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DOE OSTI2022

Energy Storage Financing: Operations & Market Strategy

This study investigates the impact that operations and market strategy have on the design and value of an energy storage system on three levels of the facility: the cell level, the system level, and the project level. The study provides insights for developers, capital providers, customers and policy makers into the impact different operational strategies have on effectiveness of energy storage system in today's emerging market. Energy storage systems can be used for a variety of usage profiles, with the choice having a profound impact on their performance, lifespan, and revenue potential. Most evaluations of application stacking only look at the possible revenue potential without understanding the increased costs and potential for major damage to the cells. Evaluating the impact of operational choices is critical to understanding the risk adjusted return from energy storage project investment. This is the fifth study in the Energy Storage Financing Study series, which is designed to investigate challenges surrounding the financing of energy storage projects in the U.S., promoting greater technology and project risk transparency, reducing project transaction costs, and supporting a level playing field for innovative energy storage technologies.

25 ENERGY STORAGE↗

DOE OSTI2021

Cost targets to achieve commercially viable thermal storage in buildings

To mitigate the variation in demand on the electric grid, thermal energy storage (TES) is an alternative to electric batteries or installing new peaking power plants. Stakeholders and policy makers across the United States have expressed interests in promoting TES, as demonstrated by the US Department of Energy’s Grid-Interactive Efficient Buildings program and the efforts of various state legislatures. However, the cost value provided by TES are unclear. If reliable cost benefits were determined, stakeholders would have a clearer picture of the financial returns that can be gained from their investment in TES. In this report, EnergyPlus was used to perform whole-building simulations for two residential buildings in Indianapolis and Atlanta. The HVAC system in both buildings were equipped with phase change material TES. The TES tank was charged in off-peak hours and discharged in peak hours to perform load shifting. First, the economic value implied by existing time-of-use (TOU) rates offered by utility companies was analyzed via whole-building simulation. Second, existing demand reduction (DR) incentives sourced from 3 different electrical grid administrators (i.e., California, Texas, and New England region) were surveyed to determine their implied value. Lastly, the economic value implied by different types of deferred peak power plants were reviewed. The full value of TES to the entire society consists of value to the utility, OEMs, facility installers, and other stakeholders. This report focuses on the value to the utility with emphasis on the deferred capital of peak power plant. The value from the deferred capital of peak power plant is manifested to the customer in the form of demand reduction program and Time-of-Use utility rate program. In this report, an initial proxy of the value of TES is made by assuming the deferred capital cost of power plant is the full value to reduce peak demand. Three levels of financial value of TES systems were assessed. Two are currently available to some residential customers: (1) the benefit from TOU pricing alone and (2) the benefit from TOU pricing in combination with DR incentive programs. The third level was computed as the full cost of deferred capital cost of peaking power plants. This represents the potential value that could be gained by the utilities or conceivably be offered to consumers.

25 ENERGY STORAGE↗

DOE OSTI2023

Quantification of Energy Savings and Demand Reduction for a Heat Pump Integrated with Thermal Energy Storage (Final Report)

