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HYDROGEN S UPPLY AND TRANSPORTATION USING L IQUID ORGANIC HYDROGEN CARRIERS (HY STOC) H2020-JTI FCH-2017-1 GRANT AGREEMENT NUMBER : 779694 __________________________________________________________________________________________________________________ date of project: 2018-01-01 Duration: 3 years WP8 Business Development and sustainability Concept Studies, Economic Analysis, Life Cycle Assessment D8.3 A preliminary feasibility study Due date of deliverable: 2019-06-30 Actual submission date: 2019-08-26 Consortium document classification code : HySTOC-D8.3- A preliminary feasibility study Rev.2 Prepared by : VTT REV. DATE DOCUMENT TYPE PAGES CHECKED APPROVED 0 2019-08-06 DEL 21 Schneider 1 2019-08-26 DEL 21 Schneider Bär 2 2019-12-17 DEL 24 Bär Schneider Document Type PRO Technical/economic progress report (internal work package reports indicating work status) DEL Technical reports identified as deliverables in the Description of Work MoM Minutes of Meeting MAN Procedures and user manuals WOR Working document, issued as preparatory documents to a Technical report INF Information and Notes Dissemination Level PU Public x PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commission Services) CO Confidential, only for members of the consortium (including the Commission Services) CON Confidential, only for members of the Consortium

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HYDROGEN SUPPLY AND TRANSPORTATION USING LIQUID ORGANIC HYDROGEN CARRIERS (HYSTOC)

H2020-JTI FCH-2017-1 GRANT AGREEMENT NUMBER: 779694

__________________________________________________________________________________________________________________

date of project: 2018-01-01 Duration: 3 years

WP8 Business Development and sustainability – Concept Studies, Economic Analysis, Life Cycle Assessment

D8.3

A preliminary feasibility study

Due date of deliverable:

2019-06-30

Actual submission date:

2019-08-26

Consortium document classification code :

HySTOC-D8.3- A preliminary feasibility study –Rev.2

Prepared by :

VTT

REV. DATE DOCUMENT TYPE PAGES CHECKED APPROVED

0 2019-08-06 DEL 21 Schneider

1 2019-08-26 DEL 21 Schneider Bär

2 2019-12-17 DEL 24 Bär Schneider

Document Type

PRO Technical/economic progress report (internal work package reports indicating work status)

DEL Technical reports identified as deliverables in the Description of Work

MoM Minutes of Meeting

MAN Procedures and user manuals

WOR Working document, issued as preparatory documents to a Technical report

INF Information and Notes

Dissemination Level

PU Public x

PP Restricted to other programme participants (including the Commission Services)

RE Restricted to a group specified by the consortium (including the Commission Services)

CO Confidential, only for members of the consortium (including the Commission Services)

CON Confidential, only for members of the Consortium

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Table of Content

1 Summary and conclusions ............................................................................................ 4 1.1 Description of the deliverable content and purpose .................................................... 4 1.2 Summary ................................................................................................................... 4

2 LOHC concept and the definition of the preliminary case ........................................... 5 2.1 Preliminary case and scenarios ................................................................................. 6

2.1.1 Case and capacity .............................................................................................. 6 2.1.2 Hydrogen source and utilisation .......................................................................... 7 2.1.3 Scenarios............................................................................................................ 7

2.2 Storage and release plants ........................................................................................ 7 2.3 LOHC Regeneration .................................................................................................. 8 2.4 Logistics..................................................................................................................... 8

2.4.1 Stationary tanks .................................................................................................. 9 2.4.2 Truck transportation ............................................................................................ 9

3 Economic parameters .................................................................................................. 11 3.1 Economic methodology ............................................................................................ 11 3.2 Storage and release plants ...................................................................................... 12 3.3 Truck transportation ................................................................................................. 14

4 Results and discussion ................................................................................................ 16 4.1 Mass balances ......................................................................................................... 16 4.2 Investment cost estimation....................................................................................... 16 4.3 Cost estimation of hydrogen logistics using DBT as liquid hydrogen carrier ............. 16 4.4 Sensitivity ................................................................................................................ 18

5 References .................................................................................................................... 22

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Abbreviations DBT Dibenzyltoluene GHG Greenhouse gases HRS Hydrogen refueling station LCA Life cycle analysis LOHC Liquid Organic Hydrogen Carrier LOHC-D Liquid Organic Hydrogen Carrier in dehydrogenated form LOHC-H Liquid Organic Hydrogen Carrier in hydrogenated form PEM Proton exchange mebrane PSA Pressure Swing Absorption SMR Steam methane reformer

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1 Summary and conclusions

1.1 Description of the deliverable content and purpose

EU’s target is to reduce greenhouse gas emissions by 80% until 2050. In order to achieve such a reduction, also the emissions derived from the transport sector must decrease significantly. Using hydrogen as fuel in transport sector is a potential option for solving the GHG emissions of the transport section, since it causes no greenhouse gas emission when used as fuel and it can be produced renewably, for example by splitting water via electrolysis using renewable electricity.

