Abstract
Power-to-gas (PtG) technology has received considerable
attention in recent years. However, it has been rather
difficult to find profitable business models and niche
markets so far. PtG systems can be applied in a broad
variety of input and output conditions, mainly determined
by prices for electricity, hydrogen, oxygen, heat,
natural gas, bio-methane, fossil CO2 emissions, bio-CO2
and grid services, but also full load hours and
industrial scaling. Optimized business models are based
on an integrated value chain approach for a most
beneficial combination of input and output parameters.
The financial success is evaluated by a standard
annualized profit and loss calculation and a subsequent
return on equity consideration. Two cases of PtG
integration into an existing pulp mill as well as a
nearby bio-diesel plant are taken into account.
Commercially available PtG technology is found to be
profitable in case of a flexible operation mode offering
electricity grid services. Next generation technology,
available at the end of the 2010s, in combination with
renewables certificates for the transportation sector
could generate a return on equity of up to 100% for
optimized conditions in an integrated value chain
approach. This outstanding high profitability clearly
indicates the potential for major PtG markets to be
developed rather in the transportation sector and
chemical industry than in the electricity sector as
seasonal storage option as often proposed.
Original language | English |
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Pages (from-to) | 182-189 |
Journal | Energy Procedia |
Volume | 73 |
DOIs | |
Publication status | Published - 2015 |
MoE publication type | A1 Journal article-refereed |
Event | 9th International Renewable Energy Storage Conference, IRES 2015 - Düsseldorf, Germany Duration: 9 Mar 2015 → 11 Mar 2015 Conference number: 9 |
Keywords
- power-to-gas
- business model
- grid services
- chemical industry
- forestry