IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v265y2020ics0306261920303123.html
   My bibliography  Save this article

Optimisation of a hydrogen production – storage – re-powering system participating in electricity and transportation markets. A case study for Denmark

Author

Listed:
  • Apostolou, Dimitrios

Abstract

The power capacity of renewable energy sources is constantly increasing through the installation of new units, primarily comprising the most mature technologies such as wind and solar energy converters, as well as through the implementation of innovative technologies that are currently at an infant stage of development. The aim of this study was to investigate the prospects of implementing hydrogen technologies in the electricity network as an electricity production unit or/and utilise the produced hydrogen as transportation fuel. Three main scenarios were identified to be the most appropriate for this: (1) Support of the electrical grid via a fuel cell; (2) participation of a hydrogen production and fuel cell system in the electricity and transportation markets; and (3) participation in the transportation market. The results indicated that a fuel cell generator providing ancillary services is not economically viable in the investigated case study, while implementing a hydrogen production unit with a hydrogen fuel selling price between 4 and 114 €/kgH2, depending on the electrolyser’s power input, will yield positive results. For the third scenario, the hydrogen fuel price ranged between 3.6 and 15.0 €/kgH2. This research shows that hydrogen technologies can be used in the electricity and transportation markets from a technical point of view. However, from an economic point of view, a hydrogen system used only for a single application does not seem to be financially appealing. This suggests that reducing the investment cost and/or limiting operating costs is mandatory to support this type of investment.

