Main results and conclusions November 07,2016 Roadmap studY Power-to-Gas (PTG) IN flanders Main results and conclusions November 07,2016 Isabel François WaterstofNet Don Quichote Workshop Milano

Power-to-Gas Roadmap for Flanders In a nutshell Duration: 14 months (01/10/2014 - 31/01/2016) Funding : Flemish Region, Belgium Project partners: Coordinator: Hydrogenics (Denis Thomas)

Power-to-Gas Roadmap for Flanders Objectives Analyze the actual (2015) and future (2030-2050) status of Power-to-Gas (PtG) in Flanders (technology, economics, legal framework, market opportunities) Study various PtG business cases and identify early markets Elaborate a roadmap which will serve as the backbone for the actions of a Power-to-Gas Cluster in Flanders Prioritize the actions in order to create a PtG framework for the development of projects in Flanders and abroad Identify potential demonstration projects in Flanders

Overview of calculated P2G business cases Electrolyser size 500kW → 100MW 2015-2030-2050

BuSIness cases Building blocks Feedstock and utility prices: Power prices ; grid-fees Equipment: CAPEX /OPEX of Electrolyser (incl.cell stack replacement) , H2 storage and compression, refueling stations, fuel cells… Physical and Property data: Mass density / Energy content of different H2, CH4, CH3OH.. Extra process steps: Characteristics and cost of methanation, methanolisation Ancillary services Revenues R1, R2, R3 Societal benefits: Avoided CO2 cost Grid connected systems, green/renewable hydrogen certification via guarantees of origin certificates (cf. www.certifhy.eu)

INPUT: POWER PRICE PRICE DURATION CURVES 2015-2030-2050 Average price (from power price duration curve) + supplier margin (5-20%) + grid fees ( grid connection +consumption) ---------------------------------------------------------------- TOTAL ELECTRICITY PRICE

INPUT: CAPEX ESTIMATION CAPEX 2015-2030-2050 kW scale MW scale Multi MW scale

INPUT: CO2 cost CO2 allowance and societal cost Prices for CO2 emission allowances under EU ETS were made by Fraunhofer ISE in their study ‘Levelized Cost of Electricity – Renewable Energy Technologies”. Source:Umweltbundesamt (UBA), Schätzung der umweltkosten In den bereichen energie Und verkehr, 2012

RESULTS: Cost of hydrogen as function of OPERATING HOURS Hydrogen refueling station 50 cars/day

RESULTS: PRICE BUILD-up in different cases WATERFALL GRAPHS Very high CAPEX (electrolyser + fuel cell) Limited operation hours (only cheapest 1330h) Assumed +/- full time operation (8500h) Electricity price dominates (grid fees!)

RESULTS: power-to-gas direct injection, methanation, biomethane 15 MW electrolyser, compression up to 70 bar, injection in the transportation gas grid (direct injection and methanation)

CONCLUSIONS for the different CASES POWER TO MOBILITY: Most promising economical case Political momentum in Europe (zero emission transport) POWER TO GAS: Technical potential is high (gas grid has very high storage capacity) Direct H2 injection best option on short term; cost ≈ biomethane Methanation (technically) best option on long term (no volume limit) POWER TO FUEL: Interesting case for partial substitution of Diesel/Gasoline (cfr bio-diesel/-ethanol today) POWER TO INDUSTRY: Positive economic case already for small scale applications (compared to H2 delivered by tube trailer) Large scale applications (compared to SMR on-site) not feasible today

P2G Roadmap for flanders GENERAL conclusions AND REMARKS Power-to-Gas is a clear answer to the objectives of the energy policy in Flanders / EU Fundamental changes are expected in the power, gas, industry and transport markets driven by ambitious EU policy (higher CO2 price, more renewables, clean transport, green gases...). These will change the business cases significantly. A supportive regulatory framework is needed including: Removal of existing barriers mainly due to the absence of specific legislation addressing hydrogen and P2G (sector coupling) Setting up a green/renewable hydrogen certification mechanism Provision of a financially attractive environment to stimulate investments in H2 and P2G in Flanders

P2G Roadmap for flanders Final report is available http://www.power-to-gas.be/roadmap-study This roadmap was a 1st essential step to: confirm the P2G opportunity identify the challenges and priorities increase awareness on the topic The creation of a P2G cluster was the 2nd step to start the implementation of the roadmap with a broad industry involvement Political commitment will be essential for future steps !

Roadmap project coordinator MORE INFO? www.power-to-gas.be Roadmap project coordinator Denis THOMAS Renewable Hydrogen - EU Regulatory Affairs and Business Development Manager Hydrogenics Europe NV Mobile: +32 479 909 129 Email: dthomas@hydrogenics.com

POWER TO GAS CLUSTER FLANDERS

OBJECTIVES OF THE CLUSTER Knowledge exchange Regulations Power to Gas DEMONSTRATION-PROJECTS Power-to-Gas Access to EU subsidies Preferred contact point for policy makers Business models Representation in European Power-to-Gas market

Target group cluster members Production Renewable Energy Electrolysis Compression, storage transport Net- operators System integrators Hydrogen users

Power to Gas cluster coordinator Isabel François Project Manager WaterstofNet Mobile: +32 478 98 21 40 Email: Isabel.Francois@waterstofnet.eu

Overview of calculated P2G business cases

Electricity price 2015-2030-2050 assumption Based on a German model Use the correlation between power price, RES production (wind + solar) and power demand Back-up power assumed with gas fired power-plants Installed capacity in BELGIUM Onshore wind Offshore wid PV 2014 1.246 712 3.105 2030 4.678 3.522 4.800 2050 7.213 7.687 10.000 Use of historical data 2014 for Belgium: BELPEX prices + wind + solar

Electricity price 2015-2030-2050 assumption Average price (from power price curve) + supplier margin (5-20%) + grid fees ( grid connection +consumption) ---------------------------------------------------------------- TOTAL ELECTRICITY PRICE