Power-to-Gas

Rob Harvey

Director, Energy Storage

IEA Hydrogen Technology Roadmap North American Workshop

Bethesda, Maryland – January 29, 2014

1

Hydrogenics is a leader in water electrolysers and hydrogen fuel

cell power systems

2

Onsite Generation Electrolysers

Industrial hydrogen Hydrogen fueling

Power Systems Fuel Cell Modules

Stand-by power Mobility power

Energy Storage Power-to-Gas

3

36% 35%

19%

10%

Transport Fuels Natural Gas Electricity Other

What if we broke down the energy silos?

Source data: National Energy Board secondary energy demand forecast, Rethinking Energy Conservation in Ontario, May 2010 report

Integrate Renewables

Renewable Gas Options

4

Power-to-Gas converts clean generation when it is not needed

into renewable fuel, power or heat where and when it is needed

Power-to-Gas Solution

Surplus Power

Industrial H2

Natural Gas Grid

Clean Fuel

Dispatchable Power

Low Carbon Heating

Electrolyser

Solar Power

Wind Power

H2

H2

H2

H2/NG Blend

30 Power-to-Gas demonstration projects launched in Europe to date

Power-to-Gas Applications

Direct Injection

H2 Fueling

Biogas Methanation

Industrial H2 Feed

Hydrogenics has supplied

electrolysers for 8 projects and

4 of 5 projects 1MW or larger

Currently most projects are in

pre-startup or early operation

phase

Source: DNV KEMA . “Systems analyses Power to Gas: A technology review”. June 20, 2013

5

E.ON inaugurated first Power-to-Gas plant to inject hydrogen into

natural gas grid last August

6

2MW Power-to-Gas Demonstration Plant in Falkenhagen, Germany

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Source: KBB underground

0

2000

4000

6000

8000

(MW)

Oct 1 Oct 3 Oct 5 Oct 7 Oct 9 Oct 11 Oct 13

This much could be fed into an

underground hydrogen reservoir

(2 M m3salt cavern):

600,000 MWh

Source: GM presentation,

Freese, May 13, ‘09

Pumped Hydro

Storage Potential

CAES Potential for

2 Mm3 Salt Cavern

Hydrogen storage far exceeds the capacity of competing storage technology

7

Only hydrogen can provide seasonal storage capacity by charging

consecutive days or even weeks without needing to discharge

Hydrogen fueling stations using electrolysis have excellent

customer reach

Safe and meet SAE and local standards

Can be located in densely populated urban areas

Provides clean fuel – 99.999% purity

Scalable – incremental fueling capacity added as required

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130 kg/day (Stuttgart, Germany) 65 kg/day (Santa Monica, CA)

0

50

100

150

200

250

300

14:5

5:4

1

15:1

0:0

5

15:2

4:2

9

15:3

8:5

3

15:5

3:1

7

16:0

7:4

1

16:2

2:0

5

16:3

6:2

9S

ys

tem

Po

we

r (k

w)

Power Measured Power SET

9

Hydrogenics’ Demonstration of Electrolyser

in IESO Distributed Loads for Regulation Study

The real time dynamic response that makes Power-to-Gas ideally

suited for providing an ISO balancing service

Note: Ontario IESO signal test completed June 2011

Faster response

than AGC Signal

10

The value proposition for Power-to-Gas is compelling

Value Proposition Direct

Injection

H2 Fueling

Station

Industrial

H2 Feed

Biogas

Methanation

Captive

RE

ISO Balancing Service

Flexible Deployment

Tx Grid Capital Deferral

Distributed Solution

Scalable Solution

Seasonal Storage

Renewable H2

11

Power-to-Gas developers need to monetize three core benefits for

a robust business model

1. Integrate Renewables

2. Energy Produced

3. Value of Renewable Hydrogen

P2G Business Model

For example, operating the PEM electrolyser 12 hours a day

would accommodate a wide range of fueling demand and

provide a useful band for CAISO Illustrative

Lowest Demand Hours

0

25

50

75

100

125

110 120 130 140 150 160 170 180 190 200

System Power

(% Nominal)

Hydrogen Fueling Demand (kg/day)

Hydrogenics’ PEMWE Operation

Balancing Service

+/- 250kW

12

Price

Per

kWh

13

Hydrogenics is working with Enbridge to develop the first Power-

to-Gas Pilot Project in North America

P2G Demonstration Project Objectives

Renewable

Gas Options

Integrate

Renewables

• Demonstrate Ancillary

Services with IESO

• Performance Monitoring

and Reporting

• PEM Electrolyser

• Define Contracting Path

• Set Gas Inter-Operability

Standards and Metering

• Optimize Operations

Electrolyser

Our next generation PEM stack has the same capacity as 12 of

our pressurized alkaline stacks

14

50 cm

140 c

m

1 MW PEM

Electrolyser

1 MW of our Alkaline Electrolysers

=

Today… Needs… Future…

2 MW Alkaline 1 MW PEM 40 MW Plant

Among the most proven

and utilized technology Tailored for large scale

energy storage

Advanced MW-scale GEN3

technology plant solutions

Power-to-Gas pilot plants today will drive commercial scale

deployments in the future

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Power-to-Gas will be an important part of the hydrogen

technology roadmap, but much work remains to be done

Remove Barriers to Energy Storage

Power-to-Gas proponents need to join the efforts of energy storage

associations to smooth adoption of energy storage technologies

Includes wholesale power input prices, provision of ancillary services,

ITCs, procurement targets

Get Credit for Renewable Gas

Encourage holistic energy policy thinking breaking down silos

• California’s procurement of 33% renewable HRS

• Broadening RFS2 Renewable Fuel Standards to include renewable H2

• Renewable natural gas market or tariff mechanism

Facilitate North American Gas Inter-Operability Standards

Needed for Direct Injection P2G application for GWh scale energy storage

in natural gas grid

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