A network of hydrogen refueling stations (HRS) are required to enable the hydrogen mobility. Hydrogen can be stored and distributed from the hydrogen production site to the smaller scale hydrogen refueling stations (HRS) either as compressed hydrogen, as liquid hydrogen or as chemically bound to a liquid organic hydrogen carrier (LOHC). There are several benefits of LOHC storing and distribution method compared to the compressed hydrogen and liquid hydrogen. The possibility to use the conventional infrastructure now used for diesel and gasoline is clearly beneficial, as well as safer storing, handling and transportation from production site to HRSs due to ambient temperature and pressure of the LOHC during distribution, up-loading and down-loading. The drawbacks are the processing required before and after the distribution, especially energy consumption of dehydrogenation.

The HySTOC project aims to demonstrate the feasibility of LOHC technology for distribution and storage of hydrogen. The LOHC considered in the project is dibenzyltoluene (DBT). WP 8 concentrates on assessing the economic feasibility and sustainability of the LOHC-based hydrogen mobility system. This report is a preliminary techno-economic assessment of the LOHC system, from the hydrogenation step of LOHC to the release and purification of hydrogen. It results an estimate for hydrogen cost (€/kg H2) for hydrogenation, transportation and dehydrogenation (including purification). It does not include the hydrogen compression to the level required at hydrogen fueling stations. The used scale and assumptions are similar to the preliminary LCA report (D8.1).

This report will be updated and complemented in D8.6, based on the data gathered during the project. It will also include a sensitivity analysis and a comparison to the competing transportation systems, which will be benchmarked for the final report.

1.2 Summary

This techno-economic assessment estimated the costs of distributing 10 000 kg/d hydrogen to hydrogen refueling stations (HRS) using dibenzyltoluene (DBT) as liquid organic hydrogen carrier (LOHC). The system consisted of hydrogen compression, hydrogenation of LOHC, distribution of the hydrogenated LOHC to 10 small release plants (1 000 kg/d each), with average distance of 300 km from the storage plant. LOHC was transported by similar truck trailers as used for gasoline or diesel. For the return trip from the release plant to the storage plant the trailer was loaded by dehydrogenated LOHC.

In the hydrogen refueling station (HRS) hydrogen is pressurized to 700 bar before refueling, and stored in cylinders. The HRS was excluded from the preliminary feasibility study. The assumptions did not include loss during the transportation or storage. The large industrial scale plants were assumed to have higher efficiencies and smaller losses of hydrogen than the starting pilot scale operation. Diesel was assumed as fuel for the trucks. Another option would be hydrogen-fueled trucks. Electricity from grid or natural gas was assumed as the power and heat source, based on D8.1. Electricity and heat could also be produced by hydrogen, but that

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was not considered here. Heat produced at storage plant was assumed to bring revenue. The realization of this may be difficult.

The assessment was carried out with both present investment cost estimate and target investment cost estimate. The overall cost with baseline assumptions was 3.41 €/kg H2 using the present CAPEX estimate and 2.67 €/ kg H2 using the target CAPEX estimate. With the optimistic assumptions, the overall cost using target CAPEX estimate decreased below 2 €/kg H2. If hydrogen was utilised to fulfill the heat demand in dehydrogenation, the overall cost using target CAPEX estimate increased to 2.84 €/kg, mainly due to increased dehydrogenation cost.

The most significant cost factors were dehydrogenation reactor heating cost, dehydrogenation investment cost and truck transportation cost. As the truck transportation cost consists mainly of labour cost and fuel cost, the most effective way to decrease the costs is to continue to develop the dehydrogenation process, aiming to decrease the investment cost and electricity consumption. Using gas instead of electricity for the heating of dehydrogenation reactor would be more profitable, the overall costs with baseline assumptions using target CAPEX and 40 €/MWh gas price was 2.00 €/kg H2. However, the investment cost of a steam boiler was not included in the comparison.

2 LOHC concept and the definition of the preliminary case

The basic idea of the LOHC concept is presented in Figure 1. It includes the following steps:

1. Loading of LOHC by hydrogen 2. Storing loaded LOHC at the storage site 3. Transportation of loaded LOHC to the release site 4. Storing loaded LOHC at the release site 5. Unloading and purification of hydrogen from LOHC 6. Storing unloaded LOHC at the release site 7. Transporting the unloaded LOHC back to the storage site

This assessment does not include the compression to the pressure level required for hydrogen fueled cars.

