POWER-TO-GAS & METHANATION PATHWAYS TO A … · 6.9 4.6 3.5 2.8 2.3 ... *1 therm = 100,000 British...

POWER-TO-GAS & METHANATION – PATHWAYS TO A

‘HYDROGEN ECONOMY’

14TH ANNUAL APGTF WORKSHOP - LONDON, 12-13TH MARCH 2014

DR JOHN NEWTON

Contents:

• Introduction

• P2G Energy Storage Rationale

• P2G Economics

• Compliance

• Additional applications: Methanation, Bio-gas upgrading, Fuel

• Summary



INTRODUCTION

P2G RATIONALE

ENERGY STORAGE

RENEWABLE HEAT

GROWING WIND GENERATION

20% (55GW) Winter

20% (40GW) Summer

ENERGY STORAGE: THE NEED

HYDROGEN ENERGY SYSTEMS

• Evidence of grid balancing problems from Germany and Denmark

• Problems start at 20% capacity; UK hit this threshold at the end of 2013

• Energy Storage is a Market Pull

Source: ITM Power plc, data from BWEA

ENERGY STORAGE: THE NEED

HYDROGEN ENERGY SYSTEMS

• Evidence of grid balancing problems from Germany and Denmark

• Problems start at 20% capacity; UK hit this threshold at the end of 2013

• Energy Storage is a Market Pull

UK WIND CURTAILMENT

THE NEED: GRID BALANCING

ENERGY STORAGE | CLEAN FUEL

BALANCING SUPPLY AND DEMAND:

• A total of £725m paid for balancing services in 2010-11

• Estimates in 2020 are: circa £1.9bn - £5.9bn pa

• Tariffs already operational in the UK: FCDM response <2 seconds


WHY POWER-TO-GAS?

POWER-TO-GAS RATIONALE

Electricity cannot be stored easily | Hydrogen can be stored easily in the gas grid

Source: ITM Power plc


ENERGY STORAGE TECHNOLOGIES

ENERGY STORAGE TECHNOLOGIES

Power-to-gas is efficient | long term | low energy cost


0%

5%

10%

15%

20%

25%

30%

35%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0 2 4 6 8 10 12

Frac

tio

n w

ind

ou

tpu

t cu

rtai

led

Hyd

roge

n f

ract

ion

(vo

l%)

Excess wind (TWh pa)

725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)

Hydrogen fraction

Curtailment

HYDROGEN FRACTION V’S EXCESS WIND LEVELS


• Capturing 2.8 TWh pa of excess wind (i.e. 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%


POWER-TO-GAS IN THE UK


EU POWER-TO-GAS ENERGY STORAGE

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


WHERE DOES THE GAS GO?

GAS USAGE IN THE UK (DUKES 2013)

Source: Dukes 2013

Where does the gas go?

• 906 TWh of natural gas consumed in the UK in 2011

• 52% was used to provide heat

• 34% burned in power stations to make electricity


ELECTRIFY HEAT?

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. 2011

• 12% of heating from renewables by 2020

• 57 TWh hydrogen

• Circa 18,600 MW Electrolysis



P2G: ELEMENTS OF VALUE


Value to the Power Grid

•Avoided wind curtailment

•Avoided infrastructure upgrades

•Reduced reserve power

•Reduce CO2 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

• Value to the power grid

• Value to the gas grid

• Value to the economy

P2G: ELEMENTS OF VALUE

P2G ECONOMICS

CAPITAL COSTS

TARIFF STRUCTURE

CARBON

REDUCTION

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 non-

financial barriers; and

• provide a return on the additional

capital invested

• Annual payments over a 20 year period

index linked


ELECTROLYSER COSTS FOR 1MW MODULES

ELECTROLYSER COSTS

Cost Estimates

1,700

1,400

1,200 1,100

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1 10 50 100

Co

st (

£k)

1 10 50 100

A cost-based tariff scheme

Where tariff levels vary depending on the

cost of the technologies at different scales

• Modular system

• Scale ~ Volume

13.9

6.9

4.6

3.52.8 2.3

2.0 1.7 1.5 1.4

0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Elec

trol

yser

cos

t (p

/kW

h ch

)

Utilisation


ELECTROLYSER COSTS VS. UTILISATION

1MW electrolyser: 70% efficient | £1.7m Capex (over 20 years)

100% utilisation (Consumes 8760MWh per year)

• Cost = 0.97 p/kWh of electricity consumed = 1.4p/kWh of H2 Produced

50% utilisation (Consumes 4380MWh per year)

• Cost = 1.90 p/kWh of electricity consumed = 2.8p/kWh of H2 produced

Source: ITM Power

ELECTROLYSER COSTS FOR 1MW MODULES

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


OFF GRID P2G


10p

Generation Tariff

5p

Export Tariff

10p

Generation Tariff

5p

Electrolyser Tariff Burner

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


GRID CONNECTED


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.

