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HYDROGEN AND FUEL CELLSAN UPDATE FROM EUROPE, INCLUDING THE UK
CONTACT:
Cate Lyon | Analyst | Gas Heating Service
Email: [email protected]
Tel: +44 (0)131 625 3338
Web: https://www.delta-ee.com/GHS
A presentation for the 7th FC International
meeting, organised by FCS & FCDIC.
February 26th 2019, Tokyo.
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Agenda
1. Introduction to Delta-ee
2. The European micro-CHP market: an update
3. Hydrogen in Europe: an update
4. Q & A
2
An update from Europe, including the UK
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Introduction to Delta-ee
3
Research and consulting services for the energy transition
Core competency areas:
Selected clients:We help clients succeed in the transition from ‘old’
energy to ‘new’ energy.
◼ Centralised → Distributed
◼ Carbon intensive → Low Carbon
◼ Commodity sales → Service Orientated
◼ Meter points → Customer Centric
◼ Value is upstream → Value is Downstream
Key facts:
Est. 2003
UK-based
(Scotland)
Sites across EU
Associates
worldwide
11 subscription
services
2x European Energy
Summits per year
Delta-ee ‘Gas Heating Service’
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Agenda
1. Introduction to Delta-ee
2. The European micro-CHP market: an update
3. Hydrogen in Europe: an update
4. Q & A
4
An update from Europe, including the UK
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
We have been covering micro-CHP since 2004
5
Over this time, product availability has greatly improved
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
The EU market has gone through several phases
6
Fuel cells (natural gas) are now the dominant technology
20182005 2020
Peak Stirling
ICE decline
Fuel cell
spell
ICE age
2018 sales:
6,500-7,000
units
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
The EU market has gone through several phases
7
Fuel cells (natural gas) are now the dominant technology
20182005 2020
Peak Stirling
ICE decline
Fuel cell
spell
ICE age
UK fuel cell micro-CHP
players:
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Incentives drive sales – but these vary widely, affecting uptake
8
In most countries we see a shift towards tax-based mechanisms
Incentive type: Germany UK France Belgium Netherlands Italy
National grant
State grants
Regional grants |
Reduced VAT
VAT rebate
Low-interest loans
Net metering
Generation tariff
Export tariff
Tariff tax exemptions
CHP / green / white certificates
available
withdrawn
future uncertain
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Agenda
1. Introduction to Delta-ee
2. The European micro-CHP market: an update
3. Hydrogen in Europe: an update
4. Q & A
9
An update from Europe, including the UK
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Europe’s interest in hydrogen is growing
Leading markets:
◼Germany
◼UK
◼ France
◼Netherlands (emerging)
Applications:
◼Mobility
◼Power-to-gas
Production:
◼Steam methane reforming
◼Electrolysis
10
Germany is market leader; mobility and power-to-gas dominate
Market
leader
Significant
activityEmerging
vs
Map of European
hydrogen activity:
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Key stakeholders in hydrogen development in Europe
UtilitiesElectrolyser manufacturersHeating OEMs & fuel
cell developers
Technical support Oil & Gas Automotive
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Hydrogen as part of the UK solution
12
Gas network companies have kick-started the movement
= GDN-driven initiative
◼ Hydrogen island
◼ ‘Windgas’
◼ Heat, power, vehicles
◼ Phase 1: Cost and safety feasibility study
for 100% H2 grid conversion
◼ Phase 2: Convert 3.7M homes between
2028-2034
◼ New H2 grid to satisfy 70% heat needs
◼ H2 “a credible option”
◼ Part of energy mix; H2 for back-up
◼ Hybrid hydrogen heat pumps
◼ £25M competition
◼ Develop 100% H2 appliances
(heat & power)
◼ Unoccupied demo’s by 2021
◼ Proof of concept plus +
practical element
◼ Local generation + injection
at 3 sites
◼ H2 regional system by 2026
◼ Produce, transport, store
◼ Blended grid injection
◼ ‘H2 campus’
◼ 20% H2 blend
◼ live trial begins this summer
◼ £20M competition
◼ Bulk green H2 production
◼ Feasibility + demos
◼ Hydrogen local energy system
◼ Fleet refuelling, storage, power
generation
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Hydrogen production and end-user costs
Hydrogen from methane: Hydrogen from electrolysis:
13
‘Green’ hydrogen expected to be cost-competitive by 2030
GREY HYDROGEN
288g/kWh
CARBON
DIOXIDE
100
%
METHANE
210g/kWh
73
%
BLUE HYDROGEN
86g/kWh
SMR
CCS
70
%
27
%
GREEN
HYDROGEN
23g/kWh
WIND
ELECTRICITY
16g/kWh
GRID
ELECTRICITY
233g/kWh
BROWN
HYDROGEN
333g/kWh
100
%
70
%
ELECTROLYSIS
End-user cost estimates:
◼ ‘Blue’ hydrogen = £2/kg H2, equivalent to £0.05p/kWh;
retail price £0.09p/kWh.
◼ ‘Green’ hydrogen:
◼ EU target cost = €3/kg by 2030.
◼ IEA 2040 expected electricity production costs in
favourable renewable locations: $0.03/kWh -> $2/kg
or $0.06/kWh H2.
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Hydrogen for heating
14
Hydrogen boilers are competitive for smaller homes, including most new-build properties, by 2030 (Delta-ee analysis; UK).
0.00
5.00
10.00
15.00
20.00
£0
£1,000
£2,000
4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
Unit H
eat
Cost (p
/kW
h)
Annual H
eating C
ost
(£ p
er
year)
Annual Thermal Demand (kWh)
Costs for heating UK housing stock with H2 boiler vs. electric Air Source Heat Pump
BREAK-EVEN
THERMAL DEMAND
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Find out more: Delta-ee Summits
New Energy Summit
28th-29th May 2019, Amsterdam, Netherlands
Exploring the transition from old to new energy
◼ Day 1: Drill down into the new energy market
◼ Evening 1: Networking dinner & activity
◼ Day 2: Strategic issues, business models and
joining the dots across the new energy space
15
Events looking at the future of energy on the customer side of the meter
European Heat Summit
25th-26th September 2019, London, UK
Debating how Europe will decarbonise heat
◼ Day 1: Parallel roundtable discussions on
electrification & high-efficiency gas markets
◼ Evening 1: Networking dinner & activity
◼ Day 2: Interactive plenary sessions exploring
customers, business models, pathways
© Delta Energy & Environment Ltd 2019LYON_FCDIC_2019
Thank you for your attention
Questions?
16
CONTACT:
Cate Lyon | Analyst | Gas Heating Service
Email: [email protected]
Tel: +44 (0)131 625 3338
Web: https://www.delta-ee.com/GHS