IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v70y2018icp125-138.html
   My bibliography  Save this article

Flexible operation of electrolyser at the garage forecourt to support grid balancing and exploitation of hydrogen as a clean fuel

Author

Listed:
  • Rahil, Abdulla
  • Gammon, Rupert
  • Brown, Neil

Abstract

Rapid growth in the generation of renewable energy (RE) and its integration with electricity grids has been driven by concerns about both the climate impacts and the depletion of fossil fuels. Moreover, these concerns have prompted the need to develop alternatives to hydrocarbon fuels, leading to the expectation that fuel cell vehicle numbers will similarly increase. However, the variable and intermittent output of RE generators significantly affects the capability for electricity networks to balance supply and demand, although this may be addressed through energy storage and demand-side response (DSR) technologies. One potential DSR technique that can be implemented at industrial scale is water electrolysis, which is used for hydrogen production. When electrolyser operation is modulated, for example, to respond to the variable output of wind and solar power sources, it can be exploited as a dispatchable demand load. Naturally, this would need to be incentivized by electricity tariff structures that reflect the dynamics of RE availability. This paper aims to compare the economics of continuous and dispatchable electrolyser operation for producing affordable hydrogen at garage forecourts in Libya, while ensuring no interruption in the fuel supply to vehicles. Using the coastal city of Derna as a case study, with renewable energy generated by a wind farm, a suitable turbine specification and the number of turbines needed to meet demand was determined through an analysis of wind speeds. The constantly varying difference between RE power supply and electricity demand on the grinded the surplus power at any given time. Using a linear programming algorithm to optimize the hydrogen cost, based on the current price of electricity, this study examines a hydrogen refuelling station in both dispatchable and continuous operation. As the capital cost is already known, the optimisation focuses on the variable cost in order to reduce the price of hydrogen, which means using the cheaper of two electricity tariffs. Three scenarios were considered to evaluate whether the cost of electrolytic hydrogen could be reduced through using lower-cost off-peak electricity supplies:1- Standard Continuous, in which the electrolyser operates continuously on a standard tariff of $16/kWh.2- Off-peak Only, in which the electrolyser operates only during off-peak periods at the lower price of $7/kWh.3- 2-Tier Continuous, in which the electrolyser operates continuously on a low tariff at off-peak times and a high tariff at other times.

