Electrolyzer market deployment: policies and ancillary services
Hydrogen is gaining popularity due to its potential as a carbon-neutral energy carrier and its role in reducing Europe’s reliance on fossil fuels. Both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) forecast a significant increase in its production and...
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| Tipo de recurso: | tesis de maestría |
| Fecha de publicación: | 2024 |
| País: | España |
| Institución: | Universitat Politècnica de Catalunya (UPC) |
| Repositorio: | UPCommons. Portal del coneixement obert de la UPC |
| Idioma: | inglés |
| OAI Identifier: | oai:upcommons.upc.edu:2117/418295 |
| Acceso en línea: | https://hdl.handle.net/2117/418295 |
| Access Level: | acceso abierto |
| Palabra clave: | Hydrogen Electrolysis Hidrogen Electròlisi Àrees temàtiques de la UPC::Enginyeria elèctrica |
| Sumario: | Hydrogen is gaining popularity due to its potential as a carbon-neutral energy carrier and its role in reducing Europe’s reliance on fossil fuels. Both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) forecast a significant increase in its production and usage within the industrial sector. This research underscores the importance of policy in driving the Green Hydrogen economy and advocates for its in- tegration into the broader energy system to support electrification. The study investigates how electrolyzers’ participation in the ancillary service market, coupled with policy subsi- dies, can enhance revenue streams. A simulation models an ammonia plant with the goal of producing 60 kilotons of green ammonia by producing 10.62 kilotons of green Hydrogen. The system requires an 86.6 MW electrolyzer, but an oversized 140 MW electrolyzer is modeled to optimize electricity market operations and provide ancillary services. Findings from this study reveal that $631.35 million of policy subsidies and a 500MWh storage unit, enabling 8054 hours of flexible operation, are needed for the NPV to reach $15 million, with an Levelized Cost of Hydrogen (LCOH) of 5.99 $/kg and an Return on Investment (ROI) of 2%. Incentives increase market deployability, while revenue from optimization and ancillary service market increases the Net Present Value (NPV) by $674.35 million, even with a 50% higher stack degradation than during normal operation. Ultimately, the study suggests that while financial subsidies can help bridge the cost gap between grey and green hydrogen in the short term, incentivizing research and development (R&D) will have the most significant impact on reducing costs in the long term. |
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