Optimal Co-Production of Market-Based Power Grid Support and Renewable Fuels or Chemicals

This paper addresses the operational profitability and benefits of co-production and dynamics in renewable Power-to-Fuel or Power-to-Chemical processes, when utilized to stabilize the power grid. To reach climate neutrality, the transport sector must switch to climate-neutral or climate-positive fuels or power. This can be done by a proper mix of electric vehicles where the power is based on renewable electricity, hydrogen vehicles where the hydrogen is based on side-product hydrogen or renewable power based processes, or by using in existing vehicle fleet renewable biofuels instead of fossil fuels. For hydrogen-based or hydrocarbon-based chemical industry, similar change needs are obvious. Today, renewable fuels can be produced with biomass based plants or in bio-refineries. If biomass cannot be utilized or there is a lack of some sustainable chemicals like hydrogen in the bio-process, new so called Power-to-X plants could be used to produce renewable fuels or chemicals of non-biomass origin (X refers to the end product of the plant). These processes are utilizing hydro, solar or wind power via electrolysis for production of the needed additional hydrogen fraction. Optimized day- or week-ahead planning can increase considerably the value of renewable Power-to-X plant operation. Such optimal operation can enhance commercial viability of the Power-to-X plants, and in this way introduce these climate-positive, mid-sized and distributed units into a smart grid. In this paper, we show examples on the value of such optimal dynamic operation together with the value of the dynamics of key unit processes and intermediate storages, while at the same time reaching a high share of sustainable solar and wind power in the end product.