Conclusion

Main Conclusions

        The modular hydrogen peak power plant envisaged, which would meet the basic requirements of STOR, could become cost-effective in the future, in certain circumstances.

        These circumstances require different financial conditions from present ones. 
        The important factors identified are:

• Capital costs, and running and maintenance costs, which would all need to fall.  In the scenario, they need to fall at least three- fold;
• Price difference between purchase and sale price of electricity, which would need to increase.  In the scenario, it would need to increase approximately three-fold. 

        Any future government support may also have an important role.   Such support may allow a plant to be cost-effective with smaller changes in the financial environment to those stated above.

        It is considered certainly possible that such circumstances may exist in the future.   There are several drivers to reduce equipment costs, increase electricity price differentials, and to encourage governments to lend support. 

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Other Conclusions

        Equipment size has an important effect.  The smallest possible equipment to do job is the most cost-effective. Future increases in efficiency of equipment, while beneficial, were not found to have an important effect. However, an increase in the capacity of equipment, and the emergence of a market for large fuel cells and electrolysers, are essential.

        Other markets for the electricity or hydrogen from this plant, such as electrified or hydrogen-fuelled transport, could increase viability.  Such markets are expected to increase.

        Practical and environmental considerations, and public acceptability, may also prove important.