Brian Vad Mathiesen & Christian Bundgaard Sustainable Energy Planning research group, Aalborg University Presentation for 6th International Conference on Smart Energy Systems,6-7 October 2020

1. 6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
System Effects of Implementing
Electrofuels for Decarbonisation of the
Transport Sector in a Danish Perspective
Brian Vad Mathiesen & Christian Bundgaard
Sustainable energy planning group, Aalborg University
christianb@plan.aau.dk
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2. 6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
The role of electrofuels
• Integration of fluctuating renewable energy sources
• Decarbonisation of transport not suited for direct electrification
• Sustainable utilisation of biomass

3. 6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
Electrofuels and production methods
• 3 types of transport
– Heavy road transportation
– Aviation
– Shipping
• 5 types of fuel
– Methane
– Methanol
– DME
– JP
– Ammonia
• 4 types of production
– Gasification
– Point source (high) – Post combustion capture at large biomass CHP, 400 €/ton/year
– Point source (low) – Biogas upgrade, 20 €/ton/year
– Nitrogen capture

4. 6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
Two possibilities for flexibility
• Dynamic operation of the electrolysis in relation to the electricity price (70 %
buffer capacity)
• The fuel synthesis is assumed to be able to be operated dynamically, but not in
direct dependence on the electrolysis
• Two possibilities for flexibility
1. Hydrogen storage
2. Buffer capacity of CO2/N2 capture and CO2/N2 storage

5. Significant price difference for
hydrogen and CO2 storage
• Hydrogen storage
– Tank @ 200 bar: 45 €/kWh1
– Cavern: 1,8 €/kWh1
• CO2 storage
– Low pressure: 568 €/ton2
– Medium pressure: 875 €/ton2
– High pressure: 3.380 €/ton2
• 1 MWh of methanol
– 36 kg of hydrogen
– 263 kg of CO2
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
53,685
2,147
149 230 889
0
10,000
20,000
30,000
40,000
50,000
60,000
Tank Cavern Low pressure Medium
pressure
High pressure
Hydrogen storage CO2 storage
CAPEX[€]
Storage CAPEX for production of 1 MWh of methanol
1 Technology Data – Energy Storage (2018),
Danish Energy Agency
2 Shipping CO2 - UK Cost Estimation Study (2018),
Element Energy

6. Buffer capacity and storage
• Flexibility by hydrogen storage
– Electrolysis: 70 % buffer capacity (5.153 FLH)
– 5 days of hydrogen storage (half of the technical optimum)
• Flexibility by buffer capacity of CO2/N2 capture and CO2/N2 storage
– Electrolysis: 70 % buffer capacity (5.153 FLH)
– CO2/N2 capture:
• Methane: 70 % buffer capacity
• Methanol (incl. DME and JP): 50 % buffer capacity
• Ammonia: 50 % buffer capacity
– 5 hours of hydrogen storage
– 7 days of CO2/N2 storage
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020

7. Flexibility by hydrogen storage*
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
-50
0
50
100
150
200
250
300
350 Gasification,compressed
Gasification,liquid
Pointsource(high),compressed
Pointsource(high),liquid
Pointsource(low),compressed
Pointsource(low),liquid
Gasification
Pointsource(high)
Pointsource(low)
Gasification
Pointsource(high)
Pointsource(low)
Gasification
Pointsource(high)
Pointsource(low)
Ammonia(N2capture)
Hydrogen
Oil
Naturalgas
Methane Methanol DME JP Other
Productioncost[€/MWh]
Electricity, electrolyser Electricity, other Electrolyser Hydrogen storage
Fuel synthesis Carbon capture (point source) Carbon capture (biogas upgrade) Nitrogen capture
Gasification plant Compression Carbon storage Producer gas storage
Nitrogen storage Surplus heat Reference
*Preliminary results

