BUILDING A SMART FUTURE: ENERGY STORAGE - ITM … · CNG station downstream . ... The Future of Heating: Meeting the challenge ... BUILDING A SMART FUTURE: ENERGY STORAGE LONDON 12TH

BUILDING A SMART FUTURE: ENERGY STORAGE LONDON 12TH DECEMBER 2013

Contents:

• Introduction

• Energy Storage

• P2G Energy Storage Projects

• Summary


INTRODUCTION

HYDROGEN ENERGY

SYSTEMS FOR

ENERGY STORAGE

AND CLEAN FUEL

PRODUCTION

ENERGY STORAGE | CLEAN FUEL


HYDROGEN ENERGY SYSTEMS

Two significant emerging markets

Energy Storage:

• Follows the deployment of renewables

• Adds value to RE and balances the grid

• BCG estimates a cum. global market to 2030 of c.$370bn

Clean Fuel:

• Fuel is the largest global market (91m barrels per day)

• Hydrogen from renewable power offers fuel security

• Fuel security a key political issue

• Fuel cell vehicle roll out is underway worldwide

Clean Fuel

Energy Storage

RAPID RESPONSE


RAPID RESPONSE ELECTROLYSER

ITM Electrolyser

Clean Fuel

Energy Storage Wind Power

Grid

Available in 1MW modules | Responds in 1sec | Self pressurises to 80bar

http://www.google.co.uk/url?sa=i&rct=j&q=wind+turbines&source=images&cd=&cad=rja&docid=KzXd5siJNeIKuM&tbnid=h-hYyflhIfoGuM:&ved=0CAUQjRw&url=http://strabanechronicle.com/2012/11/wind-turbines-blamed-for-aghyaran-television-disruption/wind-farms/&ei=SvMGUfDmD6Wx0AWozoHoCg&bvm=bv.41524429,d.d2k&psig=AFQjCNEDAWRGfxmJ8_6TXGstnq7lfotaSQ&ust=1359496394568348


360KW POWER-TO-GAS MODULE

WHAT’S UNIQUE ABOUT ITM ELECTROLYSERS?

Rapid response | Self pressurising

• 1 sec response time

• 80bar self pressurising

• 1MW units

ENERGY

STORAGE

THE NEED

THE MARKET

GROWING WIND GENERATION

20% of peak capacity (55GW) in Winter

20% of peak capacity (40GW) in Summer

ENERGY STORAGE: THE NEED


• 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

THE NEED: GRID BALANCING


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


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


ENERGY STORAGE TECHNOLOGIES

ENERGY STORAGE TECHNOLOGIES

Power-to-gas is efficient | long term | low energy cost


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2.5%

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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


• 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%


POWER-TO-GAS IN THE UK


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


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


ELECTRIFY HEAT?

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


DECC: UK HEAT STRATEGY

P2G: ELEMENTS OF VALUE


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

P2G ENERGY

STORAGE

PROJECTS

THÜGA GROUP

NRM

BIO-GAS

NETWORKS

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


360KW POWER-TO-GAS MODULE

Source: Thüga-Gruppe

http://www.google.co.uk/url?sa=i&rct=j&q=thuga+group+logo&source=images&cd=&cad=rja&docid=yRJ28Y4zPgsO2M&tbnid=w2pPoA4GQrvBdM:&ved=0CAUQjRw&url=http://fuelcellsworks.com/news/2013/03/13/itm-power-announces-first-sale-of-%E2%80%98power-to-gas%E2%80%99-plant-in-germany/&ei=MV5IUcq2C-em0AXo0oCYBA&bvm=bv.43828540,d.d2k&psig=AFQjCNGOKLAiYMobCiAc_QozWDt3d6i7ew&ust=1363783517985673

NRM COLLABORATION

Partner for compliant injection in Germany

• Key reference plant delivered on schedule

• Undertaking comprehensive compliance activity

• Triggered a surge in P2G enquiries

• Cooperation agreement with NRM

• All project partners benefiting from learning


COMPLIANT INJECTION PLANT

Source: Thüga-Gruppe

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


http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=lYCAe6AOx6dzUM&tbnid=6BK4i23cBlE6FM:&ved=0CAUQjRw&url=http://de.wikipedia.org/wiki/Datei:T%C3%9CV_Hessen_logo.jpeg&ei=pPmJUqG0OtHAtAaQzIGACw&bvm=bv.56643336,d.Yms&psig=AFQjCNGjnr5QLEE5OjVj-JLgNtYRyprriQ&ust=1384860411212626

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


Build

•Procurement

•Manufacture

•Control system design

CE Mark

•PED

•EMC

•Machinery

•ATEX

Commission

• Loop checks

•Acceptance

•Performance

Permit

•Documentation

•Audit

•Certificate

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=lYCAe6AOx6dzUM&tbnid=6BK4i23cBlE6FM:&ved=0CAUQjRw&url=http://de.wikipedia.org/wiki/Datei:T%C3%9CV_Hessen_logo.jpeg&ei=pPmJUqG0OtHAtAaQzIGACw&bvm=bv.56643336,d.Yms&psig=AFQjCNGjnr5QLEE5OjVj-JLgNtYRyprriQ&ust=1384860411212626

Wind curtailment is a regular occurance

• Priority of dispatch

• High curtailment payments

• An increasing problem

• Solved by energy storage

UK GOVERNMENT BACKING


WIND FARMS PAID TO SHUT DOWN

GERMAN GOVERNMENT BACKING


German Energy Agency’s Power to Gas

Strategy Platform

• ITM invited to join

• Official government grouping

• Excellent consortium

• Largest P2G grouping in Germany | Globally


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

http://www.gridgas.co.uk/

Summary

• £1.7m order book

• £4.5m of products in the build phase

• Rapidly developing quoted project pipeline

• Strong corporate partner engagement



Documents

BUILDING A SMART FUTURE: ENERGY STORAGE - ITM … · CNG station downstream . ... The Future of Heating: Meeting the challenge ... BUILDING A SMART FUTURE: ENERGY STORAGE LONDON 12TH