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Green Hydrogen and Power-to-Gas Technology Mass Energy Storage for the Future Energy Market Fact Sheet Power-to-Gas – Mass Energy Storage Solution “Power-to-gas” is the name given to an energy process and storage technology which allows electricity to be held in reserve in the megawatt range. Existing network infrastructure can be utilized by linking existing power and natural gas grids. This allows seasonally adjusted storage of significant amounts of power and the provision of CO 2 -neutral fuels in the form of the resulting renew- able energy source gas. Power-to-gas represents a system solution to the prob- lem of surplus energy reserves. Hydrogen - and synthet- ic natural gas (SNG) in a second additional methanation process step - is produced from surplus wind energy by a process of electrolyzation. The hydrogen or SNG produced can be fed into the exist- ing natural gas network for further use and replace natu- ral gas on a like-for-like basis. Gas storage is not subject to the same limitations associated with extant energy storage technologies. Moreover, power-to-gas creates investment potential along the entire supply chain: from storage, production and trading to electrolyzer produc- tion, gas compression, and smart gas metering amongst other things. Green Hydrogen and Power-to-Gas Value Chain Gas-powered cars Fuel-cell cars Power grid District heating Methanation Gas grid PV + Wind (electricity) Biomass gasification (SNG) Sewage plant (sewage gas) Chemical site (CO 2 : power plant H 2 : byproduct) Reforming/ Gas cleaning Biogas plant (biogas) Filling station Storage (salt caverns) Domestic heating Chemical use Power plant/ Cogeneration Hydrogen/Mobile Application Energy Storage/Wind-Hydrogen Power-to-Gas Green Hydrogen from Chemical Site Sewage Gas or Biomass to Hydrogen CO 2 Other Streams Source: Germany Trade & Invest 2012 Photo: LINDE Electrolyzer

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Page 1: Green Hydrogen and Power-to-Gas Technologyexport.government.bg/ianmsp/docs/.../29/fact-sheet-green-hydrogen-… · Green Hydrogen and Power-to-Gas Technology ... Identifying the appropriate

Green Hydrogen and Power-to-Gas TechnologyMass Energy Storage for the Future Energy Market

Fact

She

et

Power-to-Gas – Mass Energy Storage Solution“Power-to-gas” is the name given to an energy process

and storage technology which allows electricity to be

held in reserve in the megawatt range. Existing network

infrastructure can be utilized by linking existing power

and natural gas grids. This allows seasonally adjusted

storage of signifi cant amounts of power and the provision

of CO2-neutral fuels in the form of the resulting renew-

able energy source gas.

Power-to-gas represents a system solution to the prob-

lem of surplus energy reserves. Hydrogen - and synthet-

ic natural gas (SNG) in a second additional methanation

process step - is produced from surplus wind energy by a

process of electrolyzation.

The hydrogen or SNG produced can be fed into the exist-

ing natural gas network for further use and replace natu-

ral gas on a like-for-like basis. Gas storage is not subject

to the same limitations associated with extant energy

storage technologies. Moreover, power-to-gas creates

investment potential along the entire supply chain: from

storage, production and trading to electrolyzer produc-

tion, gas compression, and smart gas metering amongst

other things.

Green Hydrogen and Power-to-Gas Value Chain

Gas-powered cars

Fuel-cellcars

Power grid

District heating

Methanation

Gas grid

PV + Wind(electricity)

Biomass gasifi cation (SNG)

Sewage plant(sewage gas)

Chemical site(CO

2: power plant

H2: byproduct)

Reforming/Gas cleaning

Biogas plant(biogas)

Filling station

Storage(salt caverns)

Domestic heating

Chemical use

Power plant/Cogeneration

Hydrogen/Mobile Application

Energy Storage/Wind-Hydrogen

Power-to-Gas

Green Hydrogen from Chemical Site

Sewage Gas or Biomass to Hydrogen

CO2

Other Streams

Source: Germany Trade & Invest 2012

Ph

oto

: L

IND

E

Electrolyzer

Page 2: Green Hydrogen and Power-to-Gas Technologyexport.government.bg/ianmsp/docs/.../29/fact-sheet-green-hydrogen-… · Green Hydrogen and Power-to-Gas Technology ... Identifying the appropriate

