mitsubishi hitachi power systems - european commission · proprietary and confidential information....

Mitsubishi Hitachi Power Systems

Prof Emmanouil Kakaras

Senior Vice President

Energy Solutions and New Products

Hydrogen and Power-to-X:

Development & Regulatory Barriers

Madrid Forum Madrid, 24th Oct 2019

© 2019 Mitsubishi Hitachi Power Systems, Ltd.

Proprietary and Confidential Information. This document or information cannot be reproduced, transmitted, or disclosed without prior written consent of Mitsubishi Hitachi Power Systems,Ltd.

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Value Chains towards a zero emission energy system

Horizon 1: Medium term

Fossil H2 with CCUS to be the initiator and accelerator

of the H2 society

Horizon 2: Long term Renewable H2 to become dominant through successive /disruptive innovation & significant cost reduction

Global H2 Trade within Europe

Ammonia could be one of best candidates for long distance global trading as an established commodity

H2 Trade within Europe

Feed to Transport Sector (REDII & FQD)

Feed to Power & Heat Sector via NG Grid (LH2:very high cost, Limited Salt caverns)

Provision of Heat & Power

• H2 CCGT

• Biomass PP

• SOFC

Hydrogen Fuel-Cell Trains

& eFuels for Heavy Duty

Vehicles

Liquid H2, eFuels &

Fuel-Cells for long

haul Big Ships

Example: CO2-

derived Methanol,

StenaLine &

Methanex

Hydrogen Use in

Industry (Oil & Gas,

Steel, Chemical)

Demand

Hydrogen & Efuel cars,

trucks & Tank stations

Demand

Image : Methanex



3

Thinking towards 2050



4

Decarbonising the power and heat sector

Fuel Switch in thermal power generation: natural gas, renewable gas, hydrogen and biomass to secure the energy of supply and back up intermittent RES energy production

Short term : • NG and mixtures of NG -H2 based power

systems such as open GTs, CCGTs, retrofits of existing coal plants to NG, SOFCs

Towards 2025: • 100% Hydrogen firing

What can we do with “stranded” assets?

Short term: • RES Curtailment to be addressed with

aggregators and optimised hybrid solutions. • Fuel Flexibility as prerequisite & due diligence

for candidate technologies e.g. FCs, motors Towards 2025: • Seasonal storage as a requirement

What about decentralized applications?

Distributed Power Solutions



What hinders the H2 Economy?

H2 Generation technologies :

commercially available

BUT cost-down required

H2 Compression and storage :

commercially available but too

expensive. Selection of carrier

needed

H2 Final use as end Product:

H2 for industry exists

H2 Turbines available

H2 Fuel Cells available

H2 Cars available

Maximum H2 Levels in NG grids:

TODAY, <2 vol% * in Germany

6 vol% in France & 5 vol% in

Spain, but potential up to 10

%vol……could reach to 20%vol

125 Operating H2 Refuelling

Stations in Europe**. H2 Price

ranging 8-12 €/kg (240-360 €/MWh) !

Are OPEX and CAPEX prohibitive?

Uncertainties on business cases?

Electricity Market

NG prices & dependence

Large scale and single point of

consumption needed

Are incentives missing?

Priority for efficient

technologies close to market

Limited number of existing

application

Significant decarbonisation

effect (e.g. RED II)

Technology? Infrastructure?

Investments?

Environmental concerns

Safety Issues

Permitting, maybe yes, but time-

consuming

Acceptance ?

*If a natural gas filling station is present in the relevant gas grid DIN EN 51624 standard ** EAFO: https://www.eafo.eu/alternative-fuels/hydrogen/filling-stations-stats

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwj4io-x6ZXWAhVKKVAKHSfMBpsQjRwIBw&url=https://de.fotolia.com/id/106966767&psig=AFQjCNGi-sTO7ct1Dt8-sMRRWMOZL5k07g&ust=1504968141093875






Policy & Legislative options

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Overcoming barriers towards low carbon economy

Doing nothing is

…..NOT an option!

