hydrogen in the future eu energy system: the role of the fuel cell and hydrogen … ·...

Hydrogen in the future EU energy system:the role of the Fuel Cell and Hydrogen Joint

UndertakingJean-Luc DELPLANCKE

The Present

Overview

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CouncilregulationCouncil

regulationAmend-ment

Amend-ment

Auto-nomyAuto-nomy

7th Framework Program7th Framework Program Horizon 2020Horizon 2020


regulation

13 Projects (on 155) related to hydrogen production

3

Call 2008Call 2008

Call 2009Call 2009

Call 2010Call 2010

Call 2011Call 2011

Call 2012Call 2012

Calls 2013Calls 2013

16 Projects16 Projects28 Projects28 Projects



3

Car powertrains studyCar powertrains study

Bus studyBus study

Distributed power and heat studyDistributed power and heat study

Energy storage studyEnergy storage study

Electrolyser studyElectrolyser study

FCH sector trends studyFCH sector trends study

Decarbonising EU studyDecarbonising EU study

To support the Activity Areas according to MAIP targets

Transportation &Refuelling infrastructure

37%

Cross-CuttingActivities 4%

Early Markets12%

Hydrogen Production &Distribution 13%

Early Markets(12-14%)

Cross-CuttingActivities (6-8%)

Transportation & Refuellinginfrastructure

(32-36%)

MAIP targetsby Application Area

Fundingby Application Area

Transportation &Refuelling infrastructure

37%

Stationary PowerGeneration & CHP 34%

Hydrogen Production &Distribution 13%

Hydrogen Production &Distribution (10-12%)

Stationary Power Generation &CHP (34-37%)

Total FCH JU contribution 450 M€

Matching 50/50 by Industry and Research Communities

To increase the European energy securityof supply (20% increase in renewables)

Hydrogen is an energy vector notan energy source

Wind turbines in Danemark Photovoltaics in Spain

Water electrolysis- High power (MW-

GW)- Coupling with

intermittent energysources

Hydrogen storage- Underground

storage- Solid state

storage

To increase the European energy security ofsupply (20% increase in renewables) (2)

- Demonstration of highpower electrolyserscoupled to renewableenergy sources

- Demonstration ofintegrated systems

- Demonstration ofhydrogen productionthrough concentrated solarenergy

- Hydrogen Undergroundstorage

- Demonstration of highpower electrolyserscoupled to renewableenergy sources

- Demonstration ofintegrated systems

- Demonstration ofhydrogen productionthrough concentrated solarenergy

- Hydrogen Undergroundstorage

Overview

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


regulationAmend-ment

Amend-ment

Auto-nomyAuto-nomy

7th Framework Program7th Framework Program Horizon 2020Horizon 2020


regulation

155 Projects and 7 Studies under FP7

7

Call 2008Call 2008

Call 2009Call 2009

Call 2010Call 2010

Call 2011Call 2011

Call 2012Call 2012

Calls 2013Calls 2013




7

Car powertrains studyCar powertrains study

Bus studyBus study

Distributed power and heat studyDistributed power and heat study

Energy storage studyEnergy storage study

Electrolyser studyElectrolyser study

FCH sector trends studyFCH sector trends study

Decarbonising EU studyDecarbonising EU study

Study on development of water electrolysis in the EU

Technical AdvisoryGroup (TAG)

Steering Committee

Electrolyser technology statusand expected trends

Techno-economic analysis

Industry

Researchorganisations

Stakeholders / data

The study carefully compared water electrolysis options with their competingalternatives to examine viability

8

Task lead

Technical AdvisoryGroup (TAG)

Recommendations for RD&D Literature

http://www.fch-ju.eu/publications

Water electrolysis can be commercially viable intransport applications – and some others – by 2030

• Water electrolysis (WE) can be a commercially viableelement of the future energy system

• Hydrogen for transport• Industrial hydrogen uses

• Gigawatt scale cumulative deployment is plausible by2030

• In line with stakeholder expectations• Coherent with emerging hydrogen infrastructure plans

• But this is hard to achieve and requires:• Continued technology development and cost reduction• Supportive regulatory and policy framework conditions• Clear requirements for emerging WE energy applications

9

• Water electrolysis (WE) can be a commercially viableelement of the future energy system

• Hydrogen for transport• Industrial hydrogen uses

• Gigawatt scale cumulative deployment is plausible by2030

• In line with stakeholder expectations• Coherent with emerging hydrogen infrastructure plans

• But this is hard to achieve and requires:• Continued technology development and cost reduction• Supportive regulatory and policy framework conditions• Clear requirements for emerging WE energy applications

Data from literature and stakeholders allowed us toput together KPI* trends to underpin the analysis