Suggested Citation

  • Rahil, Abdulla & Gammon, Rupert & Brown, Neil, 2018. "Flexible operation of electrolyser at the garage forecourt to support grid balancing and exploitation of hydrogen as a clean fuel," Research in Transportation Economics, Elsevier, vol. 70(C), pages 125-138.
    • Handle: RePEc:eee:retrec:v:70:y:2018:i:c:p:125-138
    DOI: 10.1016/j.retrec.2017.12.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885916302268
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2017.12.001?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. Abdulla Rahil & Rupert Gammon, 2017. "Dispatchable Hydrogen Production at the Forecourt for Electricity Demand Shaping," Sustainability, MDPI, vol. 9(10), pages 1-22, October.
    2. 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.
    3. Yang, Christopher & Ogden, Joan M, 2007. "Determining the lowest-cost hydrogen delivery mode," Institute of Transportation Studies, Working Paper Series qt7p3500g2, Institute of Transportation Studies, UC Davis.
    4. El-Osta, W & Kalifa, Y, 2003. "Prospects of wind power plants in Libya: a case study," Renewable Energy, Elsevier, vol. 28(3), pages 363-371.
    5. Mansilla, C. & Louyrette, J. & Albou, S. & Bourasseau, C. & Dautremont, S., 2013. "Economic competitiveness of off-peak hydrogen production today – A European comparison," Energy, Elsevier, vol. 55(C), pages 996-1001.
    6. Caumon, Pauline & Lopez-Botet Zulueta, Miguel & Louyrette, Jérémy & Albou, Sandrine & Bourasseau, Cyril & Mansilla, Christine, 2015. "Flexible hydrogen production implementation in the French power system: Expected impacts at the French and European levels," Energy, Elsevier, vol. 81(C), pages 556-562.
    7. Yang, Christopher & Ogden, Joan M, 2007. "Determining the lowest-cost hydrogen delivery mode," Institute of Transportation Studies, Working Paper Series qt1804p4vw, Institute of Transportation Studies, UC Davis.
    8. Pelaez-Samaniego, Manuel Raul & Riveros-Godoy, Gustavo & Torres-Contreras, Santiago & Garcia-Perez, Tsai & Albornoz-Vintimilla, Esteban, 2014. "Production and use of electrolytic hydrogen in Ecuador towards a low carbon economy," Energy, Elsevier, vol. 64(C), pages 626-631.
    9. Sharma, Sunita & Ghoshal, Sib Krishna, 2015. "Hydrogen the future transportation fuel: From production to applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1151-1158.
    10. Menanteau, P. & Quéméré, M.M. & Le Duigou, A. & Le Bastard, S., 2011. "An economic analysis of the production of hydrogen from wind-generated electricity for use in transport applications," Energy Policy, Elsevier, vol. 39(5), pages 2957-2965, May.
    11. Mohamed, Ahmed M.A. & Al-Habaibeh, Amin & Abdo, Hafez, 2013. "An investigation into the current utilisation and prospective of renewable energy resources and technologies in Libya," Renewable Energy, Elsevier, vol. 50(C), pages 732-740.
    12. El-Osta, W. & Zeghlam, J., 2000. "Hydrogen as a fuel for the transportation sector: possibilities and views for future applications in Libya," Applied Energy, Elsevier, vol. 65(1-4), pages 165-171, April.
    13. dos Santos, Kenia Gabriela & Eckert, Caroline Thaís & De Rossi, Eduardo & Bariccatti, Reinaldo Aparecido & Frigo, Elisandro Pires & Lindino, Cleber Antonio & Alves, Helton José, 2017. "Hydrogen production in the electrolysis of water in Brazil, a review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 563-571.
    14. Nikolaidis, Pavlos & Poullikkas, Andreas, 2017. "A comparative overview of hydrogen production processes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 597-611.
    15. Olateju, Babatunde & Kumar, Amit, 2011. "Hydrogen production from wind energy in Western Canada for upgrading bitumen from oil sands," Energy, Elsevier, vol. 36(11), pages 6326-6339.
    16. Johansson, Daniella & Franck, Per-Åke & Berntsson, Thore, 2012. "Hydrogen production from biomass gasification in the oil refining industry – A system analysis," Energy, Elsevier, vol. 38(1), pages 212-227.
    Full references (including those not matched with items on IDEAS)

