HYDROGEN ENERGY STORAGE: CLEAN FUEL & RENEWABLE … · hydrogen energy storage: clean fuel...

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HYDROGEN ENERGY STORAGE: CLEAN FUEL &

RENEWABLE HEAT FUTUREBUILD, SHEFFIELD CITY HALL | NOVEMBER 2014

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Contents: • Introduction to ITM Power

• Energy Storage

• Reference Plant - Thüga Group Project

• Clean Fuel Projects

• Summary

HYDROGEN ENERGY STORAGE: CLEAN FUEL &

RENEWABLE HEAT FUTUREBUILD, SHEFFIELD CITY HALL | NOVEMBER 2014

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ITM Power | History • First AIM listed fuel cell & hydrogen company

• 2004 IPO | £10m | ITM.L

• 2006 Secondary Fundraising | £30m

• 2011 Established ITM Power GMBH

• 2012 -2014 Expansion | £17m

• 2012 Established ITM Power Inc.

• Two facilities in Sheffield | 70 staff

• Manufacturing business model

• Expansion in USA and Germany

HYDROGEN ENERGY STORAGE: CLEAN FUEL &

RENEWABLE HEAT FUTUREBUILD, SHEFFIELD CITY HALL | NOVEMBER 2014

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INTRODUCTION

HYDROGEN ENERGY

SYSTEMS FOR

ENERGY STORAGE

AND CLEAN FUEL

PRODUCTION

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GROWING WIND GENERATION

20% of peak capacity (55GW) in Winter

20% of peak capacity (40GW) in Summer

ENERGY STORAGE: THE NEED

HYDROGEN ENERGY SYSTEMS

• Evidence of grid balancing problems from Germany, Denmark and Spain

• Problems start at 20% capacity; UK hit this threshold at the end of 2013

• Energy Storage is a Market Pull

Source: ITM Power plc, data from BWEA

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THE NEED: GRID BALANCING

ENERGY STORAGE | CLEAN FUEL

BALANCING SUPPLY AND DEMAND:

• A total of £725m paid for balancing services in 2010-11

• Estimates in 2020 are: circa £1.9bn - £5.9bn pa

• Tariffs already operational in the UK

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RAPID RESPONSE

HYDROGEN ENERGY SYSTEMS

RAPID RESPONSE ELECTROLYSER

ITM Electrolyser

Clean Fuel

Energy Storage Wind Power

Grid

Available in 1MW modules | Responds in 1sec | Self pressurises to 80bar

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ENERGY STORAGE | CLEAN FUEL

360KW POWER-TO-GAS MODULE

WHAT’S UNIQUE ABOUT ITM ELECTROLYSERS?

Rapid response | Self pressurising

• 1 sec response time

• 80bar self pressurising

• 1MW units

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ENERGY STORAGE | CLEAN FUEL

WHY POWER-TO-GAS?

POWER-TO-GAS RATIONALE

Electricity cannot be stored easily | Hydrogen can be stored easily in the gas grid

Source: ITM Power plc

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ENERGY STORAGE | CLEAN FUEL

ENERGY STORAGE TECHNOLOGIES

ENERGY STORAGE TECHNOLOGIES

Power-to-gas is efficient | long term | low energy cost

Source: ITM Power plc

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ENERGY STORAGE | CLEAN FUEL

EU 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

Limit falls to 2% if there is a

CNG station downstream

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ENERGY STORAGE | CLEAN FUEL

WHERE DOES THE GAS GO?

GAS USAGE IN THE UK (DUKES 2013)

Source: Dukes 2013

Where does the gas go?

• 906 TWh of natural gas consumed in the UK in 2011

• 52% was used to provide heat

• 34% burned in power stations to make electricity

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ENERGY STORAGE | CLEAN FUEL

ELECTRIFY HEAT?

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DECC: UK HEAT STRATEGY

The Future of Heating: Meeting the challenge

• 70% of UK heat comes from natural gas

• Low penetration of renewable heat in the UK

RHI launched Nov. 2011

• 12% of heating from renewables by 2020

• 57 TWh hydrogen

• Circa 18,600 MW Electrolysis

ENERGY STORAGE | CLEAN FUEL

DECC: UK HEAT STRATEGY

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0%

5%

10%

15%

20%

25%

30%

35%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0 2 4 6 8 10 12

Frac

tio

n w

ind

ou

tpu

t cu

rtai

led

Hyd

roge

n f

ract

ion

(vo

l%)

Excess wind (TWh pa)

725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)

Hydrogen fraction

Curtailment

HYDROGEN FRACTION VS EXCESS WIND LEVELS

ENERGY STORAGE | CLEAN FUEL

• Capturing 2.8 TWh pa of excess wind (ie 4% of 2020 output)

• Requiring 978MW of electrolysis at 30% utilisation

• Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2%

Source: ITM Power plc

POWER-TO-GAS IN THE UK

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P2G: ELEMENTS OF VALUE

ENERGY STORAGE | CLEAN FUEL

Value to the Power Grid

• Avoided wind curtailment

• Avoided infrastructure upgrades

• Reduced reserve power

• Reduce CO2 from open cycle GTs

• Absorbing reactive power

Value to the Gas Grid

• Decarbonising gas

• Providing renewable heat

• Reducing GHG emissions from gas transportation

Value to the UK Economy

• Reducing fuel imports

• Improved energy security

• Creating jobs in manufacturing

• Value to the power grid

• Value to the gas grid

• Value to the economy

P2G: ELEMENTS OF VALUE

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CPUC Sets the energy storage mandate for the power sector

• Energy storage target of 1,325 megawatts

• 3 major CA utilities by 2020

• Optimization of the grid, including peak reduction

• Integration of renewable energy

• Reduction of GHG emissions to 80% below 1990 levels by 2050

“This decision represents an important first step in encouraging

the storage market and supporting grid reliability,” Commissioner Carla J. Peterman, the lead Commissioner for this proceeding.

