Is the public willing to pay for hydrogen buses? A comparative study of preferences in four cities

This paper presents results from the international AcceptH2 study (http://www.accepth2.com) of acceptability and preferences for hydrogen fuel cell (FC) buses. Using the contingent valuation method, this paper compares public willingness to pay (WTP) for the air pollution reductions associated with a scenario of large-scale introduction of hydrogen (H₂) FC buses in four cities: Berlin, London, Luxembourg and Perth. Results indicate that bus users in all cities have a positive WTP for H₂ buses, and that values (adjusted to the cost of living in each city) are very similar across geographical locations (ranging from WTP an extra €0.29 to €0.35 per single bus fare). Non-bus users were also interviewed in London and Perth, in order to capture values for the whole populations in these cities. Combined results for bus users and non-bus users confirm that overall residents in these cities are willing to pay extra (in taxes) to support the large-scale introduction of H₂-buses.     

Willingness to pay for green electricity in Korea: A contingent valuation study

Green electricity is energy that is generated from renewable energy sources such as solar power, wind power, small-scale hydroelectric power, tidal power, and biomass power. These sources mostly do not produce pollutants and are considered environmentally friendly. However, considering the current state of technology, they are more costly. Government should take visible actions to compensate for the increased production costs. This paper attempts to apply a contingent valuation (CV) method to obtain at least a preliminary evaluation of the benefits that ensue from the introduction of the policy that raises the percentage of green electricity consumption from 0.2% of the total electricity supply to 7% by 2011. Overall, the CV survey was successful in eliciting the willingness to pay (WTP) for green electricity considering that the CV method operated within respondents’ abilities to answer and the WTP estimates were statistically significant. The monthly mean WTP estimates from parametric and non-parametric methods were KRW 1681 (USD 1.8) and KRW 2072 (USD 2.2), respectively. The estimates of the annual benefits to relevant residents amounted to KRW 150.5 billion (USD 157.5 million) and KRW 185.6 billion (USD 194.2 million), respectively.     

Estimating the public’s value of implementing the CO2 emissions trading scheme in Korea

The Korean government set out the carbon dioxide (CO₂) emissions reduction target as 30% below business-as-usual by 2020. The CO₂ emissions trading scheme (ETS) was initiated in January 2015 to meet this target. We attempt to estimate the public's value of implementing the ETS for CO₂ emissions reduction. We apply the contingent valuation (CV) method using the willingness to pay (WTP) data obtained from a national CV survey of 1000 randomly selected households. The survey was conducted via in-person interviews. Value judgments required of the respondents were within their abilities. The mean WTP to achieve the stated target of CO₂ emissions reduction using ETS is estimated to be KRW 1873 (USD 1.66) per household per month, which is statistically significant at the 1% level. The aggregate national value amounts to KRW 409.2 billion (USD 363.4 million) per year. Thus, even though Korea has no obligations to cut emissions under the Kyoto protocol, the public is willing to bear a financial burden to implement the ETS. If its cost is less than this value, implementing the ETS can be socially profitable. The results of this study can serve as a basis for further policy discussions and decisions.     

Estimation of the inconvenience cost of a rolling blackout in the residential sector: The case of South Korea

South Korea is experiencing a serious imbalance in electricity supply and demand, which caused a blackout in 2011. The Korean government has planned to perform a rolling blackout to prevent large-scale blackouts when the electricity supply reserve margin reaches less than 1 million kW. This study attempts to estimate the inconvenience cost of household customers from a rolling blackout by using survey data. To this end, we apply a contingent valuation method (CVM) to measure their willingness-to-pay (WTP) in order to avoid a rolling blackout, i.e. the suspension of electricity supply. In this study, we estimate the inconvenience costs stemming from both an unannounced and an announced rolling blackout. As a result, we find that the inconvenience cost of a sudden rolling blackout is estimated at 3900.67 KRW (3.56 USD) per month per household, while that of an announced rolling blackout stands at 3102.95 KRW (2.83 USD). This difference in costs shows that people place value in receiving prior notice of a blackout, and that inconvenience costs of between 166.0 billion KRW (151.6 million USD) and 174.3 billion KRW (159.2 million USD) per year can be reduced nationwide by giving households advance notice of a planned rolling blackout.     

