Electrolysis and chemical synthesis – Linking energy system ...Page 3 November 2014 Alexander Tremel, Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Evaluation

Unrestricted © Siemens AG 2014. All rights reserved

Siemens Corporate Technology | November 7th 2014

Electrolysis and chemical synthesis –Linking energy system and chemical industry

Alexander Tremel, Principal Key Expert, Power & Energy Technologies

GeCatS-Infotag: Synergien zwischen Chemie- und Energieproduktion

Unrestricted © Siemens AG 2014. All rights reservedPage 2 November 2014 Alexander Tremel, Corporate Technology

Solutions for a sustainable, reliable and cost-effective supply of power and energy

Siemens Corporate Technology: The Technology Field Power & Energy Technologies

R&D regarding Power-to-X

Power-to-gas (H2): electrolysis

Power-to-product: chemical synthesis

Power-to-heat: high temperature heat pump

• Head: Prof. Rolf Hellinger• Locations (Headquarters: Erlangen, Germany):

• Focus Areas:

Power & Energy Technologies (CT RTC PET)

Energy & Industrial Processes


Evaluation of chemical products for the valorization of hydrogen

Requirements to and role of electrolysis systems

Energy systems - today and future development

Agenda


Renewable electricity sources require a higher installed capacity and overproduction becomes likely

Installed capacity and power generation in Germany (2010 vs. 2013)

Coal

Lignite Solar PV

Hydro

Natural gasNuclear

Others

Wind

Biomass

Waste

2010 2013 2010 2013

700

600

0

500

100

200

300

400

200

180

160

140

120

100

80

60

40

20

0

166 GW 189 GW 633 TWh 634 TWh

20

27

18

17

26

21

28

21

35

18

36

12

28

27146

35

141

3812

89

117

162

5333

30

97

65

124

45

65

1

1936

20428

Source: BMWi – Zahlen und Fakten, www.bmwi.de, 8. August 2014

Power generation [TWh]Installed capacity [GW]


The share of renewable power generation is continuously increasing in Germany

Power generation from renewable sources in Germany [TWh]

Source: Erneuerbare Energien im Jahr 2013. BMWi, Berlin vom 28. Februar 2014Burger, B., Stromerzeugung aus Solar- und Windenergie im Jahr 2014, Fraunhofer ISE

+ 2 TWh/year + 7 TWh/year + 16 TWh/year

2014: +10.5 TWh(Januar-July)


Future development of renewable electricity production in Germany

Source: Zukünftiger Ausbau erneuerbarer Energien. FÖS, Berlin im Dezember 2013

153 TWh

240 TWh+ 7.25 TWh/year


Germany is a front runner, but not alone in the world

Renewables as a share of global capacity additions (2001–2013) [in % and GW]

Source: IRENA (2014) – REthinking Energy


What might be behind this curve?

0

50

100

150

200

250

300

350

400

2000 2005 2010 2015

Nu

mb

er o

f pu

bli

cati

on

s

Year

Google Scholar:Search term “Power to Gas“





Agenda


Potential of PEM system

• PEM electrolyzers are extremely dynamic• Full dynamic behavior (positive, negative or

combined mode control power)• Tolerant to overload even under pressurized

operation

PEM electrolyzers can be operated as dynamic load for secondary and even primary control power

Technical characteristics• Startup time (black start) ~ 10 min

• From standby to full load in < 10 sec

Very fast load following operation

Power in %

300%

200%

100%

normal operation

providingnegative control

power

providingpositiv control

power

Negativ controlpower +200%

Positiv controlpower -100%

~13

outputkg H2/MWh

~15

~18

Operation timehours of operation

0%

50%

100%

150%

200%

0 10 20 30 40 50 60 70 80

Pset Pactual

P set

, Pac

tual

Lab test of a Siemens stack following wind prof iles


Potential of PEM system

• Pressurized systems are industrial standard• Production of pressurized hydrogen

• Compression requires less efforts when starting at medium pressure levels

In real operation, there is no relevant efficiency loss compared to the ambient pressure mode

Stable operation under pressure

1.4

1.6

1.8

2.0

2.2

2.4

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Volta

gein

V

Current in A/cm²

1bar

10bar

50bar

Pressure dependence in lab system(active area 300 cm²)

H2


Solid oxide electrolysis has the potential to operate at lower voltage and therefore with higher efficiency

