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Vision for hydrogen development in Portugal until 2050


Introduction
                                                                                                  1
This document gives an overview of a possible hydrogen energy implementation vision for
Portugal. Following general considerations on hydrogen energy implementation in Portugal this
document follows a chronological description of how hydrogen energy demand is expected to
develop over time, and how this demand might be met by production (different chains), where
production plants could be located (regional chain distribution), and how infrastructure could
develop. This vision is based on Portuguese stakeholder input and discussions conducted in
connection with PPS6 EDEN workshops.


General considerations on hydrogen energy implementation in Portugal
Stated energy policy goals:
        Improving security of supply
    •
        Promoting economic competition
    •
        Ensuring environmental sustainability
    •


Key energy challenges in Portugal:
        How might the energy security of Portugal be affected by the integration of hydrogen?
    •
        Currently Portugal has a high level of oil, coal and natural gas import dependency with
        net imports amounting to 86% of TPES.
        Energy is a key challenge for the Portuguese economy. Energy consumption has
    •
        experienced four fold growth since 1970, and recently has been non-productive with
        demand rising exponentially without corresponding growth in the economy. How can the
        integration of hydrogen into this energy system benefit the economy?
        Will the introduction of hydrogen in the energy system bring with it corresponding
    •
        reductions in emissions? Portugal targets for carbon emissions under the Kyoto
        obligations are forecast to be 13% above the target ceiling (27% increase on 1990 levels)
        requiring the use of flexible mechanisms in the carbon markets.
        Portugal has challenging government led targets for RES – 39% of electricity production
    •
        by 2010. Will there be RES capacity available to dedicate to hydrogen production or
        might hydrogen production and storage together with CHP be used as a load balancing
        tool for the grid?




1
 Vision is an elaboration of a desirable and (more or less) plausible future. It emphasizes the
benefits of hydrogen.
1st
     Feedstock     H2             CCS                  H2          Distribution   End use           Likely introduction
                   production           conversion     transport
                                                                                                   2020   2030    2050
1    Wind          Onsite                                          GH2 filling    FC transport /     Y
                   electrolysis                                    station /      stationary
                                                                   distribution
                                                                   centre


2    Wind          Central                             GH2 truck   GH2 filling    FC transport /    Y
                   electrolysis                                    station /      stationary
                                                                   distribution
                                                                   centre


3    Wave power    Central              Liquefaction   LH2 truck   LH2 filling    FC transport              Y
                   electrolysis                                    station

4    Solar PV      Onsite                                          GH2 filling    FC transport /            Y
                   electrolysis                                    station /      stationary
                                                                   distribution
                                                                   centre


5    Solar heat    Thermal                             Dedicated   GH2 filling    FC transport /                    Y
                   conversion                          pipeline    station /      stationary
                                                                   distribution
                                                                   centre


6    Biomass       Gasification         Liquefaction   LH2 truck   LH2 filling    FC transport /    Y
                                                                   station /      stationary
                                                                   distribution
                                                                   centre


7    Natural gas   Onsite SMR                                      GH2 filling    FC transport /    Y
                                                                   station /      stationary
                                                                   distribution
                                                                   centre


8    Natural gas   Central SMR    CCS                  Dedicated   GH2 filling    FC transport /            Y
                                                       pipeline    station /      stationary
                                                                   distribution
                                                                   centre


9    Natural Gas   Central SMR    CCS                  GH2 Truck   GH2 filling    FC transport /    Y
                                                                   station /      stationary
                                                                   distribution
                                                                   centre


10   Coal          Gasification   CCS                  Dedicated   GH2 filling    FC transport /                    Y
                                                       pipeline    station /      stationary
                                                                   distribution
                                                                   centre


11   Coal          Gasification   CCS                  GH2 Truck   GH2 filling    FC transport /            Y
                                                                   station /      stationary
                                                                   distribution
                                                                   centre
12   By-product                                        GH2 truck   GH2 filling    FC transport      Y
                                                                   station

13   Nuclear       Central                             Dedicated   GH2 filling    FC transport /                    Y
                   electrolysis                        pipeline    station /      stationary
                                                                   distribution
                                                                   centre
14   El Grid       Central                            Dedicated    GH2 filling    FC transport /         Y
                   electrolysis                       pipeline     station /      stationary
                                                                   distribution
                                                                   centre
15   El Grid       Onsite                                          GH2 filling    FC transport /    Y
                   electrolysis                                    station /      stationary
                                                                   distribution
                                                                   centre
16   Import H2                                        Ship         GH2 filling    FC transport /               Y
                                                                   station /      stationary
                                                                   distribution
                                                                   centre


