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On capital utilization in the hydrogen economy: The quest to minimize idle capacity in renewables-rich energy systems

  • The hydrogen economy is currently experiencing a surge in attention, partly due to the possibility of absorbing wind and solar energy production peaks through electrolysis. A fundamental challenge with this approach is low utilization rates of various parts of the integrated electricity-hydrogen system. To assess the importance of capacity utilization, this paper introduces a novel stylized numerical energy system model incorporating the major elements of electricity and hydrogen generation, transmission and storage, including both "green" hydrogen from electrolysis and "blue" hydrogen from natural gas reforming with CO2 capture and storage (CCS). Balancing renewables with electrolysis results in low utilization of electrolyzers, hydrogen pipelines and storage infrastructure, or electricity transmission networks, depending on whether electrolyzers are co-located with wind farms or demand centers. Blue hydrogen scenarios face similar constraints. High renewable shares impose low utilization rates of CO2 capture, transport and storage infrastructure for conventional CCS, and of hydrogen transmission and storage infrastructure for a novel process (gas switching reforming) that enables flexible power and hydrogen production. In conclusion, both green and blue hydrogen can facilitate the integration of wind and solar energy, but the cost related to low capacity utilization erodes much of the expected economic benefit.

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Metadaten
Document Type:Article
Language:English
Author(s):Schalk Cloete, Oliver Ruhnau, Lion HirthORCiD
Parent Title (German):International Journal of Hydrogen Energy
Publication year:2021
Publishing Institution:Hertie School
Granting Institution:Hertie School
First Page:169
Last Page:188
DOI:https://doi.org/10.1016/j.ijhydene.2020.09.197
Release Date:2020/10/26
Tag:Centre for Sustainability
CO2 capture and storage; Decarbonization; Energy system model; Hydrogen economy; Variable renewable energy
Volume:46
Issue:1
Hertie School Research:Centre for Sustainability
Licence of document (German):Metadaten / metadata
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