ENERGY STORAGE: THE CASE FOR HYDROGEN - ITM Power | Hydrogen

ENERGY STORAGE:

THE CASE FOR HYDROGEN I-SEE, BATH | 13TH NOV 2012

Contents

• The need

• The Principles of Energy Storage

• The Principles of Grid Balancing

• Rapid Response Electrolysis

• Hydrogen Energy Storage

• Hydrogen: The perfect fuel

• Why Hydrogen Vehicles?

• Hydrogen Infrastructure Roll Out

• Major UK Projects

ENERGY STORAGE:


Germany's wind power chaos should be a warning

to the UK

• 3,500 turbines in the UK produced 4GW (8%)

• 23,500 turbines in Germany produced 31GW (27%)

• 25th May 2012 Germany generated 22.4GW PV (30%)

UK WIND | GERMAN WIND

ENERGY STORAGE: THE NEED

HYDROGEN ENERGY SYSTEMS

On Friday, September 14, just before 10am, Britain’s

3,500 wind turbines broke all records by briefly

supplying just over four gigawatts (GW) of electricity to

the national grid. Three hours later, in Germany, that

country’s 23,000 wind turbines and millions of solar

panels similarly achieved an unprecedented output of

31GW. But the responses to these events in the two

countries could not have been in starker contrast.

GROWING WIND GENERATION IN THE UK

• 2011: 6,488 MW wind capacity | 15,500 GWh wind production (DUKES 2012)

• 0.5% of wind was subject to constraint payments

• 2011 | 75MWh | £16m | 21p/kWh (full yr)

• 2012 | 85MWh | £17m | 20p/kWh (to Sept, significant winter months not yet included)



GROWING WIND GENERATION

20% of peak capacity (60GW) in Winter

20% of peak capacity (40GW) in Summer



• Evidence from Germany and Denmark

• Problems start at 20% capacity; UK hits threshold from 2013

• Problems start at 8% energy; UK at 7.5% in Sept 2012

WIND FARM CONSTRAINT PAYMENT ANALYSIS

• 82 onshore & offshore wind farms in NETA

• 18 wind farms received payments to-date

• Price varies by10x from 9 to 99p/kWh

• Range of windfarm sizes from 20 to 314 MW

• 2011 | 75MWh | £15.8m | 21p/kWh

http://www.bwea.com/ukwed/operational.asp

http://www.bmreports.com/bsp/staticdata/PowerParkModules.xls

Windfarm Size (MW) Owner Payments MWh Ave Price

Hadyard Hill 119 SSE £2,150,052 14,443 £149

Farr Unit 1 45 npower £2,803,487 13,393 £209

Whitelee 314 ScottishPower £1,759,043 9,961 £177

Beinn Tharsuinn 28 ScottishPower £1,270,086 8,328 £153

Farr Unit 2 47 npower £1,617,080 7,520 £215

Kilbraur 1 48 Falck £2,285,641 7,115 £321

Millennium 1 50 Falck £1,361,314 4,455 £306

Black Law 122 ScottishPower £584,443 3,272 £179

Gordonbush 68 SSE £141,528 1,436 £99

Crystal Rig II 138 Fred Olsen £1,267,850 1,279 £991

Minsca 35 Infinis £118,660 1,047 £113

Toddleburn 28 SSE £105,958 712 £149

Dalswinton 31 Infinis £72,371 686 £106

Edinbane 42 Vattenfall £57,860 598 £97

An Suidhe 1 20 npower £113,946 564 £202

Dunlaw Extension 29 ScottishPower £15,680 166 £94

Arecleoch 114 ScottishPower £24,583 138 £179

Mark Hill 84 ScottishPower £11,378 121 £94

Total £15,749,582 75,113 £209.68







MARKETS | SIZE

IRR to 30% | Many $50bn

• Adoption follows RE

• 20% capacity threshold

MARKETS | SIZE

STORAGE TECHNOLOGIES

ENERGY

STORAGE

POWER IN | OUT

SECTOR EXPORT

UK ELECTRICITY DEMAND

Demand varies daily, weekly, seasonally:

• Winter Peak is 60GW

• Base Load

• Mid Merit

• Peaking Plant



LOAD | DURATION

Base load

Mid-merit

Peak

Data from National Grid



Shifting the peaks to fill the troughs:

• Turns mid merit in base load

• Reduces the need for peaking

• Increases system efficiency

• Day night arbitrage!

