commercialisation of hydrogen energy systems for …...don’t add to hype: avoid press...
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Commercialisation of Hydrogen Energy Systems
Dr Neil Thompson | MD, ITM Power Pty Ltd | Adjunct Associate Professor, QUT – IFE |Director, HMA
ITM Power manufactures integrated hydrogen energy systems servicing three key market segments
WHAT WE DO?HYDROGEN ENERGY SYSTEMS
ITM Power has increased scale of PEM electrolysers from 10kW to 10MW over the last decade
WHAT WE DO?HYDROGEN ENERGY SYSTEMS
2011 2013 2015 20172016 2018
Gas Grid Injection
POWER‐TO‐GAS: ENERGY STORAGEHYDROGEN ENERGY SYSTEMS
POWER‐TO‐GAS Rationale Current projects Offshore developments Transition strategy Gas to power options
Electricity cannot easily be stored | Hydrogen can easily be stored in the gas grid
POWER‐TO‐GAS: ENERGY STORAGEHYDROGEN ENERGY SYSTEMS
Power‐to‐gas is efficient | long duration | huge capacity | low energy cost
POWER‐TO‐GAS: ENERGY STORAGEHYDROGEN ENERGY SYSTEMS
Gas grid and closed gas network injection projects
POWER‐TO‐GAS: ENERGY STORAGE | PROJECTS IN GERMANYHYDROGEN ENERGY SYSTEMS
Partner Date Type Power Grid Services
Electrolyser Optimisation
Gas Grid Services Size Comments
Thuega 2014 Deployment Primary GBBid Live
Yes | 4 Sec Distribution (10% max)Network Injection
0.2MW ContainerisedMixing Plant
RWE 2016 Deployment Primary GBBid live
Yes | 4 sec Distribution (10% max)Network Injection
0.3MW No mixing plantHeat Recovery
ZEAG | DLR 2018 Deployment Various Skip Installation Supply to DLR 1MW In a building
Refhyne 2019 Deployment Primary GBLoad Balancing
Yes | 1 sec Closed Network 10MW FCHJU Funded
Gas Grid Injection
HyDeploy | HyDeploy II:
HyDeploy: Up to 20% injection Closed gas network Exemption approved by HSE Installation 2019 Trials 2020HyDeploy II: Two trials on the open network Trials 2021 to 2023
POWER‐TO‐GAS: ENERGY STORAGE | PROJECTS IN UKHYDROGEN ENERGY SYSTEMS
H2 is the new LNG
GAS‐TO‐POWER | BY SEA | CONVERSION VIA FC AND TURBINE HYDROGEN ENERGY SYSTEMS
EMEC | Big Hit | Surf ‘n’ Turf | Dual Ports
Producing hydrogen from stranded Renewables Exporting renewable energy 1.5MW off grid energy storage Transport, repowering and renewable heat
CLEAN FUEL FOR E‐MOBILITYHYDROGEN ENERGY SYSTEMS
MOBILITY Why Hydrogen Hydrogen Infrastructure Fleet Refuelling Depot refuelling
FCEV: An EV drive train that’s refuelled rather than recharged
Power | Storage | Fuel:
Refuel in 3 mins Range 600km on 5kg Hydrogen Derived from renewable power at site & over-wire Managed energy export
WHY HYDROGEN FOR E‐MOBILITY?HYDROGEN ENERGY SYSTEMS
Proven technology based on BOC IC90 compressor / dispenser and ITM PEM electrolyser
HYDROGEN REFUELLING STATIONS (HRS)HYDROGEN ENERGY SYSTEMS
Potential Hydrogen sales of £10m pa when the existing portfolio is fully utilised.
Strong growth of revenue generating assets:
Currently 20 tonnes pa Up 700% YoY New fleet of 200 FCEVs just added to UK 3 tonne/day capacity (40 buses and 800 cars)
HRS ROLLOUT UK HYDROGEN ENERGY SYSTEMS
Station Status Opening Electrolyser Dispenser Potential Sales(kg/day) (kg/day) (pa)
Riverside USA Open 2015 100 200 £365,000.00Rotherham Open 2015 100 570 £365,000.00Teddington Open 2016 200 570 £730,000.00Rainham Open 2016 100 570 £365,000.00Cobham Open 2017 100 570 £365,000.00Beaconsfield Open 2017 100 570 £365,000.00Swindon Open 2018 100 570 £365,000.00Kirkwall Open 2018 400 200 £1,460,000.00Gatwick Construction Q4 2018 100 570 £365,000.00Birmingham Bus Construction Q1 2019 1400 1100 £3,066,000.00Brimingham Public Construction Q1 2019 570Derby Funded Q1 2019 100 570 £365,000.00Central London Funded Q1 2019 200 570 £730,000.00W London Funded Q1 2019 200 570 £730,000.00Total: 3100 7770 £9,271,000.00
HRS ‐ PIONEERING H2 AS A MAINSTREAM FUELHYDROGEN ENERGY SYSTEMS
Codes of Practice | Industry Collaboration | Fleet user Engagement | Funding support
Build | Own | Operate Model Forecourt integration with dispenser under main canopy High profile sites Beaconsfield, M40 Shell Forecourt Opened Q1 2018 Gatwick Airport, M23 Shell Forecourt Opening 2019
CLEAN FUEL CONTRACTSHYDROGEN ENERGY SYSTEMS
20 fuel contracts in place
Hydrogen price of £10/kg (ex VAT) ITM fuel card & training pack Growing network
