Nuclear hydrogen: An assessment of product flexibility and market viability

Nuclear energy has the potential to play an important role in the future energy system as a large-scale source of hydrogen without greenhouse gas emissions. Thus far, economic studies of nuclear hydrogen tend to focus on the levelized cost of hydrogen without accounting for the risks and uncertainties that potential investors would face. We present a financial model based on real options theory to assess the profitability of different nuclear hydrogen production technologies in evolving electricity and hydrogen markets. The model uses Monte Carlo simulations to represent uncertainty in future hydrogen and electricity prices. It computes the expected value and the distribution of discounted profits from nuclear hydrogen production plants. Moreover, the model quantifies the value of the option to switch between hydrogen and electricity production, depending on what is more profitable to sell. We use the model to analyze the market viability of four potential nuclear hydrogen technologies and conclude that flexibility in output product is likely to add significant economic value for an investor in nuclear hydrogen. This should be taken into account in the development phase of nuclear hydrogen technologies.     

The role of hydrogen in high wind energy penetration electricity systems: The Irish case

The deployment of wind energy is constrained by wind uncontrollability, which poses operational problems on the electricity supply system at high penetration levels, lessening the value of wind-generated electricity to a significant extent. This paper studies the viability of hydrogen production via electrolysis using wind power that cannot be easily accommodated on the system. The potential benefits of hydrogen and its role in enabling a large penetration of wind energy are assessed, within the context of the enormous wind energy resource in Ireland. The exploitation of this wind resource may in the future give rise to significant amounts of surplus wind electricity, which could be used to produce hydrogen, the zero-emissions fuel that many experts believe will eventually replace fossil fuels in the transport sector. In this paper the operation of a wind powered hydrogen production system is simulated and optimised. The results reveal that, even allowing for significant cost-reductions in electrolyser and associated balance-of-plant equipment, low average surplus wind electricity cost and a high hydrogen market price are also necessary to achieve the economic viability of the technology. These conditions would facilitate the installation of electrolysis units of sufficient capacity to allow an appreciable increase in installed wind power in Ireland. The simulation model was also used to determine the CO₂ abatement potential associated with the wind energy/hydrogen production.     

Solar energy in India: Strategies, policies, perspectives and future potential

Renewable energy sources and technologies have potential to provide solutions to the longstanding energy problems being faced by the developing countries like India. Solar energy can be an important part of India's plan not only to add new capacity but also to increase energy security, address environmental concerns, and lead the massive market for renewable energy. Solar thermal electricity (STE) also known as concentrating solar power (CSP) are emerging renewable energy technologies and can be developed as future potential option for electricity generation in India. In this paper, efforts have been made to summarize the availability, current status, strategies, perspectives, promotion policies, major achievements and future potential of solar energy options in India.     

Resource assessment for green hydrogen production in Kazakhstan

Kazakhstan has long been regarded as a major exporter of fossil fuel energy. As the global energy sector is undergoing an unprecedented transition to low-carbon solutions, new emerging energy technologies, such as hydrogen production, require more different resource bases than present energy technologies. Kazakhstan needs to consider whether it has enough resources to stay competitive in energy markets undergoing an energy transition. Green hydrogen can be made from water electrolysis powered by low-carbon electricity sources such as wind turbines and solar panels. We provided the first resource assessment for green hydrogen production in Kazakhstan by focusing on three essential resources: water, renewable electricity, and critical raw materials. Our estimations showed that with the current plan of Kazakhstan to keep its water budget constant in the future, producing 2–10 Mt green hydrogen would require reducing the water use of industry in Kazakhstan by 0.6–3% or 0.036–0.18 km³/year. This could be implemented by increasing the share of renewables in electricity generation and phasing out some of the water- and carbon-intensive industries. Renewable electricity potential in South and West Kazakhstan is sufficient to run electrolyzers up to 5700 and 1600 h/year for wind turbines and solar panels, respectively. In our base case scenario, 5 Mt green hydrogen production would require 50 GW solar and 67 GW wind capacity, considering Kazakhstan's wind and solar capacity factors. This could convert into 28,652 tons of nickel, 15,832 tons of titanium, and many other critical raw materials. Although our estimations for critical raw materials were based on limited geological data, Kazakhstan has access to the most critical raw materials to support original equipment manufacturers of low-carbon technologies in Kazakhstan and other countries. As new geologic exploration kicks off in Kazakhstan, it is expected that more deposits of critical raw materials will be discovered to respond to their potential future needs for green hydrogen production.     

