Hydrogen: Production Pathways & Usage in Transport Sector

1. Hydrogen: An overview of production pathways and possible usage in the transport sector Maria Grahn MaritimeEnvironmental Sciences, Chalmers University of Technology 2019-03-28

2. Why hydrogen?Pros and consHydrogen/Fuel cellsin the transport sector

3. Advantages hydrogen • There are many different options for how to produce hydrogen with low CO2-emissions, in future. • No direct competition with land use issues (food production) • Hydrogen used in fuel cells has • better energy conversion efficiency factors compared to conventional ICEVs. • no or low local emissions. • lower noise. • Hydrogen can be synthesized to liquids or other gases

4. Challenges connected to large scale use of hydrogen and fuel cells • Investments needed in large scale CO2-neutral H2 production. • Costly H2-distribution and storage. • Fuel cells are still rather expensive • Although radical improvements made recent years, solving issues regarding life time aspects and dependency on scarce metals, there is still potential for further reduction in production costs. Komprimerad H2 300-700 bar Risk för läckage i pipelines Flytande H2 -253 OC

5. Some hydrogen productionpathways Steam reforming of liquid biofuels+water gas shift into H2. Microorganisms break down organic matter without light (MEC: combined with small electric current). STCH: Water splitting in high temperatures, e.g. concentrated solar power. PEC: Semiconductor materials uses sunlight to split water. Microorganisms (green microalgae or cyanobacteria) use sunlight to split water. STCH PEC • Fossil sources • Natural gas reforming. • Coal gasification (with or without CCS). • Biomass (resource is globally limited) • Biomass gasification and pyrolysis. • Biomass-derived liquid reforming. • Microbial biomass conversion (dark fermentation, MEC). • Solar (resource is abundant, but intermittent) • Solar thermochemical hydrogen (STCH). • Photoelectrochemical (PEC). • Photobiological. • Electrolysis (AEC, PEM, SOEC). Electrolysers Microbialelectrolysis cells (MECs) http://energy.gov/eere/fuelcells/hydrogen-resources#biomass

6. Timescale for hydrogen productionpathwaysAccording to DOE technologies that can produce hydrogen at a target of less than $4/kg http://energy.gov/eere/fuelcells/hydrogen-production-pathways

7. Literature review (analysing peer-reviewedpublications 2011-2016): Comparison of cost and performance for different electrolyser technologies including median of the data found and range in parenthesis • All types are expected to improve until 2030. • Large orders can already now lead to an investment cost below the cost stated for 2030. • SOEC has the potential to combine low cost with high efficiency (not yet on market). Brynolf S, Taljegård M, Grahn M, Hansson J. (2018). Electrofuels for the transport sector: a review of production costs. Renewable & Sustainable Energy Reviews 81 (2) 1887-1905.

8. Hydrogen productioncostdepends on electricityprice, investment cost for the electrolyser and hours operation per year (note thatscale on y-axisdiffer) Likelythat hydrogen can be produced less than $4/kg = 120 USD/MWh (LHV) and 100 USD/MWh (HHV) [120 MJ/kg (LHV) and 142 MJ/kg (HHV) http://www.h2data.de/] From presentation by AnnabelleBrisse, brisse@eifer.org Conference, Iceland, June 2013

9. Densitycomparison, i.e., hydrogen storagedemand space Low kWh/liter meansneed for space whenstored (also as liquid) Howeverrathersimilar to pressurizedmethane. https://energy.gov/eere/fuelcells/hydrogen-storage

10. Example H2-production Wind Driven Hydrogen Production Plant in Norway Utsira, Norway http://newenergyandfuel.com/http:/newenergyandfuel/com/2010/06/15/wind-to-fertilizer-construction-begins/

11. Hydrogen utilization

13. Production of Ammonia (NH3) from H2 H2 Renewableelectricity NH3 Fertilizer http://newenergyandfuel.com/http:/newenergyandfuel/com/2010/06/15/wind-to-fertilizer-construction-begins/

14. Hydrogen cansubstitutecoal in steelproduction https://www.ssab.se/ssab/hallbarhet/hallbar-verksamhet/hybrit

15. Hydrogen as base for the production of electrofuels, e.g.,Vulcanol from Iceland and Audi e-gas plant in Werlte, GermanyVulcanolusage: 3% blend in all icelandicgasoline + export to e.g, the Netherlands and Sweden