Public willingness to pay for hydrogen stations expansion policy in Korea: Results of a contingent valuation survey

The Korean government is planning to increase the number of its hydrogen stations from 20 in 2016 to 100 by 2020, to enhance the use of hydrogen fuel cell electric vehicles and to reduce greenhouse gas (GHG) emissions. This article looks at the public willingness to pay (WTP) for implementing the expansion policy. To this end, a contingent valuation survey of 1000 Korean households was implemented. To mitigate the response effect in eliciting the WTP and to increase the statistical efficiency of the analysis of the WTP data, we employed a one-and-one-half-bounded dichotomous choice question format. Furthermore, we used a spike model to model the WTP responses with zero observations. The mean yearly WTP for the policy implementation is computed to be KRW 2258 (USD 2.04) per household, which is statistically significant at the 1% level. The national annual value amounts to KRW 42.8 billion (USD 38.6 million). This value can be taken as an indication of the external benefit of the reduction in GHG emissions by means of the expansion.     

Households’ willingness to pay for developing marine bio-hydrogen technology: The case of South Korea

The utilization of renewable energy sources for hydrogen production is attracting attention regarding a sustainable future energy system. The South Korean Government aims to develop and commercialize marine biological hydrogen (MBH) technology, which produces hydrogen using marine hyperthermophilic archaeons. The purpose of this study is to perform an economic evaluation of MBH technology based on households’ mean willingness to pay (WTP). The contingent valuation method and cost–benefit analysis are used as methodologies for detailed analysis. The results show that the mean WTP estimate is KRW 2508 (USD 2.14) per household per year, but the ratio of households with zero WTP is considerable. The net present value and the benefit–cost ratio of MBH technology development are KRW 169.04 billion (USD 144.35 million) and 5.65, respectively, proving the high economic feasibility of the technology. Several implications for future decisions on MBH technology are provided based on the results.     

Techno-economic analysis of hydropower based green ammonia plant for urea production in Nepal

This study presents a detailed design, economic, sensitivity and uncertainty analysis for establishing a hydropower based green ammonia plant for use in urea manufacturing in the context of Nepal. The electrolyzer plant for producing hydrogen was simulated with the help of DWSIM while the air separation and ammonia synthesis units were simulated with the help of Aspen Plus for producing 1245 ton/day of ammonia to meet the annual urea demand of Nepal. The capitalized cost of the electrolyzer, air separation and the ammonia synthesis unit of this size were calculated to be 26 million, 7 million and 9 million USD/year respectively. The levelized cost of hydrogen (H₂) and ammonia (NH₃) were found to be 3602 and 826 USD/ton respectively. Economic profitability analysis showed profitability of the plant with ROI and IRR of 38% and 26% respectively with a payback period of three years after operation. The sensitivity analysis showed strong sensitivity on the utility (electricity) cost for both the electrolyzer and ammonia synthesis unit which presents a strong opportunity for Nepal. The levelized cost for H₂ and NH₃ varied between 2845 USD/ton and 4361 USD/ton and 634 USD/ton and 1018 USD/ton respectively for ±30% variation in the utility (electricity) cost. Uncertainty analysis using Monte Carlo method showed the possible minimum levelized cost of H₂ and NH₃ to be 2340 USD/ton and 418 USD/ton respectively. This study illustrates the potential of hydropower based ammonia synthesis for urea manufacturing and provides an important baseline value for policymakers to make investment decisions and to formulate policies for this pathway of production.     

Do people put more value on electricity produced using waste-to-hydrogen? Findings from South Korea

South Korea is pushing for the waste-to-hydrogen (W2H) project to reduce greenhouse gases and utilize plastic and vinyl waste (PVW) while reducing environmental pollution from PVW. This research seeks to estimate additional willingness to pay (WTP) for electricity produced using W2H over that produced using traditional power sources, such as coal and nuclear. For the purpose of the estimation, a contingent valuation survey of 1000 people was performed employing the closed-ended one-and-one-half-bound question during November 2020. A spike model is utilized to reflect zero WTP values that a number of interviewees reported in the survey. Several factors affecting the additional WTP were also analyzed to derive implications. The average WTP was computed as KRW 27.7 (USD 0.025) per kWh with statistical significance, which reaches 26.4% of the electricity price. One more point to note is that 54.3% of the respondents stated a zero WTP as they thought that W2H is of no value to them or were worried that the W2H project could increase electricity bills.     

Valuing energy-saving measures in residential buildings: A choice experiment study

Air-conditioning and heating energy-saving measures can cut back the usage of energy. This paper attempts to apply a choice experiment in evaluating the consumer's willingness to pay (WTP) for air-conditioning and heating energy-saving measures in Korea's residential buildings. We consider the trade-offs between price and three attributes of energy-saving (window, facade, and ventilation) for selecting a preferred alternative and derive the marginal WTP (MWTP) estimate for each attribute. We also try to test irrelevant alternatives property for the estimation model holds and compare the estimation results of the multinomial logit (MNL) and the nested logit (NL) models. The NL model outperforms the MNL model. The NL model show that MWTPs for increasing the number of glasses and their variety, for increasing the thickness of facade for 1 mm, and for establishing a ventilation system are KRW 17,392 (USD 18.2), 1,112 (1.2), and 11,827 (12.4), respectively. Overall, the potential consumers have significant amount of WTP.     

