: A total of 725m paid for balancing services in Estimates in 2020 are: circa 1.9bn - 5.9bn pa Tariffs already operational in the UK: FCDM response sub 2 seconds THE NEED: GRID BALANCING

17 WHY POWER-TO-GAS? Electricity cannot be stored easily Hydrogen can be stored easily in the gas grid Source: ITM Power plc POWER-TO-GAS RATIONALE

18 ENERGY STORAGE TECHNOLOGIES Power-to-gas is efficient long term low energy cost Source: ITM Power plc ENERGY STORAGE TECHNOLOGIES

19 Hydrogen fraction (vol%) Fraction wind output curtailed HYDROGEN FRACTION VS EXCESS WIND LEVELS Capturing 2.8 TWh pa of excess wind (ie 4% of 2020 output) Requiring 978MW of electrolysis at 30% utilisation Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2% 3.5% 3.0% 725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020) 35% 30% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 25% 20% 15% 10% Hydrogen fraction 5% Curtailment 0% Excess wind (TWh pa) Source: ITM Power plc POWER-TO-GAS IN THE UK

20 EU Hydrogen Limits for Injection into the HP Gas Grid Covered by a range of local laws and EU Directives Note: interpretation of these rules is complex Limit falls to 2% if there is a CNG station downstream EU POWER-TO-GAS ENERGY STORAGE

21 GAS USAGE IN THE UK (DUKES 2013) Where does the gas go? 906 TWh of natural gas consumed in the UK in % was used to provide heat 34% burned in power stations to make electricity Source: Dukes 2013 WHERE DOES THE GAS GO?

22 ELECTRIFY HEAT?

23 DECC: UK HEAT STRATEGY The Future of Heating: Meeting the challenge 70% of UK heat comes from natural gas Low penetration of renewable heat in the UK RHI launched Nov % of heating from renewables by TWh hydrogen Circa 18,600 MW Electrolysis DECC: UK HEAT STRATEGY

24 P2G: ELEMENTS OF VALUE Value to the power grid Value to the gas grid Value to the economy Value to the Power Grid Avoided wind curtailment Avoided infrastructure upgrades Reduced reserve power Reduce CO 2 from open cycle GTs Absorbing reactive power Value to the Gas Grid Decarbonising gas Providing renewable heat Reducing GHG emissions from gas transportation Value to the UK Economy Reducing fuel imports Improved energy security Creating jobs in manufacturing P2G: ELEMENTS OF VALUE

25 P2G ECONOMICS CAPITAL COSTS TARIFF STRUCTURE CARBON REDUCTION

26 RENEWABLE HEAT INCENTIVE (RHI) A cost-based tariff scheme Where tariff levels vary depending on the cost of the technologies at different scales. compensate for the additional cost of the renewable technology over fossil fuel heating; provide an incentive to overcome nonfinancial barriers; and provide a return on the additional capital invested Annual payments over a 20 year period index linked DECC: UK HEAT STRATEGY

27 Cost ( k) ELECTROLYSER COSTS FOR 1MW MODULES A cost-based tariff scheme Where tariff levels vary depending on the cost of the technologies at different scales. Modular system Scale ~ Volume 1,800 1,600 1,400 1,200 1, ,700 1,400 Cost Estimates 1,200 1, ELECTROLYSER COSTS

28 Electrolyser cost (p/kwh ch) ELECTROLYSER COSTS FOR 1MW MODULES MW electrolyser: 70% efficient 1.7m Capex (over 20 years) % utilisation (Consumes 8760MWh per year) Cost = 0.97 p/kwh of electricity consumed = 1.4p/kWh of H 2 Produced 50% utilisation (Consumes 4380MWh per year) Cost = 1.90 p/kwh of electricity consumed = 2.8p/kWh of H 2 produced % 20% 30% 40% 50% 60% 70% 80% 90% 100% Utilisation Source: ITM Power ELECTROLYSER COSTS VS. UTILISATION

29 RHI FOR P2G APPLICATIONS Off Grid 30% utilization onshore 50% utilisation offshore Technically very challenging Grid Connected 100% utilisation Technically straightforward Demand Side Managed Excess wind utilisation Rapid response essential Technically challenging POWER-TO-GAS IN THE UK

30 OFF GRID P2G The ultimate in renewable heat: Where a grid connection is too expensive FIT for the turbine can be achieved by making RH Replace the existing export tariff with An Off Grid Electrolyser Tariff of the same value POWER-TO-GAS IN THE UK

31 OFF GRID P2G The ultimate in renewable heat Simplest tariff structure Where a grid connection is too expensive FIT for the turbine can be achieved by making RH Replace the existing export tariff with An Off Grid Electrolyser Tariff of the same value Generation Tariff Export Tariff 10p 5p Generation Tariff Electrolyser Tariff Burner 10p 5p POWER-TO-GAS IN THE UK

32 GRID CONNECTED Based on the Carbon Footprint of the grid: The UK grid is 164gCO 2 /kwh in 2030 (DECC) Produces H 2 of 234gCO 2 /kwh Methane is 198gCO 2 /kwh TUV definition of Green Hydrogen is 50gCO 2 /kwh DSM and rapid response needed to produce green hydrogen Green hydrogen generated by means of electrolysis of water must have a greenhouse gas reduction potential of at least 75 per cent compared to the currently valid reference value for fossil fuels of the Bio fuel Sustainability Act or conventionally generated hydrogen. POWER-TO-GAS IN THE UK

