IJVERGAS Feasibility of Hydrogen Generation on a Multifunctional Island at Ijmuiden Ver
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IJVERGAS Feasibility of hydrogen generation on a multifunctional island at IJmuiden Ver 0 180020 - IJVERGAS - 25 June 2020 IJVERGAS Feasibility of hydrogen generation on a multifunctional island at IJmuiden Ver This report was prepared by: Nina Voulis (CE Delft), Frans Rooijers (CE Delft), Thijs Scholten (CE Delft), Joeri Vendrik (CE Delft), Reinier van der Veen (CE Delft), Malte Renz (NEC), Miralda van Schot (NEC), Catrinus Jepma (NEC), Madelaine Halter (TNO), Joris Koorneef (TNO), Hester Dijkstra (TNO), Ernst van Zuijlen (OSF), Chris Westra (OSF), Wim Klomp (Royal HaskoningDHV), Ferry van der Linden (Intecsea), Ballard Asare-Bediako (HAN). Delft, CE Delft, June 2020 Publication code: 20.180020.089 Referentienummer RVO: TESN318002 Wind energy / Seas / Innovation / Hydrogen / Generation / Meteorology / Technology / Economy / Capacity / Scenarios FT: Artificial island / Feasibility The IJVERGAS project was carried out with subsidy from the ministry of Economic Affairs, National schemes for Economic Affairs subsidies, Topsector Energy implemented by the Netherlands Enterprise Agency (RVO). 1 180020 - IJVERGAS – June 2020 Project participants The project was carried out with subsidy from the ministry of Economic Affairs, National schemes for Economic Affairs subsidies, Topsector Energy implemented by the Netherlands Enterprise Agency (RVO). 2 180020 - IJVERGAS – June 2020 Contents Project participants 2 Summary 5 1 Introduction 10 1.1 Background 10 1.2 Objective and scope of this study 12 1.3 Reading guide 13 2 Island Design and Construction 14 2.1 Background 14 2.2 Island size and functions 15 2.3 Metocean and geotechnical conditions for the offshore island 17 2.4 Design conditions for an offshore island 22 2.5 Island design 23 3 Island Functions and Scenarios 26 3.1 Island use functions and the potential of hydrogen 26 3.2 Assumptions and parameters for defining scenarios 27 3.3 Description of selected scenarios 35 4 Techno-economic background of scenarios 40 4.1 System boundaries 40 4.2 Future electricity and hydrogen market prices 43 4.3 Assumptions related to system components 53 4.4 General economic and capacity assumption 66 5 Techno-economic scenario results 72 5.1 General results: Share of conversion 72 5.2 General sensitivities 75 5.3 NPVs and their underlying components - Low hydrogen price case 78 5.4 NPVs and their underlying components - High hydrogen price case 80 5.5 Specific sensitivities 81 6 Non-technical aspects and risk assessment 86 6.1 Key non-technical and integration aspects 86 6.2 SWOT analysis 90 6.3 Discussion of the non-technical analysis 91 7 Discussion and conclusions 93 7.1 Main findings from the techno-economic analysis 93 7.2 Non-technical aspects and risk assessment 96 3 180020 - IJVERGAS – June 2020 7.3 Results in context of other studies on energy islands 97 7.4 Future improvements and outlook 100 8 Bibliography 102 A Land use on a 2 GW power-to-gas facility and a 2 GW HVDC facility 108 B Extreme metocean conditions 110 C Additional use functions 111 D Hydrogen storage options 113 E PowerFlex simulations 118 E.1 The PowerFlex model 118 E.2 Assumed reference situation 119 E.3 Power price simulations of the four scenarios 120 E.4 Results and implications 124 F Background of the techno-economic analysis 133 F.1 Impact of Energy Curtailment on the Installed Electrolyser Capacity 133 F.2 Key Plan Pipeline Infrastructure 144 F.3 Energy Management Strategy Scenario 4a (offshore hybrid scenario) 145 F.4 Summary of scenario results 146 G Stakeholder engagement 147 4 180020 - IJVERGAS – June 2020 Summary Wind generation on the North Sea is rapidly expanding. Offshore wind generation is expected to be a major source of energy for the future carbon-free energy system. The onset of this rapid growth is already visible. In the IJmuiden Ver area, 80 kilometres off the coast at Den Helder, a wind park expansion of 4 GW is planned by 2030, and possibly more, up to 10 GW, later. The 4 GW-expansion alone is four times the current Dutch offshore wind capacity. To bring such vast amounts of wind energy to shore as electricity, extensive power conversion and transmission equipment is necessary. This would require considerable system expansion both offshore and onshore. Such grid reinforcements entail high financial and societal costs. Hydrogen is an alternative energy carrier. Existing studies show a large potential for hydrogen for the North-Western European energy system, in which the Netherlands is embedded. Hydrogen is storable and can provide flexibility in an energy system with a high share of intermittent renewables. In addition, hydrogen is an important resource for industrial processes, transport and some say also for the build environment. Offshore wind power can be converted to hydrogen in power-to-gas (power-to-gas) facilities. This