Figure 1. The basic idea of the LOHC concept in the HySTOC project.

In the molecular level, the hydrogenation occurs as presented in Figure 2. The reaction is reversible and dependent on pressure and temperature. Hydrogenation reaction is exothermic, and dehydrogenation reaction endothermic, respectively.

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Figure 2. Hydrogenation and dehydrogenation reactions.

The system is presented in detail in HySTOC Deliverable 2.1 Requirement Specifications for LOHC Infrastructure (HySTOC 2018). Properties of DBT as such (LOHC-D) and as hydrogenated (LOHC-H), which were used in the calculation are presented in Table 1.

Table 1. Properties and parameters used in the calculation.

Property Compound Unit Value

Molecular mass LOHC-D (C21H20) kg/kmol 272.4

LOHC-H (C21H38) kg/kmol 290.5

Density LOHC-D kg/m3 1016 Safety Data Sheet 2016a

LOHC-H kg/m3 921 Safety Data Sheet 2016b

Capacity of DBT to bind hydrogen

LOHC-H kg H2/m3 57 Hydrogenious LOHC Technologies

Gross calorific value Hydrogen MJ/kg 141.8

2.1 Preliminary case and scenarios

2.1.1 Case and capacity

This assessment includes hydrogenation, transportation and dehydrogenation of DBT. Pressurising hydrogen to 700 bar (refueling pressure) was excluded. Hydrogen input was assumed to be at 25 bar pressure.

The cost estimate was performed for an industrial scale plant. The scale of the preliminary techno-economic assessment was the same as in the D8.1: hydrogenation plant input is 10 000 kg H2/d, transportation of the hydrogenated LOHC to 10 dehydrogenation plants, each dehydrogenation capacity is 1 000 kg H2/d.

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2.1.2 Hydrogen source and utilisation

Source options for hydrogen include:

- PEM or alkaline electrolysis o pressurised o atmospheric

- Side-product hydrogen - Steam methane reforming (SMR)

The pressure of the input hydrogen is significant since the hydrogenation process requires 20 to 30 bar pressure. Both alkaline electrolyser and PEM electrolyser can be operated at relatively high pressure, nearly 30 bar. Also SMR process is typically operated at high pressure. Here it was assumed that the pressure of input hydrogen is 25 bar, meaning that the source of the hydrogen would be either pressurised electrolysis or from steam methane reforming (SMR).

Utilisation options include in this only utilisation as transportation fuel (PEM fuel cell in a car/truck). However, the assessment did not cover the compression of hydrogen to the pressure for fuelling a car/truck (700 bar).

2.1.3 Scenarios

Two basic scenarios were considered: both a present investment cost estimate and a target investment cost estimate. The operation costs were chosen to represent EU-average. Sensitivity analysis was carried out for the significant cost factors.

An additional scenario was calculated, in which hydrogen was utilised as the heat source for the dehydrogenation unit. Capacities of storage plant and release plants were increased to produce the same volume of hydrogen as in the basic scenarios.

In the final techno-economic assessment, two country-specific locations will be fixed and the operation costs will be taken into account respectively.

2.2 Storage and release plants

Hydrogen is pressurised to 30 bar pressure and heated to the reaction temperature (200 oC). Hydrogenation is exothermic reaction, thus cooling is required in the reactor.

Dehydrogenation occurs at pressure of 1 bar and temperature of 300 oC. The reaction is endothermic and thus heating of the reactor is required. After dehydrogenation the released hydrogen is compressed to 10 bar, which is the feeding pressure for the pressure swing adsorption (PSA) system. A PSA system is used to purify the released hydrogen to the required purity level.

Similar operation and performance assumptions have been made as in D8.1 (see Table 2).

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Table 2. Hydrogenation and dehydrogenation process assumptions (D8.1).

Unit Assumptions

Storage plant 10 000 kg H2/d (Hydrogenation)

99.9 % binding efficiency of hydrogen to LOHC. (0.1% hydrogen loss is expected due to physical solving and degassing).

Electricity consumption of 90 kW.

3 800 kW heat is produced, of which 10% are lost and thus 3 400 kW are available for further utilization.

Release plant 1000 kg H2/d (Dehydrogenation, hydrogen compression to 10 bar and purification by PSA)

The efficiency of the industrial scale PSA is assumed to be 99%.

