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POWER-TO-GAS: STORING RENEWABLE ENERGY IN THE GAS GRID 31 ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING

Power-to-Gas Storing Renewable Energy in the Gas Grid

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Energy storage provision has started to become a mandatory requirement in areas of the world, it is recognised as essential prerequisite for renewable energy deployment Grid balancing and rapid response demand-side services are crucial for the integration of high proportions of renewable energy supply on the electricity grid.

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Page 2: Power-to-Gas Storing Renewable Energy in the Gas Grid

POWER-TO-GAS: STORING RENEWABLE ENERGY IN THE GAS GRID 31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING

Contents:

• Introduction to ITM Power • The Need for Energy Storage • Power-to-Gas Energy Storage • Thüga P2G Energy Storage Project • Summary

Page 3: Power-to-Gas Storing Renewable Energy in the Gas Grid

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

POWER-TO-GAS: STORING RENEWABLE ENERGY IN THE GAS GRID 31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING

Page 4: Power-to-Gas Storing Renewable Energy in the Gas Grid

INTRODUCTION

HYDROGEN ENERGY SYSTEMS FOR ENERGY STORAGE AND CLEAN FUEL PRODUCTION

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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

Page 7: Power-to-Gas Storing Renewable Energy in the Gas Grid

ENERGY STORAGE

THE NEED THE MARKET

Page 8: Power-to-Gas Storing Renewable Energy in the Gas Grid

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 and Denmark • Problems start at 20% capacity; UK hits this threshold by the end of 2013 • Energy Storage is a Market Pull

Source: ITM Power plc, data from BWEA

Page 9: Power-to-Gas Storing Renewable Energy in the Gas Grid

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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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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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

tion

win

d ou

tput

cur

taile

d

Hydr

ogen

frac

tion

(vol

%)

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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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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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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THÜGA ENERGY STORAGE PROJECT

SCHEDULE DOCUMENTATION SIGN OFF PROMOTION

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FIRST P2G SALE: THÜGA GROUP Won competitive tender on cost & price

• 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

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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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P2G PLANT & VISITOR CENTRE ENERGY STORAGE | CLEAN FUEL

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GERMAN GOVERNMENT BACKING ENERGY STORAGE | CLEAN FUEL

German Energy Agency’s Power to Gas Strategy Platform

• ITM invited to join • Official government grouping • Excellent consortium • Largest P2G grouping in Germany | Globally

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ENERGY STORAGE | CLEAN FUEL

POWER-TO-GAS IN THE UK

Power-to-Gas in the UK | Study Objectives:

• Funded by the TSB | Project number 130815 • Funded by the ‘Smart Power Distribution and Demand’ call • Opportunity analysis • Economic model • Compliance of gas injection • Potential locations in the UK for deployment • Website www.gridgas.co.uk

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GRIDGAS: PROJECT RECOMMENDATIONS LONDON, 24TH OCTOBER 2013

Recommendations to DECC: • Form a Power-to-Gas working group of stakeholders • Review the inclusion of hydrogen from electrolysis in the Renewable Heat Incentive • Initiate a consultation/call for evidence of injection of hydrogen into the UK gas grid • Initiate a consultation/call for evidence of P2G energy storage in the UK • Include Power-to-Gas in the 2050 pathways analysis • Agree the definition of "green hydrogen“ eg: recommended by TUV of 50gCO2/kWh

Recommendations to the HSE: • Review the current hydrogen limit of 0.1% • Standardise the procedure for exemptions under the current rules • Form a standards working group specifically looking at hydrogen in the gas grid • Identify requirements for adopting a much higher concentration in the 2020s

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POWER-TO-GAS: STORING RENEWABLE ENERGY IN THE GAS GRID 31ST MARCH 2014 | THE ROYAL ACADEMY OF ENGINEERING

Summary:

• Renewable power needs energy storage • Power-to-Gas is at the required scale • Power-to-gas energy storage provides renewable heat • A tariff structure comparable to Bio-Methane is being recommended in the UK and Germany