Hydrogen & Local Energy Systems Case study: BIG HIT project Dr - - PowerPoint PPT Presentation

Hydrogen & Local Energy Systems Case study: BIG HIT project

Dr Enrique Troncoso

SECC 7th Heat & Electricity Storage Symposium Rapperswill, 6th November 2018

Low Carbon Energy & Transport Solutions

BIG HIT Grant Agreement no.: 700092

• 1. Intro: Systeng Consulting
• 2. Flexible Energy Vectors - Hydrogen in the Energy

Transition

• 3. Case study: the BIG HIT project
• 4. Next steps & lessons learnt

AGENDA

1) Project development (definition of scope & objectives, project consortium, technical project concept, proposal preparation for funding/investment) 2) Technical due diligence & project risk assessment 3) Project management/coordination (demonstration & pilot programs) 4) Support integration of project deployment with national/regional/local policy delivery (technology roadmaps) 5) Support development of strategic partnerships (public & private stakeholders)

SUPPORT TRANSITION OF LOW CARBON TECHNOLOGIES INTO COMMERCIAL PRODUCTS

Mission & services

How?

Low Carbon Energy & Transport Solutions

www.systeng.com

 Flexible energy vectors: hydrogen, biogas/biofuels (cross-sector integration of transport, , industry, heat and power)  Low carbon mobility fuels & integration with RES supplies  Energy storage technologies & grid integration of RES  Hydrogen & fuel cell technologies (production, storage/distribution and end-use)  Smartgrids, microgrids, offgrid/remote energy systems

LOW CARBON ENERGY & TRANSPORT SOLUTIONS

Sectors / Technical areas

Low Carbon Energy & Transport Solutions

www.systeng.com

Clients & Partners

Low Carbon Energy & Transport Solutions

www.systeng.com

53% Heating Power 22% Transport 25%

Next step: energy vectors for energy balancing & integration of heat, power & transport

Transition to Low Carbon Economy

BIG HIT Grant agreement no.: 700092

12 Local & International partners from across Europe

BIG HIT Project Supporters

Orkney Islands:

• 20

inhabited islands. Population: circa. 21 000

• 58 MW of RES (11MW

wave/tidal + 47MW wind)

• Orkney-UK

interconnector 30MW capacity

RATIONALE

BIG HIT Grant Agreement no.: 700092

Electricity grid overloaded = Significant renewable curtailment

RATIONALE

BIG HIT Grant Agreement no.: 700092

Electricity grid overloaded = Significant renewable curtailment Transition to low C economy, meeting electricity, transport and heat via hydrogen

 Supply: green H2 from wind & tidal  Transport/distribution H2 by road and ferry  End-use: H2 for heat, power & transport H2 Local Energy System

BIG HIT Grant Agreement no.: 700092

LOCAL & WIDER BENEFITS – IMPACT

• Pioneer pilot project – first in Europe as validated by EC (visibility, exposure &

public awareness of potential of H2 as energy vector)

• Validates business/ownership models for integration of RES locally via local

hydrogen (H2 Valleys case study)

• Delivery of local & national Low C Economic & Energy Strategy
• Boosts local economy including development of local skills, innovation &

qualified jobs in emerging technologies: socio-economic benefits

• Overcomes grid constraints and harness local (otherwise curtailed) renewable

resources (wind & marine)

• Reduces (grid) investment & improves grid load management (optimizes use of

electricity assets and local grid)

BIG HIT Grant Agreement no.: 700092

PROJECT FINANCING

1) 2015: FCH JU Grant built upon initial regional funding (Surf n Turf project) 2) 2016-2017: Private investment + additional UK National Funding (> 2.5m€)

PROJECT OWNERSHIP

• Current: community + local authority + industry (project partners)
• Envisaged: transfer to community + local authority + local industry partner?

PROJECT STATUS/PROGRESS

• Commissioned first H2 production site - Green H2 being produced from tidal

& wind electricity locally

• Five EV/H2 vehicles operating in Orkney – with local green hydrogen
• Transportation of H2 on ferries – new legislation/standards being created!
• CHP unit at the harbour commissioned and providing onshore power to

ferries (fuelled by local green hydrogen)

• Developing replication, social studies & business models (added value!)

