LEADING
THE
ENERGY TRANSITION
HYDROGEN-BASED CONVERSION SOLUTIONS
More than storage: system flexibility
SBC Energy Institute
20th World Hydrogen Energy Conference 2014
19h June 2014 – Gwangju Korea
1
The SBC Energy Institute
The SBC Energy Institute is an non-profit expert energy research group
that promotes understanding of the current and future energy technologies
INSTITUTE IDENTITY
TECHNOLOGIES ADDRESSED
 Focused on crossover technologies related to
the energy space
 Founded in 2011
 Registered in the Netherlands as a non-profit
organization
 Governed by its own Board Members, including
external people:
 Claude Mandil, Former Executive Director of the
International Energy Agency;
 Dr. Adnan Shihab-Eldin, Former OPEC Acting
Secretary General;
 2012-2014 focus on hydrogen-based conversion
technologies
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©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
Making the case
Integrating intermittent sources of energy requires additional flexibility
resources and results in a new momentum for electricity-storage solutions
WIND & SOLAR GENERATION VS. DEMAND IN NORTHERN GERMANY
MW, December 2012 on the 50Hertz Operated Grid
14,000
Intermittency1 generates
surplus & deficit
12,000
12,000
10,000
10,000
8,000
8,000
6,000
6,000
4,000
2,000
4,000
0
0h
6h
12h
18h
24h
2,000
Focus on 27th December
0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Solar PV
Note:
Source:
Wind
Demand
1(1)
Output is variable on multiple timescales, depending on daily or seasonal patterns and on weather conditions. (2) This variability makes long-term
forecasting difficult and certainly less predictable than output from conventional technologies. (3) Wind and solar output are subject to ramp events
SBC Energy Institute Analysis based on 50Hertz data archive (Wind and Solar Actual In Feed 2012, Control Load 2012).
3
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Making the case
The value of hydrogen solutions lies predominantly in their ability to
convert renewable power into green chemical energy carriers
SIMPLIFIED VALUE CHAIN OF HYDROGEN-BASED ENERGY CONVERSION
POWER GRID
SURPLUS
Refueling
stations
POWER-TO-POWER
Water
Oxygen
Wind turbine
Solar PV
Electrolysis
Optional
Hydrogen
storage
POWER-TO-MOBILITY
Electric vehicle
Upgraded &
synthetic fuels
Fuel cell electric
vehicle
Refineries
Fuel cells
Internal combustion
engine vehicle
Blended
gas
Combustion
turbines
Natural gas vehicle
POWER-TO-GAS
Carbon
capture
CO2
Chemical
plants
Methanation
Injection of hydrogen in
the natural gas grid
POWER-TO-CHEMICAL
Petroleum products
Ammonia
GAS GRID
Note:
Source:
Simplified value chain. End uses are non-exhaustive. Note that the power and gas grids are the main supplier to the residential and commercial
end-uses (lighting, heating and cooling, cooking…)
SBC Energy Institute analysis
©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
4
Water electrolysis
At present, electricity price spreads are too small to enable significant
hydrogen production cost reductions through price arbitrage
LEVELIZED COSTS OF HYDROGEN FOR A GRID-CONNECTED ELECTROLYSIS PLANT
$/MWhch,
320
Assumed electricity price distribution
($/MWhe)
Reference plant with price arbitrage strategy
200
300
CAPEX - 20% with price arbitrage strategy
Efficiency + 10% with price arbitrage stragegy
160
280
Reference plant buying electricity at annual spot mean
120
260
80
240
40
220
0
Annual spot mean: $77/MWhe
-40
200
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
180
Hours of the year (in % of the year)
-12%
Hourly prices ranked in chronologic order
160
Hourly prices ranked in ascending order
140
Cumulated average of the hourly prices ranked in
ascending order
0
10%
20%
Production excess
monetization
Note:
Source:
30%
40%
50%
60%
70%
Plant load factor / utilization rate
(operational hours in % the year)
80%
90%
100%
Baseload
Illustrative example based on 8.5MW ch electrolysis (5 alkaline stacks of 1.7MW ch each), with total installed system CAPEX: $765/MWhch, Efficiency:
79%HHV, Project lifetime: 30 years and real discount rate after tax:10%.
