IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v327y2022ics0306261922012727.html
   My bibliography  Save this article

Smart power-to-gas deployment strategies informed by spatially explicit cost and value models

Author

Listed:
  • Gupta, Ruchi
  • Rüdisüli, Martin
  • Patel, Martin Kumar
  • Parra, David

Abstract

Green hydrogen allows coupling renewable electricity to hard-to-decarbonize sectors, such as long-distance transport and carbon-intensive industries, in order to achieve net zero emissions. Evaluating the cost and value of power-to-gas is a major challenge, owing to the spatial distribution and temporal variability of renewable electricity, CO2 and energy demand. Here, we propose a method, based on geographic information system (GIS) and techno-economic modeling, to: (i) compare the levelized cost and levelized value of power-to-gas across locations; (ii) identify potential hotspots for their future implementation in Switzerland; and (iii) set cost improvement targets as well as smart deployment strategies. Our method accounts for the spatial and temporal (both hourly and seasonal) availability of renewable electricity and CO2 sources, as well as the presence of gas infrastructure, heating networks, oxygen and gas demand centers. We find that only green hydrogen plants connected directly to run-of-river hydropower plants are currently profitable in Switzerland (with NPV per CAPEX ranging between 2.3-5.6). However, considering technological progress by 2050, a few green hydrogen plants deployed in the demand centers and powered by rooftop PV electricity will also become economically attractive. Moreover, a few synthetic methane plants connected to run-of-river hydropower plants currently show slight profitability (NPV per CAPEX reaching values up to 1.3) and in 2050 (NPV per CAPEX up to 3.1), whereas those connected to rooftop PV will remain uneconomical even in 2050. Based on our findings, we devise a long-term roadmap for policy makers and project developers to plan future green hydrogen projects. The proposed methodology, which is applied to Switzerland, can be extended to other countries.