POWER IN | POWER OUT ENERGY STORAGE



Half Hourly Prices on 24/03/09

Source: BMRS website

0

20

40

60

80

100

120

140

160

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

£/MWhr

The Balancing Mechanism Reporting System (BMRS)

The BMRS website provides near real time and historic data about the Balancing Mechanism which is

used by the National Grid (System Operator) as a means of balancing power flows on to and off the

electricity Transmission System in the UK.

Data from National Grid

Shifting the peaks to fill the troughs:

• Turns mid merit in base load

• Reduces the need for peaking

• Increases system efficiency

• Day night arbitrage!

• 3p to 14p

RATIONALE FOR POWER IN | POWER OUT ES



Add wind? Exporting excess power

• Operating a DSM load

• Need 1 second response

• Balance supply | demand

SECTOR EXPORT ENERGY STORAGE



GRID

BALANCING

FREQUENCY

SUPPLY SIDE

DEMAND SIDE

POWER GRID

Mechanical Inertia | Dynamic Coupling

• 3000 rpm | 50Hz

• Power | Frequency shedding

• Max 4% swing 48Hz|52Hz

• Obligation average 50Hz in 1hour

MECHANICAL INERTIA

POWER GRID OPERATION

THE NEED: GRID BALANCING

ENERGY STORAGE | CLEAN FUEL

BALANCING SUPPLY AND DEMAND: SECOND BY SECOND



BALANCING SUPPLY AND DEMAND: SECOND BY SECOND

Dynamic

Rising Frequency

Falling Frequency

Supply Side Balancing Action

Turn OFF a generator

Turn ON a generator

Demand Side Balancing Action

Turn ON a load

Turn OFF a load



BALANCING SUPPLY AND DEMAND: DIFFICULT TO IMPLEMENT ON THE SUPPLY SIDE

Energy storage by DSM hydrogen production

• Modular, scalable and rapid response (1 second)

• High conversion efficiency

• Ability to accommodate intermittent input

• Separates power from energy

RAPID RESPONSE ELECTROLYSIS


DSM: ELECTROLYSIS

PRIMARY

SECONDARY

RESERVE

RAPID

RESPONSE


PRIMARY VS SECONDARY RESPONSE




NATIONAL GRID: PAYMENT STRUCTURE

Four Grid Balancing Payment Tariffs:

• Short Term Operating Reserve (STOR)

• Fast Reserve

• Firm Frequency Response

• Frequency Control by Demand Management

Response time

Du

ratio

n

Short Term Operating

Reserve

4h 1h ~1 s 30 s 2 m

30 s

30 m

15 m

2 h

4 h

Frequency

Response

Prim

ary

Se

co

nd

ary

Fast

reserve


BALANCING SERVICES – SUPPLY SIDE PAYMENTS


Response time

Du

ratio

n


Reserve

4h 1h ~1 s 30 s

30 s

2 h

4 h Frequency Control by

Demand Management

(FCDM)

Prim

ary

Se

co

nd

ary

30 m


BALANCING SERVICES – DEMAND SIDE PAYMENTS


Response time

Ca

pa

city


Reserve

4h 1h ~1 s 30 s 2 m

1 MW

10 MW

3 MW

50 MW Frequency

Response

Fast

reserve

FCDM

Load

Aggregation


CAPACITY DELIVERY PAYMENTS




FREQUENCY CONTROL BY

DEMAND MANAGEMENT (FCDM)

• Deliver in less than 2 seconds

• Maintain demand reduction | increase for at least 30mins

• Demand greater than 3MW; which may be achieved by aggregating a number of small loads

• Have a suitable operational metering

• Provide output signal into National Grid’s monitoring equipment

HYDROGEN

ENERGY

STORAGE

POWER TO GAS

HYBRIDS

LEGISLATION


POWER TO GAS: RATIONALE

POWER TO GAS: RATIONALE

MW RAPID RESPONSE PEM ELECTROLYSIS


POWER TO GAS ENERGY STORAGE

60kW | 24hrs | 25kg/day Stack

• On|Off 0-100% in1 Second

• Up to 80bar self pressurising

• 1MW in 20ft container

360 kW Unit


ENERGY STORAGE TECHNOLOGIES

ENERGY STORAGE TECHNOLOGIES

REGONE PLOT | ELECTROCHEMICAL TECHNOLOGIES

ELECTROCHEMICAL STORAGE TECHNOLOGIES

Regone Plot: Supercapacitors | Batteries | Hydrogen

• Ultra and Super Caps

• Batteries

• Fuel Cells

STORAGE TECHNOLOGIES


ENERGY STORAGE HYBRID SYSTEM

HYBRID SYSTEM

Battery | Transport Fuel | Gas Grid Injection

• Battery Up to 2hrs

• HFuel Up to days (determined by tank size)