Towards the Hydrogen Economy in Paraguay: Green hydrogen production potential and end-uses

This study was conducted to estimate the potential for green H₂ in Paraguay. A total production potential of 22.5 × 10⁶ tons/year was obtained with a main contribution (93.34%) from solar photovoltaic. The greatest potential for producing H₂ from solar and wind resources is in the Western region, and from hydro resources is in the Eastern region of the country. Two end-uses of green H₂ were assessed: (1) automotive transportation, replacing gasoline and diesel; and (2) residential energy, replacing firewood and LPG for cooking in households across the country. In 16 of the 17 departments, green H₂ is able to replace the overall consumption of gasoline and diesel, as well as firewood and LPG. Finally, energy service cost (mobility), environmental aspects and CO₂ emissions were considered for three urban mobility technologies for the Metropolitan Area of Asunción. Results show that the mobility cost of fuel cell hybrid electric buses is still very high in comparison to diesel buses and battery electric buses. However, when a longer driving range is required, fuel cell hybrid electric buses could become a viable alternative in the long term. From an environmental point of view, green H₂ used in fuel cell hybrid electric buses has the potential to save about 96% of CO₂ emissions in comparison to diesel buses. It is concluded that the estimated green H₂ production potential favors the incorporation of the Hydrogen Economy in Paraguay.     

Economic valuation of green hydrogen charging compared to gray hydrogen charging: The case of South Korea

The South Korean government promotes hydrogen-powered vehicles to reduce greenhouse gas (GHG) emissions but these vehicles use gray hydrogen while charging, which causes GHG emissions. Therefore, converting this fuel into green hydrogen is necessary to help reduce GHG emissions, which will incur investment costs of approximately USD 20 billion over a decade. In this study, a contingent valuation method is applied in an analysis to examine the extent to which consumers are willing to pay for green hydrogen charging compared to gray hydrogen charging. The results indicate that the monthly mean of willingness to pay per driver is 51,674 KRW (USD 45.85), equivalent to 4302 KRW per kg (USD 3.82). Additionally, consumers accept a 28.5% increase in the monthly average fuel expenses when converting to green hydrogen. These findings can be used in the development of pricing and energy use plans to finance the expansion of green hydrogen infrastructure.     

A flower pollination optimization algorithm for an off-grid PV-Fuel cell hybrid renewable system

This research work crucially deals with a techno-economic feasibility study for off-grid solar photovoltaic fuel cell (PV/FC) hybrid systems. The hybrid renewable energy system is investigated for feeding electric to remote areas and isolated urban regions in Egypt. To achieve this goal, all the system equipment are modeled, simulated and the area under study data is gathered. The objective function is formulated depending on the total annual cost (TAC). The Flower Pollination Algorithm (FPA), as an efficient recent metaheuristic optimization method, proposed to estimate the optimum number of both PV panels and the FC/electrolyzer/H₂ storage tanks set mandatory where the least total net present value (TNPV) is reached.The loss of power supply probability (LPSP) is considered to enhance the performance of the proposed design. The effect of the variation of FC, electrolyzer, H₂ storage tanks and the PV power system initial cost on the levelized cost of energy (LCOE) is presented through a comprehensive sensitivity analysis.Through Matlab™ program, the numerical simulation results obtained by the FPA algorithm have been compared to the corresponding outcomes while using the artificial bee colony (ABC) and the Particle Swarm Optimization (PSO) techniques. According to the simulation outcomes analysis, the FPA Algorithm has the less fulfillment time and good rendering between the other algorithms. In addition, the optimum system configuration is acquired using FPA with the optimal hybridization of 27 solar PV, 28 FCs, 58 electrolyzers and 37 H₂ storage tanks for an LPSP and PEE of 1.52% and 4.68% respectively. The system TNPV is $3,244,897 with the LCOE of 0.334 $/kWh.     

