Valuation and cost reduction of behind-the-meter hydrogen production in Hawaii
Abstract
A 250kW hydrogen electrolysis facility was recently installed at the Natural Energy Laboratory of Hawaii Authority's (NELHA's) campus. This facility that will begin operation in 2020 to produce hydrogen for fuel cell buses on the island to demonstrate of the application of hydrogen to decarbonize transportation. Given the size of the electrolysis station, it has the potential to significantly increase electricity costs for the campus, which is subject to energy and peak demand charges from the local utility. In this paper, we analyze the cost of hydrogen production at NELHA given the rate structure options available from the utility. Production costs are estimated using optimal versus constant scheduling of the facility to meet the buses’ demand. A model of the electrolysis station is used to capture changes in production efficiency over the power range in the optimization routine. The effects of combining the station and campus load versus standalone operation and increasing solar generation are also explored. The analyses surrounding this scenario show the importance of multiple factors on the potential profitability of hydrogen production in behind-the-meter applications and show trends that could have implications for other similar installations.
- Authors:
-
[1];
- Sandia National Lab. (SNL-NM), Albuquerque, NM (United States)
- GRandalytics, Honolulu, HI (United States)
- Hydrogen and Renewable Energy System Analysis (H2RESA), Pickering, ON (Canada)
- Univ. of Hawaii at Manoa, Honolulu, HI (United States). Hawaii Natural Energy Inst.
- Publication Date:
- Research Org.:
- Sandia National Lab. (SNL-NM), Albuquerque, NM (United States)
- Sponsoring Org.:
- USDOE Office of Electricity (OE); USDOE National Nuclear Security Administration (NNSA)
- OSTI Identifier:
- 1670181
- Report Number(s):
- SAND-2020-5374J
Journal ID: ISSN 2329-2229; 686283
- Grant/Contract Number:
- AC04-94AL85000; NA0003525
- Resource Type:
- Accepted Manuscript
- Journal Name:
- MRS Energy & Sustainability
- Additional Journal Information:
- Journal Volume: 7; Journal ID: ISSN 2329-2229
- Publisher:
- Materials Research Society - Cambridge University Press
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 08 HYDROGEN; storage; economics; efficiency; sustainability
Citation Formats
Headley, Alexander, Randolf, Günter, Virji, Mebs, and Ewan, Mitch. Valuation and cost reduction of behind-the-meter hydrogen production in Hawaii. United States: N. p., 2020.
Web. doi:10.1557/mre.2020.20.
Headley, Alexander, Randolf, Günter, Virji, Mebs, & Ewan, Mitch. Valuation and cost reduction of behind-the-meter hydrogen production in Hawaii. United States. https://doi.org/10.1557/mre.2020.20
Headley, Alexander, Randolf, Günter, Virji, Mebs, and Ewan, Mitch. Mon .
"Valuation and cost reduction of behind-the-meter hydrogen production in Hawaii". United States. https://doi.org/10.1557/mre.2020.20. https://www.osti.gov/servlets/purl/1670181.
@article{osti_1670181,
title = {Valuation and cost reduction of behind-the-meter hydrogen production in Hawaii},
author = {Headley, Alexander and Randolf, Günter and Virji, Mebs and Ewan, Mitch},
abstractNote = {A 250kW hydrogen electrolysis facility was recently installed at the Natural Energy Laboratory of Hawaii Authority's (NELHA's) campus. This facility that will begin operation in 2020 to produce hydrogen for fuel cell buses on the island to demonstrate of the application of hydrogen to decarbonize transportation. Given the size of the electrolysis station, it has the potential to significantly increase electricity costs for the campus, which is subject to energy and peak demand charges from the local utility. In this paper, we analyze the cost of hydrogen production at NELHA given the rate structure options available from the utility. Production costs are estimated using optimal versus constant scheduling of the facility to meet the buses’ demand. A model of the electrolysis station is used to capture changes in production efficiency over the power range in the optimization routine. The effects of combining the station and campus load versus standalone operation and increasing solar generation are also explored. The analyses surrounding this scenario show the importance of multiple factors on the potential profitability of hydrogen production in behind-the-meter applications and show trends that could have implications for other similar installations.},
doi = {10.1557/mre.2020.20},
journal = {MRS Energy & Sustainability},
number = ,
volume = 7,
place = {United States},
year = {Mon Sep 07 00:00:00 EDT 2020},
month = {Mon Sep 07 00:00:00 EDT 2020}
}
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Figure 1: HNEI electrolyzer and hydrogen fueling station at the NELHA research park
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Figures / Tables found in this record:
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