De-industrialization

threatens economic

and social welfare

“Carbon challenges”

to be seen as

business

opportunities

Establish common definitions for renewable and low carbon

hydrogen, i.e. recognition of contribution towards CO2

reduction.

Ensure level playing field against other technologies / fuels /

carriers, e.g. electricity.

Focus FOAK funding on full hydrogen value chain:

- Simplified rules for financial blending.

- Priority to repurposing stranded assets.

Work towards an internal / integrated hydrogen market:

- Adequate traceability mechanism at EU level, i.e. certification

for renewable, low carbon hydrogen; guarantees of origin.

- Updated market and grid access rules, e.g. double taxation /

grid fees, i.e. as a consumer and as a producer.

- Market-driven incentives for hydrogen such as auctions (?).




Thank You

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The „ Hydrogen Economy“ Challenge for MHPS

CO2 Capture & Use

Heat

Water Electrolysis

Transport

Hydro

carb

ons

Combustion

Reforming

FCs

GTs

CO2 derived fuels

CCU Synthesis

Blue H2 (Thermal)

H2 /Fuel Combustion

H2 Production

Green H2 (Water derived)

Electricity

Power Plants

Motors



Commercial reference for 2,5 times than the largest H2

Production site in Europe, more than 12 references in other

industries

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Producing carbon free Hydrogen from Natural Gas

Steam Methane Reformer

Water Gas Shift

Acid Gas Removal

Pressure Swing

Adsorption

CO2 CO2

Hydrogen

PSA Off-gas

Steam Methane Reformer

Water Gas Shift

Acid Gas Removal

Pressure Swing

Adsorption

CO2

Hydrogen

PSA Off-gas

Existing H2 Production Plants: No CO2 free H2 production

New H2 Production Plants: Future CO2 free H2 production

Post Combustion

Capture

Natural Gas

Natural Gas

Furnace Fuel

9 kg CO2/ kg H2

<1 kg CO2/ kg H2



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Producing carbon free Hydrogen from electrolysers (1/2)

PSA Off-gas

RES Curtailment sets the ground for business opportunities in energy storage. RES electricity costs have plummeted and energy can be stored in the form of hydrogen

Electricity 4,4+0,3 MWh

Hydrogen 1000 Nm3/h

Heat 1 MWhth

Hybrid electrolyser and HTHP with

increased efficiency

California 2016: 0.31 TWh curtailed

China 2016: 49.7 TWh curtailed

Ireland 2015: 0.22 TWh curtailed

Germany 2017: 5.52 TWh curtailed

….and this is only the beginning

or 3MWth (LHV)



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OPEX based Hydrogen production costs today EU

R/t

on

Significant increase of EU ETS prices CO2 over the last year

28 EUR/t CO2 13,5

50 EUR/t CO2

1,4

50 EUR/t CO2




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REFUNOBIO* for EU Transport Sector

Carbon Footprint of e-Methanol

Carbon Footprint

for Electricity

Electricity Price

E-Methanol Prices comparable to other Biofuels

Qualified CO2-derived fuel according to EU Regulations REDII and FQD as “REFUNOBIO”*

4.54 gCO2/ kWhel

~25-40

€/kWhel

3.15 gCO2/ MJ*

>> 650 €/ton

CO2

Utilisation from

Industry

116

MWel

131 ktCO2

/year

Utilisation of

RES Power

95,000 tons/year E-Methanol plant

MefCO2 : EU SPIRE2 – Horizon 2020 Grand Agreement no.: 637016 1 t MeOH/d

ALIGN-CCUS: EU SPIRE2 – Horizon 2020 Grand Agreement no.: 691712 48 kg of DME mixture/d

Horizon 2020

European

Union

Funding

for Research

& Innovation

*Renewable Fuel of Non-Biological Origin

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