Power-to-Gas for Energy Storage

Rob Harvey Director, Energy Storage

DOE Electrolytic Production Workshop National Laboratory, Golden, CO – Feb 28, 2014

1 Power-to-Gas converts clean generation when it is not needed into renewable fuel, power or heat where and when it is needed

Power-to-Gas Solution

Integrate Renewables Renewable Gas Options

H2

Clean Fuel

Wind Power Dispatchable Power H2 Surplus Power H2/NG Blend

Electrolyzer Natural Gas Grid

H2 Low Carbon Heating

Industrial H2 2 The value proposition is compelling

Power-to-Gas Applications

Direct H2 Fueling Industrial Biogas Captive Value Proposition Injection Station H2 Feed Methanation RE

Ancillary Services

Store Energy

Seasonal Storage

Tx Grid Capital Deferral

Renewable H2 Only hydrogen can provide seasonal storage capacity by charging consecutive days or even weeks without needing to discharge far exceeds the capacity of competing storage technology

Source: KBB underground 8000

This much could be fed into an underground hydrogen reservoir 6000 (2 M m3salt cavern): (MW) 600,000 MWh

4000

2000 Pumped Hydro Storage Potential

0 Oct 1CAES PotentialOct 3 for Oct 5 Oct 7 Oct 9 Oct 11 Oct 13 2 Mm3 Salt Cavern Source: GM presentation, Freese, May 13, ‘094 4 An alternative operating model for a Power-to-Gas plant is to capture low-cost power and provide ancillary services

$/MWh Capital amortized over too few hours a year Higher average cost

Optimal LCOE

Note: Illustrative example based on SBC Energy Institute simulation based on DOE H2A Model. © 2013 SBC Energy Institute. Source: Excerpt from presentation by Benoit Decourt entitled Hydrogen-Based Energy Storage Solutions at the IEA Hydrogen Roadmap Workshop, Paris – July 10, 2013.

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For example, an electrolyzer operating 12-15 hours a day could accommodate a wide range of fueling demand and provide a useful regulation band for the ISO Illustrative Lowest Demand Hours

Price Per kWh

Hydrogenics’ PEMWE Operation

System 125 Power Balancing Service (% Nominal) 100 +/- 250kW

75

50

25

0 110 120 130 140 150 160 170 180 190 200 Hydrogen Fueling Demand (kg/day) 6 A number of challenges remain…

Remove Barriers to Energy Storage . Power-to-Gas proponents need to join energy storage associations to support efforts to smooth adoption of energy storage technologies . Includes wholesale power input prices, provision of ancillary services, ITCs, procurement targets

Testing MW Stacks . Facilities/resources for product development testing of full size electrolyzer stacks in MW and Multi-MW configurations

Launch MW-Scale Power-to-Gas Pilot Projects . Need field deployments for different P2G applications . Demonstration of technology and provision of ancillary services . Real operating data will lay foundation for contracting commercial projects

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Power-to-Gas pilot plants today will drive commercial scale deployments tomorrow

To Date… Needs… Future…

Demonstration projects Pilot projects using large Commercial scale plants using proven technology scale platforms

2 MW Alkaline 1 MW PEM 40 MW Plant

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