Based on the Carbon Footprint of the grid:

• The UK grid is 164gCO2/kWh in 2030 (DECC)

• Produces H2 of 234gCO2/kWh | Methane is 198gCO2/kWh

• TUV definition of “Green Hydrogen” is 50gCO2/kWh

• DSM and rapid response needed to produce green hydrogen


DEMAND SIDE MANAGED


A Matrix of possibilities:

• Accessing renewable power via the grid

• Grid balancing | DSM | Utilising curtailed wind

• Significant modelling work undertaken

Grid electricity @ 9p/kWh

Green Hydrogen

at 50gCO2/kWh

Curtailed wind @ 0p/kWh


DEMAND SIDE MANAGED


A Matrix of possibilities:

• Accessing renewable power via the grid

• Grid balancing | DSM | Utilising curtailed wind

• Significant modelling work undertaken

2015 2020 2030 2050

Electrolyser CAPEX £m 1.7 1.4 1.2 0.8

Electrolyser Utilisation

Excess Energy 16% 25% 42% 51%

Grid 1% 2% 2% 3%

Total 18% 27% 44% 54%

CO2footprint of H2 gCO2/kWhch 27 16 7 1

Electrolyser cost p/kWhe 5.43 2.93 1.55 0.84

p/kWhch 7.75 4.18 2.21 1.20

Hydrogen cost p/kWhe 0.74 0.60 0.48 0.47

p/kWhch 1.05 0.86 0.68 0.68


COMPLIANCE

NTS

DISTRIBUTION

DOMESTIC

An international network

• Needs a coordinated approach

• International standards

• 0.1% Vol H2 limit needs revisiting

• Needs the formation of an

international standards group


P2G IN THE NATIONAL TRANSMISSION NETWORK

P2G IN THE NTS

Open and Closed Network Compliance

• The current 0.1% Vol H2 is NOT based on safety!

• Network entry rules are based on gas refineries

• Recommend revising for small green gas facilities

• We recommend increasing the GS(M)R limit to 3%

• Standardise the procedure for exemptions to HSE

• Form a standards working group specifically looking at

hydrogen in the gas grid

GAS DISTRIBUTION NETWORK


GAS DISTRIBUTION NETWORK

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FYI7T3k0mpHMaM&tbnid=J-bbVlwzA9aiVM:&ved=0CAUQjRw&url=http://www.clker.com/clipart-question-mark-2.html&ei=SwA-Ut3OCaXv0gWg7oDADg&bvm=bv.52434380,d.d2k&psig=AFQjCNEnKHMi9jLhGf1cJceqE2_R0QDhHg&ust=1379881357979975

H2 Clean Gas Contract for Domestic Customers

• Analogous to a Green Power contract

• Therm for Therm offering*

• Reinvestment in P2G plant

DOMESTIC RENEWABLE GAS OFFERING


DOMESTIC RENEWABLE GAS OFFERING

*1 therm = 100,000 British thermal units = 29.3kWh

ADDITIONAL

APPLICATIONS

METHANATION

UPGRADING BIOGAS

P2G AND FUEL

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Rj5NqhMqF_oORM&tbnid=FdbgyaBBx0CTHM:&ved=0CAUQjRw&url=http://home-selling.knoji.com/home-selling-understanding-the-listing-agreement/&ei=Pf09Ur_yHqPM0QXYloGQBg&psig=AFQjCNHkc2_uhRPRx7Ts5KCNm-nK_N_H7g&ust=1379880629694301

Production of SNG from Renewable Hydrogen and CO2

• Need to source (pure) CO2

• Process design can minimise or eliminate storage

• Multi-stage depending on the level of H2 compliance

METHANATION


METHANATION

METHANATION


METHANATION


• Need to source (pure) CO2

• Process design can minimised or eliminate storage

• Multi-stage depending on the level of H2 compliance

CHEMICAL V’S BIOLOGICAL METHANATION


CHEMICAL VS. BIOLOGICAL METHANATION


• 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 300 – 400C ~50C

Heat produced in reaction Useful Useless

Operating range 50-100% (needs H2 storage) 0-100% in <5mins (less H2 storage)

During off periods... No energy required Need to prevent freezing

Size of reactor Thin tubes ~ 10m long 3m3 reactor vessel

Methanation for BioGas | CO2 removal

• A modular and scalable technology for CO2 removal

• BioGas typically min. 35% CO2 | Brings BioGas into

Compliance

• Increases calorific value | Increases output

• DECC Methanation feasibility project in progress

• High value application

REMOVING CO2 FROM BIOGAS


REMOVING CO2 FROM BIOGAS

H2 Fuel cost reduction using P2G Co-location

• Energy Hub for P2G and Fuel

• Reduces the cost of H2 by maximising electrolyser utilisation

• More work needed | particularly siting and economics

ENERGY HUB FOR P2G & FUEL


ENERGY HUB FOR P2G & FUEL

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% Vol H2 legislation needs revisiting in the UK | Recommendation to the HSE





14TH ANNUAL APGTF WORKSHOP - LONDON, 12-13TH MARCH 2014

POWER-TO-GAS & METHANATION PATHWAYS TO A … · 6.9 4.6 3.5 2.8 2.3 ... *1 therm = 100,000 British...

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Transcript of POWER-TO-GAS & METHANATION PATHWAYS TO A … · 6.9 4.6 3.5 2.8 2.3 ... *1 therm = 100,000 British...