• Energy Research

Abstract There is increasing interest in carbon capture, utilisation and storage (CCUS) and hydrogen-based technologies for decarbonising energy systems and providing flexibility. However, the overall value of these technologies is vigorously debated. Value chain optimisation can determine how carbon dioxide and hydrogen technologies will fit into existing value chains in the energy and chemicals sectors and how effectively they can assist in meeting climate change targets. This is the first study to model and optimise the integrated value chains for carbon dioxide and hydrogen, providing a whole-system assessment of the role of CCUS and hydrogen technologies within the energy system. The results show that there are opportunities for CCUS to decarbonise existing power generation capacity but long-term decarbonisation and flexibility can be achieved at lower cost through renewables and hydrogen storage. Methanol produced from carbon capture and utilisation (CCU) becomes profitable at a price range of £72–102/MWh, compared to a current market price of about £52/MWh. However, this remains well below existing prices for transport fuels, so there is an opportunity to displace existing fuel demands with CCU products. Nonetheless, the scope for decarbonisation from these CCU pathways is small. For investment in carbon capture and storage to become attractive, additional drivers such as decarbonisation of industry and negative emissions policies are required. The model and the insights presented in this paper will be valuable to policymakers and investors for assessing the potential value of the technologies considered and the policies required to incentivise their uptake.

Abstract There is increasing interest in carbon capture, utilisation and storage (CCUS) and hydrogen-based technologies for decarbonising energy systems and providing flexibility. However, the overall value of these technologies is vigorously debated. Value chain optimisation can determine how carbon dioxide and hydrogen technologies will fit into existing value chains in the energy and chemicals sectors and how effectively they can assist in meeting climate change targets. This is the first study to model and optimise the integrated value chains for carbon dioxide and hydrogen, providing a whole-system assessment of the role of CCUS and hydrogen technologies within the energy system. The results show that there are opportunities for CCUS to decarbonise existing power generation capacity but long-term decarbonisation and flexibility can be achieved at lower cost through renewables and hydrogen storage. Methanol produced from carbon capture and utilisation (CCU) becomes profitable at a price range of £72–102/MWh, compared to a current market price of about £52/MWh. However, this remains well below existing prices for transport fuels, so there is an opportunity to displace existing fuel demands with CCU products. Nonetheless, the scope for decarbonisation from these CCU pathways is small. For investment in carbon capture and storage to become attractive, additional drivers such as decarbonisation of industry and negative emissions policies are required. The model and the insights presented in this paper will be valuable to policymakers and investors for assessing the potential value of the technologies considered and the policies required to incentivise their uptake.

Abstract Demands for space and water heating constitute a significant proportion of the total energy demands in Great Britain and are predominantly satisfied through natural gas, which makes the heat sector a large emitter of carbon dioxide. Renewable hydrogen, which can be injected into the gas grid or used directly in processes for generating heat and/or electricity, is being considered as a low-carbon alternative energy carrier to natural gas because of its suitability for large-scale, long- and short-term storage and low transportation losses, all of which help to overcome the intermittency and seasonal variations in renewables. This requires new infrastructures for production, storage, transport and utilisation of renewable hydrogen – a hydrogen value chain – the design of which involves many interdependent decisions, such as: where to locate wind turbines; where to locate electrolysers, close to wind generation or close to demands; whether to transport energy as electricity or hydrogen, and how; where to locate storage facilities; etc. This paper presents the Value Web Model, a novel and comprehensive spatio-temporal mixed-integer linear programming model that can simultaneously optimise the design, planning and operation of integrated energy value chains, accounting for short-term dynamics, inter-seasonal storage and investments out to 2050. It was coupled with GIS modelling to identify candidate sites for wind generation and used to optimise a number of scenarios for the production of hydrogen, from onshore and offshore wind turbines, in order to satisfy heat demands. The results show that over a wide range of scenarios, the optimal pathway to heat is roughly 20% hydrogen and 80% electricity. Hydrogen storage, both in underground caverns and pressurised tanks, is a key enabling technology.

Abstract Demands for space and water heating constitute a significant proportion of the total energy demands in Great Britain and are predominantly satisfied through natural gas, which makes the heat sector a large emitter of carbon dioxide. Renewable hydrogen, which can be injected into the gas grid or used directly in processes for generating heat and/or electricity, is being considered as a low-carbon alternative energy carrier to natural gas because of its suitability for large-scale, long- and short-term storage and low transportation losses, all of which help to overcome the intermittency and seasonal variations in renewables. This requires new infrastructures for production, storage, transport and utilisation of renewable hydrogen – a hydrogen value chain – the design of which involves many interdependent decisions, such as: where to locate wind turbines; where to locate electrolysers, close to wind generation or close to demands; whether to transport energy as electricity or hydrogen, and how; where to locate storage facilities; etc. This paper presents the Value Web Model, a novel and comprehensive spatio-temporal mixed-integer linear programming model that can simultaneously optimise the design, planning and operation of integrated energy value chains, accounting for short-term dynamics, inter-seasonal storage and investments out to 2050. It was coupled with GIS modelling to identify candidate sites for wind generation and used to optimise a number of scenarios for the production of hydrogen, from onshore and offshore wind turbines, in order to satisfy heat demands. The results show that over a wide range of scenarios, the optimal pathway to heat is roughly 20% hydrogen and 80% electricity. Hydrogen storage, both in underground caverns and pressurised tanks, is a key enabling technology.