The reversible cell voltage is lower at higher temperature (steam vs. water)Solid oxide electrolysis has the potential to operate at higher efficiency

Diagram according to: Ebbesen et al., Final SERC Technical-Scientific Meeting, DTU Riso Campus, 2012

0.5 1.0 1.5 2.0

0.5

1.0

1.5

2.0

Electrolysis current density (A/cm²)

Cel

l vol

tage

(V)

solid oxide (R&D)

PEM (commercial)advanced alkaline (R&D)

alkaline (commercial)

Lower capital cost

Hig

her e

ffici

ency

~1.48 V adiabativ conversion of liquid water

~1.29 V adiabativ conversion of water steam


Experimental investigation of high temperature electrolysis (solid oxide electrolysis)

Funded project (BMWi) “Entwicklung von Festoxidelektrolysezellen für Anwendungen in derEnergietechnik “ (2010-2013)

-200

-100

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

0 1000 2000 3000 4000 5000 6000 7000 8000

Tem

pera

tur [

°C],

Span

nung

[mV]

t [h]

Siemens contribution• Electro-chem. characterization and micro structure analysis of planar SOE cells• Analysis of H2O/CO2 Co-electrolysis and methanation• Short stack tests with electrolyte supported SOE cells (in combination with interconnector plates)

Long term SOE testing (>8000 h) Experimental setup at Siemens CT

30

35

40

45

50

55

60

65 T Zelle 1 H2-ElektrodeT Zelle 2 H2-ElektrodeU Zelle 1U Zelle 2Fit U Zelle 1Fit U Zelle 2I Zelle 1I Zelle 2p Zelle 1 O2-Elektrodep Zelle 2 O2-Elektrodep Zelle 1 H2-Elektrodep Zelle 2 H2-Elektrode

Versuchsverlauf PLK1226H2-Elektrode mit GDC10 in E, A1-50, A2; O2-Elektrode GDC20 E2-52 1300°C, LSCF LK-20 1050°C

Zelle 1: 14021113/V.120723-002/MEA247, Zelle 2: 14021113/V.120723-009/MEA248 (jeweils 16.2 cm²)O2-Elektrode: 60 Nl/h Luft, H2-Elektrode: 60 Nl/h H2/H2O 1:1

Degradation < 0.2%/1000 h (after initial 1000 h) Short stack test with 127 cm² active cell area


High temperature electrolysis and process integration can improve energy efficiency

Energy efficiency (products at 80 bar) SOE electrolysis system

High temperature process unitsCo-electrolysis of H2O and CO2

Process integration (heat usage)

40%

50%

60%

70%

80%

90%

CH4 H2 H2-heat CH4 H2

Solid oxide electrolysis Literature

Pow

er-to

-Gas

Effi

cien

cy (L

HV)

Water

CO2

RE-Methan

O2

SteamGenerator

Methanation Reactor

SOE

1 Data from literature for renewable gas production based on low temperature electrolysis technologies Sources: Kohler (2012) – Power to Gas im Energiesystem 2020; Sterner (2011) - Bewertung eines Windgas-Angebots

Optimistic design and process parameters for SOE operation are assumedAll products (H2, SNG) are produced at 80 bar

1


• SOFC knowledge is applied, but SOE is still investigated on lab scale

• High temperature operation hampers flexible operation of an electrolysis system

• Pressurized operation leads to enormous technical complexity

• Cost outlook is very uncertain

Solid oxide electrolysis

PEM electrolysis is preferred technology for flexible and large scale operation

Evaluation of technical and commercial potential for different electrolysis technologies

• Highly flexible operation is proven• Pressurized operation is industrial standard• Siemens will demonstrate MW system in 2015• Significant reduction of costs due to economy

of scale and larger production volumes

PEM electrolysis

Combination with fluctuating electricity sources /offering control reserve

High load flexibility (fast start up, operation in overcapacity mode, deep part load)

Storage systems and downstream applications are operated at pressure

Production of hydrogen at high pressure

Application on large scale and at low costSystems in the megawatt range

Various operators at different locationsSimple operation and maintenance

Current and future requirements

X


Siemens SILYZER is an innovative electrolysis system based on PEM technology

SILYZER 100 SILYZER 200 Looking ahead:SILYZER 300

Skids of 1.25 MWel

Power electronicsSINAMICS DC converterSIMATIC PCS 7 control systemExample: Energie Park MainzOptions: recooling system, water treatment, power grid connection, overload option, …

