Project Summary

The HyScale Liquid Organic Hydrogen Carrier (LOHC) project aims todemonstrate how an LOHC system can be used for capturing, storing andreleasing hydrogen into a gas network, to manage long-duration storagerequirements. The use of LOHCs connected to an electrolyser and a hydrogengas network, will enable it to run flexibly and take advantage of low electricityprices. This will reduce the cost of producing hydrogen for consumers,accelerating the uptake of hydrogen for industrial offtakers, power generation anddomestic heating. LOHC systems may play an important role in providing storageflexibility where geological storage is not available.

Innovation Justification

The UK has set an ambitious 2030 target of 10GW of low-carbon hydrogenproduction. Electrolysers can potentially offer system flexibility and the ability to"vector shift", i.e., use low-cost electricity to produce green hydrogen, which can be stored over time for use in industrial or domestic heat decarbonisation. Long duration hydrogen storage is a key enabler.
The HyScale design project has for the first time demonstrated that deploying LOHC storage systems in conjunction with hydrogen generation and a hydrogen gas network could facilitate power-to-gas system flexibility and energy network optimisation.
Such integration of LOHC storage systems with industrial and/or domestic heat demand via a gas network will represent a world first.
This proposed project will lead to improved understanding of the business model and technical design required for this innovative method of long duration hydrogen storage. The project is therefore very well aligned to the aims of Innovation Challenge 4.
Integration of LOHC technology with hydrogen production would allow the electrolyser to run flexibly taking advantage of (a) low electricity prices and (b)long duration demand shift. This would decrease the LCOH of the combined system while demonstrating the capture, storage, and release of hydrogen inLOHCs proving its commercial viability.
The previously funded design study demonstrated significant reductions in LCOHto the UK rate payer:
9% at 1,000 homes scale.
17% at 100,000 homes scale.
The design study also demonstrated that LOHC large scale hydrogen storage is economically competitive with geological storage, whilst providing operational and geographical flexibility in areas where salt caverns are unavailable e.g. in Scotlandand South-East England.
While the economic case in the design study for LOHCs was promising and provided justification for the development of a demonstration project, several
knowledge gaps exist. The following activities are proposed to address these:
CBA of an optimal balance of LOHC storage and electrolysers operating under a strategy to vector shift power-to-gas.
Technology analysis of different electrolysers for coupling with LOHC plants including efficiency, performance, safety and techno-economic aspects.
The creation of a research roadmap focusing on topics specific to energy network use cases including optimising reactors for hydrogenation/dehydrogenation, developing an understanding of LOHC cyclestability and aging, and optimal operating and storage conditions.
Evaluations of proposed sites for LOHC integration including interface andancillary systems for the full operation of the demonstration project. Site optionsinclude SGN's H100, NGN's NERV, Cadent's London area site, distilleries and Ineos' Grangemouth site.
Design of a Beta Phase including project plan, final costing and the demonstration project operating plan.
The design study received funding via NIA. Tackling this challenge without SIF funding will be difficult as the technology, its use case and commercial model are unestablished. The Alpha Phase will model the flexible operation of an electrolyser operating under energy price arbitrage and establish the CBA for LOHC storage.
The Beta Phase funding required for a LOHC project would exceed the size of an NIA demonstration project and would not be covered by business-as-usual activities. The project will allow informed decisions to be made about the magnitude of cost savings possible in a future hydrogen gas network at the100,000 homes scale, currently estimated in the tens of £millions. This will align with the 2030 UK target of 10GW of low-carbon hydrogen production.
LOHC is an emerging technology (TRL7). HyScale aims to increase the integrated and commercial readiness of LOHC systems. In Alpha, current IRL3 will increase to IRL4 through the technical evaluation of LOHC and electrolyser system integration. Current CRL2 will stay constant while developing the demonstrationplant operational plan. Beta aims to achieve TRL8, IRL6 and CRL3 - 4.

Impacts and Benefits

The most significant direct benefit of HyScale LOHC is in reducing therequirement for hydrogen production systems to be sized to meet peak demand periods. Coupled with LOHC storage, optimum hydrogen production can be achieved to meet variable demand and supply scenarios. This reduces the CAPEX of the overall system, resulting in a lower LCOH and lower energy costs for consumers.
Financial - future reductions in the cost of operating the network (21%CAPEX savings vs counterfactual of no storage)
An optimal balance of LOHC storage and ATR capacity at the 100,000 homes scale could result in CAPEX savings of 21% (ca. £15 - 25m).
LOHC allows for the provision of hydrogen storage at localised network points, providing resilience to hydrogen gas networks and supporting wider decarbonisation objectives. Our studies have shown that large scale LOHC storage competes with geological storage in a broad range of scenarios and is economically competitive. LOHCs can overcome some of the operational and geographical limitations of geological storage:
salt caverns are unavailable in Scotland and South-East England.
depleted oil and gas reservoirs and aquifers have withdrawal rate limitations,this restriction does not apply to LOHC systems.
Financial - cost savings per annum on energy bills for consumers (9% lowerLCOH)
An optimal balance of LOHC storage and electrolyser capacity maximises the cost benefits of electricity price arbitrage, decreasing the LCOH to the consumer by9%. These considerations are set out in the attached high-level CBA.
Additional savings could be achieved using constrained/curtailed low-cost electricity, and by integrating LOHC with electrolysers, achieving reductions inCAPEX (reducing redundancy) and OPEX (increased system efficiency).
Financial - cost savings per annum for users of network services and Revenues - improved access to revenues for users of network services
LOHC storage enables electrolysers to flexibly respond to system needs based on hourly renewable generation, resulting in lower energy supply costs (by avoiding operation during peak demand hours) and emissions intensity.
This delivers better alignment with renewable generation which helps reduce curtailment and alleviate network constraints. Thus, renewable electricity generators can increase revenues by continuing to supply renewable energy intothe grid at times of low demand and high renewables generation.
Environmental - carbon reduction -- indirect CO*2* savings per annum
Flexible electrolyser operation helps reduce:
emissions intensity of the overall energy system via reduced renewable energy curtailment.
need for redispatch or reliance on fossil generation as the hydrogen released from LOHC will have no CO2 emissions.
The above financial and environmental benefits will be quantified in the AlphaPhase CBA.
New to market -- products, processes and services
HyScale is defining a new hydrogen storage value chain and commercial business model for long duration energy storage. This will be beneficial to energy network operators, hydrogen and renewable power producers and energy consumers.
A key feature of LOHC storage is that there is no self-discharge of hydrogen overtime. This results in the option of multi-month storage without losses. This may be advantageous in areas of constrained wind and limited capacity for blending where hydrogen can be slowly released over time.
HyScale may lead to the creation of LOHC plant owners/operators across the UK,new market offerings, funding mechanisms and support services for the long-term development and growth of hydrogen storage.
Other - safety
LOHC storage provides a safer alternative to high pressure or liquified hydrogen storage solutions which present hazards due to the nature of physical storage.LOHCs store and transport hydrogen at ambient temperatures and pressure. They also remove the requirement for the handling of molecular hydrogen by chemically bonding hydrogen to a stable organic carrier.