A flexible techno-economic analysis tool for regional hydrogen hubs – A case study for Ireland

The increasing urgency with which climate change must be addressed has led to an unprecedented level of interest in hydrogen as a clean energy carrier. Much of the analysis of hydrogen until this point has focused predominantly on hydrogen production. This paper aims to address this by developing a flexible techno-economic analysis (TEA) tool that can be used to evaluate the potential of future scenarios where hydrogen is produced, stored, and distributed within a region. The tool takes a full year of hourly data for renewables availability and dispatch down (the sum of curtailment and constraint), wholesale electricity market prices, and hydrogen demand, as well as other user-defined inputs, and sizes electrolyser capacity in order to minimise cost. The model is applied to a number of case studies on the island of Ireland, which includes Ireland and Northern Ireland. For the scenarios analysed, the overall LCOH ranges from €2.75–3.95/kgH₂. Higher costs for scenarios without access to geological storage indicate the importance of cost-effective storage to allow flexible hydrogen production to reduce electricity costs whilst consistently meeting a set demand.     

Feasibility study of large scale hydrogen power-to-gas applications and cost of the systems evolving with scaling up in Germany,Belgium and Iceland

The use of hydrogen to store electricity is no longer utopian nor merely theoretical. Hydrogen applications such as Power-to-Gas systems are entering the market and some of them are ready to compete with other options in the near future. This means they have indeed a potential for profitability, especially if seen as large-scale storage solutions for the electricity surplus produced by variable renewable energy sources.In this study Power-to-Industry, Power-to-Mobility and Power-to-Power applications are chosen to be investigated and compared through levelized cost of hydrogen to identify the main cost drivers and consequently understand the possible solutions to reduce costs. The feasibility of the applications is discussed and analyzed in Germany, Belgium and Iceland, with mid and long-term perspectives, focusing the analysis on the advantage of scaling up.     

The economics and the environmental benignity of different colors of hydrogen

Due to the increasing greenhouse gas emissions, as well as due to the rapidly increasing use of renewable energy sources in the electricity generation over the last years, interest in hydrogen is rising again. Hydrogen can be used as a storage for renewable energy balancing the whole energy systems, and contributing to the decarbonization of the energy system, especially of the industry and the transport sector.The major objective of this paper is to discuss various ways of hydrogen production depending on the primary energy sources used. Moreover, the economic and environmental performance of three major hydrogen colors, as well as major barriers for faster deployment in fuel cell vehicles, are analyzed.The major conclusion is that the full environmental benefits of hydrogen use are highly dependent on the hydrogen production methods and primary sources used. Only green hydrogen with electricity from wind, PV and hydro has truly low emissions. All other sources like blue hydrogen with CCUS or electrolysis using the electricity grid have substantially higher emissions, coming close to grey hydrogen production. Another conclusion is that it is important to introduce an international market for hydrogen to lower costs and to produce hydrogen where conditions are best.Finally, the major open question remaining is whether – including all external costs of all energy carriers, hydrogen of any color may become economically competitive in any sector of the energy system. The future success of hydrogen is very dependent on technological development and resulting cost reductions, as well as on future priorities and the corresponding policy framework. The policy framework should support the shift from grey to green hydrogen.     