Containerized version for demonstration projects(30-foot container size)Nominal load 100 kWel

Over-load capacity up to 300 kWel

Example: RWE Niederaußem

Next generation already in pipelineFocus: Highly effective scale-upKey is enlargement of ative cell area (since number of cells in a stack is limited)

Standort „Innovationszentrum Kohle am RWE Kraftwerksstandort Niederaußem“

Nysted Offshore Wind Farm, 72 units 2.3 MW, 165.6 MW

SILYZER 200 study

More information:http://www.industry.siemens.com/topics/global/en/pem-electrolyzer/silyzer/Pages/silyzer.aspx


Today, a novel technology has to fulfill several requirements for a wider implementation

? !


What are preferred locations and use cases for the implementation of electrolysis systems?

• Installation of renewables at off-grid locations, but with good weather conditions

• Electrolysis for valorization of electricity and transport of hydrogen/liquid fuel

Stranded renewables (on/off-grid)

• Utilization of fluctuating power generation in existing energy systems (low cost electricity)

• Acting as control power provider• Hydrogen in industry/for mobility/for long

term storage/for synthesis

Future energy systems (on-grid)

and/ or ?


Onshore wind and hydro are mature technologies having low LCOE and high capacity factors

0 1000 2000 3000 4000 5000

Latin America

Africa

Europe

US

Equivalent fuel load hours [h/a]

Lower end: average valueUpper end: best case

0 0.02 0.04 0.06

Latin America

Africa

Europe

US

World

LCOE [EUR/kWh]

Lower end: best caseUpper end: average value

Hydro powerWind energy (onshore)

0 2000 4000 6000 8000

Latin America

Africa

World

Equivalent fuel load hours [h/a]

Lower end: average valueUpper end: best case

Full load hours: 3000 EOHCost of electricity: 0.05 EUR/kWhBase

Optimistic Full load hours: 4500 EOHCost of electricity: 0.035 EUR/kWh

Full load hours: 5000 EOHCost of electricity: 0.05 EUR/kWhBase

Optimistic Full load hours: 7000 EOHCost of electricity: 0.02 EUR/kWh

Sources: IRENA (2012) – Renewable power generation costs; Fraunhofer ISE (2013) – Stromgestehungskosten Erneuerbare Energien; Lazard (2014) – Levelized Cost of Energy Analysis (Version 8.0); Bloomberg (2014) – H1 2014 Clean Energy Policy & Market Briefing; ETSAP (2010) - Hydropower

Literature data on capacity factors and levelized cost of electricity (compilation, literature sources see below)

Literature data

Literature data

Literature data

0 0.02 0.04 0.06

Latin America

Africa

World

LCOE [EUR/kWh]

Lower end: best caseUpper end: average value

Literature data


Industrial electricity prices have strong effect on electrolyzer operation strategy

• Electricity price is linked to EPEX Spot

• Industrial consumer can adapt his consumption to reduce his electricity bill

• Today’s industrial consumer• Individual price depends on supply contract and on

additional charges (grid fee, taxes, EEG, …)• Price range in Germany1:

41.4 – 155.6 EUR/MWh• Realistic price for energy intensive industries2:

51.8 EUR/MWh (2014)

Flexible electricity priceConstant electricity price

02.510

Ann

ual o

pera

ting

hour

s

Hyd

roge

n pr

oduc

tion

cost

Electricity boundary price

Hydrogenproduction cost

Operatinghours

1 bdew (2014) – Industriestrompreise, Energie-Info 2 Reduced grid fee, §19 apportionment, no electricity tax, no concession fee, CHP apportionment, minimum EEG apportionment, offshore charge

-200

20406080

100

0 8760

Pric

e [E

UR

/MW

h]

Hours [h]

EPEX Spot Future

EPEX Spot 2013

Baseline electricity price (EPEX Spot average) is assumed to increase in the future (+30%)Price fluctuations are very low today, but will increase in the future (+40%)Electricity transportation and distribution charges (e.g. grid fee) will significantly increase (+60%)Negative prices will be reduced due to higher offering of Power-to-X technologies

Outlook to the future


Participation in control reserve market can increase the profitability of an electrolyzer

Overview of control reserve tendering and market boundary conditions (German TSOs)

