On capital utilization in the hydrogen economy: The quest to minimize idle capacity in renewables-rich energy systems

• DOI: 10.1016/j.ijhydene.2020.09.197
• Publication Date: 2020-10-23T01:09:05Z
• Authors: Schalk Cloete; Oliver Ruhnau; Lion Hirth
• Keywords: Power-to-Gas; High Temperature Electrolysis; Energy carrier; Variable renewable energy; Capital cost

The hydrogen economy is currently experiencing a surge in attention, partly due to the possibility of absorbing variable renewable energy (VRE) production peaks through electrolysis. A fundamental challenge with this approach low utilization rates various parts integrated electricity-hydrogen system. To assess importance capacity utilization, paper introduces novel stylized numerical system model incorporating major elements electricity and generation, transmission storage, including both “green” from electrolysis “blue” natural gas reforming CO2 capture storage (CCS). Concurrent optimization all revealed that balancing VRE involves substantial additional costs beyond reduced electrolyzer factors. Depending on location electrolyzers, greater capital expenditures are also required for pipelines infrastructure (to handle intermittent production) or networks transmit electrolyzers). Blue scenarios face similar constraints. High shares impose capture, transport conventional CCS, process (gas switching reforming) enables flexible power production. In conclusion, must be considered accurately reflect using integrate higher shares.