(115f) Market Optimization and Technoeconomic Analysis of Hydrogen-Electricity Coproduction Systems

Decarbonization efforts have prompted a rise in variable renewable energy sources, such as wind and solar, and investigations into alternative fuels, such as hydrogen. Integrated energy systems (IESs) are well suited to provide the needed flexibility to support this paradigm shift in the electric grid. Still, conventional techno-economic modeling paradigms neglect the time-varying dynamic nature of the grid and thus undervalue resource flexibility. This talk presents new optimization-based techno-economic analysis methods developed as part of the DOE-sponsored Institute of Advance Energy Systems (IDAES) and Design Integration and Synthesis Platform to Advance Tightly Coupled Hybrid Energy Systems (DISPATCHES) projects. We start by using surrogate models to rigorously optimize the annual operation of six energy system concepts, including solid oxide fuel cell (SOFC) and solid oxide electrolyzer cells, using 61 annual electricity market scenarios and five hydrogen price scenarios. We find that integrated systems that co-produce electricity and hydrogen --- SOFC + SOEC and reversible solid oxide cell (rSOC) --- are profitable in 85% and the top performer in 74% of considered market scenarios. These findings strongly encourage research investments in SOFC and SOEC technologies, especially flexible co-production systems. This analysis, however, relies on the price-taker assumption. In the second half of the talk, we present new multiscale optimization methods that leverage surrogate models to directly embed the impact of IES operation on wholesale electricity market outcomes (e.g., unit commitment and prices). We demonstrate the new approach using two case studies that integrate renewable and nuclear energy sources with electrolyzers to produce hydrogen.

Part 1: This work was conducted as part of the Institute for the Design of Advanced Energy Systems (IDAES) with support through the Simulation-Based Engineering, Crosscutting Research Program, the Solid Oxide Fuel Cell Program, and the Transformative Power Generation Program within the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management. Part 2: This work was conducted as part of the Design Integration and Synthesis Platform to Advance Tightly Coupled Hybrid Energy Systems (DISPATCHES) project through the Grid Modernization Lab Consortium with funding from the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management, Office of Nuclear Energy, and Hydrogen and Fuel Cell Technologies Office.