        Table 1 Future hydrogen chains


        Vision of future hydrogen chains
        Below are reflections on the possible use of chains in table 1 within the timeframe under
        consideration by the EDEN project.


        a.       Entry phase (until 2020)
        The entry phase is characterised by low demand for hydrogen. The emerging market for
        hydrogen will be particularly found in the portable applications and the transportation sector
        (captive fleets, public transport…). In the entry phase, the early markets would require small
        quantities of hydrogen produced by steam methane reforming (SMR) (chain 7), or by-product
        (chain 12), or onsite via electrolysis using energy from the electricity grid (chain 16). The
        production of hydrogen via onsite and central electrolysis using electricity from wind parks (chains
        1 & 2) as well as via biomass gasification (chain 6) also represent options for hydrogen
        production in this early phase. The hydrogen will be transported using the existing infrastructures
        (GH2 or LH2 trucks) and distributed via bespoke demonstration projects and early fleet
        integration.


        b.       Transition phase (2020 - 2030)
        In the transition phase the growth of hydrogen demand enlarges the range of options for local and
        central hydrogen production, as a result more efficient and larger scale forms of production must
        be developed. New options include central electrolysis via wave (chain 3), and expanding central
        electrolysis capacity for wind (chain 2) as well as expanding biomass gasification (chain 6)
        alongside on-site electrolysis based on wind energy and solar PV (chains 1 & 4). The capture and
        storage of CO2 from central SMR installations (chain 8) and coal gasification plants (chain 11) is
        envisaged later in this time period. It is also envisaged that there will be potential for producing
        hydrogen centrally with electricity from the grid during this second phase (chain 14). The use of
        GH2 and LH2 trucks and some early dedicated infrastructures (such as dedicated hydrogen
        pipelines). Initial distribution centres are small in scale and located close to areas of high
demand, such as major urban centres. Transport and stationary applications for hydrogen are
projected to begin to reach the market during this time.


c.      Long term phase (2030 - 2050 and onwards)
Massive production of hydrogen is envisaged over the long term. This makes it necessary to take
into consideration the CO2-free and high yield mass production of hydrogen from the
development of nuclear high temperature reactors, based on electrolysis (chain 13). Also taken
into account is the production from the thermal conversion of solar heat (chain 5). The import of
hydrogen via ship (chain 16) may become economic in this phase from a diverse range of
countries rich in natural energy such as Iceland (geothermal), or Norway (natural gas) or even
some African countries should solar thermal take off. The transport of hydrogen by dedicated
pipeline becomes progressively the most attractive option for significant quantities of hydrogen
whereas transport by truck is preferred for smaller quantities. The distribution of the hydrogen is
delivered to the consumers via refuelling stations, for hydrogen cars, and distribution centres,
through local hydrogen pipelines, for the heating and cooling needs of individual households,
buildings and industry. The refuelling stations are sited near urban centres and along main roads
and the distribution centres near urban and industrial areas.

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EDEN - Portugal Vision 28 05 07