380 kW heat is required for the dehydrogenation at the release plant. In D8.1 and also here for the baseline, electric power provided the heat for the dehydrogenation reactor, electricity consumption was estimated to be 460 kW. Instead of electricity, the heat source could be also natural gas or biomethane, with similar thermal efficiency assumption, but requiring additional investment costs. This was considered as an optional scenario.

The power consumption of the release plant was assumed to be 140 kW based on D8.1, mainly due to the hydrogen compression.

Heat production is minor and was thus ignored.

2.3 LOHC Regeneration

Although DBT is in principle recovered in the dehydrogenation and reused, a small part of the DBT decomposes during time. The compounds detected after the decomposition reaction are methane, toluene, benzene, MCH (methylcyclohexane) and cyclohexane (Aakko-Saksa et al 2018).

It is estimated that the regeneration of DBT is needed after 750 cycles (D4.1). The regeneration can be carried out by distillation of DBT, thus separating the decomposed material. In addition, fresh DBT must be purchased to replace the decomposed material.

Table 3. LOHC-related cost estimates.

Source

Regeneration loss per 750 cycles % of DBT 10 D4.1

Loss per one cycle % of DBT 0.013 D4.1

2.4 Logistics

The logistics include storing LOHC and transportation of LOHC containing 10 000 kg H2 daily to 10 dehydrogenation plant and HRS, each dehydrogenation capacity 1 000 kg H2/d (Figure 3).

Logistics cost consists mainly of

1. Storing the LOHC at the hydrogenation or dehydrogenation site in stationary tanks 2. Truck transportation costs 3. LOHC material

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Figure 3. The logistic concept.

2.4.1 Stationary tanks

Stationary tanks for LOHC are required before and after the hydrogenation system. Also in case of dehydrogenation, stationary tanks before and after the system are required. In this system 12 stationary tanks were considered.

The tank size was set to 100 m3. Suitable stationary tanks were of following type: double-walled -leakage safe tanks with corrosion resistance (C4 according to DIN EN ISO 12944). Slight overpressure of nitrogen above the liquid to avoid oxygen intake. Investment cost of such tanks varied from 35 000 – 42 000 €. The costs of insulation and pumps were considered to be negligible in this study. However, depending on the actual location of the site the insulation may have some effect (see D4.1 for reference).

Operation costs of the tanks includes pumping, possibly heating and maintenance. These costs were considered to be negligible in this study.

2.4.2 Truck transportation

In this techno-economic assessment, only truck transportation was considered.

The truck trailer loads hydrogenated DBT (LOHC-H) from a stationary tank at the storage plant, drives to a release plant, empties it’s LOHC-H load to a stationary tank. Then the truck loads dehydrogenated DBT (LOHC-D) from another stationary tank, and transports it back to the storage plant (Figure 4).

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Figure 4. Truck transportation.

A truck trailer having 30 m3 volume was assumed to deliver DBT (D4.1). According to D4.1 there may be weight limitation resulting maximum volume only 28 m3. However, here 30 m3 volume was assumed for a trailer, resulting in 27.6 t payload. As a result, one truck can transport 17 % of the day’s production at the storage plant.

Due to the capacity of the truck trailer, the practical solution is that the truck delivers one load to only one release plant. One delivery represents 170% of daily consumption at the release plant. A full LOHC-H tank, 100 m3, contains the LOHC-H sufficient for 5.6 days at the release plant.

The time used at the sites for loading, unloading and other issues had to be estimated. According to Reis et al (2017) real system gate-to-gate (G2G) time in a fuel distribution terminal is in average 80 min. Based on the study by ECTA (European Chemical Transport Association, 2009) median average time of the truck and driver on site when loading a liquid bulk chemical is 180 min (variation 120-240 min). Here the more optimistic value, 80 min based on Reis et al (2017) was used.

The average one way transportation distance was assumed to be 300 km, thus one truck drives 600 km when delivering a load from the storage plant to the release plant, and returning with a load of dehydrogenated LOHC. Assuming an average transportation speed, driving time can be calculated. Unloading and uploading both at the storage plant and then at the release plant should be included, thus resulting in the duration for one round trip including loading and emptying at both ends. This was used for the calculation of number of daily deliveries, number of trucks required and driver’s daily work hours. Legislative limitation was not taken into account here. The basic assumptions related to the transportation are listed in Table 4, as well as the number of deliveries, the duration of one delivery and number of trucks required for the operation. For daily production at the storage plant, 6 trailer deliveries are required and depending on the operation time, either 6 trucks (12 hours operation daily) or 3 trucks (24 h operation daily). For the preliminary techno-economic assessment, 24 h operation daily was

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chosen for the baseline. In the scenario of heating by hydrogen, 9 trailer deliveries and 5 trucks are required (24 h operation).