Buses | Trucks | Trains | Ferries
10MW | 30MW | 50MW HRS SYSTEMSHYDROGEN ENERGY SYSTEMS
Buses | Trucks | Trains | Ferries
Buses: 30kg/day Trucks: 75kg/day Trains: 180kg to 400kg/day Ferries: 500kg/day
Optimised for CAPEX | OPEX | Value | Grid balancing tariffs
Birmingham | Tyeseley | 20 FC bus & local fleets
• 3MW Grid Balancing Electrolyser • Funded by Innovate UK “First of Kind”• Linde ionic compression & 350 bar dispenser• Mehrlin EU Project • Grant led by ITM Power• 20 buses funded by FCH JU
HYDROGEN REFUELLING INFRASTRUCTURE FOR FC BUSESHYDROGEN ENERGY SYSTEMS
Birmingham | Tyseley Energy Park3MW | 1,500kg/day | 20 Buses
HRS SYSTEM DESIGNS FOR FC TRAINS AND FERRIESHYDROGEN ENERGY SYSTEMS
Buses | Trucks | Trains | Ferries
RENEWABLE CHEMISTRYHYDROGEN ENERGY SYSTEMS
RENEWABLE CHEMISTRY Current markets Shell reference plant
RENEWABLE CHEMISTRY – CURRENT MARKETSHYDROGEN ENERGY SYSTEMS
Total world market for hydrogen of over A$ 400bn
Ammonia: A$60bn Methanol: A$55bn Steel: A$150bn Refinery: A$160bn
Transition of traditional SMR sourced hydrogen to renewable type via rapid response PEM electrolysis
Building the world’s largest PEM electrolysis plant at Rhineland refinery, Germany
10MW PEM electrolyser for refinery applications
Flagship 10MW project with Shell Largest PEM electrolyser in the world Largest refinery in Germany Primary Grid Balancing (1 and 4 sec.) Load Balancing Future direct RE coupling
RENEWABLE CHEMISTRY: SHELL 10MW PROJECT | WORLD’S LARGEST PEM ELECTROLYSERHYDROGEN ENERGY SYSTEMS
GRID BALANCING: Principle Value Current Projects Future Projects
Grid Balancing
In 2017 UK National Grid spent ~£1.4bn on grid services – NEM at A$100m’s only at present
Grid balancing:
Sector: Technique: Customer:Frequency Load | Generator TSOVoltage VARs | SVC DNO
GRID BALANCINGHYDROGEN ENERGY SYSTEMS
Dynamic
Rising Frequency
Falling Frequency
Supply Side Balancing Action
Turn OFF a generator
Turn ON a generator
Demand Side Balancing Action
Turn ON a load
Turn OFF a load
Grid balancing revenues help to reduce $/kg production cost
ELECTROLYSER GRID BALANCING PROJECTS – UK AND GERMANYHYDROGEN ENERGY SYSTEMS
Name Date Type Power Grid Services
Electrolyser Optimisation
Gas Grid Services Size Comments
H2ME 2018 Deployment EFR | FCDMTrial
Yes | HRS No 0.2MW FCHJU Funded
Birmingham 2019 Deployment EFR | FCDMBid Live
Yes | 1 sec No 3MW InnovateUK
Refhyne 2019 Deployment Primary GBBid LiveLoad Balancing
Yes | 1 sec Yes ‐ Closed Network
10MW FCHJU Funded
COMMERCIALISATIONHYDROGEN ENERGY SYSTEMS
COMMERCIALISATION Typical process 100MW+ projects Lessons learned
TYPICAL COMMERCIALISATION PROCESSHYDROGEN ENERGY SYSTEMS
Customer engagement | specification
Large scale projects require significant development Typical timescales range from one to three years Strategy includes early engagement via feasibility studies Leveraging the Shell 10MW project Four example projects to indicate engagement
Customer Engagement
Feasibility Study
Front End Engineering
Design
Procurement Decision
Feasibility Study Scale Partner Status
UK P2G 50MW NGN Completed
British Columbia 300MW Chyioda, BC Hydro Completed
Massachusetts 20MW Holyoke Active
Centurion 100MW INOVYN, Storengy, Cadent Active
Customer engagement | application requirements | detailed specification
Centurion: 100MW Feasibility Study:
Based at Runcorn 100MW of rapid response electrolysis Hydrogen pipeline Salt Cavern Storage Gas Grid Injection Green Hydrogen Export
CENTURION | 100MW PLANT DESIGNSHYDROGEN ENERGY SYSTEMS
Key steps to commercialisation:
Engagement with key stakeholders: Include OEMs and local utilities network operators – water, gas and electricity Pre-feasibility study of multiple values: Explore all income options – P2G/P, Mobility, RC and DR/FCAS Engage experienced engineers: Involve experienced engineers trusted by funders and insurers for FEED Don’t add to hype: Avoid press announcements ahead of FEED and financial close that discredit hydrogen market Leverage “as a service” model: Use Build-Own-Operate-Maintain model in preference to D&C for life cycle support
COMMERCIALISATION LESSONSHYDROGEN ENERGY SYSTEMS
Commercialisation lessons – proven 5 step process