To mitigate the variation in demand on the electric grid, thermal energy storage (TES) is an alternative to electric batteries or installing new peaking power plants. Stakeholders and policy makers across the United States have expressed interests in promoting TES, as demonstrated by the US Department of Energy’s Grid-Interactive Efficient Buildings program and the efforts of various state legislatures. However, the cost value provided by TES are unclear. If reliable cost benefits were determined, stakeholders would have a clearer picture of the financial returns that can be gained from their investment in TES. The study in this report is conducted by ORNL with collaboration with Emerson the Helix Innovation Center. In the first part of this report, EnergyPlus was used to perform whole-building simulations for two residential buildings in Indianapolis and Atlanta. The HVAC system in both buildings were equipped with phase change material TES. The TES tank was charged in off-peak hours and discharged in peak hours to perform load shifting. First, the economic value implied by existing time-of-use (TOU) rates offered by utility companies was analyzed via whole-building simulation. Second, existing demand reduction (DR) incentives sourced from 3 different electrical grid administrators (i.e., California, Texas, and New England region) were surveyed to determine their implied value. The study suggests that the traditional value analysis that focuses on ROI for the building owner significantly undervalues TES technology making economic viability difficult. A more comprehensive value analysis that includes peak demand management and deferred capital for peaking power plants shows that TES should be economically viable but here the value is greater for the utility and requires large market penetration and aggregation to fully realize the benefits. Therefore, to facilitate commercialization, new business models are needed that include a broader range of stakeholders and distribute the value of TES proportionally. In the 2 nd part of this project, the benefits of a novel phase change material (PCM) integrated heat pump configuration were evaluated via detailed component based simulation. A one-dimensional PCM heat exchanger model which discretizes the PCM tank and refrigerant tubes into small control volumes is developed. Each control volume can have different PCM temperatures, PCM properties, and heat transfer coefficients. The PCM tank is charged by a wrapped tank condenser and discharged by an internal refrigerant coil. The PCM heat exchanger model is integrated into DOE/ORNL Heat Pump Design Model for heat pump system simulation. To demonstrate the performance of the PCM integrated heat pump, a case study in Chicago was performed. A Time-of-Use utility structure-based control strategy is implemented to schedule the PCM tank charging and discharging mode switching. Compared with a conventional electric heat pump, the PCM integrated heat pump shows superior performance on load shifting and utility cost reduction. As a result, the proposed system demonstrates 24.6% utility saving for cooling application and 25.8% utility saving for heating application.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2020

Stochastic Analysis for Long Term Capital Structures, Systems, and Components Refurbishment and Replacement

As commercial Nuclear Power Plants (NPPs) pursue extended plant operation in the form of Second License Renewal (SLR), opportunities exist for these plants to provide capital investments to ensure long-term safe and economic performance. At the current time, several utilities have announced an intention to pursue extended operation for one or more of their NPPs via SLR . The goal of this research is to develop a risk-informed approach to evaluate and prioritize plant capital investments made in preparation for, and during the period of, extended plant operations to support decisions for NPP operations. Since the capital investments are influenced by various factors, such as markets, safety and regulatory, the decision-making process of NPP operations should take into account relevant factors for balancing risks, costs and profits. The traditional method of capital budgeting is based on the priority list of candidate projects using economic measures such as benefit-investment ratio, net present value (NPV) and internal rate of return. In the literatures, the problem of capital budgeting or the variant can be represented by an appropriate knapsack problem. The knapsack approach to capital budgeting takes as input as investment, along with the cost and profit of each project. The objective of capital budgeting is to find the combination of the binary decisions for every investment such that the overall profit is as large as possible. The output is a collection of projects to be carried out, and we refer this selected collection of projects as a project portfolio. One limitation of traditional optimization models for capital budgeting is that they do not account for risk/uncertainty in profit and cost streams associated with individual projects, they do not account for risk in resource availability in future years [1,2,3]. Projects can incur cost over-runs, especially when projects are large, performed infrequently, and when there is risk regarding technical viability, external contractors, and/or suppliers of requisite parts and materials. Occasionally, projects are performed ahead of schedule and with cost savings. Planned budgets for capital improvements can be cut and key personnel may be lost. Or, there may be surprise windfalls in budgets for maintenance activities due to decreased costs for “unplanned” maintenance. In these cases, how should we resolve capital budgeting when we have risk forecasts for costs, profits and budgets? One approach we proposed in this summary is to re-solve the optimization models based on assumed statistical distributions of given parameters. If these distributions were not available, a two-stage stochastic optimization approach can be used to provide priority lists to decision-makers to support better risk-informed decisions [4, 5]. In this summary, we will only focus on the first approach.