Table 4. Basic assumptions for transportation.

Basic assumptions for transportation

Transportation need (LOHC-H) m3 177

Trailer volume m3 30

Number of truck deliveries per day deliveries/d 6

One-way transportation distance km 300

Round-up transportation distance km 600

Annual kilometres km 1 209 000

Average speed km/h 65

Gate-to-gate time h 1.3

Average round-trip delivery time including uploading and emptying in both ends

h 11.9

Number of trucks, if 24 h/d operation is assumed - 3

Losses of LOHC-H or LOHC-D during transportation or when storing in the stationary tanks were not taken into account in this assessment. 3 Economic parameters

3.1 Economic methodology

The preliminary techno-economic assessment of hydrogen transportation using DBT as LOHC was calculated by summing up the operational expenses (OPEX) and annuity of capital expenses (CAPEX). CAPEX was annualised using an annualisation factor based on the rate of return (8%) and lifetime of the system (20 years).

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 𝑐𝑜𝑠𝑡 (𝑒𝑥𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝐶𝐴𝑃𝐸𝑋) =𝑂𝑃𝐸𝑋

𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 (1)

𝑂𝑣𝑒𝑟𝑎𝑙𝑙 𝐻2 𝑙𝑜𝑔𝑖𝑠𝑡𝑖𝑐𝑠 𝑐𝑜𝑠𝑡 (𝑖𝑛𝑐𝑙𝑢𝑑𝑖𝑛𝑔 𝑡ℎ𝑒 𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑜𝑓 𝐶𝐴𝑃𝐸𝑋) =𝑂𝑃𝐸𝑋+𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑜𝑓 𝐶𝐴𝑃𝐸𝑋

𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 (2)

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3.2 Storage and release plants

Hydrogenious LOHC Technologies provided the investment cost estimates for the storage plant (10 000 t H2/d) and the release plant (1 000 t H2/d), both the current cost estimate and the target cost estimate. They are presented in Table 5.

Table 5. Capital cost estimates of the storage plant and the release plant.

Current Target

Capital cost min max min max

Hydrogenation system (10 t H2/d) M€ 6.5 7 4 4

Dehydrogenation system incl. PSA (1 t H2/d) M€ 3 4 1.7 2

For the scenario of hydrogen utilised as heat source for dehydrogenation, only target capital cost estimates were considered. 28 wt% of dehydrogenated hydrogen was required to produce heat for the dehydrogenation (based on gross heating value of hydrogen). To obtain the 1000 kg/d hydrogen at the release plant, larger units were required for both the storage plant (14000 kg/d) and the release plant (1400 kg/d). The increase in CAPEX was estimated using chemical engineer’s capacity based cost estimate equation (Towler & Sinnott 2008)

𝐶𝑖 = 𝐶0 (𝑆𝑖

𝑆0)

𝑘 (1)

where Ci = cost of the unit

C0 = known cost of the reference unit

Si = scaling capacity of the unit

S0 = scaling capacity of the known unit

k = cost regression index (0.6)

The economic parameters related to the storage plant (10 000 t H2/d) and the release plant (1 000 t H2/d) are presented in Table 6. The economic lifetime of the equipment was estimated to be 160 000h by Hydrogenious LOHC Technologies. Assuming continuous operation (24h/d, 7d/week) for 20 years with a maintenance break every year, it resulted in 8060 h/a (utilization rate 92%). The cost of DBT, liquid organic hydrogen carrier utilized in this project, costs presently 4 -5 €/kg. It is assumed, that larger demand would lead in decrease in cost, even to 1.6 €/kg (D8.4). Estimated regeneration cost by distillation was assumed as 1 €/kg DBT (D4.1). The plant was assumed to be fully automated and the operation control integrated to another plant. Thus no additional personnel was assumed either for the storage plant or for the release plant.

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Table 6. Economic parameters for the storage and the release plant.