Future Energy Market Models and Drivers

Market Drivers

Germany’s Energy Concept - A Road Map toRenewable Energy Power SupplyGermany’s Energy Concept is a long-term energy strategy

for the period up to 2050 with ambitious goals to address

the challenge of sustainable energy provision. Uppermost

are an 80 to 95 percent reduction of greenhouse gas emis-

sion levels (compared to 1990 levels) and an 80 percent re-

newable energy share of the power mix, of which a large

part will be wind generated (including on- and off-shore

production). With an impressive 20 percent renewable en-

ergy power mix share today, Germany is already well on the

way to meeting the 2020 target of 35 percent.

Renewable Energy Supply and Demand The supply of electricity needs to match demand at all

times; whether it is a question of responding to short-term

fl uctuations in supply or long-term storage over a period of

months. Yet, renewable energy sources are, by their very

nature, subject to fl uctuation. Identifying the appropriate

renewable energy storage solution is critical, as the cur-

rent situation demands that power is consumed as soon as

it is used. At present, a compensating capacity level of 17

gigawatt is already required to maintain domestic supply

and demand balance. This fi gure is set to rise to 28 gigawatt

in 2025. To date, balancing power has largely been provided

by hydro pumped storage and gas power plants. However,

hydro pumped storage is subject to a number of geographi-

cal restrictions and capacity limitations which limit universal

application.

Renewable Mass Energy Storage Effi cient storage technologies play a pivotal role in a sus-

tainable energy supply based on renewable energies. A

number of studies forecast a signifi cant renewable en-

ergy surplus from 2025 onward. Harnessing this renew-

able energy surplus allows seasonally adjusted wind

and solar energy lulls to be addressed. Long-term mass

storage can also operate economically in the absence of

hydro pumped storage by using gas-based storage tech-

nology (e.g. hydrogen).

Model Commercialization Projects:

Creating New Markets

Power-to-Gas

Greenpeace Energy will be the fi rst German energy sup-

plier to provide its customers with “green hydrogen” en-

ergy created in regenerative and climate-neutral fashion

from wind power. The “proWind gas” generated can be

used for conventional domestic heating and cooking pur-

poses and even as a fuel for vehicles. Customers con-

nected to the ordinary gas network have been able to

take advantage of the “proWindgas” tariff since October

2011. The Hamburg-based concern plans to build its own

electrolysis plant in order to gradually increase wind-gas

energy production share.

Energy Storage/Wind Hydrogen

ENERTRAG is a European sustainable energy supplier

that specializes in generating electricity solely from re-

newable sources (predominantly wind energy). The com-

pany’s “hybrid power station” – which transforms wind

energy into hydrogen – is the fi rst of its kind in the world.

Wind power generated in Prenzlau (Brandenburg) is

helping heat and power homes as well as fi nding its way

to gas pumps to fuel H2 car and bus fl eets in Berlin. The

company has already successfully deployed its energy

storage solution at the world’s fi rst CO2-neutral fi lling

station at the new Berlin International Airport scheduled

to open in summer 2012.

Green Hydrogen from Chemical Sites

Bayer, RWE and Siemens have joined forces with a num-

ber of academic partners to research ways of transform-

ing climate-damaging CO2 into useful base chemicals

using renewable energy sources. The focal point of the

CO2RRECT (CO

2-Reaction using Regenerative Energies

and Catalytic Technologies) project is the long-term use

of fl uctuating energy from renewable sources for CO2

conversion. The initiative bundles collective academic

and industry know-how to identify ways of deploying sur-

plus energy reserves for chemical production. As well

as this, innovative technologies which allow the recovery

of quantities of energy for the material use of CO2 as a

carbon building block for chemical by-products (carbon

monoxide and formic acid) are being researched. The

project represents a new model of interaction between

the energy and chemical sectors.