Analysis of Ontario's hydrogen economy demands from hydrogen fuel cell vehicles

The ‘Hydrogen Economy’ is a proposed system where hydrogen is produced from carbon dioxide free energy sources and is used as an alternative fuel for transportation. The utilization of hydrogen to power fuel cell vehicles (FCVs) can significantly decrease air pollutants and greenhouse gases emission from the transportation sector. In order to build the future hydrogen economy, there must be a significant development in the hydrogen infrastructure, and huge investments will be needed for the development of hydrogen production, storage, and distribution technologies. This paper focuses on the analysis of hydrogen demand from hydrogen FCVs in Ontario, Canada, and the related cost of hydrogen. Three potential hydrogen demand scenarios over a long period of time were projected to estimate hydrogen FCVs market penetration, and the costs associated with the hydrogen production, storage and distribution were also calculated. A sensitivity analysis was implemented to investigate the uncertainties of some parameters on the design of the future hydrogen infrastructure. It was found that the cost of hydrogen is very sensitive to electricity price, but other factors such as water price, energy efficiency of electrolysis, and plant life have insignificant impact on the total cost of hydrogen produced.     

Green hydrogen as feedstock: Financial analysis of a photovoltaic-powered electrolysis plant

The weather-dependent electricity generation from Renewable Energy Sources (RES), such as solar and wind power, entails that systems for energy storage are becoming progressively more important. Among the different solutions that are being explored, hydrogen is currently considered as a key technology allowing future long-term and large-scale storage of renewable power.Today, hydrogen is mainly produced from fossil fuels, and steam methane reforming (SMR) is the most common route for producing it from natural gas. None of the conventional methods used is GHG-free. The Power-to-Gas concept, based on water electrolysis using electricity coming from renewable sources is the most environmentally clean approach. Given its multiple uses, hydrogen is sold both as a fuel, which can produce electricity through fuel cells, and as a feedstock in several industrial processes. Just the feedstock could be, in the short term, the main market of RES-based hydrogen.In this paper, we present the results obtained from a techno-economic-financial evaluation of a system to produce green hydrogen to be sold as a feedstock for industries and research centres. A system which includes a 200 kW photovoltaic plant and a 180 kW electrolyser, to be located in Messina (Italy), is proposed as a case study. According to the analyses carried out, and taking into account the current development of technologies, it has been found that investment to realise a small-scale PV-based hydrogen production plant can be remunerative.     

Large-scale integration of wind power into different energy systems

The paper presents the ability of different energy systems and regulation strategies to integrate wind power. The ability is expressed by the following three factors: the degree of electricity excess production caused by fluctuations in wind and Combined Heat and Power (CHP) heat demands, the ability to utilise wind power to reduce CO₂ emission in the system, and the ability to benefit from exchange of electricity on the market. Energy systems and regulation strategies are analysed in the range of a wind power input from 0 to 100% of the electricity demand. Based on the Danish energy system, in which 50% of the electricity demand is produced in CHP, a number of future energy systems with CO₂ reduction potentials are analysed, i.e. systems with more CHP, systems using electricity for transportation (battery or hydrogen vehicles) and systems with fuel-cell technologies. For the present and such potential future energy systems different regulation strategies have been analysed, i.e. the inclusion of small CHP plants into the regulation task of electricity balancing and ancillary grid stability services and investments in electric heating, heat pumps and heat storage capacity. The results of the analyses make it possible to compare short-term and long-term potentials of different strategies of large-scale integration of wind power.     