Primary control reserve Secondary control reserve Minute reserve

Activation speed < 30 s < 5 min < 15 min

Tendering and delivery

Weekly Weekly Daily

Distinction None (symmetric) positive and negative positive and negative

Products Complete week (pos./neg.) HT (Mo-Fr, 8-20 h)NT (weekends, night, public holidays)

4 hour blocks per day(6 products)

Minimum offering 1 MW 5 MW 5 MW

Awarding Power price-Merit-Order Power price-Merit-Order Power price-Merit-Order

Payment Pay-as-bid (power price)

Pay-as-bid (power and working price)

Pay-as-bid (power and working price)

Source: Consentec (2014) – Beschreibung von Regelleistungskonzepten und Regelleistungsmarkt

Outlook:Other products can also be offered (e.g. primary, positive)Need for control reserve will significantly increase in the future due to the additions of renewables3

1 Boundary power price Oct13-19 2014, negative secondary control reserve, www.regelleistung.net 2 Typical working price and activation frequency are derived for a time frame of 2 weeks (Oct1-5 2014), www.regelleistung.net 3 dena-Studie Systemdienstleistungen 20304 Overload capability is design parameter and customer specific; 170% are used as an assumption for the calculation of control power capability

Electrolyzer overload capability: 170% (assumption4)Power price1: 317 EUR/MW (HT); 622 EUR/MW (NT)Working price2: 50 EUR/MWhAvailability for offering: 90%Typical activation frequency (October 2014)2

Offering Negative SCR(HT and NT)


Electrolyis system costs depend on scale, number of units, and costumer specific boundary conditions

Cost assumptions are based on information from different literature sources

d Cost and performance of PEM systemsCost data is based on literature review

Invest (installed): 1200 €/kWEfficiency: 4.5 kWh/Nm³Base

Future Invest (installed): 500 €/kWEfficiency: 4.5 kWh/Nm³

• Cost of electrolyzers depend on system scale and number of units

• Cost forecast is generally difficult and uncertain

0

500

1,000

1,500

2,000

2,500

2010 2015 2020 2025 2030

PEM

ele

ctro

lyze

r sys

tem

co

st [E

UR

/kW

el]

E4tech, June 2013(literature review & manufacturers' data)

DOE, July 2014(data from 4 independent manufacturers )

R. Lemoine Institut, Oct 2013(estimate based on growth rates)

LBST, Dec 2013(extrapolation based on learning curve)


00.5

11.5

22.5

33.5

44.5

55.5

Base Optimistic Base Optimistic Today Future Today Future

Wind power Hydro power Const. electricity price Variable electricity price

Hyd

roge

n pr

oduc

tion

cost

[EU

R/k

g] PEM 1200 €/kW PEM 500 €/kW

H2 production costs strongly depend on the individual use case and can be in the range 2-3 EUR/kg

Hydrogen production cost based on electrolysis in different use cases

Electrolyzer for the valorization of stranded renewables

Electrolyzer in today’s and future energy systems

Generally, hydrogen production costs are very dependent on electricity price and capacitiy factor


0

1

2

3

4

5

6

Electrolyzer for stranded renewables

Electrolyzer in energy system

Steam methane reforming

SMR incl. distribution

Gasoline equivalent

Hyd

roge

n co

st a

nd va

lue

[EU

R/k

g]

Hydrogen production via electrolysis can be cost competitive to fossil fuels

Comparison of H2 production cost with steam methane reforming and equivalent gasoline prices

Lower

Upper

NG 2 ct/kWh

NG 5 ct/kWh

Gasoline ex refinery

Gasoline end customer price

3 EUR/kg for further analysis

Lower

Upper

1 CAPEX and fixed OPEX are derived from: Bressan, L. and Davis, C., Driving down costs in hydrogen production, Foster Wheeler, 20132 Distribution cost for hydrogen 0.56 - 1.73 EUR/kg; derived from: Zech, K. et al (2013) – Evaluierung der Verfahren und Technologien für die Bereitstellung von Wasserstoff, Endbericht 03BST073 Gasoline prices from www.mwv.de, January 2014: product price 51.42 ct/l, end consumer price 151.7 ct/l

12 3





Agenda


Evaluation of the value chain from H2 to synthesis product under future boundary conditions