8. Flexibility by buffer capacity of CO2/N2 capture*
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
-50
0
50
100
150
200
250
300
350 Gasification,compressed
Gasification,liquid
Pointsource(high),compressed
Pointsource(high),liquid
Pointsource(low),compressed
Pointsource(low),liquid
Gasification
Pointsource(high)
Pointsource(low)
Gasification
Pointsource(high)
Pointsource(low)
Gasification
Pointsource(high)
Pointsource(low)
Ammonia(N2capture)
Hydrogen
Oil
Naturalgas
Methane Methanol DME JP Other
Productioncost[€/MWh]
Electricity, electrolyser Electricity, other Electrolyser Hydrogen storage
Fuel synthesis Carbon capture (point source) Carbon capture (biogas upgrade) Nitrogen capture
Gasification plant Compression Carbon storage Producer gas storage
Nitrogen storage Surplus heat Reference
*Preliminary results

9. Comparison*
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020 *Preliminary results
0
50
100
150
200
250
300 Pointsource(high),compressed
Pointsource(high),liquid
Gasification,compressed
Gasification,liquid
Pointsource(low),compressed
Pointsource(low),liquid
Pointsource(high)
Gasification
Pointsource(low)
Pointsource(high)
Gasification
Pointsource(low)
Pointsource(high)
Gasification
Pointsource(low)
Ammonia(N2capture)
Hydrogen
Oil
Naturalgas
Methane DME JP Methanol Other
Productioncost[€/MWh]
Hydrogen storage CO2/N2 buffer capacity Reference

10. CO2 shadow price
• The CO2 shadow price for CCU depends on the application and alternatives
• A high price of the substituted fossil fuels lowers the CO2 shadow price
• High CO2 emissions of substituted fossil fuels lowers the CO2 shadow price
• CCU3 production cost as estimated with CO2/N2 capture buffer capacity
• CCS4 of 141 €/ton as estimated by The Danish Council on Climate Change5
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
3 CCU = Carbon capture and utilisation
4 CCS = Carbon capture and storage
5 Kendte veje og nye spor til 70 procents reduction (2020), The Danish Council on Climate Change

11. Assumptions for substituted fuel
Type of
transport
Type of fuel Price (2030)
[€/GJ]6
CO2
(combustion)
[kg CO2/ GJ]7
CO2 (upstream)
[kg CO2/ GJ]8
Heavy road
transportation
Diesel 15,0 74,0 11,5
Aviation JP1 14,6 72,0 11,5
Shipping HFO 10,5 78,9 13,5
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
6 Samfundsøkonomiske beregningsforudsætninger for energipriser og emissioner (2019), Danish Energy Agency
7 Energy statistics 2018 (2020), Danish Energy Agency
8 Fastlæggelse af energidata til brug i CO2-opgørelser (2011), Thomas Astrup, Ole Dall, and Henrik Wenzel

12. CO2 shadow price*
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
0
50
100
150
200
250
300
350
400
450
Methane Methanol DME JP Methane Methanol DME Ammonia
Heavy road transportation Aviation Shipping
CostofavoidedCO2[€/ton]
Price of fossil fuels: 100 % of reference value
Gasification Point source (high) Point source (low) Nitrogen capture CCS
*Preliminary results

13. CO2 shadow price*
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
0
50
100
150
200
250
300
350
400
450
Methane Methanol DME JP Methane Methanol DME Ammonia
Heavy road transportation Aviation Shipping
CostofavoidedCO2[€/ton]
Price of fossil fuels: 150 % of reference value
Gasification Point source (high) Point source (low) Nitrogen capture CCS
*Preliminary results

14. CO2 shadow price*
6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
0
50
100
150
200
250
300
350
400
450
Methane Methanol DME JP Methane Methanol DME Ammonia
Heavy road transportation Aviation Shipping
CostofavoidedCO2[€/ton]
Price of fossil fuels: 50 % of reference value
Gasification Point source (high) Point source (low) Nitrogen capture CCS
*Preliminary results

15. 6th International Conference on Smart Energy Systems
6-7 October 2020
#SESAAU2020
Thank you for your attention!
Questions?
Brian Vad Mathiesen & Christian Bundgaard
Sustainable energy planning group, Aalborg University
christianb@plan.aau.dk
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