HYOFFWIND – Power to Gas Feasibility study for industrial scale conversion of renewable electricity (offshore wind) to green hydrogen with injection in the natural gas transmission grid. End Report (September 2019) The feasibility study was made possible with the support of the Energy Transition Fund (ETF). Table of Contents 1 General introduction ....................................................................................................................... 4 1.1 Purpose of the study ............................................................................................................... 4 1.2 Executive summary ................................................................................................................. 5 2 Presentation of the project partners .............................................................................................. 7 2.1 Eoly .......................................................................................................................................... 7 2.2 Fluxys ....................................................................................................................................... 7 2.3 Parkwind ................................................................................................................................. 7 3 Power-to-Gas vision ........................................................................................................................ 8 3.1 Societal challenges .................................................................................................................. 8 3.1.1 Climate change ................................................................................................................ 8 3.1.2 Local air quality ............................................................................................................... 8 3.1.3 Integration of renewable energy in the electricity grid – need for balancing ................ 8 3.1.4 Integration of renewable energy in the electricity grid: need for storage and conversion ....................................................................................................................................... 9 3.2 Social added value of Power-to-Hydrogen ........................................................................... 10 3.2.1 Making sectors sustainable ........................................................................................... 10 3.2.2 Local air quality – no local emissions ............................................................................ 12 3.2.3 Balancing the electricity grid ......................................................................................... 12 3.2.4 Positive impact on the economy ................................................................................... 12 3.2.5 Cost efficient transport of energy ................................................................................. 13 3.2.6 Cost efficient storage of energy in the gas grid ............................................................ 14 3.3 Catalyst for green hydrogen economy .................................................................................. 15 4 Business economics ...................................................................................................................... 16 4.1 Introduction .......................................................................................................................... 16 4.2 H2 market today ................................................................................................................... 17 4.2.1 Grey hydrogen market .................................................................................................. 17 4.2.2 Green hydrogen market ................................................................................................ 19 4.3 Revenues ............................................................................................................................... 20 4.3.1 Natural Gas grid Injection ............................................................................................. 20 4.3.2 Industry ......................................................................................................................... 20 4.3.3 Mobility ......................................................................................................................... 21 4.3.4 Conclusion ..................................................................................................................... 23 4.4 Alternative revenues ............................................................................................................. 24 1/67 Hyoffwind – ETF feasibility study Public version 4.4.1 Grid balancing ............................................................................................................... 24 4.4.2 Oxygen (O2) .................................................................................................................. 24 4.4.3 Heat ............................................................................................................................... 24 4.5 Cost structure ........................................................................................................................ 25 4.5.1 Plant efficiency .............................................................................................................. 25 4.5.2 Equivalent full load hours ............................................................................................. 25 4.5.3 CAPEX ............................................................................................................................ 26 4.6 Business case......................................................................................................................... 28 4.6.1 Conclusion ..................................................................................................................... 28 4.7 Required government incentives .......................................................................................... 30 4.7.1 EU Government incentives ........................................................................................... 30 4.7.2 Federal government incentives .................................................................................... 34 4.7.3 Regional government incentives................................................................................... 35 4.7.4 Conclusion ..................................................................................................................... 38 5 Engineering ................................................................................................................................... 39 5.1 Introduction .......................................................................................................................... 39 5.2 Summary conclusion ............................................................................................................. 40 5.3 Basis of design ....................................................................................................................... 41 5.3.1 Ambient conditions ....................................................................................................... 41 5.3.2 Soil investigation ........................................................................................................... 41 5.3.3 Potable water ................................................................................................................ 41 5.3.4 Waste water .................................................................................................................. 41 5.3.5 Electrical requirements from the grid connection study (cos phi and harmonics) ...... 42 5.3.6 Noise conditions ............................................................................................................ 42 5.4 Electrolyser technology assessment and selection .............................................................. 43 5.4.1 Alcaline / PEM ............................................................................................................... 43 5.5 The PEM technology is a more recent technology which evolved out of the space industry and is now more and more applied in electrolyser applications of increasing scale. System design 45 5.5.1 Principle diagram .......................................................................................................... 45 5.5.2 Electrical single line diagram ......................................................................................... 45 5.5.3 Demiwater production .................................................................................................. 47 5.5.4 H2 compression: diaphragm vs. reciprocating ............................................................. 48 5.5.5 H2 injection in NG grid .................................................................................................. 49 5.5.6 I&C ................................................................................................................................. 50 5.5.7 Safety ............................................................................................................................ 50 2/67 Hyoffwind – ETF feasibility study Public version 5.5.8 CAPEX ............................................................................................................................ 52 5.5.9 OPEX .............................................................................................................................