Techno-economic analysis of PEM fuel cells role in photovoltaic-based systems for the remote base stations

Expansion of telecommunication networks even to the most remote areas where connection to the utility grid could never be justified, especially in touristic regions, has led to the increasing need for stand-alone power systems. In Adriatic coastal area employment of hybrid photovoltaic-based systems is straightforward due to high sun potential. Inherent intermittent nature of renewable sources is especially not compatible with telecommunication system who require uninterrupted power supply. This leads to the need of not only energy storage, but also a “back up” solution in the case of primary system failure. Emphasis is put on the system reliability and simplicity while system price is not necessarily top priority. Usual approach of using diesel generators as a “back up” has been challenged by the introduction of PEM fuel cells. Even with hydrogen technologies market development still lagging behind some comparable advantages such as high energy conversion efficiency, silent operation and no emissions make PEM fuel cells a legitimate candidate for replacing traditional oil burning generators. Techno-economic analysis of various stand-alone power systems for the remote base station on an Adriatic island is made. At the moment, levelized cost of electricity point of view still gives slight advantage to the diesel generators. Though, uncertain petroleum market and fast developing hydrogen technology market could reverse this trend in the near future. Long term reliability of PEM fuel cells system still needs to be examined in practice, as this combined with pro-environmental characteristics of fuel cells can make the difference especially in pristine and protected areas.     

The production of hydrogen fuel from renewable sources and its role in grid operations

Understanding the scale and nature of hydrogen's potential role in the development of low carbon energy systems requires an examination of the operation of the whole energy system, including heat, power, industrial and transport sectors, on an hour-by-hour basis. The Future Energy Scenario Assessment (FESA) software model used for this study is unique in providing a holistic, high resolution, functional analysis, which incorporates variations in supply resulting from weather-dependent renewable energy generators. The outputs of this model, arising from any given user-definable scenario, are year round supply and demand profiles that can be used to assess the market size and operational regime of energy technologies. FESA was used in this case to assess what - if anything - might be the role for hydrogen in a low carbon economy future for the UK.In this study, three UK energy supply pathways were considered, all of which reduce greenhouse gas emissions by 80% by 2050, and substantially reduce reliance on oil and gas while maintaining a stable electricity grid and meeting the energy needs of a modern economy. All use more nuclear power and renewable energy of all kinds than today's system. The first of these scenarios relies on substantial amounts of ‘clean coal’ in combination with intermittent renewable energy sources by year the 2050. The second uses twice as much intermittent renewable energy as the first and virtually no coal. The third uses 2.5 times as much nuclear power as the first and virtually no coal.All scenarios clearly indicate that the use of hydrogen in the transport sector is important in reducing distributed carbon emissions that cannot easily be mitigated by Carbon Capture and Storage (CCS). In the first scenario, this hydrogen derives mainly from steam reformation of fossil fuels (principally coal), whereas in the second and third scenarios, hydrogen is made mainly by electrolysis using variable surpluses of low-carbon electricity. Hydrogen thereby fulfils a double facetted role of Demand Side Management (DSM) for the electricity grid and the provision of a ‘clean’ fuel, predominantly for the transport sector. When each of the scenarios was examined without the use of hydrogen as a transport fuel, substantially larger amounts of primary energy were required in the form of imported coal.The FESA model also indicates that the challenge of grid balancing is not a valid reason for limiting the amount of intermittent renewable energy generated. Engineering limitations, economic viability, local environmental considerations and conflicting uses of land and sea may limit the amount of renewable energy available, but there is no practical limit to the conversion of this energy into whatever is required, be it electricity, heat, motive power or chemical feedstocks.     

Hydrogen energy storage systems to improve wind power plant efficiency considering electricity tariff dynamics

One of the limitations of the efficiency of renewable energy sources is the stochastic nature of generation; consequently, it is necessary to use high-capacity energy storage systems such as hydrogen storage for its integration into existing power networks. At the same time, electricity market tariffs for large enterprises change during the day. Therefore, it can be assumed that storing energy during cheaper hours and usage in more expensive hours allows increasing the efficiency of renewable energy sources. Evaluation of the economic efficiency of an energy storage system requires simulation with a step of at least 1 h for several years since the use of averaged production volume and averaged electricity tariffs will not allow obtaining an adequate to the task accuracy. A simulation model and software have been implemented to perform simulations and calculate the economic efficiency of a wind turbine with and without a hydrogen storage device. The methodology has been approved on three-year real data of wind speeds and electricity tariffs in the Novosibirsk region and Krasnodar Territory (Russian Federation).     