16. Hydrogen vehicles http://www.hydrogenlondon.org/projects/london-hydrogen-bus-project/ https://nikolamotor.com/ http://planetforlife.com/h2/h2vehicle.html https://fuelcellsworks.com/archives/2013/05/30/air-liquide-to-provide-first-hydrogen-filling-station-for-forklift-trucks-in-france-for-ikea/ http://www.treehugger.com/cars/are-hydrogen-fuel-cell-cars-realistic-option-compared-battery-electric-vehicles.html

17. Hydrogen as electricitystorage option Not many options for seasonalstorage. Hydrogen is one option (althoughchallenging to store). Pumped hydro and compressed air may be geographicallylimited. Electrofuels similar to hydrogen regarding potential for seasonalstorage, buteasier and less costly to store. www.chalmers.se/en/areas-of-advance/energy/cei/Pages/Systems-Perspectives-on-Renewable-Power.aspx (Chapter 5)

18. Results and insights from my research

19. Different fuels and vehicletechnology options aredifferentlywellsuited for different transport modesHydrogen a usefulfuel or intermediate for furtherrefining Liquidfuels (petro, methanol, ethanol, biodiesel) ICEV, HEV (internal combus-tionenginevehicles and hybrids) Aviation Fossil (oil, natural gas, coal) Shipping Methane (biogas, SNG, natural gas) FCV (fuel cell vehicles) Road (short) (cars, busses, distribution trucks) Biomass Hydrogen BEV, PHEV (batteryelectricvehicles) Solar, windetc Production of electrofuels Road (long) (long distance trucks and busses) Electrolysis Inductive and conductiveelectric Water CO2 Electricity Rail (train, tram) ENERGY SOURCES ENERGY CARRIERS VEHICLE TECHNOLOGIES TRANSPORT MODES

20. Results on fuel mix for global carfleetusing a global costminimisationenergy systems modelaiming for CO2-stabilisation at 450 ppm. PETRO = Gasoline/Diesel BTL= Biofuels CTL= Fuelsbased on coal GTL= Fuelsbased on natural gas NG = Natural gas H2 = Hydrogen CO2-target: 450 ppm ICEV = InternalCombustionengine FCV = Fuel cell vehicle HEV = Hybrid electricvehicles PHEV = Plug-in electricvehicles (Electrofuelsare not included) • General results: • It is not likely that one single solution will dominate the fuel scenario. • Hybrids and plug-in-hybrids are solutions that have the potential to play a large role in the near future. • Hydrogen is the most expensive solution but still a fuel that may dominate in a long term when oil, natural gas and bioenergy are scarce sources. • Scenarios are most often either dominated by electricity or hydrogen solutions depending on battery prices, fuel cell prices and hydrogen storage cost. • The globally limited amount of biomass can reduce CO2 emissions at a lower cost if it replaces fossil fuels in the stationary energy sector compared to replacing oil in the transportation sector. • Source: Grahn M, Azar C, Williander MI, Anderson JE, Mueller SA and Wallington TJ (2009). Fuel and vehicle technology choices for passenger vehicles in achieving stringent CO2 targets: connections between transportation and other energy sectors. Environmental Science and Technology 43(9): 3365–3371.

21. Other hydrogen options (H2) Productionofelectro-fuels Carbondioxide CO2 Water (H2O) Hydrogen (H2) El Electro-lysis CO2 from air and seawater 400-3700 €2015/kWelec 150-1250 €/tCO2 CO2 from combustion Heat 20-60 €/tCO2 H2 How to utilize or store possiblefuture excess electricity Biofuelproduction Synthesisreactor (e.g. Sabatier, Fischer-Tropsch) 5-10 €/tCO2 30-2100 €2015/kWfuel CO2 Biomass (C6H10O5) Electrofuels Biofuels Methane (CH4) Methanol (CH3OH) DME (CH3OCH3) Higheralcohols, e.g., Ethanol (C2H5OH) Higherhydrocarbons, e.g., Gasoline (C8H18) How to substitute fossil basedfuels in the transportationsector, especiallyaviation and shipping face challengesutlilzingbatteries and fuel cells. How to utilize the maximum ofcarbon in the globallylimitedamountofbiomass