CALIFORNIA ENERGY STORAGE

1.3GW ENERGY STORAGE MANDATE IN CALIFORNIA

HYDROGEN ENERGY SYSTEMS

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REFERENCE PLANT

REFERENCE PLANT | GERMANY | UK | USA

A major barrier to entry has been overcome

• NRE has been invested

• Products have been standardised

• Compliance in UK | EU | USA

• Power-to-Gas and Refuelling Stations

HYDROGEN ENERGY SYSTEMS

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THÜGA GROUP

ENERGY

STORAGE

PROJECT

SCHEDULE

DOCUMENTATION

SIGN OFF

PROMOTION

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FIRST P2G SALE: THÜGA GROUP

Won competitive tender on cost, price & performance

• One of the world’s largest utility groupings

• 18,200 employees

• 5.7m customers (electricity, 3.6m, gas 2.1m)

• Sales of €21.3bn

• Plant to be located at Mainova AG in Frankfurt

ENERGY STORAGE | CLEAN FUEL

360KW POWER-TO-GAS MODULE

Source: Thüga-Gruppe

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• A challenging time frame

• Discussions April 2011

• Competitive tender process

• Order March 2013

• On site in September 2013

• CE marked by December 2013

• TUV permit by December 2013

• Hydrogen injection planned for 2013

THE SCHEDULE

THE SCHEDULE

HYDROGEN ENERGY SYSTEMS

Build

• Procurement

• Manufacture

• Control system design

CE Mark

• PED

• EMC

• Machinery

• ATEX

Commission

• Loop checks

• Acceptance

• Performance

Permit

• Documentation

• Audit

• Certificate

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• Technical file runs to 5 boxes

• Compliance Documentation

• Datasheets: Equipment

• Datasheets: Valves

• Datasheets: Instrumentation

• Datasheets: Electrical control equipment

• Control & Electrical document I02201- DDI-001

THE DOCUMENTATION

THE DOCUMENTATION

HYDROGEN ENERGY SYSTEMS

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LOAD FOLLOWING

PERFORMANCE

HYDROGEN ENERGY SYSTEMS

Rapid response Electrolysis

• Set Point v’s Actual (blue)

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P2G PLANT & VISITOR CENTRE

ENERGY STORAGE | CLEAN FUEL

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UK REFUELLING STATIONS

UK REFUELLING STATIONS

EcoIsland (TSB)

1x80kg | 1x15kg

£1.5m

HyFive (EU)

3x80kg

€3.0m

OLEV £11m Call

6x80kg

Tender

H2Mobility

65x80kg

Tender

H2Mobility

1,000 Stations

Tender

Development of a UK Infrastructure Business

• Grant funded Capex and Opex

• Maintenance contract with each award

• OLEV £11m announced | OLEV £60m call in early 2015

HYDROGEN ENERGY SYSTEMS

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Hydrogen Energy Storage Smart Grid

• £2.4m TSB consortium grant

• Installation of 80kg/day & 15kg/day refuellers

• Sites in Sheffield & IoW

• Fleet of 20 vehicles (HICE and FC)

• Hydrogen energy storage system

• Balancing supply and demand

ENERGY STORAGE | CLEAN FUEL

UK INFRASTRUCTURE ROLL-OUT

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CALIFORNIA REFUELLING STATIONS

CALIFORNIA REFUELLING STATIONS

2013 PON

Hyundai Chino

Won $1.3m

2014 PON

Riverside

Won $2.1m Bid

2015 PON

10x100kg

Tender

8 More PON’s

80x100kg

Annual Tender

California Hydrogen Infrastructure Deployment

• Fund of $200m for 100 hydrogen stations with up to $20m a year for 10yrs

• 2012: ITM Power Inc. established in California

• 2013: ITM Power Inc. wins H2 station award with 2 North American partners at Hyundai, Chino

• 2014: ITM Power Inc. wins H2 station award with 2 North American partners at the City of Riverside

HYDROGEN ENERGY SYSTEMS

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CALIFORNIA REFUELLING STATIONS

ENERGY STORAGE | CLEAN FUEL

FIRST STATION LED BY H2FRONTIER

100% Renewable

• Located at Hyundai, Chino, LA

• Sale worth $1.4m

• Operational in 2015

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CALIFORNIA REFUELLING STATIONS

ENERGY STORAGE | CLEAN FUEL

RIVERSIDE LED BY ITM POWER

33% Renewable & Expandable

• Located at Riverside CA

• Existing alternative fuels

• Grant worth $2.125m

• Operational in October 2015

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Summary:

• Renewable power needs energy storage

• Power-to-Gas is at the required scale

• Power-to-Gas energy storage provides renewable heat

• Fuel cell cars have arrived – look outside

• Fuel cell cars need clean fuel

• Strong developing pipeline of commercial sales and funded projects

HYDROGEN ENERGY STORAGE: CLEAN FUEL &

RENEWABLE HEAT FUTUREBUILD, SHEFFIELD CITY HALL | NOVEMBER 2014

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HYDROGEN ENERGY STORAGE: CLEAN FUEL &

RENEWABLE HEAT FUTUREBUILD, SHEFFIELD CITY HALL | NOVEMBER 2014