  • 1. Vision for hydrogen development in Portugal until 2050 Introduction 1 This document gives an overview of a possible hydrogen energy implementation vision for Portugal. Following general considerations on hydrogen energy implementation in Portugal this document follows a chronological description of how hydrogen energy demand is expected to develop over time, and how this demand might be met by production (different chains), where production plants could be located (regional chain distribution), and how infrastructure could develop. This vision is based on Portuguese stakeholder input and discussions conducted in connection with PPS6 EDEN workshops. General considerations on hydrogen energy implementation in Portugal Stated energy policy goals: Improving security of supply • Promoting economic competition • Ensuring environmental sustainability • Key energy challenges in Portugal: How might the energy security of Portugal be affected by the integration of hydrogen? • Currently Portugal has a high level of oil, coal and natural gas import dependency with net imports amounting to 86% of TPES. Energy is a key challenge for the Portuguese economy. Energy consumption has • experienced four fold growth since 1970, and recently has been non-productive with demand rising exponentially without corresponding growth in the economy. How can the integration of hydrogen into this energy system benefit the economy? Will the introduction of hydrogen in the energy system bring with it corresponding • reductions in emissions? Portugal targets for carbon emissions under the Kyoto obligations are forecast to be 13% above the target ceiling (27% increase on 1990 levels) requiring the use of flexible mechanisms in the carbon markets. Portugal has challenging government led targets for RES – 39% of electricity production • by 2010. Will there be RES capacity available to dedicate to hydrogen production or might hydrogen production and storage together with CHP be used as a load balancing tool for the grid? 1 Vision is an elaboration of a desirable and (more or less) plausible future. It emphasizes the benefits of hydrogen.
  • 2. 1st Feedstock H2 CCS H2 Distribution End use Likely introduction production conversion transport 2020 2030 2050 1 Wind Onsite GH2 filling FC transport / Y electrolysis station / stationary distribution centre 2 Wind Central GH2 truck GH2 filling FC transport / Y electrolysis station / stationary distribution centre 3 Wave power Central Liquefaction LH2 truck LH2 filling FC transport Y electrolysis station 4 Solar PV Onsite GH2 filling FC transport / Y electrolysis station / stationary distribution centre 5 Solar heat Thermal Dedicated GH2 filling FC transport / Y conversion pipeline station / stationary distribution centre 6 Biomass Gasification Liquefaction LH2 truck LH2 filling FC transport / Y station / stationary distribution centre 7 Natural gas Onsite SMR GH2 filling FC transport / Y station / stationary distribution centre 8 Natural gas Central SMR CCS Dedicated GH2 filling FC transport / Y pipeline station / stationary distribution centre 9 Natural Gas Central SMR CCS GH2 Truck GH2 filling FC transport / Y station / stationary distribution centre 10 Coal Gasification CCS Dedicated GH2 filling FC transport / Y pipeline station / stationary distribution centre 11 Coal Gasification CCS GH2 Truck GH2 filling FC transport / Y station / stationary distribution centre 12 By-product GH2 truck GH2 filling FC transport Y station 13 Nuclear Central Dedicated GH2 filling FC transport / Y electrolysis pipeline station / stationary distribution centre
  • 3. 14 El Grid Central Dedicated GH2 filling FC transport / Y electrolysis pipeline station / stationary distribution centre 15 El Grid Onsite GH2 filling FC transport / Y electrolysis station / stationary distribution centre 16 Import H2 Ship GH2 filling FC transport / Y station / stationary distribution centre Table 1 Future hydrogen chains Vision of future hydrogen chains Below are reflections on the possible use of chains in table 1 within the timeframe under consideration by the EDEN project. a. Entry phase (until 2020) The entry phase is characterised by low demand for hydrogen. The emerging market for hydrogen will be particularly found in the portable applications and the transportation sector (captive fleets, public transport…). In the entry phase, the early markets would require small quantities of hydrogen produced by steam methane reforming (SMR) (chain 7), or by-product (chain 12), or onsite via electrolysis using energy from the electricity grid (chain 16). The production of hydrogen via onsite and central electrolysis using electricity from wind parks (chains 1 & 2) as well as via biomass gasification (chain 6) also represent options for hydrogen production in this early phase. The hydrogen will be transported using the existing infrastructures (GH2 or LH2 trucks) and distributed via bespoke demonstration projects and early fleet integration. b. Transition phase (2020 - 2030) In the transition phase the growth of hydrogen demand enlarges the range of options for local and central hydrogen production, as a result more efficient and larger scale forms of production must be developed. New options include central electrolysis via wave (chain 3), and expanding central electrolysis capacity for wind (chain 2) as well as expanding biomass gasification (chain 6) alongside on-site electrolysis based on wind energy and solar PV (chains 1 & 4). The capture and storage of CO2 from central SMR installations (chain 8) and coal gasification plants (chain 11) is envisaged later in this time period. It is also envisaged that there will be potential for producing hydrogen centrally with electricity from the grid during this second phase (chain 14). The use of GH2 and LH2 trucks and some early dedicated infrastructures (such as dedicated hydrogen pipelines). Initial distribution centres are small in scale and located close to areas of high
  • 4. demand, such as major urban centres. Transport and stationary applications for hydrogen are projected to begin to reach the market during this time. c. Long term phase (2030 - 2050 and onwards) Massive production of hydrogen is envisaged over the long term. This makes it necessary to take into consideration the CO2-free and high yield mass production of hydrogen from the development of nuclear high temperature reactors, based on electrolysis (chain 13). Also taken into account is the production from the thermal conversion of solar heat (chain 5). The import of hydrogen via ship (chain 16) may become economic in this phase from a diverse range of countries rich in natural energy such as Iceland (geothermal), or Norway (natural gas) or even some African countries should solar thermal take off. The transport of hydrogen by dedicated pipeline becomes progressively the most attractive option for significant quantities of hydrogen whereas transport by truck is preferred for smaller quantities. The distribution of the hydrogen is delivered to the consumers via refuelling stations, for hydrogen cars, and distribution centres, through local hydrogen pipelines, for the heating and cooling needs of individual households, buildings and industry. The refuelling stations are sited near urban centres and along main roads and the distribution centres near urban and industrial areas.