Policy considerations for a sprouting UK green electricity market

Green electricity (GE) is a generic term for electricity generated from clean, environmentally preferable energy sources. Because of its low-to-zero carbon content, the use of GE is seen as a desirable and important option for the UK's carbon emission reduction strategy. Since 1999 GE has been available to all customers in the UK. The market has had positive beginnings with almost all electricity suppliers offering a green electricity product. Marketing has been launched and consumers are beginning to make the switch to green electricity despite the premium charged. An accreditation scheme guarantees that the green purchases match power entering the grid. While the groundwork has been set for a progressive market to emerge, recent energy policy proposals may undermine the progress made. The Utilities Bill and Climate Change Levy, despite aiming to support renewables, are introducing a number of uncertainties to the market, while the New Electricity Trading Arrangement undermines the growth of some renewables altogether. These uncertainties mean there is some question about where the potential for this market lies. Research carried out by the Environmental Change Institute examines the developments of the UK's GE market; it traces past and present policies and identifies policy options for the promotion of this sector in future.     

Market perspectives of stationary fuel cells in a sustainable energy supply system—long-term scenarios for Germany

Because of high efficiency, low environmental impacts and a potential role in transforming our energy system into a hydrogen economy, fuel cells are often considered as a key technology for a sustainable energy supply. However, the future framing conditions under which stationary fuel cells have to prove their technical and economic competitiveness are most likely characterised by a reduced demand for space heating, and a growing contribution of renewable energy sources to heat and electricity supply, which both directly limit the potential for combined heat and power generation, and thus also for fuel cells. Taking Germany as a case study, this paper explores the market potential of stationary fuel cells under the structural changes of the energy demand and supply system required to achieve a sustainable energy supply. Results indicate that among the scenarios analysed it is in particular a strategy oriented towards ambitious CO₂-reduction targets, which due to its changes in the supply structure is in a position to mobilise a market potential that might be large enough for a successful fuel cell commercialisation. However, under the conditions of a business-as-usual trajectory the sales targets of fuel cell manufacturers cannot be met.     

Evaluating potential policies for the UK perennial energy crop market to achieve carbon abatement and deliver a source of low carbon electricity

The electricity infrastructure in many developed countries requires significant investment to meet ambitious carbon emissions reduction targets, and to bridge the gap between future supply and demand. Perennial energy crops have the potential to deliver electricity generation capacity while reducing carbon emissions, leading to polices supporting the adoption of these crops. In the UK, for example, support has been in place over the past decade, although uptake and the market development have so far been relatively modest. This paper combines biophysical and socio-economic process representations within an agent-based model (ABM), to offer insights into the dynamics of the development of the perennial energy crop market. Against a changing policy landscape, several potential policy scenarios are developed to evaluate the cost-effectiveness of the market in providing a source of low carbon renewable electricity, and to achieve carbon emissions abatement. The results demonstrate the key role of both energy and agricultural policies in stimulating the rate and level of uptake; consequently influencing the cost-effectiveness of these measures. The UK example shows that energy crops have the potential to deliver significant emissions abatement (up to 24 Mt carbon dioxide equivalent year⁻¹, 4% of 2013 UK total emissions), and renewable electricity (up to 29 TWh year⁻¹, 8% of UK electricity or 3% of primary energy demand), but a holistic assessment of related policies is needed to ensure that support is cost-effective. However, recent policy developments suggest that domestically grown perennial energy crops will only play a niche role (<0.2%) of the UK energy balance.     

Intermittent renewable energy: The only future source of hydrogen?

