36
4 Scientific Literature Review for Establishing the Status …
Among the cost elements, the electrolyser system is estimated to be in a range
of e1.100–1.800 kW e
−1 for a PEMEC electrolyser. The electrolyser stack is
responsible for up to 60% of the CAPEX (IEA 2019). Storage tanks and facilities
are estimated to range from e20–490 Nm 3−1 . Depending on the plant configuration and the end-user needs, the CAPEX for the compression system is estimated
in the range of e144–18.500 kW e
−1 . Building the power-to-gas is estimated to
be 30% of the CAPEX for the installation. The electricity and the water are other
important cost elements depending on the market and the geographical location.
The need for water is estimated to be of 10 litres kg −1 H 2 (van Leeuwen and
Mulder 2018).
Hydrogen is the main revenue element. The oxygen market is relatively small.
Currently, power-to-gas facilities release the oxygen in the atmosphere. However, in case there is demand, it could increase the competitiveness of renewable
hydrogen. For instance, it can be used for the oxygenation of the sludge in water
treatment plant (van Leeuwen and Mulder 2018; Staffell et al. 2019).
Currently, estimates the cost of hydrogen from wind power at about e5–
6 kg −1 H 2 and from e3–5 kg −1 H 2 from solar PV (Thanapalan et al. 2012).
However, production quantity and purity have an impact on the cost of hydrogen.
Large-scale production and lower purity requirement can drive down the cost of
renewable hydrogen production to a price range as low as e1.5–2.5 kg −1 H 2
(Glenk and Reichelstein 2019).
When a power-to-gas facility is integrated to a renewable energy system, the
investment in the electrolyser brings an economic value when the sale value of
the hydrogen is higher than the LFCH production (Glenk and Reichelstein 2019).
However, the power-to-gas facilities are not profitable under current market conditions. The production of hydrogen via SMR technology is estimated to be of
e1,25 kg −1 H 2 and as low as e1 kg −1 H 2 from coal gasification. The cost parity
is influenced by the following parameters (Fasihi and Breyer 2019; Staffell et al.
2019).
The first parameter is the cost of renewable electricity. The Hydrogen Analysis (H 2 A) model created by the DOE to estimate the hydrogen production
costs showed that the electricity price is the single most impactful parameter for
hydrogen production (Jacobs 2016). A lower price of electricity has the same
effect as the decrease of CAPEX or higher hydrogen revenues (van Leeuwen and
Mulder 2018). Renewable energy sources such as wind or solar PV are cost competitive energy sources (Glenk and Reichelstein 2019). Operating a renewable
power-to-gas facility in a regulated power market makes enables the comparison
of electricity prices in the day-ahead and intraday markets making possible the
4 Scientific Literature Review for Establishing the Status …
Among the cost elements, the electrolyser system is estimated to be in a range
of e1.100–1.800 kW e
−1 for a PEMEC electrolyser. The electrolyser stack is
responsible for up to 60% of the CAPEX (IEA 2019). Storage tanks and facilities
are estimated to range from e20–490 Nm 3−1 . Depending on the plant configuration and the end-user needs, the CAPEX for the compression system is estimated
in the range of e144–18.500 kW e
−1 . Building the power-to-gas is estimated to
be 30% of the CAPEX for the installation. The electricity and the water are other
important cost elements depending on the market and the geographical location.
The need for water is estimated to be of 10 litres kg −1 H 2 (van Leeuwen and
Mulder 2018).
Hydrogen is the main revenue element. The oxygen market is relatively small.
Currently, power-to-gas facilities release the oxygen in the atmosphere. However, in case there is demand, it could increase the competitiveness of renewable
hydrogen. For instance, it can be used for the oxygenation of the sludge in water
treatment plant (van Leeuwen and Mulder 2018; Staffell et al. 2019).
Currently, estimates the cost of hydrogen from wind power at about e5–
6 kg −1 H 2 and from e3–5 kg −1 H 2 from solar PV (Thanapalan et al. 2012).
However, production quantity and purity have an impact on the cost of hydrogen.
Large-scale production and lower purity requirement can drive down the cost of
renewable hydrogen production to a price range as low as e1.5–2.5 kg −1 H 2
(Glenk and Reichelstein 2019).
When a power-to-gas facility is integrated to a renewable energy system, the
investment in the electrolyser brings an economic value when the sale value of
the hydrogen is higher than the LFCH production (Glenk and Reichelstein 2019).
However, the power-to-gas facilities are not profitable under current market conditions. The production of hydrogen via SMR technology is estimated to be of
e1,25 kg −1 H 2 and as low as e1 kg −1 H 2 from coal gasification. The cost parity
is influenced by the following parameters (Fasihi and Breyer 2019; Staffell et al.
2019).
The first parameter is the cost of renewable electricity. The Hydrogen Analysis (H 2 A) model created by the DOE to estimate the hydrogen production
costs showed that the electricity price is the single most impactful parameter for
hydrogen production (Jacobs 2016). A lower price of electricity has the same
effect as the decrease of CAPEX or higher hydrogen revenues (van Leeuwen and
Mulder 2018). Renewable energy sources such as wind or solar PV are cost competitive energy sources (Glenk and Reichelstein 2019). Operating a renewable
power-to-gas facility in a regulated power market makes enables the comparison
of electricity prices in the day-ahead and intraday markets making possible the