Contribution of fuel cell systems to CO2 emission reduction in their application fields

Fuel cells (FCs) and their hybrid systems can play a key role in reducing carbon dioxide (CO₂) emissions. The present paper analyzes the contributions of the FC system to CO₂ emission reduction in three application fields.In the mobile application field, the direct methanol FC system has little or no influence on CO₂ emission reduction.The benefit of the FC in CO₂ emission reduction in the transportation field is directly dependant on the H₂ production method. Pre-combustion technology (with carbon capture) represents one of the best mid-term solutions for H₂ production. If FC vehicles (FCVs) use the H₂ produced by this process, the CO₂ emissions in this field could be decreased to 70–80% of the traditional CO₂ emissions.In the stationary application field, the FC system can be effectively operated as the distributed generation (DG) in terms of CO₂ emission reduction. Among the various types of FC or FC hybrid system used for DG, the solid oxide FC (SOFC) hybrid system with a CO₂ capture unit is the best option as it doubled the electricity efficiency compared to the traditional combustion cycle and decreases the CO₂ emission to 13.4% of the traditional CO₂ emission.However, the FC and carbon capture and sequestration (CCS) technologies need to be fully developed before the FC can contribute to reducing CO₂ emissions.     

Estimating the willingness to pay for reliable electricity supply: A choice experiment study

This research examines households' willingness to pay (WTP) for an improved electricity service. Households' stated WTP is estimated using the choice experiment (CE) method. The data used in the estimations come from 350 in-person interviews conducted during the period 5–22 August 2008 in North Cyprus. Compensating variation (CV) estimates for a zero-outage scenario are calculated using the parameter estimates from the mixed logit (ML) model; these are 6.65 YTL (Turkish lira) per month (3.02 USD) for summer and 25.83 YTL per month (11.74 USD) for winter. In order to avoid the cost of outages, households are willing to incur a 3.6% and a 13.9% increase in their monthly electricity bill for summer and winter, respectively. The WTP per hour unserved is 0.28 YTL (0.13 USD) for summer, and 1.08 YTL (0.49 USD) for winter. A preliminary cost–benefit analysis indicates that the annualized economic benefits are approximately 42.7 million YTL (19.4 million USD) for the residential sector. This would justify an investment in additional generation capacity of approximately 268 MW, which is far more than that which is needed to eliminate the service reliability problem.     

Public perspective on co-firing hydrogen with natural gas in power plants in South Korea

The South Korean government plans to gradually change existing power generation from natural gas (NG) to hydrogen co-fired with NG to help abate emissions of greenhouse gases (GHGs). This research aims to explore people's additional willingness to pay (AWTP) for consuming one kWh of electricity generated from a mixture of 35% hydrogen and 65% NG compared to electricity generated from 100% NG. Contingent valuation (CV) was applied to obtain data on the AWTP. A CV survey of 1000 randomly chosen people was conducted to obtain data, a one-and-one-half-bounded model was adopted to elicit the AWTP from interviewees, and a spike model was used to analyze the AWTP observations with zeros. The average AWTP was obtained as KRW 24.3 (USD 0.022) per kWh. Since the electricity price was KRW 107.9 (USD 0.096) per kWh, the value that people place on co-firing, which means the sum of the price and the AWTP, was KRW 132.2 (USD 0.118) per kWh. Because the total cost of the power supply for hydrogen co-fired with NG is KRW 145.7 (USD 0.130) per kWh, a subsidy of at least KRW 13.5 (USD 0.012) per kWh must be provided to encourage co-firing to mitigate GHG emissions.     

Light metal hydride-based hydrogen storage system: Economic assessment in Argentina

Motivated by the high potential for hydrogen production from renewable resources in Argentina, the economic feasibility of employing light complex metal hydrides as hydrogen storage materials for mobile applications in Argentina is explored for the first time. Three main costs are analyzed: green H₂, H₂ storage system based on Mg(NH₂)₂–LiH and storage tank. Considering the production of H₂ by electrolysis using wind energy, a cost of ~5 USD/kg H₂ is obtained. The cost of hydride matrix is crucial and competitive values are viable only if the synthesis route starts from Mg⁰ and Li⁰, allowing reducing the total hydride matrix cost from ~2200 to ~4900 USD. The cost of a modular configuration tank with 4 kg of H₂ capacity is estimated to be ~5300–6700 USD. A cost ratio higher than of 2:1 is obtained between storage systems based on amides and high pressure systems.     

