Great economic potential for optimization of hydrogen systems
Hydrogen is considered to have a key role for the ongoing energy transition. Hydrogen technology has existed for a long time, but it is only in the recent energy crisis that the debate about hydrogen has really gained momentum among Sweden's energy companies and industries.
Hydrogen in itself is not a source of energy, but just like electricity it is an energy carrier. If fossil-free electricity is used in the electrolyser, the hydrogen becomes climate-friendly.
FROM CHALLENGES TO OPPORTUNITIES
To be able to use hydrogen as fuel, an energy converter is needed, which can for example be a so-called fuel cell.
The disadvantage of hydrogen production is that the efficiency is relatively low, approximately 20–30 percent of the energy content is lost in the conversion from electricity to hydrogen. There are also many different hydrogen technologies and many different ways of using hydrogen. There has therefore been considerable doubt among energy companies and industries as to whether investment in hydrogen technology can really be profitable.
Energy Opticon drives the development of hydrogen use in several projects together with energy companies and industries, from investment calculations to choosing the optimal production location and to actual production. Our calculations together with actual data from energy companies have shown that there is great economic potential for optimizing hydrogen systems.
Optimizing the hydrogen system can open up new possibilities;
- Use hydrogen as an energy storage for increased flexibility in electricity production and relieve the electricity grid at critical times.
- Act on electricity markets and contribute with ancillary services on the balance market.
- New business models for e.g. Carbon Capture and Utilization (CCU) and e-fuels.
- Improve the company's green profile
SCENARIO CALCULATIONS
The hydrogen system with all necessary economic input models in the Topology editor in Energy Optima 3 (a so-called "Digital Twin"), on which various long-term simulation calculations are run. The optimizer finds the most profitable models for hydrogen production systems, which can also be combined with other processes, such as Carbon Capture and Utilization.
In this way, Energy Opticon can as a basis for the following:
- Profitability of hydrogen production for the specific system.
- Design and layout of the water gas system.
- Where it is most profitable to place the technology.
- How long the repayment period will be.
SUCCESS EXAMPLE
Kemira Oy in Finland is a global chemical company that has customers in water-intensive industries.
The company's focus is on paper pulp, oil, gas and water treatment.
Kemira Chemicals, Joutseno.
Together with a partner company, Energy Opticon has delivered an energy management solution to optimize the operation of the electrolysers in combination with electricity trading at Kemira Chemical's bleaching plants in Äetsä and Joutseno in Finland.
The electrolyzers at Kemira's facilities correspond to a total of nearly 250 MW in rated power and are used to produce chlorate (with hydrogen as a by-product).
Energy management solution
The delivery included economic and environmental production optimization of Kemira's production of hydrogen and chlorate in combination with electricity trading. It also included an information management system for the storage and further processing of data as well as for reporting.
What is so special about this delivery is that producing with electrolysis for three different sites was modeled with forecasts of their chlorate production, along with optimal buying and selling plans for electricity, for day-ahead, intraday and balance markets.
Kemira Oy earns large sums from this solution and internal research showed that the payback time for the optimization system was less than a year.
Interested in knowing more? Please contact Energy Opticon at info@opticon.se
