State-of-the art CAPEX data for water electrolysers, and their impact on renewable hydrogen price settings

Proost, Joris

doi:10.1016/j.ijhydene.2018.07.164

Cited by 201 publications

(84 citation statements)

References 10 publications

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“…The energy conversion relationship between the power energy and the hydrogen in P2G is generally 48 ∼ 60 kWh/kg, which is 54 kWh/kg in the calculation, and the theoretical value is 39 kWh/kg. In actual operation, the operation efficiency of electrolyzers is generally between 67% and 76%, the efficiency is 72% used in this work, the operating cost of hydrogen is generally between 2.7 and 3.5 $/kg in general, and the annual operating hours of P2G is 6000 [33]- [37]. Based on the data set above, the proposed mathematical model can be used to analyze the investment of the P2G project.…”

Section: Numerical Simulationmentioning

confidence: 99%

The Optimal Investment Strategy of P2G Based on Real Option Theory

2020

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This paper initially proposes a real options model for the investment of the Power-togas (P2G) plant based on uncertain operating cost which mainly refers to the price of electricity. Through the analysis of the uncertainty parameters affecting the operation of the P2G project, the mathematical model expressing the relations between the parameters of P2G operation cost, electricity price, sunk cost, and other parameters are established. The Brownian motion is utilized to describe the operation cost, based on which, the option value and the project value models of P2G are derived in detail. According to these two models, the optimal investment timing of the P2G device and the corresponding optimal investment capacity can be determined. The above models are verified by numerical simulation. In addition, the influence of the change of parameters on the investment timing and investment capacity in the real options model is studied. The results show that the volatility of electricity price has a greater impact on the option value of P2G project than that of other parameters. When there is a high operating cost uncertainty, waiting is a better option, and the investment can be performed when the operating cost falls to the cost with reference to the optimal investment timing. INDEX TERMS Power-togas , real option, investment opportunity, investment capacity, operation cost uncertainty.

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Section: Numerical Simulationmentioning

confidence: 99%

The Optimal Investment Strategy of P2G Based on Real Option Theory

2020

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“…Evaluation by Schmidt et al mentions that innovations in an inexpensive and more efficient catalyst can decrease the cost of the electrolyser [26]. Additionally, a review by Proost et al shows significant potential cost reduction from new arrangements of electrolyser stacks in the future [27]. Modelling work by Glenk et al estimates that electrolyser cost can fall to half of its current cost in the future [25].…”

Section: Techno-economic Submodelmentioning

confidence: 99%

“…The conditions are when curtailed power is larger than the required power to run the electrolyser and compressor, and when curtailed power is larger than the required power to run the electrolyser, but not enough to run the compressor. The contribution of exportable power at time t is calculated with Equation (27). The back-up power from the grid is added when energies from curtailed and exportable winds are not enough to run the compressor as expressed in Equation (28).…”

Section: Generators Suppliers Customersmentioning

confidence: 99%

“…When cost curves from the literature [19,[25][26][27]31] are employed, this has the effect of turning all components' costs into functions of electrolyser size (P WE,n ), as presented in Table 1. For each wind farm capacity (P WF ) larger than 10 MW e , LCOH prod is calculated using Equation (3) with different electrolyser sizes from n = 0.01 MW e to P WF with increments of 0.05 MW e for each scenario.…”

Section: System Sizing Submodelmentioning

confidence: 99%

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At What Cost Can Renewable Hydrogen Offset Fossil Fuel Use in Ireland’s Gas Network?

et al. 2020

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The results of a techno-economic model of distributed wind-hydrogen systems (WHS) located at each existing wind farm on the island of Ireland are presented in this paper. Hydrogen is produced by water electrolysis from wind energy and backed up by grid electricity, compressed before temporarily stored, then transported to the nearest injection location on the natural gas network. The model employs a novel correlation-based approach to select an optimum electrolyser capacity that generates a minimum levelised cost of hydrogen production (LCOH) for each WHS. Three scenarios of electrolyser operation are studied: (1) curtailed wind, (2) available wind, and (3) full capacity operations. Additionally, two sets of input parameters are used: (1) current and (2) future techno-economic parameters. Additionally, two electricity prices are considered: (1) low and (2) high prices. A closest facility algorithm in a geographic information system (GIS) package identifies the shortest routes from each WHS to its nearest injection point. By using current parameters, results show that small wind farms are not suitable to run electrolysers under available wind operation. They must be run at full capacity to achieve sufficiently low LCOH. At full capacity, the future average LCOH is 6–8 €/kg with total hydrogen production capacity of 49 kilotonnes per year, or equivalent to nearly 3% of Irish natural gas consumption. This potential will increase significantly due to the projected expansion of installed wind capacity in Ireland from 5 GW in 2020 to 10 GW in 2030.

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“…21 All these previous reports coupled CPV cells with PEM electrolysers which are expensive with high stack and BOP costs. 11,22 Moreover, there are no reports on techno-economic analysis (TEA) of CPV-E systems, to investigate effect of using high efficiency CPV cells on cost of H 2 produced, which was the primary motivation to move away from silicon solar cells.…”

Section: Introductionmentioning

confidence: 99%