• Hinject Continuous


UK GAS | FUEL | POWER

GAS GRID | FUEL INFRASTRUCTURE | POWER GRID


POWER TO GAS

GERMAN POWER TO GAS SCHEMES


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

Volume / Molar

Percent

Mass Percent

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%

0% 0.2% 0.4% 0.6% 0.8% 1.2% 1.0% 1.4% 1.6% 1.8% 2%

Sweden

Belgium

UK

France

Germany

Switzerland

Holland

Austria

POWER TO GAS


POWER TO GAS

The TSB funded GridGas study

• Opportunity analysis

• Compliance of gas injection

• Rapid response electrolysis

• Gas mixing

• Location of stranded gas assets in the UK

• Potential in Scotland

• Website: www.gridgas.co.uk

Compliance Stranded Grids Installation Deployment Deployment Deployment

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

PERFECT FUEL

HYDROGEN

ENERGY STORAGE

HYDROGEN

TRANSPORT FUEL

HFUEL COSTS TODAY

EU 2015 Target £1=€1.25


Diesel Equivalent

ECOISLAND

Power & Vehicles Control System Intelligence Wireless Vehicles Vehicles

Hydrogen Energy Storage Smart Grid

• £2.4m TSB grant (£1.3m direct to ITM)

• First installation 100kg/day refueller

• Fleet of 20 vehicles

• Hydrogen balancing supply and demand

• Revenue stream from hydrogen sales

ECOISLAND


WHY HYDROGEN

BEV

PHEV

FCEV

WHY HYDROGEN VEHICLES?


WHAT IS A HYDROGEN VEHICLE?









H2 ROLL OUT

H2MOBILITY:

FUEL CELL CARS

INFRASTRUCTURE

FUEL CELL CARS

VEHICLES | ROLL OUT

FUEL CELL CARS: RACE TO MARKET

2012/13

Hyundai ix35 FCEV

2014

Daimler F-Cell

2015

Honda Clarity

2015

Toyota FCV-R

2015

GM Opel HydroGen4

2015

Nissan X-TRAIL FCV

2015

VW HyMotion

2015

Ford Explorer FC SUV

2015

Audi A2H2

2015

Daihatsu FCHV Mini MPV

2015

Mazda 5 Premacy

2015

Renault Scenic ZEV H2

FUEL CELL CARS

VEHICLES | ROLL OUT

FUEL CELL CARS: RACE TO MARKET

1,000 production Hyundai FCEV in 2012; 10,000 per year from 2013

NATIONAL H2MOBILITY INITIATIVES

The development of a national hydrogen plan

• 2009: Led by Germany and South Korea

• 2011: Japan and UK intention to follow

• 2012: Denmark and France getting going

INFRASTRUCTURE ROLL OUT

VEHICLES | ROLL OUT

Entering the German market

• Phil Doran appointed MD

• TUV SUD expert report

• First permit to operate in Germany

H2MOBILITY: GERMANY

H2MOBILITY: GERMANY

Passed Passed Ongoing Completed


Hydrogen Infrastructure; Pike Research; Dec 2011

UK H2MOBILITY


The development of a national hydrogen plan

• To determine the infrastructure investment required

• 4 Gas companies

• 6 Automotive OEM’s

• DECC | BIS | DfT

• UK intention to follow Germany

INFRASTRUCTURE ROLL OUT

UK H2MOBILITY


The Technology Strategy Board £9m investment

• Air Products: London Heathrow

• BOC Linde: Swindon

• SSE/BOC: Aberdeen

• ITM Power: EcoIsland (Isle of Wight)

• Dunsford Park: Dunsford Park

UK INFRASTRUCTURE ROLL OUT

• Ten on the map

• Five new HRS funded

• UKH2Mobility next

Summary:

Vehicles:

• Fuel cells are the highest efficiency motor known

• The vehicles achieve 3 min refuel and 400 miles range

• The energy can be exported from the grid by power companies not consumers

Fuel:

• Can be made from renewables and provides renewable energy storage

• Rapid response electrolysis provides grid balancing services

• Can be made on-site at a lower cost than petrol

• Provides fuel security

ENERGY STORAGE:


ENERGY STORAGE:


Documents

ENERGY STORAGE: THE CASE FOR HYDROGEN - ITM Power | Hydrogen