Green hydrogen-based pathways and alternatives: Towards the renewable energy transition in South America's regions–Part B

Hydropower compounds most of the energy matrix of the countries of the Latin America and Caribbean region (LAC). Considering the concern in reducing Green House Gases emissions (GHG) from hydropower plants and hydrogen production from fossil sources, green hydrogen (H₂) appears as an energy vector able to mitigate this impact. Improving the efficiency of the plant and producing renewable energy the element is an interesting alternative from the ecological and economic point of view. This study aims to estimate the potential of H₂ production from wasted energy, through the electrolysis of water in hydroelectric plants in Colombia and Venezuela. The construction of two scenarios allowed obtaining a difference, considering a spilled flow of 2/3 in the first scenario and 1/3 in the second. In Colombia, hydrogen production reached 3.39 E+08 Nm³ at a cost of 2.05 E+05 USD/kWh in scenario1, and 1.70 E+08 Nm³ costing 4.10 E+05 USD/kWh in scenario 2. Regarding the Venezuelan context, the country obtained lower production values of H₂, ranging between 7.76 E+07 Nm³.d^?1 and 4.31 E+07 Nm³.d^?1, and production cost between 9.45 E+09 USD/kWh and 1.89 E+10 USD/kWh. Thus, the final cost for the production and storage of H₂ was estimated at 0.2239 USD.kg^?1. Ultimately, Colombia and Venezuela have a large potential to supply the demand for nitrogen fertilizers with green ammonia production, apply green hydrogen in manufacturing and use the surplus for energy substitution of Liquefied Petroleum Gas - LPG. In Colombia, the chemical energy offered is equivalent to 6.681 E+11 MJ/year^?1 and in Venezuela, the result is equal to 1.697 E+11 MJ/year^?1 in the conservative scenario. Finally, the countries have great potential for the diversification of the energy matrix and the insertion of renewables in the system.     

Assessment of Korean customers’ willingness to pay with RPS

To increase the use of renewable energy, the Korean government will introduce the Renewable Portfolio Standard (RPS) in 2012. The RPS places responsibility for extra renewable energy costs on the consumers and allows price competition among different renewable sources. Accordingly, this study analyzes through the contingent valuation (CV) the willingness of Korean households to pay more for electricity generated by wind, photovoltaic (PV), and hydropower. Our empirical results show that, although the willingness to pay (or WTP) was highest for wind power and lowest for hydropower, the differences in WTP among the renewable sources were statistically insignificant. This suggests that Korean consumers prefer a renewable portfolio that minimizes power supply costs.The average WTP for all three energy types was KRW 1562.7 (USD 1.350) per month per household, which was approximately 3.7% of the average monthly electricity bill in 2010. This amount represents only 58.2% of what the Korean government allocated in its budget to the new and renewable energy dissemination program in 2010. Thus, our results imply that the promotion of the new and renewable energy dissemination program may be difficult only with the WTP for electricity generated from renewable sources. Specifically, the mean WTP will not support the set-aside dissemination capacity for PV after 2014.     

Techno-economic analysis of hydrogen production from dehydrogenation and steam reforming of ethanol for carbon dioxide conversion to methanol

Decreasing carbon dioxide (CO₂) emission by converting to higher-valued product has become of interest. Hydrogen (H₂) is an important feedstock required in thermochemical conversion of CO₂ to chemicals such as methanol. The cost and availability of H₂ affect the cost of CO₂ conversion. This study is focused on the process simulation of H₂ production from ethanol feedstock. Steam reforming of ethanol is compared with dehydrogenation of ethanol to H₂ with valued products including ethyl acetate and acetaldehyde. Form this study, steam reforming of ethanol presents the lowest cost of H₂ production at 1.58 USD/kg H₂ while dehydrogenation of ethanol presents the cost at 3.24 and 1.97 USD/kg H₂, respectively. Although presenting the lowest cost, steam reforming of ethanol provides a net positive CO₂ emission in the overall CO₂ conversion to methanol process. In contrast, ethanol dehydrogenation to H₂ and byproducts, ethyl acetate and acetaldehyde, promotes a net negative CO₂ emission of −819.20 kg/ton methanol and −5.42 kg/ton methanol, respectively. The results present a decreasing CO₂ emission with an increasing cost of H₂ production.     

Direct NaBH4/H2O2 fuel cells

A fuel cell (FC) using liquid fuel and oxidizer is under investigation. H₂O₂ is used in this FC directly at the cathode. Either of two types of reactant, namely a gas-phase hydrogen or an aqueous NaBH₄ solution, are utilized as fuel at the anode. Experiments demonstrate that the direct utilization of H₂O₂ and NaBH₄ at the electrodes results in >30% higher voltage output compared to the ordinary H₂/O₂ FC. Further, the use of this combination of all liquid fuels, provides numerous advantages (ease of storage, reduced pumping requirements, simplified heat removal, etc.) from an operational point of view. This design is inherently compact compared to other cells that use gas phase reactants. Further, regeneration is possible using an electrical input, e.g. from power lines or a solar panel. While the peroxide-based FC is ideally suited for applications such as space power where air is not available and a high energy density fuel is essential, other distributed and mobile power uses are of interest.