Keywords
hydrogen underground storage, grid electricity storage, seasonal energy storage, dynamic optimization, techno-economic analysis, electrolyzer
Abstract
This study performs a techno-economic analysis of hydrogen underground storage systems for grid electricity storage, evaluating their economic viability at the plant scale using dynamic optimization. It explores the feasibility of various system configurations and revenue models in the context of volatile electricity prices and the necessity for multiple revenue streams. The hypothesis tested is that large-scale hydrogen storage, despite its low round-trip efficiency, can be economically viable with the right mix of revenue streams. This study uses scenario-based analysis to assess the impacts of different system configurations, including engaging in time-shifting arbitrage, ancillary service markets and blending hydrogen with natural gas. Results indicate potential annual net cash flows of up to $1.5 million from ancillary services integration and $5.2 million from natural gas blending, contingent on specific system sizes. The study concludes that hydrogen underground storage for grid electricity storage can be profitable, and emphasizes that proper system design and precise electricity price forecasting are crucial for optimizing system performance and economic returns. This research sets the stage for further investigations into the scalability of hydrogen storage systems and their broader implications for grid electricity storage and energy market dynamics.
Original Publication Citation
Yunzhi Chen, Daniel Hill, Blake Billings, John Hedengren, Kody Powell, Hydrogen underground storage for grid electricity storage: An optimization study on techno-economic analysis, Energy Conversion and Management, Volume 322, 2024, 119115, ISSN 0196-8904, https://doi.org/10.1016/j.enconman.2024.119115.
BYU ScholarsArchive Citation
Chen, Yunzhi; Hill, Daniel; Billings, Blake; Hedengren, John; and Powell, Kody, "Hydrogen Underground Storage for Grid Electricity Storage: An Optimization Study on Techno-economic Analysis" (2024). Faculty Publications. 8235.
https://scholarsarchive.byu.edu/facpub/8235
Document Type
Peer-Reviewed Article
Publication Date
2024-10-03
Publisher
Energy Conversion and Management
Language
English
College
Ira A. Fulton College of Engineering
Department
Chemical Engineering
Copyright Status
© 2024 Elsevier Ltd. All rights are reserved, including those for text and data mining, AI training, and similar technologies. This is the preprint version of this article. The definitive version can be found at https://doi.org/10.1016/j.enconman.2024.119115.
Copyright Use Information
https://lib.byu.edu/about/copyright/