22. 10 insights from our research on electrofuels

23. Literaturereview, data differs. Productioncost 2030 (maturecosts) different electrofuel optionsassumingmostoptimistic (low/best), leastoptimistic (high/worst) and median values (base) Insight 1a. Many different approachesamongauthors. Insight 1b. When data is ”harmonized” between the fuel options (lowcompared to lowetc) the differencesbetween the fuel options are minor. Insight 2: Costs for electrolyser and electricitydominates Note. Currentlywesee a trend towardslower investment cost of electrolyzers (comeswith an increased market). Some scenarios alsopointout a trend towardslowerelectricityprices in future (ifincreasedvariableelectricityproduction). Electricity Fuel synthesis and CO2 capture uncertainties installation & indirect costs Example: Electro-diesel: base case=180 €/MWh, best case=112€/MWh Electrolyser Source: Brynolf S, Taljegård M, Grahn M, Hansson J. (2018). Electrofuels for the transport sector: a review of production costs. Renewable & Sustainable Energy Reviews 81 (2) 1887-1905.

24. Productioncostdepend on capacityfactor Insight 3. Production cost depends on capacity factor. Below 40% result in much higher costs per produced MWh of fuel. Insight 4. Productioncostsmay lie in the order of 100-150 EUR/MWh in future. Insight 5. Future production of electrofuels have the potential to be cost-competitive to advanced biofuels. Ref: Brynolf S, Taljegård M, Grahn M, Hansson J. (2018). Electrofuels for the transport sector: a review of production costs. Renewable & Sustainable Energy Reviews 81 (2) 1887-1905.

25. Arethereenoughrenewable CO2?

26. Results on available CO2sources in Sweden • How much fuel can be produced? • 45 MtCO2/yr (fossil+renewable) • 30 MtCO2/yr is recoverable from biogenic sources =>110 TWh/yr electro-methanol Tot 45 Mt CO2 Insight 6. The amount of recoverable non-fossil CO2 is not a limiting factor for a large scale production of electrofuels, in Sweden. Note. The revised EU-directive on renewable fuels states that electrofuels is a “renewableliquid and gaseous transport fuels of non-biologicalorigin” if the energycontent is renewable (article 2.36). Electrofuels from fossil industrial CO2 is defined as ”recycledcarbonfuels” (article 2.35) and not defined as renewable. Ref: Hansson J, Hackl R, Taljegård M, Brynolf S and Grahn M (2017). The potential for electrofuels production in Sweden utilizing fossil and biogenic CO2 pointsources. Frontiers in Energy Research 5:4. doi: 10.3389/fenrg.2017.00004 http://journal.frontiersin.org/article/10.3389/fenrg.2017.00004/full

27. Cost-comparison of alternatives based on renewableelectricitydepending on distance driven per year.Compare electrofuels in ICEV to otherelectricitybasedpowertrain options includingelectric road system Ref: Grahn M, Taljegard M, Brynolf S (2018). Electricity as an Energy Carrier in Transport: Cost and Efficiency Comparison of Different Pathways. EVS31, Kobe, Japan. 1-3 Oct.

28. Different ways of using electricity for transport Electric vehicles (EV) Electro-diesel (E-diesel) Electric road systems (ERS) Hydrogen • Efficiency = 17% • Efficiency = 77% • Efficency = 24% efficiency = 73% H2 + CO2 e.g. diesel Water (H2O) + electricity H2 Ref: Grahn M, Taljegard M, Brynolf S (2018). Electricity as an Energy Carrier in Transport: Cost and Efficiency Comparison of Different Pathways. EVS31, Kobe, Japan. 1-3 Oct.

29. EV-battery = 150 €/kWh FC = 25 €/kW, 65% Electrolysers=400 €/kWel, 75% Results Passenger cars Small battery + fast charging attractive option all distances (compared to other “electricity options”) (no cost penalty for waiting while charging) ERS also a cost-attractive option (large ERS network to be built before reducing battery size, business models key for introduction) Electro-diesel cost-competitive with BEV-50 kWh up to 16 000 km/yr. Insight 7. Small BEVs generally the least costly alternative to utilize electricity in transport. Electro-diesel in ICEVs the least cost solution if the vehicle is run short distances per year. Note. Production costs (no taxes or subsidies). Abbrevations used: BEV=battery electric vehicle; FCEV=hydrogen fuel cell vehicle; PHEV=plug-in hydrid vehicle using electricity and e-diesel; E-diesel=synthetic diesel (electro-diesel); ERS=electric road system 10 000 30 000 0 20 000 15 000 35 000 5000 25 000 Ref: Grahn M, Taljegard M, Brynolf S (2018). Electricity as an Energy Carrier in Transport: Cost and Efficiency Comparison of Different Pathways. EVS31, Kobe, Japan. 1-3 Oct.