route is a promising alternative to bring vast amounts of wind power to shore and distribute it onshore. The present study explores the opportunities and challenges of hydrogen generation on a multifunctional island in the IJmuiden Ver-area. It addresses primarily the energy dimension. The focus is techno-economical, however, also non-technical aspects are considered as the development of a multifunctional island requires a broad, systemic approach. Multifunctional island concept The proposed location for the multifunctional island lies in the IJmuiden Ver-area. This location has particular appeal due to its proximity to both the expanding IJmuiden Ver wind park and the existing natural gas pipeline infrastructure which could be reused for hydrogen. Given this location, the functions on the island could include a high voltage direct current (HVDC) power conversion station, a power-to-gas facility, a coast guard, facilities for operation and maintenance on offshore wind parks including an offshore base or marshalling yard, data centers, and services for fisheries. The construction of the island should be aligned with the “building with nature” principles, which should be further developed in collaboration with researchers and environmental organizations. Energy conversion and transportation This study focuses on the opportunities and challenges of hydrogen production on the multifunctional island. We assume that the island is dimensioned for a connected wind park of 2 GW. We distinguish four scenarios of wind energy conversion and transportation from the wind park to the shore. The four scenarios are designed to unravel specific effects of design choices of the island energy services. The scenarios differ by the degrees of freedom for converting and trading wind power: — Scenario 1 - Onshore hydrogen. In this scenario we assume that wind power is transported as electricity to the shore. The HVDC power conversion station is on a 5 180020 - IJVERGAS – June 2020 platform. Hydrogen is generated on shore. The net capacity of both the power-to-gas facility and the connecting power cable is 1.9 GW, assuming a net capacity of 95% for the 2 GW-wind farm. The net capacity takes into account losses from wake effect and collection system. The power-to-gas facility is also connected to the national electricity grid. The wind farm is connected through the power-to-gas facility, and has no direct connection with the onshore grid. All electricity from the wind farm is therefore converted to hydrogen. When wind generation is below 2 GW, the power-to-gas facility has the option to use additional electricity from the grid. — Scenario 2 – Island Hydrogen. In this scenario both the HVDC and the power-to-gas facility are on a multifunctional island. Electricity is fully converted to hydrogen. There is no power cable from the island to shore. Hydrogen is transported to shore through a reused pipeline. The power-to-gas facility has a net capacity of 1.9 GW, but is not connected to the onshore grid, and can therefore only use electricity from the wind park. — Scenario 3 – Onshore Hybrid. This is a hybrid scenario similar to Scenario 1. The single, but important difference between the two scenarios is the direct connection between the wind farm and the onshore grid (through the HVDC station on the island). The wind farm can thus sell electricity either to the power-to-gas facility or to the onshore grid. The power-to-gas facility can use electricity from the onshore grid when wind generation is below 2 GW. — Scenario 4 – Offshore Hybrid. Also this is a hybrid scenario, one similar to Scenario 2. Also here the single but important difference between the two scenarios is the direct power connection between the wind farm (through the HVDC on the island) and the onshore grid. Scenario 4 has two versions. In the first version we assume a maximal cable capacity of 1.9 GW connecting the island with the onshore grid. In this version, the power-to-gas facility on the island has also a capacity of 1.9 GW. In the second version the capacities of the cable and power-to-gas facility are optimized. In both versions the wind farm can sell electricity either directly to the power-to-gas facility or to the onshore grid, within the limits of the cable capacity. Similarly, in both versions, the power-to-gas facility can buy electricity from both the wind park and the onshore grid, again within the limits of the cable capacity. We assume that the IJmuiden Ver extension and all island functions are fully operational by 2030. This is an ambitious planning, however it is fitting with the fast pace of the energy transition, particularly on the North Sea. Furthermore, we assume hydrogen onshoring at Den Helder and power onshoring in Beverwijk. Hydrogen is assumed to be transported between Den Helder and Beverwijk (back bone of Gasunie) through a to be constructed pipeline. Both are deemed realistic based on the criteria used in this study.