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Optimizing hydrogen production capacity and day ahead market bidding for a wind farm in Texas
Affiliation:1. Operations Research and Industrial Engineering, The University of Texas at Austin, ETC, 204 E Dean Keeton St, Austin, 78712, TX, USA;2. Center for Electromechanics, The University of Texas at Austin, 10500 Exploration Way, Austin, 78758, TX, USA;3. California State University, Fullerton, Mihaylo College of Business and Economics, Fullerton, CA 92831, USA;1. Chair of Carbon Composites, Technical University of Munich, 85748 Garching bei München, Germany;2. Laboratory for Physical Chemistry, ETH Zurich, 8093 Zurich, Switzerland;3. Institute of Chemical Machinery and Process Equipment, Zhejiang University, 310027 Hangzhou, China;1. State Key Laboratory of Separation Membranes and Membrane Processes/National Center for International Joint Research on Separation Membranes, School of Textile Science and Engineering, Tiangong University, Tianjin 300387, PR China;2. Shandong Provincial Key Laboratory of Olefin Catalysis and Polymerization, Shandong Chambroad Holding Group Co., Ltd., Economic Development Zone of Boxing County, Binzhou 256500, China;1. Nigde Omer Halisdemir University, Prof. Dr. T. Nejat Veziroglu Clean Energy Research Center, Nigde, 51240, Türkiye;2. Nigde Omer Halisdemir University, Department of Energy Science and Technologies, 51240, Nigde, Türkiye;1. Science and Technology on Surface Physics and Chemistry Laboratory, Mianyang, 621907, China;2. Institute of Materials, China Academy of Engineering Physics, P.O. Box 9071, Mianyang, 621900, China;1. Department of Physics, National Institute of Technology Karnataka, Surathkal P.O., Shrinivasnagar, Karnataka, 575025, India;2. Department of Chemistry, National Institute of Technology Karnataka, Surathkal P.O., Shrinivasnagar, Karnataka, 575025, India
Abstract:Producing green hydrogen from wind energy is one potential method to mitigate curtailment. This study develops a general approach to examine the economic benefit of adding hydrogen production capacity through water electrolysis along with the fuel cell and storage facilities in a wind farm in north Texas. The study also investigates different day ahead market bidding strategies in the existence of these technologies. The results show that adding hydrogen capacity to the wind farm is profitable when hydrogen price is greater than $3.58/kg, and that the optimal day ahead market bidding strategy changes as hydrogen price changes. The results also suggest that both the addition of a fuel cell to reconvert stored hydrogen to electricity and the addition of a battery to smooth the electricity input to the electrolyzer are suboptimal for the system in the case of this study. The profit of a particular bidding scenario is most sensitive to the selling price of hydrogen, and then the input parameters of the electrolyzer. This study also provides policy implications by investigating the impact of different policy schemes on the optimal hydrogen production level.
Keywords:Hydrogen production  Wind energy  Renewable energy storage  Electricity market bidding  Texas
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