Suggested Citation

  • Apostolou, Dimitrios, 2020. "Optimisation of a hydrogen production – storage – re-powering system participating in electricity and transportation markets. A case study for Denmark," Applied Energy, Elsevier, vol. 265(C).
    • Handle: RePEc:eee:appene:v:265:y:2020:i:c:s0306261920303123
    DOI: 10.1016/j.apenergy.2020.114800
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920303123
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.114800?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. Nagasawa, Kazunori & Davidson, F. Todd & Lloyd, Alan C. & Webber, Michael E., 2019. "Impacts of renewable hydrogen production from wind energy in electricity markets on potential hydrogen demand for light-duty vehicles," Applied Energy, Elsevier, vol. 235(C), pages 1001-1016.
    2. Apostolou, D. & Xydis, G., 2019. "A literature review on hydrogen refuelling stations and infrastructure. Current status and future prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    3. Chavan, Sudarshan L. & Talange, Dhananjay B., 2017. "Modeling and performance evaluation of PEM fuel cell by controlling its input parameters," Energy, Elsevier, vol. 138(C), pages 437-445.
    4. González, A. & McKeogh, E. & Gallachóir, B.Ó., 2004. "The role of hydrogen in high wind energy penetration electricity systems: The Irish case," Renewable Energy, Elsevier, vol. 29(4), pages 471-489.
    5. Child, Michael & Kemfert, Claudia & Bogdanov, Dmitrii & Breyer, Christian, 2019. "Flexible electricity generation, grid exchange and storage for the transition to a 100% renewable energy system in Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 139, pages 80-101.
    6. Rasmussen, Morten Grud & Andresen, Gorm Bruun & Greiner, Martin, 2012. "Storage and balancing synergies in a fully or highly renewable pan-European power system," Energy Policy, Elsevier, vol. 51(C), pages 642-651.
    7. Huang, Yu Wen & Kittner, Noah & Kammen, Daniel M., 2019. "ASEAN grid flexibility: Preparedness for grid integration of renewable energy," Energy Policy, Elsevier, vol. 128(C), pages 711-726.
    8. Xydis, George, 2013. "A techno-economic and spatial analysis for the optimal planning of wind energy in Kythira island, Greece," International Journal of Production Economics, Elsevier, vol. 146(2), pages 440-452.
    9. Idoia San Martín & Alfredo Ursúa & Pablo Sanchis, 2014. "Modelling of PEM Fuel Cell Performance: Steady-State and Dynamic Experimental Validation," Energies, MDPI, vol. 7(2), pages 1-31, February.
    10. Unger, Elizabeth A. & Ulfarsson, Gudmundur F. & Gardarsson, Sigurdur M. & Matthiasson, Thorolfur, 2018. "The effect of wind energy production on cross-border electricity pricing: The case of western Denmark in the Nord Pool market," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 121-130.
    11. Rodríguez, Rolando A. & Becker, Sarah & Andresen, Gorm B. & Heide, Dominik & Greiner, Martin, 2014. "Transmission needs across a fully renewable European power system," Renewable Energy, Elsevier, vol. 63(C), pages 467-476.
    12. Salgi, Georges & Donslund, Bjarne & Alberg Østergaard, Poul, 2008. "Energy system analysis of utilizing hydrogen as an energy carrier for wind power in the transportation sector in Western Denmark," Utilities Policy, Elsevier, vol. 16(2), pages 99-106, June.
    13. Schenk, Niels J. & Moll, Henri C. & Potting, José & Benders, René M.J., 2007. "Wind energy, electricity, and hydrogen in the Netherlands," Energy, Elsevier, vol. 32(10), pages 1960-1971.
    14. Brown, T. & Schlachtberger, D. & Kies, A. & Schramm, S. & Greiner, M., 2018. "Synergies of sector coupling and transmission reinforcement in a cost-optimised, highly renewable European energy system," Energy, Elsevier, vol. 160(C), pages 720-739.
    15. Al-Baghdadi, Maher A.R. Sadiq, 2005. "Modelling of proton exchange membrane fuel cell performance based on semi-empirical equations," Renewable Energy, Elsevier, vol. 30(10), pages 1587-1599.
    16. Apostolou, Dimitrios & Enevoldsen, Peter, 2019. "The past, present and potential of hydrogen as a multifunctional storage application for wind power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 917-929.
    17. Conlon, Terence & Waite, Michael & Modi, Vijay, 2019. "Assessing new transmission and energy storage in achieving increasing renewable generation targets in a regional grid," Applied Energy, Elsevier, vol. 250(C), pages 1085-1098.
    18. Becker, S. & Rodriguez, R.A. & Andresen, G.B. & Schramm, S. & Greiner, M., 2014. "Transmission grid extensions during the build-up of a fully renewable pan-European electricity supply," Energy, Elsevier, vol. 64(C), pages 404-418.
    19. Nikolaidis, Pavlos & Poullikkas, Andreas, 2017. "A comparative overview of hydrogen production processes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 597-611.
    20. Kavadias, K.A. & Apostolou, D. & Kaldellis, J.K., 2018. "Modelling and optimisation of a hydrogen-based energy storage system in an autonomous electrical network," Applied Energy, Elsevier, vol. 227(C), pages 574-586.
    21. Qadrdan, Meysam & Shayegan, Jalal, 2008. "Economic assessment of hydrogen fueling station, a case study for Iran," Renewable Energy, Elsevier, vol. 33(12), pages 2525-2531.
    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. Wu, Yunna & Liu, Fangtong & Wu, Junhao & He, Jiaming & Xu, Minjia & Zhou, Jianli, 2022. "Barrier identification and analysis framework to the development of offshore wind-to-hydrogen projects," Energy, Elsevier, vol. 239(PB).
    2. Song, Siming & Li, Tianxiao & Liu, Pei & Li, Zheng, 2022. "The transition pathway of energy supply systems towards carbon neutrality based on a multi-regional energy infrastructure planning approach: A case study of China," Energy, Elsevier, vol. 238(PC).
    3. Nicolai Lystbæk & Mikkel Gregersen & Hamid Reza Shaker, 2023. "Review of Energy Portfolio Optimization in Energy Markets Considering Flexibility of Power-to-X," Sustainability, MDPI, vol. 15(5), pages 1-17, March.
    4. Izadi, Ali & Shahafve, Masoomeh & Ahmadi, Pouria & Hanafizadeh, Pedram, 2023. "Design, and optimization of COVID-19 hospital wards to produce Oxygen and electricity through solar PV panels with hydrogen storage systems by neural network-genetic algorithm," Energy, Elsevier, vol. 263(PA).
    5. Gergo Varhegyi & Mutasim Nour, 2024. "Advancing Fast Frequency Response Ancillary Services in Renewable-Heavy Grids: A Global Review of Energy Storage-Based Solutions and Market Dynamics," Energies, MDPI, vol. 17(15), pages 1-29, July.
    6. Xiang, Yue & Cai, Hanhu & Liu, Junyong & Zhang, Xin, 2021. "Techno-economic design of energy systems for airport electrification: A hydrogen-solar-storage integrated microgrid solution," Applied Energy, Elsevier, vol. 283(C).
    7. Panah, Payam Ghaebi & Bornapour, Mosayeb & Hemmati, Reza & Guerrero, Josep M., 2021. "Charging station Stochastic Programming for Hydrogen/Battery Electric Buses using Multi-Criteria Crow Search Algorithm," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    8. Wang, Longze & Jiao, Shucen & Xie, Yu & Xia, Shiwei & Zhang, Delong & Zhang, Yan & Li, Meicheng, 2022. "Two-way dynamic pricing mechanism of hydrogen filling stations in electric-hydrogen coupling system enhanced by blockchain," Energy, Elsevier, vol. 239(PC).
    9. Frank Gambou & Damien Guilbert & Michel Zasadzinski & Hugues Rafaralahy, 2022. "A Comprehensive Survey of Alkaline Electrolyzer Modeling: Electrical Domain and Specific Electrolyte Conductivity," Energies, MDPI, vol. 15(9), pages 1-20, May.
    10. Leiming Wang & Wei Liu & Haipeng Sun & Li Yang & Liang Huang, 2024. "Advancements and Policy Implications of Green Hydrogen Production from Renewable Sources," Energies, MDPI, vol. 17(14), pages 1-14, July.