Transport of H2 across islands H2-based CHP unit at harbour

13

S 1 R e fe re n ce sce n a rio S 2 E le ctricity fro m cu rta ilm e n t S 3 C u rta ilm e n t fu ll ca p a city

• f

e le ctro ly se r S 4 C u rta ilm e n t a n d g rid fu ll ca p a city

• f

e le ctro ly se r S 5 P

• w

e r g rid fu ll ca p a city

• f

e le ctro ly se r Curtailed electricity Power grid R u n i n g c a p a c i t y

Hydrogen production (ton/year) Shapinsay Eday 124 62 26 14 16 14

ECONOMIC & SOCIAL IMPACT ANALYSIS LOCAL BUSINESS MODELS

BIG HIT Grant Agreement no.: 700092

BIG HIT Grant agreement no.: 700092

Hydrogen production cost

• Electricity cost is the key parameter of hydrogen production cost.
• The cost of producing 1 kg of green hydrogen’ is currently estimated at between 5.5-

10.8€ on Shapinsay and Eday respectively.

• 6
• 4
• 2

2 4 6 8 10 12 14 Shapinsay Eday Shapinsay Eday Shapinsay Eday Production Cost GBP/kg

Transport-Operation cost Transport-Capital cost Storage-Operation cost Storage-Capital cost Compressor-Operation cost Compressor-Capitial cost Electrolyser Operation- electricity cost Electrolyser Operation- water cost Electrolyser Operation- Fixed cost Electrolyser Capital cost

S1 S2 S3

• Under S1 the largest cost of

hydrogen production comes from electrolysis CAPEX

• Possible to produce

hydrogen at 2.2€/kg under

• ptimized conditions = S2

BIG HIT Grant Agreement no.: 700092

DISSEMINATION & REPLICATION: HYDROGEN TERRITORIES PLATFORM (HTP)

• Scope: dissemination & exchange of information to exploit replication possibilities of the BIG HIT

platform to other remote regions/territories

• Members’ benefits – access to:

 Key project deliverables, key conclusions & best practices  Methodology & recommendations for project replication

• Members’ role: feedback on replication methodology (data for development/validation)
• First results:
• Preliminary business models and S-LCA socio-economic assessments completed
• Outreach dissemination and engagement with interested regions: Malta (follower

partner), Norway, Quebec, Northern NL, Germany-HYPHOS

• Development of HTP online structure and replication methodology ongoing

Interested regions are most welcome!

BIG HIT Grant Agreement no.: 700092

H2 Ferries (H2020 co-funded HYSEAS III Project) Grid load management (Interreg ITEG Project) FCH deployment at port/harbour (port equipment,

• nshore power)

Industrial H2/O2 applications (ammonia, fish farm) Mobility: HDVs, mini-buses and agricultural vehicles Commercial & domestic/community heating Building upon BIG HIT - next steps:

• 2018: > 40m€ investment in place for hydrogen deployment in Orkney
• Next: H2 roadmap & replication to other regions/locations

H2 Local Energy System

BIG HIT Grant Agreement no.: 700092

COMPLEX BUT IT IS POSSIBLE, HAPPENING AND IT IS REPLICABLE! Project development

• Co-funding complexity
• Adequate budget & contingency
• Management of community

expectations (don’t

• verpromise!)
• Consider local & national

strategy/policy background Project delivery

• Financial flexibility (prioritize)
• Technical complexity (flexible

timescales)

• Account for complexity of

logistics & impact on local community

• Management of stakeholders &

public perception

LESSONS LEARNT

Contact:

Project coordination: Dr Enrique Troncoso etroncoso@systengconsulting.co.uk Jesus Simon jsimon@hidrogenoaragon.org Dissemination & communication: Dr Nigel Holmes Nigel.holmes@shfca.org.uk

THANKS FOR YOUR ATTENTION – QUESTIONS?

BIG HIT Grant Agreement no.: 700092

www.bighit.eu