VARIABLE OPERATION COSTS

Baseline parameter

Range Based on

Annual operation time h/a 8 060 Assumption

% 92

Economic lifetime h 160 000 Hydrogenious LOHC Technologies

a 20

Rate of return % 8 5-10 Assumption

Unit costs

DBT €/kg 3.0 1.6-4.5 Hydrogenious LOHC Technologies, D8.4

N2 €/m3 2 Hydrogenious LOHC Technologies

Electricity €/MWh 100 70-130 Eurostat 2019

Natural gas/ Biomethane €/MWh 40 30-50 Hydrogenious LOHC Technologies

Hydrogen cost (for heating) €/kg 2 1-3 Hydrogenious LOHC Technologies

Price for recovered heat €/MWh 25 0-50 Own estimate

Adsorbent cost €/kg 0* HyGear

Regeneration cost estimate by distillation

€/kg DBT 1.0 D8.1

FIXED OPERATION COSTS**

Annual maintenance cost

% of investment 1.5 % Hydrogenious LOHC Technologies

% of investment 3.0 % Hydrogenious LOHC Technologies

* It was assumed that there is no need to change adsorbents during the plant lifetime. ** The plant was assumed to be fully automated and the operation control integrated to another plant. Thus no additional personnel was assumed either for the storage plant or for the release plant.

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3.3 Truck transportation

Calculation of truck transportation cost was based on Laitila et al (2016) and adjusted to this case. Fixed costs of transportation include:

o Annuity of CAPEX (based on interest and lifetime of vehicle) o Insurance o Administration

Variable operation costs include:

o Labour cost o Fuel consumption o Tyre cost o Maintenance and service cost o Risk and profit margin for the operator/entrepreneur

The CAPEX cost for transportation comprises of the vehicles. For the transportation of LOHC, standard oil delivery trailers can be used. According of Hurskainen & Kärki (2018), a 36 m3 trailer costs 140 000 €, and Reuss et al (2017) have a price of 150 000 € for a trailer suitable for 1800 kg H2 in hydrogenated DBT (≈32 m3). In D4.1 the investment cost of a trailer was estimated to be 80 000 - 100 000 (excl. tractor) in Europe, with a volume of 30 m3. The data from D4.1 was used in this assessment. Hurskainen & Kärki (2018) used as investment cost estimates of a tractor of 180 000 € and Reuss et al (2017) 160 000 €. In this study the investment cost estimate of 160 000 € was used for the tractor.

The lifetime of the tractor depends on the annual vehicle kilometer of travel (VKT) more than on the time. Meszler et al (2018) presents values from 1.5 to 2.88 million kilometer for long haul. Using 3 vehicles, the annual kilometers per vehicle are 400 000 km. The estimated lifetime of the tractor was set to 7 years, resulting to a total of 2.8 million km per vehicle, which is relatively high. The trailer lifetime was set to 12 years (Reuss et al 2017). The interest used to calculate the annuity of the capital investment for vehicles was set to 6%.

Annual insurance cost estimate was a percentage of the truck investment. Administration costs were estimated.

The service and maintenance cost depends strongly on the country according to Meszler et al (2018). For example, service and maintenance cost in France is 0.15 €/km, in Germany 0.081 €/km and 0.04 €/km in Spain (Meszler et al 2018). An European average 0.09 €/km was used in this assessment (Meszler et al 2018).

Truck tyres are wearing parts. Tyres can typically be remoulded 2 times before new tyres must be purchased. Tyre cost was estimated using the data of Laitila et al (Table 7). Service life of tyres before remoulding or purchasing new ones was set to 120 000 km. The number of tyres depends on the exact truck and trailer, here 12 tyres were assumed for the vehicle.

For fuel consumption 35 l/100km was assumed (D4.1). Diesel cost including tariffs but without VAT is used for truck fuel cost. For the baseline, diesel 1.0 €/l was used (FuelsEurope 2019, EEA 2018).

The labour cost of the driver depends on the country, an estimate is 30-40 €/h. In this study 35 €/h was used.

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All parameters used for the transport cost estimation are summarised in Table 7. Based on the table, annual truck transportation costs was calculated, separated to labour, variable costs and fixed costs.

Table 7. Parameters used in the truck transport cost estimation.

Unit Baseline parameter

Range Reference

CAPEX

Purchase price of the trailer € 90 000 D4.1

Purchase price of the tractor € 160 000* Reuss et al 2017

Lifespan of tractor a 7 depends on total distance driven annually

Lifespan of trailer a 12 Reuss et al 2017

Interest % 6 % Estimate

LABOUR

Driver's hourly cost €/h 35 30-40

D4.1 (including indirect costs of employer)

OPEX

Fuel price €/l 1.0 0.9 - 1.1 EEA 2018, FuelsEurope 2019

Fuel consumption l/100 km 35 D4.1

Number of tractor wheels - 6 Assumption

Number of trailer wheels - 6 Assumption

Truck tyre price €/piece 725 Laitila et al 2016

Service life of tyres km 120 000 Laitila et al 2016

Number of remoulds for tyres - 2 Laitila et al 2016

Remould price €/piece 300 Laitila et al 2016

Service and maintenance €/km 0.091 Meszler et al 2018

Risk and profit margin % of total annual costs without profit

5 % Laitila et al 2016

Insurance % of truck investment price

3 %

Estimate based on Laitila et al 2016

Administration €/a 15 000

Estimate based on Laitila et al 2016

* VAT not included

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4 Results and discussion

4.1 Mass balances

Mass balances in both storage and release plants are presented in Table 8.