• Data sources included literature andinterviews with stakeholders

• KPIs were validated with the project TAG

• KPIs include:– Specific capex– Efficiency– System and stack size– Lifetime– Dynamic characteristics– System pressure– Opex– Availability– Current density

10

• Data sources included literature andinterviews with stakeholders

• KPIs were validated with the project TAG

• KPIs include:– Specific capex– Efficiency– System and stack size– Lifetime– Dynamic characteristics– System pressure– Opex– Availability– Current density

Techno-economic analysis was based on time-resolveddemand and price data and primarily compared to SMR*

• TEA uses time-resolved demand and price data to estimate the specific costof produced hydrogen over the lifetime of the installation

• Primary counterfactual is hydrogen produced by large SMR• Use cases considered include:

– Vehicle refuelling– Industrial applications– Gas grid injection– Re-electrification

11

• TEA uses time-resolved demand and price data to estimate the specific costof produced hydrogen over the lifetime of the installation

• Primary counterfactual is hydrogen produced by large SMR• Use cases considered include:

– Vehicle refuelling– Industrial applications– Gas grid injection– Re-electrification

* Steam Methane Reforming

The TEA calculated the total point-of-use hydrogencost for a range of use cases and counterfactuals

Central SMR1 MW day onsiteWE, Central KPIs

Use case costs

Production costs

0.27

12

• Here, WE production cost is higher but final cost of hydrogen islower at the refuelling station – due in part to revenues frombalancing services

• Use case costs include refuelling station costs, compression, storage,and distribution as appropriate

Production costs

Use Case 1a: Small car HRS400kg/day

Summary plots compare WE with central and bestcase KPIs to the relevant counterfactual, in a

given country

SMR counter-factual

Best case WEKPI scenario

Central WEKPI scenario

Total hydrogencost (€/kg)

13

• This sample shows the layout of plots that follow and that are in thereport

Use casecharacteristics

Industrial and energy storage use cases would require strongerpolicy support to reach commercial viability

Germany, 2030

Electricity Price/Cost, €/MWh

Germany, 2030€/MWhelec

3029256

4696

58

Average Spot Price Average Price ForExported Electricity

Cost of Generation

137

OPEXCost of Water Stack Replacement

Hydrogen cost , €/Kg

14

Cases such as re-electrification or hydrogeninjection into the natural gas grid are likelyto remain far from commercial viability, evenwith high volatility in electricity prices

Counterfactual is wholesale natural gas

Natural gas grid injection would require acarbon price of about 200–300 €/tCO2 toreach cost parity – assuming the WE is runon renewable electricity

3a100 MW re-electrification

OPEXCAPEXElectricity

Cost of Water Stack ReplacementUse Case

Insights from the study included several conditionsthat affect WE commercial viability

• The cost of electrolytic hydrogen is dominated by the cost ofelectricity (in high electrolyser utilisation use cases)

• Electrolyser capex is sufficiently high that high utilisation isnecessary to amortise the system cost sufficiently

• Distributed applications, such as onsite production for vehiclerefuelling, avoid high distribution costs

• A favourable regulatory framework can greatly reduce the effectivecost of electrolytic hydrogen

• Continued or accelerated technology development pusheselectrolyser KPIs towards the “better” edge of expectations

• A high carbon price increases the value of low carbon electrolytichydrogen

• Increased electricity price volatility could provide meaningfulquantities of low cost electricity

15

• The cost of electrolytic hydrogen is dominated by the cost ofelectricity (in high electrolyser utilisation use cases)

• Electrolyser capex is sufficiently high that high utilisation isnecessary to amortise the system cost sufficiently

• Distributed applications, such as onsite production for vehiclerefuelling, avoid high distribution costs

• A favourable regulatory framework can greatly reduce the effectivecost of electrolytic hydrogen

• Continued or accelerated technology development pusheselectrolyser KPIs towards the “better” edge of expectations

• A high carbon price increases the value of low carbon electrolytichydrogen

• Increased electricity price volatility could provide meaningfulquantities of low cost electricity

In markets with favourable conditions, WE could compete invehicle refuelling applications by 2030

• Where favourable conditions already exist, such as in Germany,water electrolysis (WE) should reach competitiveness with large SMRby 2030 – for vehicle refuelling

• Broader adoption of such favourable conditions could extend thecommercially viable markets for water electrolysis

• Maturation and rationalisation of the electrolyser manufacturing baseand supply chain could:– bring down specific costs– broaden the range of viable use cases to include some industrial

applications• Hydrogen injection into the gas grid and re-electrification are likely

to require significant policy support to be competitive

16

• Where favourable conditions already exist, such as in Germany,water electrolysis (WE) should reach competitiveness with large SMRby 2030 – for vehicle refuelling

• Broader adoption of such favourable conditions could extend thecommercially viable markets for water electrolysis

