Presentation by Dr Graham Cooley at the Royal Academy of Engineering on Power-To-Gas Energy Storage #hydrogen

1. POWER-TO-GAS:
STORING RENEWABLE ENERGY IN THE GAS GRID
31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING

2. POWER-TO-GAS:
STORING RENEWABLE ENERGY IN THE GAS GRID
31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING
Contents:
• Introduction to ITM Power
• The Need for Energy Storage
• Power-to-Gas Energy Storage
• Thüga P2G Energy Storage Project
• Summary

3. ITM Power | History
• First AIM listed fuel cell & hydrogen company
• 2004 IPO | £10m | ITM.L
• 2006 Secondary Fundraising | £30m
• 2011 Established ITM Power GMBH
• 2012 -2014 Expansion | £17m
• 2012 Established ITM Power Inc.
• Two facilities in Sheffield | 70 staff
• Manufacturing business model
• Expansion in USA and Germany
POWER-TO-GAS:
STORING RENEWABLE ENERGY IN THE GAS GRID
31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING

4. INTRODUCTION
HYDROGEN ENERGY
SYSTEMS FOR
ENERGY STORAGE
AND CLEAN FUEL
PRODUCTION

5. RAPID RESPONSE | HIGH PRESSURE
HYDROGEN ENERGY SYSTEMS
RAPID RESPONSE ELECTROLYSER
ITM Electrolyser
Clean Fuel
Energy StorageWind Power
Grid
Available in 1MW modules | Responds in 1sec | Self pressurises to 80bar

6. ENERGY STORAGE | CLEAN FUEL
360KW POWER-TO-GAS MODULE
WHAT’S UNIQUE ABOUT ITM ELECTROLYSERS?
Rapid response | Self pressurising
• 1 sec response time
• 80bar self pressurising
• 1MW units

7. ENERGY
STORAGE
THE NEED
THE MARKET

8. GROWING WIND GENERATION
20% of peak capacity (55GW) in Winter
20% of peak capacity (40GW) in Summer
ENERGY STORAGE: THE NEED
HYDROGEN ENERGY SYSTEMS
• Evidence of grid balancing problems from Germany and Denmark
• Problems start at 20% capacity; UK hits this threshold by the end of 2013
• Energy Storage is a Market Pull
Source: ITM Power plc, data from BWEA

9. THE NEED: GRID BALANCING
ENERGY STORAGE | CLEAN FUEL
BALANCING SUPPLY AND DEMAND:
• A total of £725m paid for balancing services in 2010-11
• Estimates in 2020 are: circa £1.9bn - £5.9bn pa
• Tariffs already operational in the UK

10. ENERGY STORAGE | CLEAN FUEL
WHY POWER-TO-GAS?
POWER-TO-GAS RATIONALE
Electricity cannot be stored easily | Hydrogen can be stored easily in the gas grid
Source: ITM Power plc

11. ENERGY STORAGE | CLEAN FUEL
ENERGY STORAGE TECHNOLOGIES
ENERGY STORAGE TECHNOLOGIES
Power-to-gas is efficient | long term | low energy cost
Source: ITM Power plc

12. 0%
5%
10%
15%
20%
25%
30%
35%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0 2 4 6 8 10 12
Fractionwindoutputcurtailed
Hydrogenfraction(vol%)
Excess wind (TWh pa)
725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)
Hydrogen fraction
Curtailment
HYDROGEN FRACTION VS EXCESS WIND LEVELS
ENERGY STORAGE | CLEAN FUEL
• Capturing 2.8 TWh pa of excess wind (ie 4% of 2020 output)
• Requiring 978MW of electrolysis at 30% utilisation
• Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2%
Source: ITM Power plc
POWER-TO-GAS IN THE UK

13. ENERGY STORAGE | CLEAN FUEL
EU POWER-TO-GAS ENERGY STORAGE
EU Hydrogen Limits for Injection into the HP Gas Grid
Covered by a range of local laws and EU Directives
Note: interpretation of these rules is complex
Limit falls to 2% if there is a
CNG station downstream

14. ENERGY STORAGE | CLEAN FUEL
WHERE DOES THE GAS GO?
GAS USAGE IN THE UK (DUKES 2013)
Source: Dukes 2013
Where does the gas go?
• 906 TWh of natural gas consumed in the UK in 2011
• 52% was used to provide heat
• 34% burned in power stations to make electricity

15. ENERGY STORAGE | CLEAN FUEL
ELECTRIFY HEAT?

16. DECC: UK HEAT STRATEGY
The Future of Heating: Meeting the challenge
• 70% of UK heat comes from natural gas
• Low penetration of renewable heat in the UK
RHI launched Nov. 2011
• 12% of heating from renewables by 2020
• 57 TWh hydrogen
• Circa 18,600 MW Electrolysis
ENERGY STORAGE | CLEAN FUEL
DECC: UK HEAT STRATEGY

