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Power-to-X in energy hubs: A Danish case study of renewable fuel production

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  • Kountouris, Ioannis
  • Langer, Lissy
  • Bramstoft, Rasmus
  • Münster, Marie
  • Keles, Dogan

Abstract

The European Commission recently proposed requirements for the production of renewable fuels as these are required to decarbonize the hard-to-electrify parts of the industrial and heavy transport sectors. Power-to-X (P2X) energy hubs enable efficient synergies between energy infrastructures, production facilities, and storage options. In this study, we explore the optimal operation of an energy hub by leveraging the flexibility of P2X, including hydrogen, methanol, and ammonia synthesizers by analyzing potential revenue streams such as the day-ahead and ancillary services markets. We propose EnerHub2X, a mixed-integer linear program that maximizes the hub’s profit based on current market prices, considering the technical constraints of P2X, such as unit commitment and non-linear efficiencies. We investigate a representative Danish energy hub and find that without price incentives, it mainly sells renewable electricity and produces compressed hydrogen. A sufficient amount of renewable ammonia and methanol is only produced by adding a price premium of about 50% (0.16 €/kg) to the conventional fuel prices. To utilize production efficiently, on-site renewable energy sources and P2X must be carefully aligned. We show that renewable power purchase agreements can provide flexibility while complying with the rules set by the European Commission.

Suggested Citation

  • Kountouris, Ioannis & Langer, Lissy & Bramstoft, Rasmus & Münster, Marie & Keles, Dogan, 2023. "Power-to-X in energy hubs: A Danish case study of renewable fuel production," Energy Policy, Elsevier, vol. 175(C).
    • Handle: RePEc:eee:enepol:v:175:y:2023:i:c:s0301421523000241
    DOI: 10.1016/j.enpol.2023.113439
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    References listed on IDEAS

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    Cited by:

    1. Alberto Alamia & Behzad Partoon & Eoghan Rattigan & Gorm Brunn Andresen, 2024. "Optimizing hydrogen and e-methanol production through Power-to-X integration in biogas plants," Papers 2406.00442, arXiv.org.
    2. Andrea Dumančić & Nela Vlahinić & Minea Skok, 2024. "Replacing Gray Hydrogen with Renewable Hydrogen at the Consumption Location Using the Example of the Existing Fertilizer Plant," Sustainability, MDPI, vol. 16(15), pages 1-33, July.
    3. Sayed-Ahmed, H. & Toldy, Á.I. & Santasalo-Aarnio, A., 2024. "Dynamic operation of proton exchange membrane electrolyzers—Critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    4. Rosendal, Mathias Berg & Münster, Marie & Bramstoft, Rasmus, 2024. "Renewable fuel production and the impact of hydrogen infrastructure — A case study of the Nordics," Energy, Elsevier, vol. 297(C).

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