Hydrogen & Local Energy Systems Case study: BIG HIT project Dr Enrique Troncoso SECC 7 th Heat & Electricity Storage Symposium Rapperswill, 6 th November 2018 Low Carbon Energy & Transport Solutions
BIG HIT Grant Agreement no.: 700092 AGENDA 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
Mission & services Low Carbon Energy & Transport Solutions SUPPORT TRANSITION OF LOW CARBON TECHNOLOGIES INTO COMMERCIAL PRODUCTS How? 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) www.systeng.com
Sectors / Technical areas Low Carbon Energy & Transport Solutions LOW CARBON ENERGY & TRANSPORT SOLUTIONS 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 www.systeng.com
Clients & Partners Low Carbon Energy & Transport Solutions www.systeng.com
Transition to Low Carbon Economy Power 22% 53% Heating Transport 25% Next step: energy vectors for energy balancing & integration of heat, power & transport
BIG HIT Grant agreement no.: 700092 12 Local & International partners from across Europe BIG HIT Project Supporters
BIG HIT Grant Agreement no.: 700092 RATIONALE Orkney Islands: 20 inhabited islands. Population: circa. 21 000 58 MW of RES (11MW wave/tidal + 47MW wind) Orkney-UK interconnector 30MW capacity Electricity grid overloaded = Significant renewable curtailment
BIG HIT Grant Agreement no.: 700092 RATIONALE Electricity grid overloaded = Significant renewable curtailment Transition to low C economy, meeting electricity, transport and heat via hydrogen
H2 Local Energy System Supply: green H2 from wind & tidal Transport/distribution H2 by road and ferry End-use: H 2 for heat, power & transport
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 H2-based CHP unit at harbour Transport of H2 across islands 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!)
BIG HIT Grant Agreement no.: 700092 ECONOMIC & SOCIAL IMPACT ANALYSIS Hydrogen production LOCAL BUSINESS MODELS (ton/year) Shapinsay Eday S 3 S 4 S 5 C u rta ilm e n t C u rta ilm e n t a n d g rid P o w e r g rid fu ll ca p a city o f fu ll ca p a city o f fu ll ca p a city o f e le ctro ly se r e le ctro ly se r e le ctro ly se r 124 62 S 2 E le ctricity fro m c cu rta ilm e n t a p a c i 26 14 t y S 1 R u R e fe re n ce n sce n a rio i n g 16 14 Curtailed Power grid electricity 13
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. Under S1 the largest cost of 14 Transport-Operation cost hydrogen production comes 12 Transport-Capital cost from electrolysis CAPEX Production Cost GBP/kg 10 Storage-Operation cost 8 Storage-Capital cost 6 Possible to produce Compressor-Operation cost 4 hydrogen at 2.2€/kg under Compressor-Capitial cost 2 Electrolyser Operation- optimized conditions = S2 0 electricity cost Electrolyser Operation- Shapinsay Eday Shapinsay Eday Shapinsay Eday -2 water cost Electrolyser Operation- -4 Fixed cost Electrolyser Capital cost -6 S2 S1 S3
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 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 H2 Ferries (H2020 co-funded HYSEAS III Project) Grid load management (Interreg ITEG Project) FCH deployment at port/harbour (port equipment, onshore power) Industrial H2/O2 applications (ammonia, fish farm) Mobility: HDVs, mini-buses and agricultural vehicles Commercial & domestic/community heating
BIG HIT Grant Agreement no.: 700092 LESSONS LEARNT Project delivery Project development • Financial flexibility (prioritize) • Co-funding complexity Technical complexity (flexible • Adequate budget & contingency • timescales) • Management of community • Account for complexity of expectations (don’t logistics & impact on local overpromise!) community • Consider local & national Management of stakeholders & • strategy/policy background public perception COMPLEX BUT IT IS POSSIBLE, HAPPENING AND IT IS REPLICABLE!
BIG HIT Grant Agreement no.: 700092 THANKS FOR YOUR ATTENTION – QUESTIONS? 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 www.bighit.eu
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