Suggested Citation

  • Gupta, Ruchi & Rüdisüli, Martin & Patel, Martin Kumar & Parra, David, 2022. "Smart power-to-gas deployment strategies informed by spatially explicit cost and value models," Applied Energy, Elsevier, vol. 327(C).
    • Handle: RePEc:eee:appene:v:327:y:2022:i:c:s0306261922012727
    DOI: 10.1016/j.apenergy.2022.120015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922012727
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.120015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kato, Takeyoshi & Kubota, Mitsuhiro & Kobayashi, Noriyuki & Suzuoki, Yasuo, 2005. "Effective utilization of by-product oxygen from electrolysis hydrogen production," Energy, Elsevier, vol. 30(14), pages 2580-2595.
    2. Pfenninger, Stefan, 2017. "Dealing with multiple decades of hourly wind and PV time series in energy models: A comparison of methods to reduce time resolution and the planning implications of inter-annual variability," Applied Energy, Elsevier, vol. 197(C), pages 1-13.
    3. Chambers, Jonathan & Narula, Kapil & Sulzer, Matthias & Patel, Martin K., 2019. "Mapping district heating potential under evolving thermal demand scenarios and technologies: A case study for Switzerland," Energy, Elsevier, vol. 176(C), pages 682-692.
    4. de Boer, Harmen Sytze & Grond, Lukas & Moll, Henk & Benders, René, 2014. "The application of power-to-gas, pumped hydro storage and compressed air energy storage in an electricity system at different wind power penetration levels," Energy, Elsevier, vol. 72(C), pages 360-370.
    5. Nematollahi, Omid & Alamdari, Pouria & Jahangiri, Mehdi & Sedaghat, Ahmad & Alemrajabi, Ali Akbar, 2019. "A techno-economical assessment of solar/wind resources and hydrogen production: A case study with GIS maps," Energy, Elsevier, vol. 175(C), pages 914-930.
    6. van Leeuwen, Charlotte & Mulder, Machiel, 2018. "Power-to-gas in electricity markets dominated by renewables," Applied Energy, Elsevier, vol. 232(C), pages 258-272.
    7. Gorre, Jachin & Ortloff, Felix & van Leeuwen, Charlotte, 2019. "Production costs for synthetic methane in 2030 and 2050 of an optimized Power-to-Gas plant with intermediate hydrogen storage," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    8. Nechache, Aziz & Hody, Stéphane, 2021. "Alternative and innovative solid oxide electrolysis cell materials: A short review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    9. Xiong, Bobby & Predel, Johannes & Crespo del Granado, Pedro & Egging-Bratseth, Ruud, 2021. "Spatial flexibility in redispatch: Supporting low carbon energy systems with Power-to-Gas," Applied Energy, Elsevier, vol. 283(C).
    10. Rinaldi, Arthur & Soini, Martin Christoph & Streicher, Kai & Patel, Martin K. & Parra, David, 2021. "Decarbonising heat with optimal PV and storage investments: A detailed sector coupling modelling framework with flexible heat pump operation," Applied Energy, Elsevier, vol. 282(PB).
    11. Götz, Manuel & Lefebvre, Jonathan & Mörs, Friedemann & McDaniel Koch, Amy & Graf, Frank & Bajohr, Siegfried & Reimert, Rainer & Kolb, Thomas, 2016. "Renewable Power-to-Gas: A technological and economic review," Renewable Energy, Elsevier, vol. 85(C), pages 1371-1390.
    12. Al-Qahtani, Amjad & Parkinson, Brett & Hellgardt, Klaus & Shah, Nilay & Guillen-Gosalbez, Gonzalo, 2021. "Uncovering the true cost of hydrogen production routes using life cycle monetisation," Applied Energy, Elsevier, vol. 281(C).
    13. Varone, Alberto & Ferrari, Michele, 2015. "Power to liquid and power to gas: An option for the German Energiewende," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 207-218.
    14. Parra, David & Zhang, Xiaojin & Bauer, Christian & Patel, Martin K., 2017. "An integrated techno-economic and life cycle environmental assessment of power-to-gas systems," Applied Energy, Elsevier, vol. 193(C), pages 440-454.
    15. Soini, Martin Christoph & Parra, David & Patel, Martin Kumar, 2020. "Does bulk electricity storage assist wind and solar in replacing dispatchable power production?," Energy Economics, Elsevier, vol. 85(C).
    16. Shanshan Gu & Guangrong Xi & Lingyu Ge & Zhong Yang & Yizhi Wang & Weina Chen & Zhenzhong Yu & Jing Na, 2021. "Compressed Sensing for THz FMCW Radar 3D Imaging," Complexity, Hindawi, vol. 2021, pages 1-10, August.
    17. Zhang, Xiaojin & Bauer, Christian & Mutel, Christopher L. & Volkart, Kathrin, 2017. "Life Cycle Assessment of Power-to-Gas: Approaches, system variations and their environmental implications," Applied Energy, Elsevier, vol. 190(C), pages 326-338.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Müller, Leander A. & Leonard, Alycia & Trotter, Philipp A. & Hirmer, Stephanie, 2023. "Green hydrogen production and use in low- and middle-income countries: A least-cost geospatial modelling approach applied to Kenya," Applied Energy, Elsevier, vol. 343(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McDonagh, Shane & Deane, Paul & Rajendran, Karthik & Murphy, Jerry D., 2019. "Are electrofuels a sustainable transport fuel? Analysis of the effect of controls on carbon, curtailment, and cost of hydrogen," Applied Energy, Elsevier, vol. 247(C), pages 716-730.