30. CCS or CCU from a climateperspective?Global long-term energy systems perspective CCS = Carbon Capture and StorageCCU = Carbon Capture and Utilization

31. Energy-economymodel Global Energy Transition (GET) Linearlyprogrammedenergy systems cost-minimizingmodel. Generates the fuel and technology mix that meets the demand (subject to the constraints) at lowest global energy system cost Source: Lehtveer, M., Brynolf, S., Grahn, M. (2019). What future for electrofuels in transport? – analysis of cost-competitiveness in global climate mitigation. Environmental Science and Technology 53 (3) 1690–1697..

32. Results, two scenarios showing different amount of electrofuels Base Case, 450 ppm Results for year 2070. Monte Carlo analysis 500 runs, 450 ppm Synfuels Elec NG Petro No CCS, 450 ppm Insight 8: The cost-effectiveness of electrofuels in global climate mitigation will depend strongly on the amount of CO2 that can be stored away from the atmosphere. If largecarbonstorage is an accepted and availabletechnology, the captured CO2 cancontribute to climatemitigation to a lowercostifstored underground, instead of recycledinto electrofuels. Synfuelsincl electrofuels Elec NG Petro Source: Lehtveer, M., Brynolf, S., Grahn, M. (2019). What future for electrofuels in transport? – analysis of cost-competitiveness in global climate mitigation. Environmental Science and Technology 53 (3) 1690–1697..

33. Chemicalindustrialperspective

34. Substitute fossil fuels in industrial processes Assess if there are conditions under which production cost of electro-hydrogen and electro-methanol are competitive to market price of fossil hydrogen and fossil methanol. Electro-methanol Fossil hydrogen Fossil methanol Biofuels (HVO) Biofuels (FAME) Electro-hydrogen Other inputs Other inputs • 50 €/MWh • 63 €/MWh The Preem case The Perstorp case Grahn M, A-K Jannasch (2018). Whatelectricitypricewould make electrofuels cost-competitive?, 6th TMFB, Tailor-MadeFuels from Production to Propulsion Aachen, Germany. 19-21 June.

35. Results production cost electrofuels compared to market price for fossil options Future optimistic case 63 40 Experiencefactor for installation and unexpectedcosts is a large post Base case 158 CO2capture 50 Synthesisreactor and water 23 Electricity is the dominating post 86 In a future optimistic case the production cost could be competitive to fossil option 63 Electrolysis is a large post 50 Revenue sold heat Revenue sold oxygen Grahn M, A-K Jannasch (2018). Whatelectricitypricewould make electrofuels cost-competitive?, 6th TMFB, Tailor-MadeFuels from Production to Propulsion Aachen, Germany. 19-21 June.

36. Production cost of electro-hydrogen, for different electricity prices and different electrolyser investment cost, in the (a) base case and in a (b) future optimistic scenario Green-marked results indicate a production cost that is equal or below what the industries’ pay for fossil hydrogen (50 €/MWh). Yellow-marked results indicate a production cost that is equal or below double the market price of fossil hydrogen (100 €/MWh). Red-marked results indicate a production cost that is higher than double the market price of fossil hydrogen i.e. difficult to see business opportunities (>100 €/MWh). Grahn M, A-K Jannasch (2018). Whatelectricitypricewould make electrofuels cost-competitive?, 6th TMFB, Tailor-MadeFuels from Production to Propulsion Aachen, Germany. 19-21 June.

