FCH JU: Making hydrogen and fuel cells an everyday reality. Mirela Atanasiu Head of Unit

Transcription

1 FCH JU: Making hydrogen and fuel cells an everyday reality Mirela Atanasiu Head of Unit

2 Strong public-private partnership with a focused objective EU Institutional Public-Private Partnership (IPPP) Fuel Cells & Hydrogen Joint Undertaking (FCH 2 JU) Industry grouping More than 130 members 50% SME Research grouping about 68 members To implement an optimal research and innovation programme to bring FCH technologies to the point of market readiness by

3 FCH 2 JU Objectives Market readiness of a portfolio of clean, efficient and affordable solutions for our energy and transport systems Clean Transport Reduce fuel cell system costs for transport applications H 2 storage for grid balancing Demonstrate on a largescale hydrogen s capacity to harness power from renewables and support its integration into the energy system Green hydrogen production Increase efficiency and reduce costs of hydrogen production, mainly from water electrolysis and renewables Heat & electricity production Increase fuel cell efficiency and lifetime Minimal use of critical raw materials Reduce platinum loading 3

4 FCH JU programme implementation Energy Hydrogen production and distribution Hydrogen storage for renewable energy integration Fuel cells for power & combined heat & power generation Transport Road vehicles Non-road vehicles and machinery Refuelling infrastructure Maritime rail and aviation applications Cross-cutting E.g. standards, safety, education, consumer awareness 227 projects supported for 844 m 47.5% 401 million euros 128 projects 42% 353 million euros 59 projects 5.5% 47 million euros 37 projects 5% 42 million euros Similar leverage of other sources of funding: 886 m 3 projects 4

5 Green H 2 production and industry 5

6 Capacity (MW) FCH JU Support (MEuro/MW) Electrolysis for energy storage and greening of Industry Support to developing electrolysers; Increasing demonstrations with falling support HRS Steel industry Refineries Food industry Electrolyser Demo Projects 69 M Projects Achsentitel 6

7 Big industries are discovering the potential of Hydrogen (1/2) Thanks to FCH-JU research projects the costs of electrolysers decreased and became interesting for big industries to invest AUSTRIA 3.4 MW electrolyser at MPREIS (bakery plant) in Völs Austria. The green hydrogen is produced from hydro-electricity (from the Alps) which is being used to heat the ovens to bake the bread. In a 2 nd phase the distribution will be done by H2 trucks 6 MW electrolyser at VOESTALPINE (steel plant) in Linz Austria. The green hydrogen is produced from hydro-electricity (from the Alps) which is being used to produce steel in this way the industry can make a first step towards CLEAN STEEL 7

8 Big industries are discovering the potential of Hydrogen (2/2) Thanks to FCH-JU research projects the costs of electrolysers decreased and became interesting for big industries to invest GERMANY 10 MW electrolyser at SHELL in Köln, Germany The green Hydrogen is produced from curtailed wind energy which can not be put on the electricity net as it is already full and so the produced hydrogen will be injected in the natural gas grid (part of it can be used for Shell internal processes) 150/30kW Reversible electrolyser, Salzgitter, Germany To operate a high-temperature Electrolyser as reversible generator (rsoc, reversible Solid Oxide Cell) in the industrial environment of an integrated iron and steel work. The system is flexible to produce either hydrogen or electricity. 8

9 EARLY BUSINESS CASES FOR H2 IN ENERGY STORAGE AND MORE BROADLY POWER TO H2 APPLICATIONS Report published June

10 Objectives of P2H Early BizCases: Identify bankable Power-to-Hydrogen business cases for in the EU-28 Within the EU-28, identify locations with favorable electricity conditions for P2H systems (at sub-national level) Study three concrete P2H business cases for a specific location and application (industry, mobility), quantifying key performance indicators (CAPEX, revenues, margin,..) Derive boundary conditions for profitability and assess replicability potential in the EU-28 10

11 Key message: There are bankable business cases for P2H in Europe already today By 2025, the European market for P2H is estimated at a cumulative 2.8 GW, representing a market value of 4.2B and 400 ktons H2 per year. Bankability can be achieved by complementing hydrogen sales with electricity grid flexibility services Combining P2H for mobility/industry applications and gas grid injection is more cost-effective than stand-alone injection Gas grid injection is a risk mitigation instrument until H2 demand picks up The Clean Energy package is a unique opportunity to create a market for P2H in oil refineries P2H is a practical and system-beneficial way to value excess of RES but requires a long-term view on grid fees, taxes and levies to enable bankability 11

12 For 5 EU member states, locations with low-cost electricity were identified Congested areas are found where there is local overproduction of RES Simulations with grid constraints show significant RES curtailment National level: mostly below 2% of total RES production, except for Denmark Node-level [HV/MV transformer]: massive curtailment shares in certain areas, up to 40% Curtailment occurs throughout the year in some locations Important note: These areas are unique opportunities based on their RES curtailment potential. They are not representative of the rest of the country. (1) Frequency refers to the number of hours per year when partial curtailment occurs, i.e. when at least 1% of the production is curtailed. 12

13 RES curtailment is a pressing issue but linked to specific areas, as the example of Germany shows Significant curtailment at national level (~2% in 2017), but no increase expected towards 2025 Onshore wind is the most curtailed RES Areas with high curtailment all located in Northern DE Some offshore wind curtailment; Solar curtailment is minor Recommended area for electrolyser: Herrenwyk (near Lübeck): 360 MW wind farm Up to 40% of RES production curtailed Curtailment in 40-60% of the hours of the year 13

14 Power-to-Hydrogen potential revenues streams: Electrical grid services should not be considered as stand-alone applications Revenues from hydrogen sales Revenues from grid services P2H application Potential revenues* [k /MW/year] Refineries, without carbon penalty Refineries, with carbon penalty Light industry market (delivery by trailer) Mobility (delivery to the HRS) Hydrogen injection into gas grid based on ** national biomethane injection tariff Primary applications; Secondary applications (combinable with primary applications for little extra cost) P2H application Potential revenues* [k /MW/year] Balancing services 2-17 Frequency control services Distribution grid < 1 services 14

15 Three different business cases were analysed in three regions both 2017 and 2025 On-site production for mobility can generate profitable business cases but is excluded due the fact it has been covered intensively in previous studies. 15

16 Bankable business cases were found in the best locations Profitable stand-alone primary applications have a payback time ranging between 4 and 11 years. Providing grid services can reduce payback time by 30-50%. 16

17 Rule of thumb: P2H business cases profitability depends on: (1) primary market size, (2) hydrogen selling price and (3) average electricity cost 17

18 By 2025, the European market for P2H is estimated at a cumulative 2.8GW, representing a market value of 4.2B Bankability boundary conditions: Average electricity cost of /MWh or lower (baseload and incl. grid fees, taxes & levies) Enhancing conditions for replication: Access to curtailed RES at a price discount of 60% compared to the system price; Partial exemption from grid fees, taxes & levies; Recognition of green H2 as compliance option in Fuel Quality Directive; 18

19 Policy options to realize this market potential 19

20 Guarantees of origin (GoO) for green hydrogen Ongoing as of

21 1 st guarantees of origin for green hydrogen about to hit the market Main objectives: -To define a widely acceptable definition of green hydrogen - Design a robust GoO scheme for green hydrogen - Propose roadmap to implement the initiative in EU - Establish a stakeholder platform - Real trial in 4 pilot operations for a guarantee of origin scheme for green and low carbon H2 21

22 Mirela Atanasiu Head of Unit Operations and Communications For further information FCH JU