SBC Simulation based on US DoE H2A Model
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5
Power-to-gas
Injection of hydrogen into gas networks can provide in some countries a
large end-market in the short to mid term for electrolytic hydrogen
LIMIT OF HYDROGEN BLENDING ALONG THE NATURAL GAS INFRASTRUCTURE1
H2 concentration (vol.%)
H2-blending uncritical
Adjustment & modification needed
Further research needed
70%
60%
50%
40%
30%
20%
Note:
Source:
2Aquifer
1DVGW
MEASURING & CONTROL
DISTRIBUTION
CHP stations
Gas stoves
Stirling-motor
Fuel cells
Condensing boilers
Fan burners
Gas burners
Engines
House installations
Valves
Gas flow detectors
Connections
Seals
Plastic pipelines
Steel pipelines
Odorization
Pressure regulation
Gas-phase chromatographs
Quantity transformers
Diagrpahm meters
Turbine meters
Ultrasonic meters
Storage installations
Tanks
Pore storages
STORAGES
Compressed-natural gas tanks
TRANSPORT
Cavern storages
Compression stations
Gas turbines
0%
Pipelines
10%
APPLIANCES
or depleted oil and gas reservoirs.
(2013).
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6
Power-to-gas
Synthesis of methane is promising but constrained by affordable CO2
sources
SIMPLIFIED MASS FLOW CHART OF HYROGEN-ENRICHED BIOMETHANE PLANT
kg/h
Waste Heat (230kWth)
Electrolysis
Electricity (1MWe)
Oxygen
156 kg/h O2
19.5 kg/h H2
87.2 kg/h of H2O
110 ha.
of land
140
dry kg/h
of biomass
106.7 kg/h of CO2
Methanation
Biogas unit
38.8 kg/h of CH4
60 kg/h
water
77.7 kg/h
of CH4
~ x2
54.5 dry kg/h of
biomass residues4
Recycled heat for the biogas reaction
Biogas generates an excess of CO2 mixed with
methane…
Note:
Source:
…Enriching biogas with methane doubles the output while
increasing the efficiency and mutualizing the injection costs
1Biomass
feedstock is a maize silage of 5kWhch/kg of dry matter, cultivated with a land yield of 0.63MW ch per km².; 2The anaerobic digestion of maize
silage requires heat and has an total efficiency of 68.7%; 3Thermochemical methanation at 300°C and 77.7% hydrogen-to-methane efficiency
SBC Energy Institute analysis.
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©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
Power-to-liquid fuels
Fuel synthesis from water, electricity and carbon, extends the market
potential for electrolysis
POWER-TO-SYNFUELS1 PATHWAYS FOR H-C-O SYNFUELS PRODUCTION
CO2 HYDROGENATION
OXYGENATED SYNFUELS
Formic acid
synthesis
Formic acid
(HCOOH)
DME2
(CH3OCH3)
ELECTROLYSIS
CO2
Dehydration
H2
H2O
electrolysis
Electricity
Water
(H2O)
CO2 + H2O
co-electrolysis
CO
O2
Biomass
CO
Gasification
H2
Coal
CO2 + H2
Methanol
synthesis
Reverse
Water Gas
Shift
CO2
Methanation
CO + H2
(syngas)
CO
Methanation
Methanol
CH3OH
Methanol-togasoline (MtG)
Methane CH4
FischerTropsch (FT)
(CH2)n liquid
hydrocarbon
Alcohols
synthesis
HYDROCARBON SYNFUELS
CO HYDROGENATION
synfuels plants where electricity and electrolyzers are used to produce hydrogen that will help to produce synfuels.
Note:
1Power-to-synfuels plant are
2DME for Dimethyl ether.
Source:
SBC Energy Institute analysis.
©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
8
Power-to-mobility
Hydrogen’s role for mobility is likely to increase for all technologies
THE ROLE OF HYDROGEN IN MOBILITY
Present
Future?
FOSSIL FUELS
Diesel and gasoline
 Increase hydrogen / carbon [H/C] ratio of
heavy oil fractions;
 Desulfurization (more stringent
regulation).
Natural gas vehicles [NGV]
 Reduce local pollution and increase
performance with hydrogen blending
(hydrogen compressed natural gas fuel).
