SGN propose to collaborate with partners to build a "data first" approach that explores the role of digital twins as green hydrogen project SIF innovation project. The overall "intent" is that digital and data is part of the "product" and part of the "design" with the capture, storage and transmission of data built-in from the design stage.
The work aims to meet the key challenges within Ofgem's aims and objectives for the SIF challenge. SGN suggests that the project could shape how a future hydrogen industry could be organised in terms of information and data transfer between producers, gas networks, suppliers, consumers - for example, linking power, water, and gas data infrastructure in the specific H100 Fife case, and building on opportunities to expand into other developing hydrogen projects.
The insights gained from the vast amounts of available information will have a profound impact on how the emerging hydrogen economy will sustain itself in the future. Such incidents are usually due to various mechanical failures, which digital twin products are ideally suited to help customers manage and mitigate.
With the increasing availability of economically viable real or near real-time information via sensors and inbuilt health diagnostics encompassed in the industrial IoT, the challenges of managing and using information smartly are rapidly increasing. Overcoming these challenges comes with outstanding potential benefits for our customers, when they are able to reduce unscheduled asset downtimes, improve asset efficiency, reduce environmental impact and eliminate regulatory compliance infractions.
SGN proposes to work with partners to test a number of hypotheses; In the digital twin space, DNV have produced the first methodology and recommended practice for the Qualification and Assurance of Digital Twins. On this project DNV will draw upon the rich insight from working with multiple cross-industry stakeholders on digital twin initiatives alongside deep gas industry domain knowledge.
AWS is a cloud computing industry leader, with a business innovating in new areas such as Machine Learning and Internet of Things which will help the project to ascertain real time data of user interactions to answer the questions on green hydrogen in order to make data-driven decisions.
NGGT will bring knowledge and learnings to SGN to best align data and digital systems -- they will also be collaborating on the Gas Network Interoperable Digital Twin SIF to share knowledge and bridge gaps around digital systems to enable a collaborative approach around future Digital Twins.
Problem Bring Solved
The recent publication of the UK's hydrogen strategy (August 2021) places considerable focus on the role of digital and data as critical enablers that can support the emerging role of hydrogen -- particularly low-carbon hydrogen – in achieving net zero. We believe that a strong use can be built that unites these ambitious hydrogen development plans alongside the work in the digital and data space that is being chaired by the Energy Data and Energy Digitalisation taskforce(s).
H100-Fife is a world-first green hydrogen-to-homes network that will demonstrate 100% green hydrogen heating in homes for the first time. It embodies the UK's commitment to taking action in the global fight against climate change. Helping to deliver the UK's net zero target for 2050.
The unification of these two concepts forms the basis of our project, which for the purpose of the SIF "discovery phase" will explore the commercial, societal and operational benefits that could be derived from the deployment of a digital twin concept on a green hydrogen use case.
The overall innovation and challenge question(s), or problem(s) that is intended to be explored as part of this concept are:
- How can a digital twin of a green hydrogen project support an emerging hydrogen economy in a safe, resilient, innovative and effective way?
- What are the commercial, societal and operational benefits that can be derived from the deployment of a digital twin concept on a green hydrogen use case connected to the H100-Fife project?
- What skills are needed in industry to support the design, build and operation of such as twin?
- How can the data generated from such as twin enable a digitally-rich ecosystem that puts the energy industry at the forefront of cutting-edge digital technology and processes and support the strategic ambitions of the UK Government as outlined in the UK Hydrogen Strategy?
- How does the hydrogen economy interact with the other infrastructure such as the impact on electricity supply resilience, water supply and other potential end users such as transport and industry?
- How can digital twins in form and empower the customer and help to enhance trust between an end-user and clean energy providers; increase societal uptake; support future billing methodologies; and provide clarity about the provenance of the energy source.
A digital twin concept could see increased connectivity between industry, the shipper / supplier and the customer.
Impacts and benefits
In April 2022, an announcement from the UK Government proposed an investment of GBP240M to support hydrogen production as a clean, low-cost energy technology. Using digital twins and their data to manage the relationship between energy storage and energy demand will be an essential part of a systems deployment. We believe our project has never been more relevant; to ensure maximum value of a “systems approach” we specifically focused on the value creation across the entire production value chain.
Supply, demand and capacity:
Hydrogen production needs to be maintained to a reliable standard to meet output, maintain the security of supply to customers and ensure that the supply/demand of hydrogen is met. We discovered that the value of using digital twin-generated data for performance and safety decision-making in projects and operations is significant to distribution networks such as SGN; the key priority of the H100 project is to provide learning outcomes secondary being operational efficiency. A UK-wide hydrogen economy could be worth £900M and create over 9,000 high-quality jobs by 2030. The insights from digital twins such as ours will be a critical enabler for this.
Economic stimulation:
When we drafted our proposal in 2021, it was stated that by 2030 the UK will develop its capabilities for producing blue and green hydrogen to hit its target of 5GW of production. In April 2022, this ambition was increased to 10GW, largely influenced by the Russian invasion of Ukraine and a need to generate energy locally. The Hydrogen Business Model, which will support further investment in hydrogen production with £100M for electrolytic projects – we estimate that it is reasonable to expect that the potential economic value of our digital twin to be in the region of 20% of this value.
Levelised cost of hydrogen production (LCOH):
The LCOH is the discounted lifetime cost of building and operating a production asset, expressed as a cost per energy unit of hydrogen produced (£/MWh). It covers all relevant costs faced by the producer, including operating costs. Currently, BEIS hold only limited evidence on the level and timing of pre-development costs. Our digital twin will provide valuable evidence to support, given that LCOH is a production cost metric and does not include any costs associated with delivery or storage of the produced hydrogen. These costs are likely to be millions of pounds.