Table 8. Mass balances. Storage plant Release plant

kg/d kg/d

IN

H2 10 111 -

LOHC-D 153 019 -

LOHC-H - 16 321

OUT

H2 for fuel - 1 000

LOHC-D - 15 302

LOHC-H 163 211 -

H2 loss 10 10

In the scenario heating by hydrogen, hydrogen input was 14000 kg/d, in order to transport 10x1000 kg/d hydrogen for fuel.

4.2 Investment cost estimation

The present investment cost estimate and the target investment cost estimate are presented in Table 9. The initial DBT purchasing price (3 €/kg) was included in the investment cost. The initial DBT volume was calculated assuming all stationary tanks half-filled and the trucks filled. The investment cost estimate for the scenario heating by hydrogen is also presented in Table 9.

Investment costs of transportation trucks were not included in the investment cost estimate. The truck transportation was assumed to be outsourced. Thus the truck transportation cost was added as annual cost.

Table 9. The present and targeted investment cost estimates.

Number of units Present Target

Scenario: Target+

heating by hydrogen

M€ M€ M€

Hydrogenation system (10 t H2/d) 1 plant 6.8 4.0 4.9

Dehydrogenation systems incl. PSA (1 t H2/d) 10 plants 35.0 18.5 22.5

Stationary tanks 12 tanks 0.5 0.5 0.5

DBT initial cost 2.1* 2.1* 2.3*

INVESTMENT COST TOTAL 42.2 23.0 27.8

*assuming higher demand than presently and thus decreased production costs 3€/kg.

4.3 Cost estimation of hydrogen logistics using DBT as liquid hydrogen carrier

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Annual operation costs included variable and fixed operation costs. Variable operation costs are independent of the scale, where as the fixed costs are dependent on the scale. In this assessment the fixed operation cost included only maintenance costs defined as percentages of the system investment cost.

The baseline logistics cost estimate for hydrogen distribution using DBT as LOHC was calculated both using the present CAPEX estimate and the target CAPEX estimate. The results are summarised in Table 10. The distribution of costs is presented in Figure 5 and Figure 6. The significant cost factors were heating by electricity, other electricity cost and maintenance cost in case of dehydrogenation and labour and fuel cost in case of transportation. Location has thus significant effect on the cost, since the electricity cost, labour cost and fuel cost are country-specific. The most significant cost factor of CAPEX is the investment cost of 10 dehydrogenation plants. Because the high electricity cost of dehydrogenation was derived mainly from the heat demand of dehydrogenation, a third scenario was calculated (Table 10), in which the dehydrogenation heat was produced using methane-rich gas (either natural gas or biomethane, 40 €/MWh). The decrease in the overall cost is significant; however this estimate did not include steam boiler investment. Similarly, the scenario with heating by transported and released hydrogen is presented in Table 10 for the target CAPEX. The overall H2 logistics cost increased to 2.84 €/kg, 6% from the target CAPEX baseline.

Table 10. Hydrogen logistics using LOHC, overall cost using present CAPEX or target CAPEX.

Present CAPEX, Baseline

Target CAPEX, Baseline

Scenario: Target CAPEX, Baseline except heating by gas (40 €/MWh)*

Scenario: Target CAPEX, Baseline except heating by H2*

€/kg H2 €/kg H2 €/kg H2 €/kg H2

Hydrogenation 0.05 0.04 0.04 0.05

Dehydrogenation 1.75 1.61 0.94 1.44

Transportation 0.49 0.49 0.49 0.73

DBT regeneration 0.03 0.03 0.03 0.04

Operational cost 1.63 2.16 1.49 2.26

Annuity of CAPEX 1.30 0.71 0.71* 0.86*

Revenues -0.20 -0.20 -0.20 -0.28

Overall H2 logistics cost 3.41 2.67 2.00 2.84

*investment cost of steam boiler not taken into account

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Figure 5. Cost distribution of the baseline case using present CAPEX estimate.

Figure 6. Cost distribution of the baseline case using target CAPEX estimate.

4.4 Sensitivity

The truck transportation cost of LOHC liquid was a significant cost factor (0.486 €/kg H2), so the distribution of cost factors are shown in more detail in Figure 7.

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Figure 7. Truck transportation cost distribution.