Additional feeds

H2 fromelectrolyzer Synthesis

product

PEM electrolysis H2 storage

Chemical Synthesis

Chemicals

Re-electrification

Mobility

Hydrogen

Air Separation Unit Gasifier Carbon Capture

Additional Process Units

Renewables

Scope

Hydrogen throughput

8000 t/a

Purchasing of additional feeds

(market price applies)

Equivalent operating hours

6000 h/a

Hydrogen production costs

3 EUR/kg

Detailed information:Tremel, A., Wasserscheid, P. et al.: Liquid fuel synthesis based on hydrogen production via electrolysis, 20th

World Hydrogen Energy Conference, Gwangju, 2014


Selection of synthesis products and definition of process chain efficiencies

50%

60%

70%

80%

90%

100%Ef

ficie

ncy (

LHV

basi

s)Process efficiencyThermodyn. max.

• Focus on one-step synthesis processes due to the need of small scale and simple plant designs. • Multi-stage synthesis concepts (e.g. MTO, MTG, urea) not considered • Carbon based syntheses operated with CO2, ammonia production based on N2 supply

pre-processes (e.g. CO2 separation, gasification of biomass/coal, etc.) not considered, yet

Input parameters for the mass & energy balances: Hydrogen throughput 8000 t/a, Hydrogen input pressure 20 bar, hydrogen loss 3%, not-converted CO2/N2 5 %, isentropic compressor efficiency 0.85,


0

0.02

0.04

0.06

0.08

0.1

0.12Pr

oduc

t val

ue [€

/kW

h](m

arke

t pric

e)

0

0.02

0.04

0.06

0.08

0.1

0.12Pr

oduc

t val

ue [€

/kW

h](m

arke

t pric

e)Fuel market priceBiofuel market price

Specific product value per energy content depends on fuel type and origin

Market prices (basis 2014) of chemical products and fuels on the basis of energy content


Economic feasibility is not given, but methanol production is closest

Production cost in power-to-product scenario compared to current (2014) market prices

012345678

Prod

uctio

n co

st/m

arke

t pr

ice

(mar

ket p

rice

in 2

014)Chemical marketBiofuel market


7.6

6.9

6.8

6.1

4.1

5.6

Methanol

FT diesel

FT syncrude

DME

Ammonia

SNG

Public acceptance is very important parameter, but can hardly to be measured

Evaluation based on green field plant without existing infrastructure

Public acceptance rated byEnergy density for transportationHealth, safety and environmental issuesInfrastructure in place

Single score (0-10 points) derived:

7.0

8.2

8.0

5.9

1.6

5.7

Methanol

FT diesel

FT syncrude

DME

Ammonia

SNG

Total score (0-10 points):

+ Single score: economic feasibility + Single score: technology

Pipeline site1

9.3Pipeline site1

6.8

1 Energy density for transport not an issue for SNG; Infrastructure 100% in place


Conclusions

ElectrolysisLoad flexibility and pressurized operation make PEM electrolysis suitable for integration in energy systemsSOE technology has the potential to operate at higher efficiency, but technology is in the R&D stage and flexible operation is a real challengePEM operation in the MW range will be demonstrated in 2015Electrolysis is not cost competitive to large scale methane reforming, but individual costumer use cases are promising

Chemical synthesisDifferent synthesis routes and product options are possibleConsidering techno-economic parameters and public acceptance, methanol synthesis is the best valorization technology for hydrogenIndustrial implementation depends on economic feasibility and long term invest security; both requirements are not fulfilled todayCostumer willingness to pay higher prices for “green, non-fossil fuels” and federal support (tax exemptions, subsidies, etc.) may change the current situation


Thank you for your kind attention!

Dr.-Ing. Alexander TremelPrincipal Key ExpertProject Manager

Siemens Corporate TechnologyPower & Energy Technologies

Günther-Scharowsky-Str. 191058 Erlangen, Germany

Phone +49 (9131) 7-20966Fax +49 (9131) 7-24709

E-mail:[email protected]


Disclaimer

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted by Siemens worldwide, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens’ filings with the SEC, which are available on the Siemens website, www.siemens.com and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.

Trademarks mentioned in this document are the property of Siemens AG, it's affiliates or their respective owners.

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Electrolysis and chemical synthesis – Linking energy system ...Page 3 November 2014 Alexander Tremel, Corporate Technology Unrestricted © Siemens AG 2014. All rights reserved Evaluation