Page 3: Green Hydrogen and Power-to-Gas Technologyexport.government.bg/ianmsp/docs/.../29/fact-sheet-green-hydrogen-… · Green Hydrogen and Power-to-Gas Technology ... Identifying the appropriate

Future Energy Market Models and Drivers

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NORTH SEA

BALTIC SEA

CZECH REPUBLIC

POLAND

THE NETHERLANDS

BELGIUM

FRANCE

LUXEM-

BOURG

Bavaria

Baden-Württemberg

Thuringia

Saxony

Brandenburg

Mecklenburg-Vorpommern

Schleswig-Holstein

Niedersachsen

Saxony-Anhalt

Hessen

Rheinland-Pfalz

Saarland

North Rhine-Westphalia

Berlin

HamburgBremen

Green Hydrogen and Power-to-Gas Demonstration and Pre-Commercialization Projects

Please visit the Germany Trade & Invest website

for more model project information:

www.gtai.com/energystorage

Hydrogen/Mobile Application

Energy Storage/Wind-Hydrogen

Power-to-Gas

Green Hydrogen from Chemical Site

Sewage Gas or Biomass to Hydrogen

Future Power-to-Gas Projects

Source: Greenpeace Energy 2011, Fraunhofer IWES 2011, Germany Trade & Invest 2011

Page 4: Green Hydrogen and Power-to-Gas Technologyexport.government.bg/ianmsp/docs/.../29/fact-sheet-green-hydrogen-… · Green Hydrogen and Power-to-Gas Technology ... Identifying the appropriate

Market and Funding

Market Advantages

Gas Network Storage CapacityGermany’s gas network – more than 400,000 km of pipe-

line connecting natural gas reservoirs with a total stor-

age volume of 23.5 billion cubic meters and a further 15.2

billion cubic meters in planning - allow for provision of

approximately one sixth of annual domestic electricity

generation. Put another way, Germany’s extant gas net-

work provides energy storage capacity of approximately

220 terawatt hours – or a three thousandfold capacity in-

crease on Germany’s current pumped storage levels (as-

suming a base effi ciency level of 55 percent).

Gas Grid Market OpportunitiesThe production of hydrogen and SNG from wind and PV

represents a major long-term renewable energy storage

opportunity. Power-to-gas allows existing gas network

storage capacity to serve both storage and distribution

functions, while discharging the burden on the power

network. Moreover, it also contributes to its stabiliza-

tion by providing negative and positive balancing power

through targeted on-off switching of electrolyzers and

up/down ramping of CHP devices and gas power plants.

It also contributes to "greening" the gas that will be in-

creasingly used for power and heat generation and mo-

bile applications in the future. The production of SNG

through hydrogen methanation also makes the recovery

of CO2 for material use (e.g. in the chemicals sector) pos-

sible. The EU Emission Trading System (EU ETS), CO2 re-

duction goals, raw material scarcity, and price consider-

ations are the major drivers for these markets.

German Gas Grid Infrastructure AdvantagesGermany is unique in the fact that hydrogen can be fed

into the in-situ gas grid in signifi cant quantities. And just

like natural gas, hydrogen and SNG enjoy the same ac-

cess rights to the gas grid. Hydrogen and SNG created

from at least 80 percent renewable sources also have

the same priority access to the gas grid as methane from

biomass (biomethane). Germany provides another major

advantage: the presence of salt caves in wind-intensive

regions which are already being used for natural gas

storage purposes.

Research & Development Funding

The German government supports green hydrogen and pow-

er-to-gas projects through a number of funding instruments,

initiatives and programs. Listed below are just a few of the

major energy R&D funding initiatives, instruments and mea-

sures available in this growing sector.

6th Energy Research ProgrammeThe programme sets out the key focal points of German

energy funding policy for the period 2011 to 2014. Energy

R&D funding in the region of EUR 3.4 billion will be made

available, with particular emphasis placed on two areas

of major strategic importance: energy effi ciency and re-

newable energies. Foremost among the research focal

points are energy storage solutions and grid technology,

as well as the integration of renewable energy into the

power supply.

Energy Storage Funding InitiativeThe Federal Ministries of Economics and Technology,

for the Environment, Nature Conservation and Nuclear

Safety, and of Education and Research have launched a

joint initiative to promote research and development in

the fi eld of energy storage technologies. Part of the 6th

Energy Research Programme, the Energy Storage Fund-

ing Initiative will make EUR 200 million available to re-

search projects to develop a broad range of storage tech-

nologies for electricity, heat and other forms of energy. A

fi rst project selection phase has already taken place. A

second selection round is scheduled for 2012.