With the expansion of renewable energy's contribution to the energy mix, balancing the electricity grid is becoming increasingly challenging. Alongside other solutions, Power-to-Hydrogen concepts are gaining significant interest. In this paper, the “Task 38”, initiated by the Hydrogen Implementing Agreement of the International Energy Agency, presents the first of a two-step literature review regarding Power-to-Hydrogen and Hydrogen-to-X concepts with a focus on prospective market and economic potential. The study reveals a large scope of literature that shows a considerable variety of suggested implementation schemes. The transportation sector is identified as the most promising consumer market. Hydrogen-to-Gas pathways will require subsidies in order to be profitable. Hydrogen-to-Power becomes an economically promising option in the context of systems with high shares of renewables and a need for longer-term storages. Additionally, key enablers for Power-to-Hydrogen concepts are identified; namely support policies, concurrently with ongoing progress on the development and implementation of industry standard.

With the expansion of renewable energy's contribution to the energy mix, balancing the electricity grid is becoming increasingly challenging. Alongside other solutions, Power-to-Hydrogen concepts are gaining significant interest. In this paper, the “Task 38”, initiated by the Hydrogen Implementing Agreement of the International Energy Agency, presents the first of a two-step literature review regarding Power-to-Hydrogen and Hydrogen-to-X concepts with a focus on prospective market and economic potential. The study reveals a large scope of literature that shows a considerable variety of suggested implementation schemes. The transportation sector is identified as the most promising consumer market. Hydrogen-to-Gas pathways will require subsidies in order to be profitable. Hydrogen-to-Power becomes an economically promising option in the context of systems with high shares of renewables and a need for longer-term storages. Additionally, key enablers for Power-to-Hydrogen concepts are identified; namely support policies, concurrently with ongoing progress on the development and implementation of industry standard.

Abstract Empty fruit bunches (EFB) are valuable palm oil mill waste that could be used to produce multiple products in the form of energy, chemicals, and materials. Therefore, efficient utilization of these biomass resources is essential to optimize the profitability of the industry while addressing environmental issues. In this study, a decision-support tool is developed to perform economic and environmental analyses of the future expansion of the palm oil industry. The sequential steps in the modeling and optimization of the EFB value chain are discussed. This study consists of four processing stages: converting EFB into intermediates and products, transportation networks, direct sale of products, and further processing of products. The proposed tool includes a mathematical model that considers biomass, production, transportation, and emission treatment costs from transportation and production activities. The model is solved with the Advanced Interactive Multidimensional Modeling System to determine the maximum profit and analyze biodiesel production. Peninsular Malaysia is selected as a case study. Results reveal the significant economic benefits of EFB utilization. The most profitable cases of EFB utilization are Case A, C, and D, which have the same 47 % profit margin. The maximum profit of the selected utilization pathways in Case A is USD 151,822,904 per year based on different ownerships of all EFB processed, which is 79 % lower than the result of a previous study that ignores the capacity limitations of the respective processing facilities. The environment–food–energy–water nexus is also elaborated in this study. The conclusions are obtained based on the limitation, availability, and parameters or data used in this study.

Abstract Empty fruit bunches (EFB) are valuable palm oil mill waste that could be used to produce multiple products in the form of energy, chemicals, and materials. Therefore, efficient utilization of these biomass resources is essential to optimize the profitability of the industry while addressing environmental issues. In this study, a decision-support tool is developed to perform economic and environmental analyses of the future expansion of the palm oil industry. The sequential steps in the modeling and optimization of the EFB value chain are discussed. This study consists of four processing stages: converting EFB into intermediates and products, transportation networks, direct sale of products, and further processing of products. The proposed tool includes a mathematical model that considers biomass, production, transportation, and emission treatment costs from transportation and production activities. The model is solved with the Advanced Interactive Multidimensional Modeling System to determine the maximum profit and analyze biodiesel production. Peninsular Malaysia is selected as a case study. Results reveal the significant economic benefits of EFB utilization. The most profitable cases of EFB utilization are Case A, C, and D, which have the same 47 % profit margin. The maximum profit of the selected utilization pathways in Case A is USD 151,822,904 per year based on different ownerships of all EFB processed, which is 79 % lower than the result of a previous study that ignores the capacity limitations of the respective processing facilities. The environment–food–energy–water nexus is also elaborated in this study. The conclusions are obtained based on the limitation, availability, and parameters or data used in this study.