    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. Child, Michael & Kemfert, Claudia & Bogdanov, Dmitrii & Breyer, Christian, 2019. "Flexible electricity generation, grid exchange and storage for the transition to a 100% renewable energy system in Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 139, pages 80-101.
    2. Apostolou, Dimitrios & Enevoldsen, Peter, 2019. "The past, present and potential of hydrogen as a multifunctional storage application for wind power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 917-929.
    3. Hansen, Kenneth & Breyer, Christian & Lund, Henrik, 2019. "Status and perspectives on 100% renewable energy systems," Energy, Elsevier, vol. 175(C), pages 471-480.
    4. Grochowicz, Aleksander & Benth, Fred Espen & Zeyringer, Marianne, 2024. "Spatio-temporal smoothing and dynamics of different electricity flexibility options for highly renewable energy systems—Case study for Norway," Applied Energy, Elsevier, vol. 356(C).
    5. Gawlick, Julia & Hamacher, Thomas, 2023. "Impact of coupling the electricity and hydrogen sector in a zero-emission European energy system in 2050," Energy Policy, Elsevier, vol. 180(C).
    6. Rodriguez, Rolando A. & Becker, Sarah & Greiner, Martin, 2015. "Cost-optimal design of a simplified, highly renewable pan-European electricity system," Energy, Elsevier, vol. 83(C), pages 658-668.
    7. Chattopadhyay, Kabitri & Kies, Alexander & Lorenz, Elke & von Bremen, Lüder & Heinemann, Detlev, 2017. "The impact of different PV module configurations on storage and additional balancing needs for a fully renewable European power system," Renewable Energy, Elsevier, vol. 113(C), pages 176-189.
    8. Alexander Kies & Bruno U. Schyska & Lueder Von Bremen, 2016. "The Demand Side Management Potential to Balance a Highly Renewable European Power System," Energies, MDPI, vol. 9(11), pages 1-14, November.
    9. Mads Raunbak & Timo Zeyer & Kun Zhu & Martin Greiner, 2017. "Principal Mismatch Patterns Across a Simplified Highly Renewable European Electricity Network," Energies, MDPI, vol. 10(12), pages 1-13, November.
    10. Becker, Sarah & Frew, Bethany A. & Andresen, Gorm B. & Zeyer, Timo & Schramm, Stefan & Greiner, Martin & Jacobson, Mark Z., 2014. "Features of a fully renewable US electricity system: Optimized mixes of wind and solar PV and transmission grid extensions," Energy, Elsevier, vol. 72(C), pages 443-458.
    11. Scholz, Yvonne & Gils, Hans Christian & Pietzcker, Robert C., 2017. "Application of a high-detail energy system model to derive power sector characteristics at high wind and solar shares," Energy Economics, Elsevier, vol. 64(C), pages 568-582.
    12. Tom Brown & Mirko Schäfer & Martin Greiner, 2019. "Sectoral Interactions as Carbon Dioxide Emissions Approach Zero in a Highly-Renewable European Energy System," Energies, MDPI, vol. 12(6), pages 1-16, March.
    13. Ashfaq, Asad & Ianakiev, Anton, 2018. "Features of fully integrated renewable energy atlas for Pakistan; wind, solar and cooling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 14-27.
    14. Jafari, Mehdi & Botterud, Audun & Sakti, Apurba, 2022. "Decarbonizing power systems: A critical review of the role of energy storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    15. Javier L'opez Prol & Wolf-Peter Schill, 2020. "The Economics of Variable Renewables and Electricity Storage," Papers 2012.15371, arXiv.org.
    16. Dahl, Magnus & Brun, Adam & Andresen, Gorm B., 2017. "Decision rules for economic summer-shutdown of production units in large district heating systems," Applied Energy, Elsevier, vol. 208(C), pages 1128-1138.
    17. Genovese, Matteo & Fragiacomo, Petronilla, 2021. "Parametric technical-economic investigation of a pressurized hydrogen electrolyzer unit coupled with a storage compression system," Renewable Energy, Elsevier, vol. 180(C), pages 502-515.
    18. Andresen, Gorm B. & Rodriguez, Rolando A. & Becker, Sarah & Greiner, Martin, 2014. "The potential for arbitrage of wind and solar surplus power in Denmark," Energy, Elsevier, vol. 76(C), pages 49-58.
    19. Andreas Coester & Marjan Hofkes & Elissaios Papyrakis, "undated". "Cross-border Electricity Transfers in the case of differentiated Renewable Energy Sources: A Simulation Analysis for Germany and Spain," Tinbergen Institute Discussion Papers 22-043/VIII, Tinbergen Institute.
    20. Lopez, Gabriel & Aghahosseini, Arman & Child, Michael & Khalili, Siavash & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2022. "Impacts of model structure, framework, and flexibility on perspectives of 100% renewable energy transition decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(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:265:y:2020:i:c:s0306261920303123. 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.