The main cost factors were the labour cost of the driver and the fuel cost of the vehicle. Both costs are country-specific, and diesel cost is in addition also strongly dependent on the state of the global market. Based on the cost distribution, a sensitivity analysis was carried out. The results are shown in Figure 8. The duration of an average trip depends on the speed, thus speed affects the driver’s labour cost. Other difference between baseline 65 km/h and 55 km/h was additional truck investment, 4 trucks were needed instead of 3. The probable increase in the fuel consumption due to decrease in speed was not taken into account in this sensitivity analysis.

Figure 8. Sensitivity analysis for the truck transportation cost (€/kg H2).

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A summary of scenarios is presented in Figure 9, adding both a pessimistic assumption and an optimistic assumption to the baseline (listed in Table 11Fehler! Verweisquelle konnte nicht gefunden werden.). In Figure 9 operation costs of dehydrogenation are shown in detail.

Table 11. Baseline, optimistic and pessimistic assumptions of different scenarios.

Optimistic Baseline Pessimistic

Hydrogenation target CAPEX M€ 4 4 4

Hydrogenation present CAPEX M€ 6.5 6.75 7

Dehydrogenation target CAPEX M€ 1.7 1.85 2

Dehydrogenation present CAPEX M€ 3 3.5 4

DBT €/kg 1.6 3 4.5

Electricity €/MWh 70 100 130

Price for recovered heat €/MWh 50 25 0

Labour cost €/h 30 35 40

Fuel price €/l 0.9 1 1.1

Figure 9. Summary of the scenarios, in addition to baseline assumptions also with optimistic and pessimistic assumptions.

In Figure 9 the cost for producing heat for the dehydrogenation reaction by electricity is visualized clearly, and it’s share is significant in all scenarios. Thus other heat sources than electricity should be considered and utilized if possible, since electricity is an expensive way to produce heat. Other options include utilisation of natural gas or biomethane, or integration of the release plant to a heat source cheaper than electricity. For example, using either natural gas or biomethane would decrease the overall hydrogen logistics cost to around 2 €/kg H2 (optional scenario in Table 10).

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There are other options to decrease the overall cost. The utilisation of the heat produced in the storage plant (hydrogenation) is economically important issue and the utilisation is beneficial. A larger scale release plant would decrease the share of CAPEX in the overall hydrogen logistics cost.

The sensitivity analysis of the overall hydrogen logistics cost to a single parameter was carried out only for the baseline scenario with target CAPEX. The effects of the main cost factors are presented in Figure 10. The factors related to the investment and energy had highest effect on the overall cost. The sensitivity analysis underlined that changing the heating source of the dehydrogenation reactor to a cheaper one would have a significant effect on the overall cost. The revenues of the heat produced in the storage plant and the return requirement for the capital investment had relatively strong effect on the overall cost. The cost of DBT had not very remarkable effect on the overall cost with the assumptions used in this assessment.

Figure 10. Sensitivity analysis of the hydrogen transportation by LOHC system (using target CAPEX).

Corresponding sensitivity analysis was carried out for the scenario heating by hydrogen (using target CAPEX). The results are presented in Figure 11. The overall transportation cost of hydrogen is again strongly depended on the cost of the energy and investment.

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Figure 11. Sensitivity analysis of the hydrogen transportation by LOHC system (scenario heating by hydrogen, using target CAPEX).

5 References

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ECTA (European Chemical Transport Association). 2009. How to reduce time spent by drivers on site and improve their treatment. Recommendations for loading and unloading sites. Available at (1.2.2019) https://www.ecta.com/resources/Documents/Best%20Practices%20Guidelines/how_to_reduce_time_spent_by_drivers_on_site_and_improve_their_treatment.pdf

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HySTOC, 2018. D8.1 Requirement Specification. Public report. 11 pages.

Hurskainen M., Kärki J. 2018. Liquid organic hydrogen carriers(LOHC) -Concept evaluation and techno-economics. Seminar on the Finnish needs and research highlights on hydrogen -focus on liquid LOHC “batteries” and hydrogen legislation. Innopoli1, Espoo, October 7th 2018. https://www.vtt.fi/sites/lohcness/Documents/LOHCNESS_WP1_Hurskainen_H2seminar_7.11.2018_public.pdf

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Safety Data sheet 2016a. Product information of Perhydro-dibenzyltoluene.

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This project has received funding from the Fuel Cells and Hydrogen 2 Joint Undertaking under grant agreement No. 779694.

This Joint Undertaking receives support from the European Union’s Horizon 2020 research and innovation programme, Hydrogen Europe and Hydrogen Europe research.