SUCCESSFUL IMPLEMENTATION OF POWER-TO-GAS IN EUROPE - A ROADMAP FOR FLANDERS

Transcription

1 SUCCESSFUL IMPLEMENTATION OF POWER-TO-GAS IN EUROPE - A ROADMAP FOR FLANDERS European Utility Week 2015, 4 Nov 2015 Session 13: Main energy storage applications and how they are evolving By Denis Thomas, Business Development Manager Power-to-Gas, Hydrogenics

2 POWER-TO-GAS ROADMAP FOR FLANDERS IN A NUTSHELL Duration: 14 months (01/10/ /11/2015) Funding : Flemish Region, Belgium Project partners: Coordinator: Hydrogenics 2

3 POWER-TO-GAS ROADMAP FOR FLANDERS OBJECTIVES Analyze the actual and future status of Power-to-Gas (PtG) in Flanders (technology, economics, legal framework, market opportunities) Study various PtG business cases and identify early markets Elaborate a roadmap which will serve as the backbone for the actions of a Power-to-Gas Cluster in Flanders Prioritize the actions in order to create a PtG framework for the development of projects in Flanders and abroad Indentify potential demonstration projects in Flanders 3

4 GREEN HYDROGEN USAGE IN POWER, GAS, TRANSPORTATION AND INDUSTRY SECTORS POWER GRID Wind turbine Solar PV Power-to-Power SURPLUS OR LOW-COST ELECTRICITY Power-to-Hydrogen Electrolysis H 2 O O 2 H 2 H 2 storage (optional) Chemical plants Power-to-Industry Industry Ammonia Speciality chemicals Gas turbines Refineries Power-to-Fuels Fuel cells Low C02 fuels CHP Refuelling stations Methanol Heat Power-to-Gas CNG CO 2 Methanation Blending Power-to-Mobility Hydrogen Vehicles (FCEV) GAS GRID Hydrogen network Power network Gas network Liquid fuels network 4

5 BELGIAN ENERGY POLICY WITH CURRENT BELGIAN ENERGY POLICY, EXCESS OF RENEWABLE ELECTRICITY WILL REMAIN LIMITED (A FEW HUNDREDS HOURS) BY Modest RES objective (13%) in Belgium by 2020, no long-term policy for 2030 and 2050 Good electrical grid in place and good interconnections with The Netherlands and France But present and future of nuclear energy is uncertain: black-out plan in winter and phasing out of nuclear power Source: DELOITTE, Energy Country Profile Belgium

6 THE TRUE COST OF HYDROGEN: TELL ME YOU ELECTRICITY PRICE, I WILL TELL YOU YOUR HYDROGEN PRODUCTION COST POWER PRICE + GRID FEES + TAXES & LEVIES TOTAL ELECTRICITY COST Strategies: Direct connection to RES (wind, solar) Connection at large industrial sites Hydrogen production during low cost hours Electricity cost as part of the hydrogen cost Total hydrogen cost + CAPEX + OPEX + O&M + Financing 100 /MWh 5 /kg 8-10 /kg 40 /MWh 2 /kg 4-5 /kg 20 /MWh 1 /kg /kg 6

7 POWER-TO-GAS ROADMAP FOR FLANDERS FUTURE POWER PRICES MODEL FOR Based on a German model Use the correlation between power price, RES production (wind + solar) and power demand Back-up power assumed with gas fired power-plants BELGIUM Use of historical data 2014 for Belgium: BELPEX prices + wind + solar End Price duration curve for Belgium /MWh mid 2050 mid -50 Hours 7

8 ENERGY STORAGE MARKET HYDROGEN = ENERGY CONVERSION Power-to-Power Source: SBC Energy Institute Analysis based on IRES Proceedings 2012 Electrolysers with highly dynamic operation capabilities can offer services to the ancillary market Hydrogen offers large storage capabilities for the power sector, however re-electrification is not seen as the most interesting option in the short term (high capex, low round-trip efficiency) 8

9 GREEN INDUSTRY MARKET HYDROGEN FROM ELECTROLYSIS VS STEAM-METHANE REFORMING (SMR) Power-to-Industry Green hydrogen from electrolysis will become competitive with hydrogen from SMR delivered onsite before 2030 For large scale applications, opportunities to generate competitive green hydrogen from electrolysis will emerge before 2050, taking advantage of the lowest electricity prices (but no base load operation) Optimum operating hours: 2015: 6.350h; 2030: 4.650h; 2050: 2.800h Optimum operating hours: 2015: 7.600h; 2030: 6.000h; 2050: 3.900h 9

10 GREEN GAS MARKET POWER-TO-GAS (BLENDING AND METHANATION) Power-to-Gas The technical potential for Power-to-Gas in Belgium is significant Taking advantage of moments where electricity prices are low, direct injection of hydrogen in gas grid can be competitive with biomethane If there is an objective to green the gas in Belgium, biomethane with its limited potential (biomass availability) will not be sufficient There is very little experience in Belgium so far with biomethane injection in gas grid 10

11 Power-to-Transport GREEN TRANSPORTATION MARKET - HYDROGEN MOBILITY HAS STARTED POWER-TO-FUELS NEEDS TO BE FURTHER DEMONSTRATED AND STUDIED Mobility represents a promising and profitable application for green hydrogen There is a political momentum in Europe for Clean mobility (biofuels, Diesel Gate), Clean Power for Transport, TEN-T Deployment of hydrogen refueling infrastructure remains very challenging (financing) H2 mobility plan in preparation in Belgium 11

12 BREAKING NEWS IN BELGIUM! 12

13 POWER-TO-GAS ROADMAP FOR FLANDERS FIRST CONCLUSIONS Power-to-Power Power-to-Gas Power-to-Transport Power-to-Industry No re-electrification, but conversion! Direct injection and then methanation Build a first network of hydrogen refueling stations and get the cars on the road Small scale applications first Development of electricity prices will be key! Prepare the appropriate regulation for hydrogen at EU and Belgian level. Market education and communication actions are essential! Gain experience by developing relevant demonstration projects in Flanders. Develop a Flemish hydrogen industry with a strong home market. Our roadmap is still a work in progress We are now elaborating the roadmap and prioritizing the actions! 13

14 Sponsors: Coordinators: WindGas Hamburg Reitbrook, Germany (2015) 1,5 MW Power to Gas OBJECTIVES Development of 1,5 MW PEM Electrolysis Stack and System Optimize operational concept (fluctuating power from wind vs. changing gas feed). Gain experience in technology and cost. Feed H 2 into the natural gas pipeline Partners: SOLUTION 1x 1,5 MW PEM Electrolyser with all peripherals in 40Ft. housings for max 285 Nm³/h H 2. Power: 1,5 MW This 1,5 MW building block will be the foundation for multi MW P2G plants More info: 14

15 THANK YOU FOR YOUR ATTENTION! More info: Visit us at the EUW2015 Hall B, booth B.g15 (Energy storage zone) Denis THOMAS Business Development Manager Power-to-Gas Mobile: