HSSMI techno-economic assessment report for the HyDIME Project Authored by Ross Sloan, HSSMI The Partners

1 Table of Contents

03 - Executive Summary 04 - The HyDIME System 05 - Simulation Modelling 07 - Base Model Operation 08 - Environmental Impact | Scenario 1: 20% Hydrogen-Diesel Displacement 10 - Environmental Impact | Scenario 2: 60% Hydrogen-Diesel Displacement 14 - Environmental Impact | Scenario 3: Altering the Hydrogen Refuelling Logistics 16 - Environmental Impact | Scenario 4: Chartered Vessels for Hydrogen Transport 17 - Economic Impact 22 - Societal Impact 23 - Threats and Opportunities

25 - Future Developments | Centralising Orkney’s H2 Production 30 - Replication Opportunities | Isle of Wight 31 - Replication Opportunities | Lancaster Hydrogen Hub 32 - Replication Opportunities | Western Isles 33 - Replication Opportunities | Summary 34 - Conclusion

MV Shapinsay leaving Kirkwall harbour. Source: EMEC

2 Executive Summary

During the HyDIME project, report concludes with regulatory barriers that exist in the As expected, the biggest barrier HSSMI conducted a techno- recommendations of where this transition to integrate hydrogen with developing any hydrogen economic assessment of the system could be replicated and/or into the marine market. This technology is the cost of the fuel. HyDIME system being installed in scaled elsewhere in the UK. project will de-risk future marine, Until the cost of hydrogen Orkney and identified potential hydrogen projects. becomes cost partitive with threats of the system as well as This work concluded that the marine diesel, it is difficult to opportunities to scale and HyDIME system represents a This work identified that the foresee this system providing cost replicate it across the UK. feasible stepping stone solution in transportation of hydrogen savings. the journey to decarbonise the between the point of production The purpose of this report is to marine industry. The HyDIME and consumption presents the Despite the economical present the findings, outcomes, system can offer significant biggest challenge for the HyDIME challenges, the HyDIME system and insights that were generated emission reductions (up to 43,000 system being installed in Orkney. acts as a stepping-stone project during this work. kg CO2 per year) to existing The impact of a centralised and is a positive stride in the right vessels. This can be achieved with production infrastructure in direction towards incorporating The methodology for carrying out minimal vessel invasiveness and is Orkney was analysed and was hydrogen as a fuel into the marine the work is described, followed by significantly more economical found to provide significant market. the results of the environmental than manufacturing as new. emissions savings as well as solve and economic impact assessment many of the logistical problems of the system. Potential threats of The HyDIME project was also currently faced. the system are addressed, and the crucial in overcoming the

3 The HyDIME System (Hydrogen Diesel Injection in a Marine Environment)

Hydrogen injection is a ferry in a dedicated hydrogen technology proven to reduce tube storage trailer (250kg) to be emissions within the automotive utilised by a 75kW fuel cell industry. This is achieved by powering shoreside activities. injecting hydrogen into the ICE It is proposed that the HyDIME (internal combustion engine) and system will utilise 25 kg of this displacing the amount of diesel hydrogen as onboard fuel for the required. The HyDIME project is hydrogen injection. concerned with proving this technology in the marine industry. As part of the HyDIME project, a model was to be developed to The HyDIME system will interact represent how the HyDIME system with the Surf ‘n’ Turf Project where could ideally operate and to try carbon free hydrogen is produced quantify the impact that it would using curtailed energy from wind have environmentally and and tidal turbines. This hydrogen economically. is produced at EMEC’s site in Eday and is transported to Kirkwall by

Orkney hydrogen economy ambitions. Courtesy of BIG HIT project

4 Simulation Modelling

To assist with assessing the impact Multiple assumptions had to be of the HyDIME system, a model made when creating the was created using AnyLogic, a simulation model. The primary Discrete Event Simulation software reasons these assumptions were package. The purpose of the required was due to a lack of model is to quantify the impact accurate information, and that the system would have, restrictions and difficulties within economically and environmentally, the software when trying to as well as identify potential bottle model the real scenario. The table [image] necks and threats that might exist on the following pages lists the when the system is rolled out. assumptions in the model, what is happening in reality, and why the Modelling techniques were used assumptions were necessary in order to incorporate the . complex logistics of transporting the hydrogen from one island, where it is produced to another island, where it is consumed.

Simulation modelling. Source: © Creative Images – stock.adobe.com

5 No. Assumption Reality Why necessary Hydrogen production at Eday electrolyser is based The hydrogen production rate will fluctuate according to 1 on 250 kg per 24 hours at max capacity and is the availability and profile of electricity that is feeding it. Unavailable accurate data regarding the production rate of hydrogen at the Eday electrolyser constant This profile is not constant. Inter-island ferry movement is represented by the There is a summer and winter timetable with slightly Having both timetables would have insignificant effect on the model, and it was very complex to 2 winter timetable different timings within each timetable incorporate them both Only one trailer can move at a time while the other two are based at the Eday electrolyser site. Two of the three the hydrogen trailers act as There is 500kg of stationary storage along with three Therefore, it is reasonable to assume that there is 1000 kg of hydrogen storage. This reduces the 3 stationary storage assets. Thus, the stationary storage 250kg trailers. complexity of the hydrogen transport logistics modelling without reducing the realism of how the at the Eday electrolyser is 1000 kg model operates The model was deigned to simulate an ideal representation of the system. It is likely that the The hydrogen trailers, when filled, can only be The hydrogen trailers can be transported on all restrictions on transporting hydrogen will change and the assumption will soon become the reality. 4 transported on ferries with less than 25 passengers on public ferries Model modifications were eventually made to assess the impact of the passenger restrictions (see board later in report) The trailer does not fully empty of hydrogen – a An amount of hydrogen is unable to be fed to the fuel It is unknown how much hydrogen is left in the trailer once the pressure drops too low to be utilised 5 value of 25 kg was chosen to be left unused cell as the pressure is too low. in the fuel cell It is unknown how the refuelling logistics of the MV Shapinsay and the fuel cell will interact. It is possible that if It makes more logistical sense for the MV Shapinsay to refuel once and for the remainder of the The MV Shapinsay vessel can only be refilled once 6 the MV Shapinsay empties of hydrogen before the fuel hydrogen be used in the fuel cell. The logistics of repeatedly moving the trailer to and from each per trailer trip cell utilises all of the available hydrogen in the trailer, the consumption asset is unrealistic MV Shapinsay could refill again

Hydrogen consumption rate at fuel cell is based on It is unlikely that the fuel cell operates at max capacity at 7 that it takes 3 days to empty trailer at optimum Unavailable accurate data regarding the hydrogen consumption rate of the fuel cell all times at a constant rate usage. The rate of consumption is constant.

Once the hydrogen trailer is emptied by the fuel cell and the MV Shapinsay vessel, if there is a full It is possible that the trailers cannot always be delivered 8 hydrogen trailer available at the electrolyser, it will be as soon as they are required due to reasons such as The availability of the hydrogen trailers to be moved from Eday to Kirkwall is unknown. sent to replace the empty one as soon as possible unavailability of truck/trailer drivers

Assumptions used in simulation modelling

6 Base Model Operation

A high-level description of how the Shapinsay ferry. Otherwise, this base model works is as follows: step is skipped. The hydrogen on the ferry is consumed at a 1. Hydrogen is produced at the specified rate when the ferry is electrolyser in Eday at a specified moving between islands. rate and stored up to a max 5. The tractor carrying the trailer will capacity of 1000 kg. then leave the trailer with the fuel 2. If the hydrogen trailer feeding cell and return to the Eday the fuel cell is empty, a truck electrolyser on the first available carrying a 250 kg H trailer is sent 2 ferry. to the Eday port where it waits 6. The trailer will feed hydrogen to for a ferry to arrive. the fuel cell at a specified ratel 3. If the ferry is going to Kirkwall, until the capacity in the trailer the truck will board the ferry and depletes to a specified amount. move to Kirkwall. 7. Steps 2 – 4 are carried out again. 4. On arrival, if the MV Shapinsay 8. The truck will leave the full 250 vessel needs to be refueled with kg trailer with the fuel cell and hydrogen (condition for this is if return the empty trailer to the capacity is <= 5 kg), it will first Eday electrolyser where it can be deposit 25 kg to the MV refilled with hydrogen. Conceptual model of system to be modelled. Source: HSSMI

7 Environmental Impact | Scenario 1: 20% Hydrogen-Diesel Displacement

The key factors for measuring the Calculating the hydrogen used by Parameter Value environmental impact are diesel the MV Shapinsay vessel is also an Auxiliary Unit Diesel Consumption Rate (L/min) 0.13 and CO2 reductions. Diesel important parameter, as this Hydrogen injection percentage (%) 20 displacement was calculated using represents energy that if not New Auxiliary Unit Diesel Consumption Rate (L/min) 0.104 correlations between the utilised, would otherwise be lost Diesel Displaced (L/min) 0.026 hydrogen injection percentage due to curtailment. Every kg of and the diesel consumption rate hydrogen requires 55 kWh of Hydrogen Consumption Rate = Diesel Displaced/3.21 (kg/min) 0.0081 of the auxiliary unit. The CO carbon free electricity. For every 2 Model parameters describing hydrogen injection system properties for 20% diesel displacement reductions could then be kwh of carbon free electricity calculated using a simple produced, there is a saving of Parameter Value approximation: for every litre of 0.283 kg of CO .1 2 Total Diesel Displaced (L) 2,958 diesel displaced, 2.7 kg of CO2 is The model parameters were CO Displaced from Diesel Displacement (kg) 7,926 displaced1. Depending on the type 2 defined, and the model was run of diesel used, this value can vary H2 Consumed by MV Shapinsay (kg) 824 for a full year with the MV slightly. It has been assumed that Electricity Required to Produce H2 Used by MV Shapinsay (kwh) 50,833 Shapinsay vessel operating at a the fuel used for the MV hydrogen-diesel displacement CO2 Displaced from Carbon Free H2 Production (kg) 14,389 Shapinsay is standard diesel. level of 20%. Environmental results of model operating at 20% diesel displacement level

1 Greenhouse gas reporting conversion factors” – Department for Business, Energy and Industrial Strategy 8 Environmental Impact | Scenario 1: 20% Hydrogen-Diesel Displacement

The CO2 produced when which is used by the HyDIME Parameter Value transporting the hydrogen via system. The model was able to Number of Fuel Cell Refills 157 public ferry is one of the key estimate the CO2 emitted by the Number of MV Shapinsay Refills 48 contributors to negative ferries transporting the hydrogen CO Emissions from Transporting Hydrogen (kg) 350,000 environmental impact. However, by using an estimate of the fuel 2 CO Emissions Associated with Transporting Hydrogen for HyDIME 2 11,500 this transportation happens consumption of the Orkney ferries. Use (kg) regardless of whether the HyDIME The CO2 emissions were calculated Number of hydrogen asset refills and associated CO2 emissions of transporting the system is in place or not. It can be using a ratio between the number hydrogen (20% diesel displacement) argued that the negative carbon of hydrogen refills required for the footprint associated with MV Shapinsay and for the fuel cell, Parameter Value transportation is out of the scope as well as a ratio between the Total CO2 Displaced (kg) 22,315 of this report. amount of hydrogen used by the Total CO2 Produced (kg) 11,500 MV Shapinsay and the total Net CO Displaced (kg) 10,815 On the other hand, the carbon 2 amount stored per trailer. It was emissions associated with Net CO2 displaced for 20% diesel displacement level calculated that approximately transporting hydrogen for use in 3,33% of the total carbon emissions the HyDIME system can be associated with the transportation calculated using the percentage of of hydrogen can be attributed to the total transported hydrogen the HyDIME system.

9 Environmental Impact | Scenario 2: 60% Hydrogen-Diesel Displacement

The hydrogen injection system on due the increase of hydrogen Parameter Value the vessel has the capability of usage, there are further CO2 Auxiliary Unit Diesel Consumption Rate (L/min) 0.13 operating at up to 60% diesel reductions from carbon free Hydrogen injection percentage (%) 60 displacement levels. electricity consumption. New Auxiliary Unit Diesel Consumption Rate (L/min) 0.052 This new displacement level was The altered model parameters Diesel Displaced (L/min) 0.078 implemented within the model and outputs of the model a are Hydrogen Consumption Rate = Diesel Displaced/3.21 (kg/min) 0.024 and the impact it had on the shown in the following tables. Model parameters describing hydrogen injection system properties for 60% diesel displacement outputs was captured. The MV Shapinsay consumes the 25 kg of Parameter Value hydrogen stored on the vessel Diesel Displaced (L) 8,337 three times faster than the CO2 Displaced from Diesel Displacement (kg) 22,343 previous scenario and thus is H2 Consumed by MV Shapinsay (kg) 2,605 available to be refilled more often. Electricity Required to Produce H2 Used by MV Shapinsay (kwh) 143,289 The amount of diesel displaced CO Displaced from Carbon Free H Production (kg) 40,561 annually by the vessel is increased 2 2 Environmental results of model operating at 60% diesel displacement level and therefore the amount of CO2 reduced is larger. Furthermore,

10 Environmental Impact | Scenario 2: 60% Hydrogen-Diesel Displacement

An impact of the increasing the the net CO2 displaced is over Parameter Value hydrogen diesel displacement three times larger than for 20% Number of Fuel Cell Refills 157 percentage from 20% to 60% is displacement. Number of MV Shapinsay Refills 114 that the MV Shapinsay needs to CO2 Emissions from Transporting Hydrogen (kg) 350,000 be refilled with hydrogen more CO Emissions Associated with Transporting Hydrogen for 2 25,500 often. This in turn increases the HyDIME Use (kg) CO emissions associated with 2 Number of hydrogen asset refills and associated CO2 emissions of transporting the hydrogen (60% diesel transporting the hydrogen from displacement) Eday to Kirkwall for the HyDIME system. The proportion of the Parameter Value total CO emissions generated 2 Total CO2 Displaced (kg) 62,904 when transporting hydrogen that Total CO2 Produced (kg) 25,500 can be attributed to the HyDIME Net CO Displaced (kg) 37,404 system is now 7.14%. 2 Net CO2 displaced for 60% diesel displacement level Accounting for the increased negative emissions of the system operating at 60% displacement,

11 Environmental Impact: 20% vs 60% Diesel Displacement

For 20% and 60% hydrogen-diesel displacement, the net yearly emissions are shown in the following tables and graph

Parameter Value

Total CO2 Displaced (kg) 22,315

Total CO2 Produced (kg) 11,500

Net CO2 Displaced (kg) 10,815

Net CO2 displaced for 20% diesel displacement level

Parameter Value

Total CO2 Displaced (kg) 62,904

Total CO2 Produced (kg) 25,500

Net CO2 Displaced (kg) 37,404

Net CO2 displaced for 60% diesel displacement level

CO2 savings achieved from hydrogen injection system for 20% and 60% displacement levels

12 Environmental Impact | Curtailment of the Eday wind turbine

The HyDIME system is making use of curtailed energy which would otherwise be lost. An effort was made to try quantify this. 3,285,000 kWh For 20% and 60% displacement, the MV Shapinsay vessel uses 50,833 3,942,000 kWh kWh and 143,289 kWh worth of hydrogen, respectively. This diagram gives an approximated indication as to how the HyDIME provides a solution to Eday Wind Turbine Grid/Orkney Demand 900 kW capacity the curtailment issue experienced by the Eday wind turbine. Load Factor = 50% 900 kW x 365 days x 24 657,000 kWh hours x 50% LF Assumptions: = 3,942,000 kWh 365,000 kWh Curtailed • The wind turbine has a capacity factor of 50% Energy

Electrolyser • Orkney produces 120% of their demand from renewables 500 kW • This correlates to the community wind turbine on Eday feeding 10/12ths of its electricity to the grid and the remaining 2/12ths to the electrolyser MV Shapinsay (20% MV Shapinsay (60% diesel displacement) diesel displacement) Uses 50,833 kWh Uses 143,289 kWh • The electrolyser only consumes 55.5% of the electricity from the wind worth of hydrogen worth of hydrogen Utilises 14% of Utilises 39% of turbine as the electrolyser is rated at 500 kW and the wind turbine 900 curtailed energy fed curtailed energy fed kW to electrolyser to electrolyser

Overview of how the HyDIME system utilizes curtailed energy from the Eday wind turbine

13 Environmental Impact | Scenario 3: Altering the Hydrogen Refuelling Logistics

The MV Shapinsay vessel can only With these changes, there are • There are larger net CO2 perspective, for both refuelling be refilled with hydrogen at times only slight improvements to the savings as there are less CO2 scenarios, the net impact of the when the hydrogen trailer feeding performance of the full system: emissions associated with the MV Shapinsay vessel’s auxiliary the fuel cell also needs to be transport of the hydrogen as engine operating at 60% diesel • There are minimal increases in refilled. This means that there are there are now less fuel cell and displacement reduces CO the annual quantities of diesel 2 times when the hydrogen trailer MV Shapinsay refills. emissions by the equivalent of and CO displaced, and begins feeding the fuel cell and 2 removing approximately 9 hydrogen consumed, The new refuelling logistics ensure soon after this, the MV Shapinsay passenger cars from the road that the MV Shapinsay vessel is vessel requires a refill of hydrogen • The number of times that the each year.2 optimally refuelled and the but cannot receive one until the fuel cell is provided a new emissions savings are greater. fuel cell consumes all of the trailer of hydrogen has been However, this means that the fuel hydrogen from the trailer and a significantly reduced. The cell is no longer being utilised as fresh trailer is delivered. The hydrogen trailer cannot move often and the total amount of model was altered slightly so that to Kirkwall to feed the fuel cell hydrogen being used in the full a truck and trailer would only be unless the MV Shapinsay, which system is reduced. sent to Kirkwall when both the consumes hydrogen much fuel cell and the MV Shapinsay slower than the fuel cell, also To put the environmental impact Infographic representing the CO2 savings achieved needed hydrogen refueling. requires hydrogen. of the HyDIME system into from 60% diesel displacement

2 https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle 14 Environmental Impact | Scenario 3: Altering Refuelling Logistics

Value and difference between Parameter previous model results Displacement Percentage 20% 60% Total Diesel Displaced (L) 2,998 (+40) 8,349 (+12) Total CO Displaced from Diesel 2 8,034 (+108) 22,375 (+32) Displacement (kg)

Total H2 Consumed by MV Shapinsay (kg) 937 (+113) 2,609 (+4) Electricity Required to Produce H Used by 2 51,522 (+689) 143,499 (+210) MV Shapinsay (kwh) Total CO Displaced from Carbon Free H 2 2 14,584 (+195) 40,620 (+59) Production (kg)

Total CO2 Displaced (kg) 22,618 (+303) 62,995 (+91) Number of Fuel Cell Refills 44 (-113) 105 (-52) Number of MV Shapinsay Refills 44 (-4) 105 (-9) CO Emissions from Transporting Hydrogen 2 90,000 (-260,000) 200,000 (-150,000) (kg) CO Emissions Associated with Transporting 2 9,000 (-2,500) 20,000 (-5,500) Hydrogen for HyDIME Use (kg)

Net CO2 Displaced (kg) 13,618 (+2,803) 42,995 (+5,591)

Results produced after altering the refuelling logistics of the model (20% and 60% displacement levels) CO2 savings achieved after changing refuelling logistics For 20% and 60% displacement levels

15 Environmental Impact | Scenario 4: Chartered Vessels for Hydrogen Transport

Due to safety regulations, the for refilling, respectively, hydrogen trailer can only board a compared to the previous 42 and ferry that is carrying 25 105 trips achievable using any passengers or less. An attempt public ferry. Therefore, to ensure was made to represent this optimum refilling, an additional 23 behaviour within the model by and 77 trips would be required. adding a function that generates It is possible that in cases where a number between 0 and 150 (the the ferry has more than 25 min and max capacity of the ferry passengers and cannot transport leaving Eday) based off a the hydrogen trailer, a dedicated triangular distribution with a vessel can be chartered in order mode of 75. to move the hydrogen to where it The model was run at 20% and can be consumed. However, this 60% diesel displacement and it would be a very costly expense was found that the hydrogen and render the HyDIME system trailer and truck were only able to economically and environmentally make 19 and 28 trips to Kirkwall redundant.

MV Shapinsay vessel sailing in Orkney. Source: EMEC

16 Economic Impact | Capex

One of the most attractive aspects vary in price depending on size, A full detailed breakdown of the of a hydrogen injection system as storage pressure, and type I/II/III HyDIME capex cannot be an emission reducing solution is for example. provided due to confidentiality the fact that it is retrofittable - the reasons. However, the hydrogen economy engine does not need to be is still developing and there are removed from the vessel. limited applications for the types The cost of building a new fuel of tanks being utilised in the cell/hybrid vessel will dwarf that of HyDIME system. Subsequently, a retrofittable solution. The Fuel there are no UK manufacturers of Cells and Hydrogen 2 Joint appropriate hydrogen storage Undertaking (FCH2 JU) estimated tanks for use on marine vessels. that the CAPEX of a new build fuel To bring the costs of the HyDIME cell vessel to be ~€11-15 million3. system down, and facilitate a more secure procurement The hydrogen tanks are a key strategy, the hydrogen equipment component of the HyDIME system supply chain needs to be and are also one of the more developed in the near future. costly items. Hydrogen tanks can

3 https://www.fch.europa.eu/sites/default/files/FCH%20Docs/171121_FCH2JU_Application-Package_WG3_Ferries%20%28ID%202910573%29%20%28ID%202911659%29.pdf 17 Economic Impact | Opex

For confidentiality reasons, a full hydrogen for the vessel The labour costs associated with injection system in a marine breakdown of the operational (approximately, 50,000 – 140,00 retrofitting the MV Shapinsay application. It has been costs cannot be provided. kWh per year, at 20% vs 60% vessel with the necessary approximated as <£1,000 per year. displacement, respectively); equipment has been The HyDIME system is being • Information regarding the approximated as 4 full working coupled with the Surf ‘n’ Turf operating cost of the weeks’ worth of labour for 4 project and so some operating electrolyser is scarce. However, technicians / engineers. costs can be discounted. estimates generalise the Vessel operators must be trained The cost of hydrogen is key in operating cost of hydrogen to run the upgraded MV determining the full opex cost. In production via electrolysis to be Shapinsay. The HyDIME system order to estimate it, the cost of approximately £4 per MWh4. requires 9 operators undergo electricity required to produce the • Considering the above and basic IGF stream marine training hydrogen and the operating cost with the estimation that 55kWh plus tanker fire training. of the electrolyser needs to be of electricity are required to considered: produce 1 kg of hydrogen, the Maintenance costs associated with cost of hydrogen can be the HyDIME system are difficult to • 4-5 pence per kWh for the estimated at £2.97 per kg for estimate as this will be the first electricity used to produce the HyDIME system. application of a hydrogen

4 https://www.carboncommentary.com/blog/2017/7/5/hydrogen-made-by-the-electrolysis-of-water-is-now-cost-competitive-and-gives-us-another-building-block-for-the-low- carbon-economy 18 Economic Impact | Cost Savings and Cost Balance

The HyDIME system displaces It can be seen that for both levels marine diesel and thus, there are of displacement, there is a net loss fuel cost savings to be considered. every year as the cost savings It was estimated that between from diesel displacement are not 3,000 and 8,500 L of diesel can be significant enough to outweigh saved per year if operating at 20% the operational costs of the and 60% displacement levels, system. At a larger displacement respectively. Assuming, the cost of level, larger volumes of diesel are marine diesel is £0.48 per L, yearly being displaced and thus there fuel savings will be between are greater savings. However, approximately £1,400 and £4,000 since hydrogen costs depending on displacement level approximately 6 times that of marine diesel (£2.97 per kg vs The graphs on the next page £0.50 per L), the balance of cost represent the total net cost of and the net loss is larger. running the HyDIME system at 20% and 60% over 5 years.

Economic modelling - © Jirapong – stock.adobe.com

19 Economic Impact | Cost Balance

Cost balance graph of the system operating at 20% diesel displacement Cost balance graph of the system operating at 60% diesel displacement

20 Economic Impact | Potential Changes in the Future of Hydrogen

It is worth noting that these which will significantly increase the system also provides a further results have been estimated under cost of diesel and provide a benefit to the community in that it the assumption that the cost of further incentive to move away is providing a use of the curtailed producing hydrogen and the cost from marine diesel and towards renewable energy. of marine diesel does not change. utilise green fuels. Once hydrogen One of the main messages of the In reality, it is likely that the cost of becomes more competitively HyDIME project was to hydrogen will decrease as priced, a positive net cash balance demonstrate the significant technology and efficiencies can be expected. emission savings that could be improve, and with the potential of Furthermore, the hydrogen achieved with the technology as support from government injection system in question is a well as the further benefits the subsidies. Furthermore, the cost of proof of concept and so is project brings to the community. marine diesel will increase due to installed on the auxiliary engine of It was expected that until there is tightening legislation around the vessel. This is a relatively small a scaled-up version of the system emissions. unit compared to the propulsion in operation, and hydrogen is It is likely that a carbon tax or engine and therefore, it was more competitively priced, it other similar incentives will be expected that the fuel savings would not result in significant implemented in the near future would be small. The HyDIME economic savings.

21 Societal Impact

The most significant societal world leaders in low carbon impact of the HyDIME project is transport. that of the skills and capabilities HyDIME has been strongly being developed. Nine vessel disseminated throughout the operators will be undergoing duration of the project and as a specialised training in order to result, has been featured in operate the retrofitted vessel and multiple articles, magazines and in doing so, will become some of conferences. The HyDIME project the very first marine vessel and the attention it has received, operators within the world who will continue to support and can safely operate a ferry storing advance Orkney’s journey in and utilising hydrogen as a fuel. becoming one of the UK’s most This not only adds skill and attractive tourist destinations and expertise to the MV Shapinsay the money this brings in is hugely vessel crew in Orkney, but also to important to Orkney’s economy. Scotland and the UK, increasing their competitiveness and furthering the ambition of being

View from the MV Shapinsay deck. Source: HyDIME Consortium

22 Threats and Opportunities | Curtailed Hydrogen

When running the model at 20% consuming hydrogen are situated and 60% displacement, it was at Kirkwall, but the point of found that the hydrogen storage production is on a separate island at Eday spends 315 days and 252 (Eday). days of the year (86% and 69%) at The issue of curtailed hydrogen max capacity. Altering the presents a strong argument to hydrogen production rate consider centralising the Orkney parameter to half of the max rate Isles’ hydrogen production at (0.075 kg/min) still resulted in a Kirkwall. This would eliminate the significant curtailment time: 266 lengthy timescales of transporting and 139 days of the year (73% and hydrogen between islands and 38%). allow almost immediate hydrogen The primary reason for this refills. behaviour is the fact that the production site is decentralised relative to the consumption site. Both of the systems that are

Field of wind turbines. Source: © Rafa Irusta - stock.adobe.com

23 Threats and Opportunities | Hydrogen Transport

As discussed earlier in the report, and will need to be refueled more hydrogen cannot currently be often. However, due to the high transported on public ferries number of people onboard the which have more than 25 ferry crossings, the likelihood of a passengers on board. Due to the ferry having less than 25 people random nature of passenger on board is less probable. In numbers, it is difficult to optimise conclusion, there will be less the movement of hydrogen hydrogen available to be between the production and transported on public ferries in consumption sites. times when it is needed the most. Another point to consider is that The above points present another of the seasonal ferry timetables. In motive for centralising the Summer, Orkney Ferries operate a production site or developing a higher number of crossings to dedicated hydrogen transport facilitate the increased number of infrastructure. people visiting Orkney. This means that with the hydrogen system installed, the hydrogen onboard will likely run out quicker

Electrolyser in Orkney: Source: EMEC

24 Future Developments | Centralising H2 Production

To assess the potential benefits of Running this version of the model Parameter Value developing a centralised, large- with 20% and 60% diesel Propulsion Engine Diesel Consumption Rate (L/min) 0.915 scale hydrogen production system displacement has very little effect Hydrogen injection percentage (%) 60 in Orkney, the model was altered: on the total amount of hydrogen New Propulsion Engine Diesel Consumption Rate (L/min) 0.366 used by the vessel. To fully exploit • The hydrogen production site is Diesel Displaced (L/min) 0.549 the centralised production site, a now located at the Kirkwall port; larger amount of hydrogen would Hydrogen Consumption Rate = Diesel Displaced/3.21 (kg/min) 0.171 • The amount of static storage need be consumed. Onboard Hydrogen Storage (kg) 100 and production rate of Model parameters describing hydrogen injection system properties for 60% diesel displacement on A scaled-up version of the MV hydrogen remains unchanged; propulsion engine. Shapinsay hydrogen injection • The fuel cell and MV Shapinsay system was also created by altering vessel can be refilled the model parameters to represent independently; the injection system operating at 60% diesel displacement on the • Hydrogen refueling can take propulsion engine. To facilitate for place immediately due to close increased hydrogen consumption, proximity of production site to the onboard storage was increased consumption assets. to 100kg

25 Future Developments | Centralising H2 Production – Environmental Impact

Operating the system with the where the hydrogen is curtailed Due to the increased hydrogen propulsion unit has a significantly (reaches max storage capacity) consumption rate, the number of greater environmental impact with has been significantly reduced. refuel operations has increased a net saving of almost 500 tonnes Comparing 60% diesel significantly. In order to operate a of CO2 being displaced. displacement on the auxiliary unit system such as this, there would and production at Eday, with 60% need to be a robust strategy in Not only is there a greater diesel displacement on the place to ensure that the vessel amount of diesel being displaced, propulsion engine with could be refuelled when needed, but the CO emissions associated 2 production at Kirkwall, results in a whilst not interrupting normal with transporting the hydrogen 50% reduction in hydrogen ferry timetables and operation. have been eliminated. It can be curtailment time (252 days vs 125 argued that there is no negative days). emissions associated with the

HyDIME system in this The net CO2 savings of the system configuration. at 60% displacement on the propulsion unit are equivalent to Another benefit of this scaled up removing 100 passenger vehicles system is that the amount of time from the road per year.

26 Future Developments | Centralising H2 Production – Environmental Impact

Parameter Value Displacement Percentage 60% Total Diesel Displaced (L) 63,192

Total CO2 Displaced from Diesel Displacement (kg) 169,361

Total H2 Consumed by MV Shapinsay (kg) 19,748

Electricity Required to Produce H2 Used by MV Shapinsay (kwh) 1,086,155

Total CO2 Displaced from Carbon Free H2 Production (kg) 307,458

Total CO2 Displaced (kg) 476,819 CO savings achieved from 60% diesel displacement on propulsion engine Number of Fuel Cell Refills 256 2 Number of MV Shapinsay Refills 209

CO2 Emissions from Transporting Hydrogen (kg) 0 CO Emissions Associated with Transporting Hydrogen for 2 0 HyDIME Use (kg) Time spent with curtailed hydrogen (days) 125 days

Net CO2 Displaced (kg) 476,819 Cost Reductions Through Fuel Savings (£) 30,333

Results produced for 60% diesel displacement on vessel propulsion engine (one year of operation) Infographic representing the CO2 savings achieved from 60% diesel displacement on vessel propulsion engine

27 Future Developments | Centralising H2 Production – Economic Impact

The full economic impact of this infrastructure in Kirkwall has not system is difficult to assess as been included and this is likely to there is no understanding of the be a significant sum. costs associated with setting up a As before, the cost of producing production infrastructure in hydrogen is much larger than the Kirkwall. However, applying the cost savings from diesel same logic as before, a high-level displacement. Until the cost of overview of the operating costs hydrogen decreases and/or the can be estimated. cost of diesel increases, there will There is a yearly saving of 61,690 L always be a net loss regardless of of marine diesel fuel. At a cost of how much diesel is displaced. £0.48 per litre, this results in a yearly saving of £29,611. The capex costs have been unchanged from the previous graphs. However, the cost of setting up a new production

System cash flow for 60% diesel displacement on vessel propulsion unit

28 Future Developments | Centralising H2 Production - Summary

From modelling a centralised the propulsion unit, resulting in production system specifically for significant emission savings. Orkney, it was possible to However, the large cost of conclude that this production producing hydrogen coupled with model could facilitate a more the likely significant cost of setting efficient hydrogen consumption up the hydrogen production strategy. Eliminating the complex infrastructure, means that until the hydrogen transport logistics cost of hydrogen decreases dictated by the number of and/or marine diesel increases, passengers on board, and the this will be an expensive expensive alternative of chartering infrastructure to operate and a vessel specifically for there will be no ROI. transporting the hydrogen trailer, allows the consumption assets to refill independently and when necessary. This in turn, if the refuelling logistics were in place, enables the system to operate on Kirkwall port. Source Orkney Islands Council

29 Replication Opportunities | Isle of Wight

One of the advantages of the Red Funnel ferries have expressed hydrogen injection system is that interest in utilizing hydrogen as a it can be feasibly integrated with fuel to reduce marine diesel any vessel engine, as long as there emissions. Similarly to the Orkney is sufficient space for onboard Islands, the Isle of Wight also storage and there is an available experiences periods of energy supply of hydrogen. As the curtailment, which could be used hydrogen economy develops to produce hydrogen. within the UK, more opportunities Integrating the HyDIME system will arise for the HyDIME system within the Isle of Wight ferry to be replicated and scaled within services would allow the island to other locations around the UK. fully exploit their renewable The Isle of Wight has ambitions to energy assets to produce carbon become a self-sustaining island free fuel. utilizing green hydrogen as a fuel., making it the perfect platform for replicating the HyDIME system.