37. Production cost of electro-methanol, for different electricity prices and different electrolyser investment cost, in (a) base case and (b) future optimistic scenario Insight 9. There are circumstances when electrofuels can be produced at lower cost compared to the market price of fossil options (however, not assuming current costs). Insight 10. Lower costs for electrolyzers, lower average annual cost for electricity as well as a market for oxygen and heat would benefit the cost-competitiveness of electrofuels. Green-marked results indicate a production cost that is equal or below what the industries’ pay for fossil methanol(63 €/MWh). Yellow-marked results indicate a production cost that is equal or below double the market price of fossil methanol (126 €/MWh). Red-marked results indicate a production cost that is higher than double the market price of fossil methanol, i.e. difficult to see business opportunities (>126 €/MWh). Grahn M, A-K Jannasch (2018). Whatelectricitypricewould make electrofuels cost-competitive?, 6th TMFB, Tailor-MadeFuels from Production to Propulsion Aachen, Germany. 19-21 June.

38. Summary insights so far from our research on electrofuels • In the literature it appears many different approaches among authors when presenting production costs. Experience factor for indirect costs the main difference, as well as different assumptions on technology maturity level. When input data is ”harmonized” between the fuel options the differences between the fuel options are minor. • Costs for electrolyser and electricity are dominating posts of the total electrofuels production cost. • Production cost depends on capacity factor. Below 40% result in much higher costs per produced MWh of fuel. • Production costs may lie in the order of 100-150 EUR/MWh in future. • Future production of electrofuels have the potential to be cost-competitive to advanced biofuels. • The amount of recoverable non-fossil CO2 is not a limiting factor for large scale production of electrofuels, in Sweden. • Small BEVs generally the least costly alternative to utilize electricity in transport. Electro-diesel in ICEVs the least cost solution if the vehicle is run short distances per year. • The cost-effectiveness of electrofuels, in a global climate mitigation context, will depend strongly on the amount of CO2 that can be stored away from the atmosphere. • There are circumstances when electrofuels can be produced at lower cost compared to the market price of fossil options (however, not assuming current costs). • Lower costs for electrolyzers, lower average annual cost for electricity as well as a market for oxygen and heat would benefit the cost-competitiveness of electrofuels.

39. Summary hydrogen Very flexible base for productionof hydrogen. Likelybothcheaper and moreefficient H2production in future. Many end-usesectors for hydrogen, either as H2 or furthersynthesized to e.g. ammonia or carbonbasedfuels (methane, methanol, gasolineetc). Can be used to store electricity. H2 in fuel cells may be a cost-effective solution in the transport sector in future. H2reactedwith CO2 (electrofuels) may under somecircumstances be a cost-effective solution in the transport sector in future.

40. Long-term perspectives on almost CO2 free fuels: General insights • Three types of energy carriers have the potential to substantially reduce the fossil CO2 emissions from the transportation sector: carbon based fuels (biofuels/electrofuels), electricity and hydrogen. • Fuels that have an advantage are those that • can be blended in conventional fuels (drop-in, alcohols, biodiesel, efuels). • already have a wide-spread fuel infrastructure (ethanol, methane, EV charging poles). • EU have decided to focus on (electricity, methane, hydrogen). • It is most likely that parallel solutions will be developed, e.g. • There are many advantages for electric solutions in cities. Aspects like a reduction of NOx, soot, and noise. Most likely different electric solutions in cities (electric buses, cars, delivery trucks, trams, metro etc). • There are several challenges for electrifying long-distance transport (especially ships and aircrafts). Electrofuels may complement biofuels for these transport modes. • Irrespective of fuel type, CO2 emissions can be reduced by more energy efficient vehicles and measurements towards reduced transport demand.

41. Our research group, future fuels incl electrofuels All studies trying to shedsomelight to the larger research question”Under whatcircumstancescould electrofuels become an interesting option in the fuel mix of the transportationsector?” Maria Taljegård, PhD student Chalmers University of Technology Email: maria.taljegard@chalmers.se Julia Hansson, Postdoc Chalmers University of Technology Email: julia.hansson@ivl.se Selma Brynolf, Researcher Chalmers University of Technology Email: selma.brynolf@chalmers.se Elin Malmgren PhD student Chalmers University of Technology Email: elin.malmgren@chalmers.se Karin Andersson, Professor Chalmers University of Technology Email: karin.andersson@chalmers.se Maria Grahn, Researcher Chalmers University of Technology Email: maria.grahn@chalmers.se Sofia Poulikidou, Postdoc Chalmers University of Technology Email: sofiapo@chalmers.se Stefan Heyne, Researcher CIT Email: stefan.heyne@cit.chalmers.se