HYDROGEN AND FUEL CELLS International Meeting/The...HYDROGEN AND FUEL CELLS AN UPDATE FROM EUROPE,...

HYDROGEN AND FUEL CELLSAN UPDATE FROM EUROPE, INCLUDING THE UK

CONTACT:

Cate Lyon | Analyst | Gas Heating Service

Email: [email protected]

Tel: +44 (0)131 625 3338

Web: https://www.delta-ee.com/GHS

A presentation for the 7th FC International

meeting, organised by FCS & FCDIC.

February 26th 2019, Tokyo.

mailto:[email protected]

https://www.delta-ee.com/GHS

© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019

Agenda

1. Introduction to Delta-ee

2. The European micro-CHP market: an update

3. Hydrogen in Europe: an update

4. Q & A

2

An update from Europe, including the UK


Introduction to Delta-ee

3

Research and consulting services for the energy transition

Core competency areas:

Selected clients:We help clients succeed in the transition from ‘old’

energy to ‘new’ energy.

◼ Centralised → Distributed

◼ Carbon intensive → Low Carbon

◼ Commodity sales → Service Orientated

◼ Meter points → Customer Centric

◼ Value is upstream → Value is Downstream

Key facts:

Est. 2003

UK-based

(Scotland)

Sites across EU

Associates

worldwide

11 subscription

services

2x European Energy

Summits per year

Delta-ee ‘Gas Heating Service’


Agenda




4. Q & A

4



We have been covering micro-CHP since 2004

5

Over this time, product availability has greatly improved


The EU market has gone through several phases

6

Fuel cells (natural gas) are now the dominant technology

20182005 2020

Peak Stirling

ICE decline

Fuel cell

spell

ICE age

2018 sales:

6,500-7,000

units


The EU market has gone through several phases

7

Fuel cells (natural gas) are now the dominant technology

20182005 2020

Peak Stirling

ICE decline

Fuel cell

spell

ICE age

UK fuel cell micro-CHP

players:


Incentives drive sales – but these vary widely, affecting uptake

8

In most countries we see a shift towards tax-based mechanisms

Incentive type: Germany UK France Belgium Netherlands Italy

National grant

State grants

Regional grants |

Reduced VAT

VAT rebate

Low-interest loans

Net metering

Generation tariff

Export tariff

Tariff tax exemptions

CHP / green / white certificates

available

withdrawn

future uncertain


Agenda




4. Q & A

9



Europe’s interest in hydrogen is growing

Leading markets:

◼Germany

◼UK

◼ France

◼Netherlands (emerging)

Applications:

◼Mobility

◼Power-to-gas

Production:

◼Steam methane reforming

◼Electrolysis

10

Germany is market leader; mobility and power-to-gas dominate

Market

leader

Significant

activityEmerging

vs

Map of European

hydrogen activity:


Key stakeholders in hydrogen development in Europe

UtilitiesElectrolyser manufacturersHeating OEMs & fuel

cell developers

Technical support Oil & Gas Automotive


Hydrogen as part of the UK solution

12

Gas network companies have kick-started the movement

= GDN-driven initiative

◼ Hydrogen island

◼ ‘Windgas’

◼ Heat, power, vehicles

◼ Phase 1: Cost and safety feasibility study

for 100% H2 grid conversion

◼ Phase 2: Convert 3.7M homes between

2028-2034

◼ New H2 grid to satisfy 70% heat needs

◼ H2 “a credible option”

◼ Part of energy mix; H2 for back-up

◼ Hybrid hydrogen heat pumps

◼ £25M competition

◼ Develop 100% H2 appliances

(heat & power)

◼ Unoccupied demo’s by 2021

◼ Proof of concept plus +

practical element

◼ Local generation + injection

at 3 sites

◼ H2 regional system by 2026

◼ Produce, transport, store

◼ Blended grid injection

◼ ‘H2 campus’

◼ 20% H2 blend

◼ live trial begins this summer

◼ £20M competition

◼ Bulk green H2 production

◼ Feasibility + demos

◼ Hydrogen local energy system

◼ Fleet refuelling, storage, power

generation


Hydrogen production and end-user costs

Hydrogen from methane: Hydrogen from electrolysis:

13

‘Green’ hydrogen expected to be cost-competitive by 2030

GREY HYDROGEN

288g/kWh

CARBON

DIOXIDE

100

%

METHANE

210g/kWh

73

%

BLUE HYDROGEN

86g/kWh

SMR

CCS

70

%

27

%

GREEN

HYDROGEN

23g/kWh

WIND

ELECTRICITY

16g/kWh

GRID

ELECTRICITY

233g/kWh

BROWN

HYDROGEN

333g/kWh

100

%

70

%

ELECTROLYSIS

End-user cost estimates:

◼ ‘Blue’ hydrogen = £2/kg H2, equivalent to £0.05p/kWh;

retail price £0.09p/kWh.

◼ ‘Green’ hydrogen:

◼ EU target cost = €3/kg by 2030.

◼ IEA 2040 expected electricity production costs in

favourable renewable locations: $0.03/kWh -> $2/kg

or $0.06/kWh H2.


Hydrogen for heating

14

Hydrogen boilers are competitive for smaller homes, including most new-build properties, by 2030 (Delta-ee analysis; UK).

0.00

5.00

10.00

15.00

20.00

£0

£1,000

£2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Unit H

eat

Cost (p

/kW

h)

Annual H

eating C

ost

(£ p

er

year)

Annual Thermal Demand (kWh)

Costs for heating UK housing stock with H2 boiler vs. electric Air Source Heat Pump

BREAK-EVEN

THERMAL DEMAND


Find out more: Delta-ee Summits

New Energy Summit

28th-29th May 2019, Amsterdam, Netherlands

Exploring the transition from old to new energy

◼ Day 1: Drill down into the new energy market

◼ Evening 1: Networking dinner & activity

◼ Day 2: Strategic issues, business models and

joining the dots across the new energy space

15

Events looking at the future of energy on the customer side of the meter

European Heat Summit

25th-26th September 2019, London, UK

Debating how Europe will decarbonise heat

◼ Day 1: Parallel roundtable discussions on

electrification & high-efficiency gas markets

◼ Evening 1: Networking dinner & activity

◼ Day 2: Interactive plenary sessions exploring

customers, business models, pathways


Thank you for your attention

Questions?

16

CONTACT:

Cate Lyon | Analyst | Gas Heating Service

Email: [email protected]

Tel: +44 (0)131 625 3338

Web: https://www.delta-ee.com/GHS

mailto:[email protected]

https://www.delta-ee.com/GHS

HYDROGEN AND FUEL CELLS International Meeting/The...HYDROGEN AND FUEL CELLS AN UPDATE FROM EUROPE,...

Documents

Transcript of HYDROGEN AND FUEL CELLS International Meeting/The...HYDROGEN AND FUEL CELLS AN UPDATE FROM EUROPE,...