AIM
Investigate and evaluate aspects of the hydrogen economy and determine the financial feasibility for a greener future energy network within the United Kingdom.
Objectives
1) To develop a mathematical model to conduct financial analysis of hydrogen systems.
We designed a mathematical model that captures the stochasticity of current and future electricity prices. This allows analyses to be conducted with more accuracy because the natural fluctuation of electricity prices has been accounted for. As a result, the output of the model is more realistic.
2) To apply the model to three applications: electrical, transport, combined system.
The model was applied to these aspects of the hydrogen economy to assess which variables have an effect on the profits, and thus financial feasibility. By analysing the electrical and transport applications individually, a thorough evaluation was made of how each input affected the financial feasibility in each case. Finally, combining these applications - with knowledge of which variables affected the output and why - a combined system analysis was carried out.
3) To predict how our system could decarbonise UK by looking at CO2 emissions on a wider scale.
Finally, we calculated the degree by which the UK carbon dioxide emissions could be reduced. This considered a wide-scale implementation of our combined system.
We designed a mathematical model that captures the stochasticity of current and future electricity prices. This allows analyses to be conducted with more accuracy because the natural fluctuation of electricity prices has been accounted for. As a result, the output of the model is more realistic.
2) To apply the model to three applications: electrical, transport, combined system.
The model was applied to these aspects of the hydrogen economy to assess which variables have an effect on the profits, and thus financial feasibility. By analysing the electrical and transport applications individually, a thorough evaluation was made of how each input affected the financial feasibility in each case. Finally, combining these applications - with knowledge of which variables affected the output and why - a combined system analysis was carried out.
3) To predict how our system could decarbonise UK by looking at CO2 emissions on a wider scale.
Finally, we calculated the degree by which the UK carbon dioxide emissions could be reduced. This considered a wide-scale implementation of our combined system.
Scenarios explored
Current day
A current day analysis allowed us to evaluate the economic feasibility of each hydrogen application in today's context. Considering current electricity prices and current demands, the result of this analysis shows whether or not it would be appropriate today to implement such technology, from a financial perspective. This analysis provided a good starting-point for the investigation as a whole: all results can be compared to these, allowing a comparison to be made. It can be noted from this comparison which variables have the greatest influence on the financial feasibility.
A current day analysis allowed us to evaluate the economic feasibility of each hydrogen application in today's context. Considering current electricity prices and current demands, the result of this analysis shows whether or not it would be appropriate today to implement such technology, from a financial perspective. This analysis provided a good starting-point for the investigation as a whole: all results can be compared to these, allowing a comparison to be made. It can be noted from this comparison which variables have the greatest influence on the financial feasibility.
A future with increased renewable generation
As more renewable energy systems come online, to serve the UK's electricity demand, it was predicted that there would be a greater surplus of energy at specific times of the day. Wind energy is booming in the UK, an example of an intermittent energy resource. When it is "too" windy, we are starting to see wind turbines being curtailed. Our project considers harvesting this "wasted" potential energy that is currently being curtailed, and using it to generate hydrogen. It is considered that at these times of generation electricity prices will be free, or we may even be paid to take this electricity. This is because we are balancing the grid by taking the surplus energy out of the grid when there is no other demand.
As more renewable energy systems come online, to serve the UK's electricity demand, it was predicted that there would be a greater surplus of energy at specific times of the day. Wind energy is booming in the UK, an example of an intermittent energy resource. When it is "too" windy, we are starting to see wind turbines being curtailed. Our project considers harvesting this "wasted" potential energy that is currently being curtailed, and using it to generate hydrogen. It is considered that at these times of generation electricity prices will be free, or we may even be paid to take this electricity. This is because we are balancing the grid by taking the surplus energy out of the grid when there is no other demand.
Increase in demand
Due to the stochastic nature of wind energy - in addition to other renewable energy systems - if more wind turbines are to be integrated, there will be more demand to balance the grid. We considered this scenario, and how this increased requirement to meet peak demands would effect the economic feasibility. Additionally, we considered a scenario where there are more hydrogen vehicles on the road, which would incur a higher demand for hydrogen as transport fuel.
Due to the stochastic nature of wind energy - in addition to other renewable energy systems - if more wind turbines are to be integrated, there will be more demand to balance the grid. We considered this scenario, and how this increased requirement to meet peak demands would effect the economic feasibility. Additionally, we considered a scenario where there are more hydrogen vehicles on the road, which would incur a higher demand for hydrogen as transport fuel.
Subsidies
We considered a scenario where the government may be pushing towards greener, more sustainable options including Hydrogen technology. It is possible that in the future incentives and policies could be implemented to aid in the technologies advancing. While this is not accurately predictable - policies are always changing - we considered how the implementation of subsidies would enhance the financial feasibility of our system.
We considered a scenario where the government may be pushing towards greener, more sustainable options including Hydrogen technology. It is possible that in the future incentives and policies could be implemented to aid in the technologies advancing. While this is not accurately predictable - policies are always changing - we considered how the implementation of subsidies would enhance the financial feasibility of our system.
Cover photo sourced from: http://www.ceteris.co.uk/about-us/company-objective-aims