Note:
Source:
SYNTHETIC FUELS
Biofuels
 Enrich biofuel plant with hydrogen to
maximize biomass yield and thereby
land use;
H-C-O synfuels
 Fix hydrogen with CO2 to synthesize
methane, methanol, dimethyl ether,
gasoline…;
PURE HYDROGEN FUEL1
Pure hydrogen carrier
 Use hydrogen to produce electricity in
fuel cell electric vehicles [FCEV];
 Use hydrogen fuel cell in battery electric
vehicles [BEV] as a range extender.
Ammonia fuels
 Fix hydrogen with nitrogen and use
ammonia as a fuel.
1Hydrogen
internal Combustion engine [H2ICE] that uses a traditional ICE, modified to burn hydrogen instead of conventional gasoline, has lost
momentum compared with FCEV and is not mentioned in this slide.
SBC Energy Institute analysis.
©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
9
Outlooks
Many individual, hydrogen-related technologies are technologically mature,
but flexible electrolysis and power-to-gas are in the “valley of death”
Capital requirement x technology risk
THE ROLE OF HYDROGEN IN MOBILITY
Legend
Fuel cells (high temperature, large-scale, stationary)6
Water electrolysis (PEM)
Methane and methanol synthesis from CO2
HENG fed into natural gas
Hydrogen production
Hydrogen handling
Fuel cells (low temp. for mobility or stationary)7
Water electrolysis (alkaline)
Solid storage
Hydrogen conversion
network4
Geological storage
(depleted oil & gas fields or aquifers)
Gas turbines for H2 rich fuels
Liquefaction plant & cryogenic tank
Geological storage in salt caverns
Compressors, H2 refueling pumps & compressed tanks
Steam water electrolysis (HT PEM)
H2 production from solar radiation2
H2 production from heat1
Various use of H2 in refineries5
Ammonia synthesis
H2 pipelines
Road transport of H2 tanks
(compressed or cryogenic)
Valley of death
Lab work
Research
Note:
Source:
Bench scale
Development
Pilot-scale
Demonstration
Commercial-scale process proved, with
optimization work in progress
Deployment
Commercial scale, proved, widely deployed, with limited
optimization potential
Mature technology
1Nuclear
or solar thermochemical water splitting; 2Photolysis, photo-electrolysis or photo-biological water-splitting; 3By thermochemical processes,
principally: methane reforming, the cracking of petroleum fractions, and coal or biomass gasification; 4HENG: Hydrogen-enriched natural gas;
5Includes the upgrading of heavy/sour oil and the synthesis of synfuels from syngas (methanol, DME, MtG etc); 6Includes SOFC, PAFC and MCFC;
7Includes PEMFC and AFC.
SBC Energy Institute analysis.
©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
10
Outlooks
Hydrogen is an essential energy carrier to facilitate the energy transition
 Hydrogen is an enabler for high intermittent renewable penetration:
 Balance deficit (directly or combined with gas);
 Ensure security of supply with massive storage;
 Monetize intermittent surplus.
 Hydrogen facilitates the decreased carbon intensity of fossil-fuel based energy systems:
 Hydrogenate fossil fuels and maximize land use for biofuel / biogas production;
 Recycle carbon captured from CCS;
 Leverage current infrastructure.
 Hydrogen business cases are not yet profitable in the absence of supports for low-carbon
solutions except for a few early markets:
 A few early markets can provide short-term business cases (e.g. back-up for telcom towers);
 Costs reduction on electrolysis side are a pre-requisite (learning curve, manufacturing…);
 Mobility is likely to be the key driver of hydrogen in the mid- to long-term.
Source:
SBC Energy Institute analysis.
©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute
11
Thank you very much!
Hydrogen-based energy conversion solutions
FactBooks, Abstract & Presentations are available
for download:
http://www.sbc.slb.com/SBCInstitute.aspx
For more information:
Benoit Decourt
BDecourt@slb.com
+33 (0)6 77 01 04 82
12
©2014 SBC Energy Institute. Permission is hereby granted to reproduce and distribute copies of this work for personal or nonprofit educational purposes. Any copy or extract has to refer to the copyright of SBC Energy Institute