Red Funnel ferry operating in the Isle of Wight. Source: visitisleofwight.com

30 Replication Opportunities | Lancaster Hydrogen Hub

Lancaster University is currently hydrogen using nuclear power coordinating the Lancaster plants, and the H2 Sea hub at the Hydrogen Hub, which aims to Heysham Port would facilitate a build and grow local hydrogen hydrogen injection system production, storage, and onboard ships leaving the port. transport facilities. As part of the To compliment the full system, the initiative, several key hydrogen H Research, Development, hubs will be developed: Green H , 2 2 Demonstration & Innovation hub H Rail, H Sea, H Road, H 2 2 2 2 will be addressing fueling and Transport, H Energy Systems at 2 transport logistics which are two Scale, and H Research, 2 of the key complexities being Development, Demonstration and experienced within Orkney. Innovation. Integrating the HyDIME system would allow many of the H2 hubs to interact. For example, coupling the Green

H2 hub, which will produce

Lancaster Hydrogen Hub plans. Source: Energy Lancaster

31 Replication Opportunities | Western Isles

Residents of the Western Isles rely Until suitable funding is secured heavily on interisland ferry and/or the technology is services and thus, with the many developed to a point where it is crossings between various less costly to build a new locations, there are significant hydrogen vessel, hydrogen emissions being generated. A injection would act as an effective recent feasibility report assessed interim solution. the potential for replacing the The feasibility study set strong current vessels with hydrogen foundations for transitioning to a powered alternatives. The carbon carbon free, hydrogen fueled fleet savings are significant but of vessels. Until purchasing solely replacing a full fleet of vessels with hydrogen powered vehicles hydrogen equivalents is currently becomes a feasible option, a very costly solution and will take hydrogen injection systems can a substantial amount of time. help reduce emissions significantly without requiring invasive alterations to the vessel.

A harbor in the Western Isles. Source: © Nikokvfrmoto – stock.adobe.com

32 Replication Opportunities | Summary

Western Isles Lancaster Hydrogen Hub

• Excellent renewable potential • Looking to develop hydrogen hubs • Rely on interisland ferry crossings across various industries including • Potential savings of 13,000 tonnes of the regions port activities

CO2 with 60% diesel displacement on • Using low carbon hydrogen from Stornoway – Ullapool ferry nuclear power plants • Passenger ferries and large shipping vessels leave and enter the nearby port Isle of Wight • Aiming to have a dedicated research hub to assess hydrogen fueling and • Operating solar plant generating 4.68 transport logistics GWh of green electricity • Experience energy curtailment - opportunity to produce hydrogen • Rely on passenger ferries to transport residents to and from mainland (over 200 daily ferry crossings) • Have ambitions to be self-sustaining island • Ferry companies have expressed interest in hydrogen as a fuel

UK map showing recommended locations that could benefit from a system similar to that of the HyDIME project

33 Conclusion

The objective of this report was to is still unable to compete with vessel – a hydrogen fuel cell assess the potential impact of the marine diesel which is particularly powered vessel. hydrogen injection system that inexpensive. However, in the Until fully hydrogen powered has been installed on the auxiliary future, the price of hydrogen is vessels become more economical unit of the MV Shapinsay vessel. only going to decrease, while to manufacture, small scale diesel prices will increase. From an environmental point of hydrogen systems such as view, the HyDIME system has the This work highlighted the most HyDIME can act as a stepping potential to offer significant significant bottleneck within stone towards safely incorporating emission savings through Orkney’s hydrogen economy – the hydrogen as a fuel into the marine reducing diesel consumption of transportation of hydrogen market. the ICE engine, as well as using between islands. A more efficient Furthermore, it is clear that there curtailed, carbon-free electricity to method of transporting hydrogen are many opportunities produce hydrogen fuel. must be developed. This is throughout the UK where currently being addressed as From an economic perspective, hydrogen dual fuel systems can more electrolysers are planned to the HyDIME system is unable to be replicated and scaled. be deployed in Orkney to facilitate provide a reasonable ROI, as the the refueling of the HySEAS III cost of hydrogen, on a wide scale,

The MV Shapinsay Vessel docked. Source: EMEC

34