• Maturation and rationalisation of the electrolyser manufacturing baseand supply chain could:– bring down specific costs– broaden the range of viable use cases to include some industrial

applications• Hydrogen injection into the gas grid and re-electrification are likely

to require significant policy support to be competitive

Gigawatt scale WE deployments by 2030 are coherent withstated hydrogen infrastructure plans

17

• Although vehicle refuelling seems the most viableapplication, the concurrent provision of grid services willbe necessary to support this deployment

• GW scale cumulative deployments seem realisable by2030, in line with stakeholder expectations

Specific areas require further research, and theelectrolyser industry must evolve

• Stakeholder engagement highlighted areas that need furtherresearch

• Detailed requirements for emerging electrolyser applications• Definition of standard test and duty cycles, particularly for

dynamic operation• Demonstration of – and data on – dynamic operation and

impact on system life• Clarification of novel use cases for emerging technology like

SOEC• The electrolyser industry will need to evolve significantly to capture

emerging opportunities• Current commercial electrolysers are essentially mature, but

system designs may not be well suited for new applications• Industry and supply chain are fragmented and will need to be

rationalised to drive down costs18

• Stakeholder engagement highlighted areas that need furtherresearch

• Detailed requirements for emerging electrolyser applications• Definition of standard test and duty cycles, particularly for

dynamic operation• Demonstration of – and data on – dynamic operation and

impact on system life• Clarification of novel use cases for emerging technology like

SOEC• The electrolyser industry will need to evolve significantly to capture

emerging opportunities• Current commercial electrolysers are essentially mature, but

system designs may not be well suited for new applications• Industry and supply chain are fragmented and will need to be

rationalised to drive down costs

The Future

Two key activity pillars

Strategic objective

By 2020, fuel cell and hydrogentechnologies will be demonstrated asone of the pillars of future European

energy and transport systems,making a valued contribution to the

transformation to a low carboneconomy by 2050.

Strategic objective




• Road vehicles• Non-road mobile

vehicles andmachinery

• Refuellinginfrastructure

• Maritime, rail andaviation applications





• Fuel cells for powerand combined heat& power generation

• Hydrogenproduction anddistribution

• Hydrogen forrenewable energygeneration (incl.blending in naturalgas grid)




TRANSPORTTRANSPORT ENERGYENERGY

FCH 2 JU under Horizon 2020

Strategic objective




Strategic objective




Budget of €1.33 billion in 2014 - 2020Strong industry commitment to contribute insidethe programme + through additional investmentoutside, supporting joint objectives.

Budget of €1.33 billion in 2014 - 2020Strong industry commitment to contribute insidethe programme + through additional investmentoutside, supporting joint objectives.















CROSS-CUTTING ISSUES(e.g. standards, consumer awareness,

manufacturing methods, studies)

CROSS-CUTTING ISSUES(e.g. standards, consumer awareness,

manufacturing methods, studies)

Adopted by the Commission on 10 July 2013

• FCH2 JU overall investments : 1,33 Bn€

FCH JU II – Shared Commitments

EUContribution(Operational costs): 665 M€

570 M€

TransportSystems :47,5%

Research &Innovation : 14,5%


Demonstration &pilot activities :

33%

EUContribution(Operational costs): 665 M€

PrivateContribution> 665 M€

Conditional :95 M€

665 M€

EnergySystems :47,5%

Cross-cuttingactivities : 5%


Demonstration &pilot activities :

33%

Industrial applications Residential CHP

FCH 2 JU objectives

Transport Feed to electricity grid

Reduction of productioncosts of long lifetime FC

systems to be used intransport applications

Increase of the electricalefficiency and durability of low

cost FCs used for powerproduction

Natural gas, biogas,coal, biomass

Renewable generation,storage and‘buffering’

Methanisation feedto natural gas grid

Existing natural gas, electricity and transport infrastructures

Increase the energy efficiencyof low cost production ofhydrogen from waterelectrolysis and renewablesources

By-product fromChemical Industry

Large scale use hydrogen tosupport integration ofrenewable energy sourcesinto the energy systems

Reduce the use of critical raw materials

Connecting the European grids

Motorway grid

Electricity grid Natural gas grid

MAWP’s objectives

Hydrogen production from renewable electricityfor energy storage and grid balancing

Hydrogen production with low carbon footprint from otherresources and waste hydrogen recovery

Thank you for your attention !

Further info :• FCH JU : http://fch-ju.eu• NEW-IG : http://www.new-ig.eu• N.ERGHY : http://www.nerghy.eu

Thank you for your attention !

Further info :• FCH JU : http://fch-ju.eu• NEW-IG : http://www.new-ig.eu• N.ERGHY : http://www.nerghy.eu

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hydrogen in the future eu energy system: the role of the fuel cell and hydrogen … ·...

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