National Hydrogen and Fuel Cell Technology Innovation ProgrammeThe National Hydrogen and Fuel Cell Technology Inno-

vation Programme provides a common framework for a

number of hydrogen and fuel cell research projects con-

ducted by academic institutions and industry. Funding of

EUR 700 million makes this the biggest R&D and imple-

mentation initiative of its kind in Europe with a focus on

hydrogen and fuel cell technology.

Additional funding is also available at the regional and

European level as well as outside the framework of the

6th Energy Programme.

For more information please contact:

[email protected]

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Natural gas storage

Natural gas grid > 60 bar

H2 tranport by pipeline

(pipeline after 2030 according

to GermanHy study)

Selected biomethane plants

POLAND

CZECH REPUBLIC

BELGIUM

THE NETHERLANDS

LUXEM-BOURG

AUSTRIA

Source: GermanHy 2008, DVGW 2011

Network Infrastructure

Green Hydrogen and Power-to-Gas Network Infrastructure

Germany’s gas network transports an annual 1,000

billion kWh of energy (approximately double the

amount of energy transported by the power grid).

Twenty percent of annual gas consumption is stored

in underground gas storage facilities – this fi gure

is set to rise to 30 percent by 2030. Germany’s gas

network is not only a national and European-wide

power distribution system, but also represents a

major energy storage solution thanks to its signifi -

cant storage capacity levels.

Page 6: Green Hydrogen and Power-to-Gas Technologyexport.government.bg/ianmsp/docs/.../29/fact-sheet-green-hydrogen-… · Green Hydrogen and Power-to-Gas Technology ... Identifying the appropriate

Our Investment Project Consultancy Services

About Us

Germany Trade & Invest is the foreign trade and inward

investment agency of the Federal Republic of Germany.

The organization advises and supports foreign com-

panies planning to expand into the German market

and assists German companies seeking to enter for-

eign markets.

Investment Location GermanyGermany Trade & Invest provides close-to-market in-

formation to international companies looking to en-

ter German markets. Our specialist industry teams

prepare all of the relevant information essential to

business success in Germany.

Germany Trade & Invest’s comprehensive range of

information services includes:

Market and industry reports

Market entry analyses

Business and tax law information

Business and labor law information

Funding and financing information

Business Location ServicesGermany Trade & Invest supports international com-

panies from market entry to business start-up in Ger-

many. Expert project teams advise and assist in the

business establishment phase.

Germany Trade & Invest’s range of free services

includes:

Legal and tax-related project support

Funding and financing advisory services

Site visit organization

Local partner and network matchmaking

Public and private partner coordination

All investment-related services are provided entirely

free of charge. Our specialist industry teams have

hands-on experience in their respective industries

and treat all investor enquiries with the utmost confi-

dentiality.

Imprint

PublisherGermany Trade and Invest

Gesellschaft für Außenwirtschaft und

Standortmarketing mbH

Friedrichstraße 60

10117 Berlin

Germany

T. +49 (0)30 200 099-555

F. +49 (0)30 200 099-999

[email protected]

www.gtai.com

Chief ExecutivesDr. Jürgen Friedrich, Michael Pfeiffer

AuthorsRaphael Goldstein, Senior Manager,

Energy Storage & Fuel Cell Technologies,

Germany Trade & Invest, [email protected]

William MacDougall, Senior Manager,

Investor Marketing & Creation, Germany Trade & Invest

EditorWilliam MacDougall

LayoutGermany Trade & Invest

PrintCDS Chudeck Druck Service

SupportPromoted by the Federal Ministry of Economics and

Technology and the Federal Government Commis-

sioner for the New Federal States in accordance with

a German Parliament resolution.

Notes©Germany Trade & Invest, May 2012

All market data provided is based on the most current

market information available at the time of publica-

tion. Germany Trade & Invest accepts no liability for

the actuality, accuracy, or completeness of the infor-

mation provided.

Order Number16812