17. P2G: ELEMENTS OF VALUE
ENERGY STORAGE | CLEAN FUEL
Value to the Power Grid
•Avoided wind curtailment
•Avoided infrastructure upgrades
•Reduced reserve power
•Reduce CO2 from open cycle GTs
•Absorbing reactive power
Value to the Gas Grid
•Decarbonising gas
•Providing renewable heat
•Reducing GHG emissions
from gas transportation
Value to the UK Economy
•Reducing fuel imports
•Improved energy security
•Creating jobs in manufacturing
• Value to the power grid
• Value to the gas grid
• Value to the economy
P2G: ELEMENTS OF VALUE

18. THÜGA ENERGY
STORAGE
PROJECT
SCHEDULE
DOCUMENTATION
SIGN OFF
PROMOTION

19. FIRST P2G SALE: THÜGA GROUP
Won competitive tender on cost & price
• One of the world’s largest utility groupings
• 18,200 employees
• 5.7m customers (electricity, 3.6m, gas 2.1m)
• Sales of €21.3bn
• Plant to be located at Mainova AG in Frankfurt
ENERGY STORAGE | CLEAN FUEL
360KW POWER-TO-GAS MODULE
Source: Thüga-Gruppe

20. A challenging time frame
• Discussions April 2011
• Competitive tender process
• Order March 2013
• On site in September 2013
• CE marked by December 2013
• TUV permit by December 2013
• Hydrogen injection planned for 2013
THE SCHEDULE
THE SCHEDULE
HYDROGEN ENERGY SYSTEMS

21. A challenging time frame
• Discussions April 2011
• Competitive tender process
• Order March 2013
• On site in September 2013
• CE marked by December 2013
• TUV permit by December 2013
• Hydrogen injection planned for 2013
THE SCHEDULE
THE SCHEDULE
HYDROGEN ENERGY SYSTEMS
Build
•Procurement
•Manufacture
•Control system design
CE Mark
•PED
•EMC
•Machinery
•ATEX
Commission
•Loop checks
•Acceptance
•Performance
Permit
•Documentation
•Audit
•Certificate

22. Technical file runs to 5 boxes
• Compliance Documentation
• Datasheets: Equipment
• Datasheets: Valves
• Datasheets: Instrumentation
• Datasheets: Electrical control equipment
• Control & Electrical document I02201- DDI-001
THE DOCUMENTATION
THE DOCUMENTATION
HYDROGEN ENERGY SYSTEMS

23. P2G PLANT & VISITOR CENTRE
ENERGY STORAGE | CLEAN FUEL

24. GERMAN GOVERNMENT BACKING
ENERGY STORAGE | CLEAN FUEL
German Energy Agency’s Power to Gas
Strategy Platform
• ITM invited to join
• Official government grouping
• Excellent consortium
• Largest P2G grouping in Germany | Globally

25. ENERGY STORAGE | CLEAN FUEL
POWER-TO-GAS IN THE UK
Power-to-Gas in the UK | Study Objectives:
• Funded by the TSB | Project number 130815
• Funded by the ‘Smart Power Distribution and Demand’ call
• Opportunity analysis
• Economic model
• Compliance of gas injection
• Potential locations in the UK for deployment
• Website www.gridgas.co.uk

26. GRIDGAS: PROJECT RECOMMENDATIONS
LONDON, 24TH OCTOBER 2013
Recommendations to DECC:
• Form a Power-to-Gas working group of stakeholders
• Review the inclusion of hydrogen from electrolysis in the Renewable Heat Incentive
• Initiate a consultation/call for evidence of injection of hydrogen into the UK gas grid
• Initiate a consultation/call for evidence of P2G energy storage in the UK
• Include Power-to-Gas in the 2050 pathways analysis
• Agree the definition of "green hydrogen“ eg: recommended by TUV of 50gCO2/kWh
Recommendations to the HSE:
• Review the current hydrogen limit of 0.1%
• Standardise the procedure for exemptions under the current rules
• Form a standards working group specifically looking at hydrogen in the gas grid
• Identify requirements for adopting a much higher concentration in the 2020s

27. POWER-TO-GAS:
STORING RENEWABLE ENERGY IN THE GAS GRID
31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING
Summary:
• Renewable power needs energy storage
• Power-to-Gas is at the required scale
• Power-to-gas energy storage provides renewable heat
• A tariff structure comparable to Bio-Methane is being recommended in the UK and Germany

28. POWER-TO-GAS:
STORING RENEWABLE ENERGY IN THE GAS GRID
31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING