The role of Stedin as traditional infrastructure operator in the new, clean sustainable, energy world of hydrogen

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1 The role of Stedin as traditional infrastructure operator in the new, clean sustainable, energy world of hydrogen Guy Konings MSc. NWBA Conference, Papendal

2 Stedin is responsible for transport of natural gas and electricity in the western part of The Netherlands Our mission: Always energy for our customers, today and tomorrow. Simple, affordable and sustainable. 2

3 Stedin key figures (2015) 3

4 The easy days are really over 4

5 The energy world is changing 11 influential trends CO2 reduction is leading Need for systems integration means making smart choices 1 NEED FOR FLEXIBILITY 2 SYSTEM INTEGRATION 3 DATA AND ICT 4 SUSTAINABLE SUPPLY 5 DECENTRALISATION 6 FAST CHANGES 7 ELECTRIFICATION 8 CUSTOMER NEEDS CHANGE 9 NEW PLAYERS 10 EUROPEAN ENERGY POLICY 11 ENERGY EFFICIENCY 5

6 Challenges we are facing Decentralised intermittent electricity production grows and increasing electrification how can we handle this growth? Our existing asset base ( ~20 years old, ~ Mio euro value) needs to become intelligent can we keep energy distribution affordable? Natural gas and gas infrastructure will phase out, whereas they are depreciated in 40 years second life? So we need Deep understanding of the energy transition Dialogue with all stakeholders Continuous improvement and business agility 6

7 Stedin Infradiensten develops smart energy infrastructures for a sustainable energy system We invest in infrastructures and offer: independent transport of energy (steam, biogas and CO2), and storage/conversion of energy (power-to-gas/heat/chemicals) 7

8 Hydrogen as energy carrier offers flexibility in the current energy system 8

9 Our power to gas installation increases flexibility Main objectives reduce peaks in the supply of electricity prevent the need for expansion of network capacity gain more knowledge on this new technique 9

10 Vehicle to grid systems offer flexibility Cars will play a larger role in the energy system: they will use, generate, store and feed back energy Car as power plant initiatives Main focus meeting the needs of electric transport users preventing investment in the networks 10

11 Stedin Infradiensten applies an easy market model when offering electricity conversion Energy trade Renewable production kwh Electricity Conversion H2 / NH3 Mobility Chemicals Agro Technology providers 11

12 Goeree-Overflakkee is becoming the Energy Island, energy neutral in MW wind, 50 MW solar and 25 MW tidal Need for smart solutions that integrate value chains 12

13 From 2007 to 2015 Stedin invested more than 100 Mio Euros on Goeree-Overflakkee Increased grid capacity to absorb wind/solar Remote control systems enhanced safety and security Unique 18 km drilled subsea cable connection Can we be smarter? 13

14 Stedin Infradiensten, in cooperation with industrial partners, is realising a H2 station at Goeree-Overflakkee A revolutionairy and 100% sustainable initiative 1 MW range electrolyser system Onshore power leaving the island by public/private transport Value drivers Net balancing and grid services Avoiding further grid investments Matching local wind power with energy demand Stimulating zero emission transport 14

15 In The Hague, Stedin Infradiensten together with Shell Binckhorst, develops a HRS for passenger cars Local production of hydrogen from electricity Opening end of summer bar, in future 350 bar Need for demand: fleet owners and individuals Supported by 15

16 Power-to-Ammonia allows for mass energy storage and conversion Re-thinking the role of ammonia as a flexible energy carrier The only energy carrier made from water, air and energy High energy density at moderate conditions Widespread use and experience (#2 chemical) Ammonia (NH3) 3 H2 + N2 à 2 NH3 16

17 Stedin Infradiensten investigates the potential of Power-to- Ammonia A new value chain, not based on CO MW range Small scale, decentralised, allowing for renewables integration Value drivers Net balancing and grid services Avoid further grid investments Seasonal storage possibilities Stimulating zero emission chemistry and agro 17

18 Thank you very much for your attention 18

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