    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. Abdulla Rahil & Rupert Gammon, 2017. "Dispatchable Hydrogen Production at the Forecourt for Electricity Demand Shaping," Sustainability, MDPI, vol. 9(10), pages 1-22, October.
    2. Olateju, Babatunde & Kumar, Amit, 2016. "A techno-economic assessment of hydrogen production from hydropower in Western Canada for the upgrading of bitumen from oil sands," Energy, Elsevier, vol. 115(P1), pages 604-614.
    3. Aasadnia, Majid & Mehrpooya, Mehdi, 2018. "Large-scale liquid hydrogen production methods and approaches: A review," Applied Energy, Elsevier, vol. 212(C), pages 57-83.
    4. Olateju, Babatunde & Monds, Joshua & Kumar, Amit, 2014. "Large scale hydrogen production from wind energy for the upgrading of bitumen from oil sands," Applied Energy, Elsevier, vol. 118(C), pages 48-56.
    5. Olfa Tlili & Christine Mansilla & Jochen Linβen & Markus Reuss & Thomas Grube & Martin Robinius & Jean André & Yannick Perez & Alain Le Duigou & Detlef Stolten, 2020. "Geospatial modelling of the hydrogen infrastructure in France in order to identify the most suited supply chains," Post-Print hal-02421359, HAL.
    6. Olateju, Babatunde & Kumar, Amit, 2013. "Techno-economic assessment of hydrogen production from underground coal gasification (UCG) in Western Canada with carbon capture and sequestration (CCS) for upgrading bitumen from oil sands," Applied Energy, Elsevier, vol. 111(C), pages 428-440.
    7. Olateju, Babatunde & Kumar, Amit, 2011. "Hydrogen production from wind energy in Western Canada for upgrading bitumen from oil sands," Energy, Elsevier, vol. 36(11), pages 6326-6339.
    8. Razzaqul Ahshan, 2021. "Potential and Economic Analysis of Solar-to-Hydrogen Production in the Sultanate of Oman," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    9. Giuseppe Sdanghi & Gaël Maranzana & Alain Celzard & Vanessa Fierro, 2020. "Towards Non-Mechanical Hybrid Hydrogen Compression for Decentralized Hydrogen Facilities," Energies, MDPI, vol. 13(12), pages 1-27, June.
    10. Verma, Aman & Olateju, Babatunde & Kumar, Amit, 2015. "Greenhouse gas abatement costs of hydrogen production from underground coal gasification," Energy, Elsevier, vol. 85(C), pages 556-568.
    11. van Leeuwen, Charlotte & Mulder, Machiel, 2018. "Power-to-gas in electricity markets dominated by renewables," Applied Energy, Elsevier, vol. 232(C), pages 258-272.
    12. Campíñez-Romero, Severo & Colmenar-Santos, Antonio & Pérez-Molina, Clara & Mur-Pérez, Francisco, 2018. "A hydrogen refuelling stations infrastructure deployment for cities supported on fuel cell taxi roll-out," Energy, Elsevier, vol. 148(C), pages 1018-1031.
    13. Gordon, Joel A. & Balta-Ozkan, Nazmiye & Nabavi, Seyed Ali, 2023. "Socio-technical barriers to domestic hydrogen futures: Repurposing pipelines, policies, and public perceptions," Applied Energy, Elsevier, vol. 336(C).
    14. Davis, M. & Okunlola, A. & Di Lullo, G. & Giwa, T. & Kumar, A., 2023. "Greenhouse gas reduction potential and cost-effectiveness of economy-wide hydrogen-natural gas blending for energy end uses," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    15. Almaktar, Mohamed & Shaaban, Mohamed, 2021. "Prospects of renewable energy as a non-rivalry energy alternative in Libya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    16. Leonardo Vidas & Rui Castro & Armando Pires, 2022. "A Review of the Impact of Hydrogen Integration in Natural Gas Distribution Networks and Electric Smart Grids," Energies, MDPI, vol. 15(9), pages 1-23, April.
    17. Yáñez, María & Ortiz, Alfredo & Brunaud, Braulio & Grossmann, Ignacio E. & Ortiz, Inmaculada, 2018. "Contribution of upcycling surplus hydrogen to design a sustainable supply chain: The case study of Northern Spain," Applied Energy, Elsevier, vol. 231(C), pages 777-787.
    18. Caumon, Pauline & Lopez-Botet Zulueta, Miguel & Louyrette, Jérémy & Albou, Sandrine & Bourasseau, Cyril & Mansilla, Christine, 2015. "Flexible hydrogen production implementation in the French power system: Expected impacts at the French and European levels," Energy, Elsevier, vol. 81(C), pages 556-562.
    19. Steven Jackson & Eivind Brodal, 2021. "Optimization of a Mixed Refrigerant Based H 2 Liquefaction Pre-Cooling Process and Estimate of Liquefaction Performance with Varying Ambient Temperature," Energies, MDPI, vol. 14(19), pages 1-18, September.
    20. Haider, Minza & Davis, Matthew & Kumar, Amit, 2024. "Development of a framework to assess the greenhouse gas mitigation potential from the adoption of low-carbon road vehicles in a hydrocarbon-rich region," Applied Energy, Elsevier, vol. 358(C).

    More about this item

    Keywords

    Hydrogen refuelling station; Renewable energy; Demand-side response; Electrolyser; Tariff structures;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    Statistics

    Access and download statistics

    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:retrec:v:70:y:2018:i:c:p:125-138. 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/620614/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.