In this paper we assess the feasibility of various future energy production pathways for hydrogen. We argue that neither nuclear energy, nor coal gasification with carbon collection and storage can provide sufficient climate-neutral energy to be probable routes to a hydrogen future. Their contributions are likely to be too little and too late to be of much help. Hydroelectricity, geothermal and biomass energy can all provide base-load power, but even combined have limited potential, and are not always climate-neutral in operation. On the other hand, the high-potential renewable energy (RE) sources, particularly wind and direct solar energy, are intermittent. Further, wind resources are poorly matched to the existing distribution of world population. Wind power's high potential compared with present electricity demand, high return on energy invested, intermittency, and mismatch with load centres all favour hydrogen conversion and transmission to load centres.     

An evaluation of domestic solar energy potential in Taiwan incorporating land use analysis

Solar energy is widely regarded as a major renewable energy source, which in future energy systems will be able to contribute to the security of energy supply and the reduction of CO₂ emissions. This study combined an evaluation of solar energy resources in Taiwan with land use analysis, which allows the potentials and restrictions of solar energy exploitation resulting from local land use conditions to be considered. The findings unveiled in this study indicate that photovoltaic electricity generation and solar water heating have the potential of producing 36.1 and 10.2 TWh of electricity and thermal energy annually in Taiwan, accounting for 16.3% and 127.5% of the total domestic consumption of electricity and energy for household water heating in 2009, respectively. However, the exploited solar photovoltaic power generation in 2009 accounted for only 0.02% of total potential in Taiwan, while the exploited solar water heating accounted for 11.6% of total potential. Market price and investment incentive are the dominant factors that affect market acceptance of solar energy installation in Taiwan. The administrative barriers to the purchase and transmission of electricity generated from renewable energy sources have to be removed before the potential contribution of solar energy can be realized.     

An investigation of a household size trigeneration running with hydrogen

This study examined the performance and emission characteristics of a household size trigeneration based on a diesel engine generator fuelled with hydrogen comparing to that of single generation, cogeneration using ECLIPSE simulation software. In single generation simulation, the engine genset is used to produce electricity only and the heat from the engine is rejected to the atmosphere. In cogeneration and trigeneration, in addition to the electricity generated from the genset, the waste heat rejected from the hot exhaust gases and engine cooling system, is captured for domestic hot water supply using heat exchangers and hot water tank; and a part of the waste heat is used to drive absorption cooling in trigeneration. Comparisons have been made for the simulated results of these three modes of operation for hydrogen and diesel. The results prove that hydrogen is a potential energy vector in the future which is a key to meeting upcoming stringent greenhouse gases emissions. The study show that hydrogen has very good prospects to achieve a better or equal performance to conventional diesel fuel in terms of energetic performance, and a near zero carbon emission, depending on the life cycle analysis of the way the hydrogen is produced. The results also show enormous potential fuel savings and massive reductions in greenhouse gas emissions per unit of useful energy outputs with cogeneration and trigeneration compared with that of single generation.     

A market potential and economical aspects of a future hydrogen supply for the F.R.G.

Based on a scenario for energetic and non-energetic demand in the F.R.G. up to the year 2030, we calculated potentials for non-fossil-made hydrogen to substitute or support hydrocarbons such as oil products and natural gas. The potential demand of hydrogen as a raw material was found to be about 20 MTCE in 2030. The market would be in chemistry, fuel production and iron and steel industry. The potential for hydrogen as an energy carrier is roughly three times higher. An investigation of the growth of utility capacity showed that after the year 1995 nuclear plants could also be introduced for medium load electricity production. The use of these plants for off-peak electrolysis would give rise to hydrogen production sufficient to cover the potential demand of hydrogen as a raw material. This off-peak hydrogen can be produced economically compared to natural gas even at today's level of energy costs. With a real increase of prices for imported hydrocarbons in the order of 1–3%/y, other nuclear technologies for additional hydrogen production (for example thermochemical processes) might reach an economical breakeven point at the beginning of the next century. Installation of nuclear power for this purpose could supply the energy market with 20 MTCE of hydrogen in 2030. This hydrogen could be mixed with the natural gas and transported in the network already existing for gas distribution with only moderate modifications on network and burners.