33 A A A A GRID CONNECTED HYDROGEN PRODUCTION Based on the Carbon Footprint of the grid: The UK grid is 164gCO 2 /kwh in 2030 (DECC) Produces H 2 of 234gCO 2 /kwh Methane is 198gCO 2 /kwh TUV definition of Green Hydrogen is 50gCO 2 /kwh DSM and rapid response needed to produce green hydrogen 198gCO 2 /kwh for Methane 50gCO 2 /kwh for Green Hydrogen POWER-TO-GAS IN THE UK

34 DEMAND SIDE MANAGED A Matrix of possibilities: Accessing renewable power via the grid Grid balancing DSM Utilising curtailed wind Significant modelling work undertaken Grid 9p/kWh Curtailed 0p/kWh Green Hydrogen at 50gCO 2 /kwh POWER-TO-GAS IN THE UK

35 DEMAND SIDE MANAGED A Matrix of possibilities: Accessing renewable power via the grid Grid balancing DSM Utilising curtailed wind Significant modelling work undertaken Electrolyser CAPEX m Excess Energy 16% 25% 42% 51% Electrolyser Grid 1% 2% 2% 3% Utilisation Total 18% 27% 44% 54% CO 2 footprint of H 2 gco 2 /kwh ch Electrolyser cost p/kwh ch p/kwh e Hydrogen cost p/kwh e p/kwh ch POWER-TO-GAS IN THE UK

36 Cost (p/kwh ch ) DEMAND SIDE MANAGED A Matrix of possibilities: Accessing renewable power via the grid Grid balancing Utilising curtailed wind Significant modelling work undertaken Hydrogen cost Electrolyser cost Sub gas pricing? POWER-TO-GAS IN THE UK

37 RENEWABLE HEAT INCENTIVE (RHI) DECC: UK HEAT STRATEGY

38 COMPLIANCE NTS DISTRIBUTION DOMESTIC

39 P2G IN THE NATIONAL TRANSMISSION NETWORK An international network Needs a coordinated approach International standards 0.1% limit needs revisiting Needs the formation of an international standards group P2G IN THE NTS

40 GAS DISTRIBUTION NETWORK Open and Closed Network Compliance The current 0.1% Vol H 2 is NOT based on safety! Network entry rules are based on gas refineries Recommend revising for small green gas facilities We recommend increasing the GSMR limit to 3% Standardise the procedure for exemptions Form a standards working group specifically looking at hydrogen in the gas grid GAS DISTRIBUTION NETWORK

41 DOMESTIC RENEWABLE GAS OFFERING H 2 Clean Gas Contract for Domestic Customers Analogous to a Green Power contract Therm for Therm offering* Reinvestment in P2G plant *1 therm = 100,000 British thermal units = 29.3kWh DOMESTIC RENEWABLE GAS OFFERING

42 ADDITIONAL APPLICATIONS METHANATION UPGRADING BIOGAS P2G AND FUEL

43 METHANATION Production of SNG from Renewable Hydrogen and CO 2 Need to source pure CO 2 Process design can minimised or eliminate storage Multi stage depending on the level of H 2 compliance METHANATION

44 METHANATION Production of SNG from Renewable Hydrogen and CO 2 Need to source pure CO 2 Process design can minimised or eliminate storage Multi stage depending on the level of H 2 compliance METHANATION

45 CHEMICAL VS. BIOLOGICAL METHANATION Production of SNG from Renewable Hydrogen and CO 2 Chemical: An industrial process for ~80yrs. Operates continuously requires considerable storage Biological: Able to follow varying wind profile Minimal buffer storage Parameter Chemical Biological Max scale sold ~500 MW ~500kW Pressure ~50bar Atmospheric, up to 50bar Temp C ~50C Heat produced in reaction Useful Useless Operating range % (needs H 2 storage) 0-100% in <5mins (less H 2 storage) During off periods... No energy required Need to prevent freezing Size of reactor Thin tubes ~ 10m long 3m 3 reactor vessel CHEMICAL VS. BIOLOGICAL METHANATION

46 REMOVING CO 2 FROM BIOGAS Methanation for BioGas CO 2 removal A modular and scalable technology for CO 2 removal BioGas typically 35% CO 2 Brings BioGas into Compliance Increases calorific value Increases output DECC Methanation project in progress High value application REMOVING CO 2 FROM BIOGAS

47 ENERGY HUB FOR P2G & FUEL H 2 Fuel cost reduction using P2G Co-location Energy Hub for P2G and Fuel Reduces the cost of H 2 by maximising electrolyser utilisation More work needed particularly siting and economics ENERGY HUB FOR P2G & FUEL

48 POWER-TO-GAS WEBINAR 20 TH FEBRUARY 2014 Summary: Renewable power needs energy storage Power-to-Gas is at the required scale Power-to-gas energy storage provides renewable heat A tariff structure comparable to Bio-Methane Recommendation to DECC The 0.1% legislation needs revisiting in the UK Recommendation to the HSE

49 POWER-TO-GAS WEBINAR 20 TH FEBRUARY 2014