    2. Fózer, Dániel & Volanti, Mirco & Passarini, Fabrizio & Varbanov, Petar Sabev & Klemeš, Jiří Jaromír & Mizsey, Péter, 2020. "Bioenergy with carbon emissions capture and utilisation towards GHG neutrality: Power-to-Gas storage via hydrothermal gasification," Applied Energy, Elsevier, vol. 280(C).
    3. Qi, Meng & Park, Jinwoo & Landon, Robert Stephen & Kim, Jeongdong & Liu, Yi & Moon, Il, 2022. "Continuous and flexible Renewable-Power-to-Methane via liquid CO2 energy storage: Revisiting the techno-economic potential," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    4. Blanco, Herib & Faaij, André, 2018. "A review at the role of storage in energy systems with a focus on Power to Gas and long-term storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1049-1086.
    5. Eveloy, Valerie, 2019. "Hybridization of solid oxide electrolysis-based power-to-methane with oxyfuel combustion and carbon dioxide utilization for energy storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 550-571.
    6. Kolb, Sebastian & Plankenbühler, Thomas & Frank, Jonas & Dettelbacher, Johannes & Ludwig, Ralf & Karl, Jürgen & Dillig, Marius, 2021. "Scenarios for the integration of renewable gases into the German natural gas market – A simulation-based optimisation approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    7. Bedoić, Robert & Dorotić, Hrvoje & Schneider, Daniel Rolph & Čuček, Lidija & Ćosić, Boris & Pukšec, Tomislav & Duić, Neven, 2021. "Synergy between feedstock gate fee and power-to-gas: An energy and economic analysis of renewable methane production in a biogas plant," Renewable Energy, Elsevier, vol. 173(C), pages 12-23.
    8. Lewandowska-Bernat, Anna & Desideri, Umberto, 2018. "Opportunities of power-to-gas technology in different energy systems architectures," Applied Energy, Elsevier, vol. 228(C), pages 57-67.
    9. Abdon, Andreas & Zhang, Xiaojin & Parra, David & Patel, Martin K. & Bauer, Christian & Worlitschek, Jörg, 2017. "Techno-economic and environmental assessment of stationary electricity storage technologies for different time scales," Energy, Elsevier, vol. 139(C), pages 1173-1187.
    10. Kouchachvili, Lia & Entchev, Evgueniy, 2018. "Power to gas and H2/NG blend in SMART energy networks concept," Renewable Energy, Elsevier, vol. 125(C), pages 456-464.
    11. Hermesmann, M. & Grübel, K. & Scherotzki, L. & Müller, T.E., 2021. "Promising pathways: The geographic and energetic potential of power-to-x technologies based on regeneratively obtained hydrogen," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    12. Brynolf, Selma & Taljegard, Maria & Grahn, Maria & Hansson, Julia, 2018. "Electrofuels for the transport sector: A review of production costs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1887-1905.
    13. Strübing, Dietmar & Moeller, Andreas B. & Mößnang, Bettina & Lebuhn, Michael & Drewes, Jörg E. & Koch, Konrad, 2018. "Anaerobic thermophilic trickle bed reactor as a promising technology for flexible and demand-oriented H2/CO2 biomethanation," Applied Energy, Elsevier, vol. 232(C), pages 543-554.
    14. Larscheid, Patrick & Lück, Lara & Moser, Albert, 2018. "Potential of new business models for grid integrated water electrolysis," Renewable Energy, Elsevier, vol. 125(C), pages 599-608.
    15. Ju, Liwei & Zhao, Rui & Tan, Qinliang & Lu, Yan & Tan, Qingkun & Wang, Wei, 2019. "A multi-objective robust scheduling model and solution algorithm for a novel virtual power plant connected with power-to-gas and gas storage tank considering uncertainty and demand response," Applied Energy, Elsevier, vol. 250(C), pages 1336-1355.
    16. Gábor Pörzse & Zoltán Csedő & Máté Zavarkó, 2021. "Disruption Potential Assessment of the Power-to-Methane Technology," Energies, MDPI, vol. 14(8), pages 1-21, April.
    17. Eveloy, Valerie & Gebreegziabher, Tesfaldet, 2019. "Excess electricity and power-to-gas storage potential in the future renewable-based power generation sector in the United Arab Emirates," Energy, Elsevier, vol. 166(C), pages 426-450.
    18. Tschiggerl, Karin & Sledz, Christian & Topic, Milan, 2018. "Considering environmental impacts of energy storage technologies: A life cycle assessment of power-to-gas business models," Energy, Elsevier, vol. 160(C), pages 1091-1100.
    19. Robert Bauer & Dominik Schopf & Grégoire Klaus & Raimund Brotsack & Javier Valdes, 2022. "Energy Cell Simulation for Sector Coupling with Power-to-Methane: A Case Study in Lower Bavaria," Energies, MDPI, vol. 15(7), pages 1-22, April.
    20. Yoshida, Akira & Nakazawa, Hiroto & Kenmotsu, Naoki & Amano, Yoshiharu, 2022. "Economic analysis of a proton exchange membrane electrolyser cell for hydrogen supply scenarios in Japan," Energy, Elsevier, vol. 251(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:327:y:2022:i:c:s0306261922012727. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.