42 ENGINEERING↗

DOE OSTI2022

Hydrogen for Maritime Applications

The maritime industry is investigating a number of fuel options for reducing emissions, including liquefied natural gas (LNG), biofuels, and electrical drive systems powered by batteries and/or hydrogen-fueled fuel cells. Hydrogen-fueled ships offer the potential to significantly reduce, if not eliminate, regulated and unregulated pollutants in maritime applications. Argonne National Laboratory conducted preliminary comparisons of the total cost of ownership (TCO) of several classes of ships to determine how fuel cell technology compares to the current diesel technology, what advancements are needed for hydrogen fuel cell technology to be competitive in the future, and what applications may be appropriate for introducing fuel cells into the maritime industry. These studies included feeder container ships, harbor tugboats, river pushboats, and auto/passenger ferries. For this study, TCO was defined to include the cost of fuel, propulsion system, and fuel storage system, the levelized cost of propulsion/auxiliary engines, and the cost of annual maintenance and consumables. It did not include the cost of the vessel frame or other components, aside from the propulsion system, that the fuel cell and diesel ships have in common. A 10% internal rate of return (IRR) was applied to the initial capital investment and an installation cost factor of 20% was applied to the capital cost. The capital cost of each component (e.g., engine, fuel tank, motor, etc.) was amortized over a period of 20 years, except for the fuel cell system, which was amortized over 6 or 10 years depending on ship class. The initial comparisons for container ships indicate that fuel costs are by far the dominant contributor to the TCO. With the current low cost of low-sulfur marine gasoil (LSMGO) and relatively high cost of hydrogen, it is difficult for hydrogen to compete with LSMGO in container ship applications. The large energy demand for container ships also favors the use of the higher volumetric energy density LSMGO fuel, especially for longer voyages. The space required to store enough hydrogen for the same journey is larger than that needed to store diesel fuels and can reduce the available cargo carrying and revenue generating space available on the ship.

08 HYDROGEN↗

DOE OSTI2024

Site-specific Design Case Study for Wet Waste Hydrothermal Liquefaction and Biocrude Upgrading to Hydrocarbon Fuels

Hydrothermal liquefaction (HTL) is a thermal process that converts wet biomass to renewable hydrocarbon fuel blendstocks (i.e., renewable naphtha, renewable diesel, and sustainable aviation fuel (SAF)). It can utilize a wide range of pure and blended wet feedstocks, including sewage sludge from water resource recovery facilities (WRRF), food and agriculture wastes, algae, fats, oils and greases (FOG) and blends of dry and wet wastes/feedstocks. Historically, techno-economic analysis (TEA) and annual state of technology (SOT) assessments with standard economic assumptions used by the Bioenergy Technologies Office (BETO) were conducted for the wet waste HTL pathway leveraging experimental data collected from Pacific Northwest National Laboratory’s (PNNL) continuous flow reactor systems. The objective of the SOT assessment has been to guide and track progress of BETO’s HTL research and development (R&D) toward reduced cost and greenhouse gas (GHG) emissions for the pathway. However, gaps exist between BETO’s traditional SOT updates and the needs of key external stakeholders that – if addressed – will accelerate technology adoption. This Business Case Study aims to bridge this gap by providing an updated design, TEA, and LCA based on PNNL’s FY23 R&D with added analyses and information that provide enhanced relevance for stakeholders of the HTL technology. This includes specific siting, regional wet waste resource inventory and transportation cost analyses, fuel market information, sustainable fuel policy impacts, economic metrics of net present value (NPV) and internal rate of return (IRR), greenhouse gas (GHG) emissions analysis, and statistical analysis of cost and technical uncertainties of the HTL plant design. The study focuses on the “Detroit combined statistical area (CSA)” region for siting of a wet waste HTL plant adjacent to the Great Lakes Water Authority (GLWA) facility with guidance from industry participants. Regional resource and siting analyses were conducted to identify feedstock availability, scale, and cost, as well as a beneficial site location. TEA with detailed rigorous capital cost estimation for the specific site application was conducted to evaluate the key economic metrics of most value to industrial partners. These include total capital investment, operating costs, minimum fuel selling price (MFSP) of the biocrude and fuel blendstock, and NPV and internal rate of return IRR with sustainable fuel credits. Life cycle analysis was conducted to evaluate the supply chain greenhouse gas (GHG) emissions for the wet waste HTL process as compared with petroleum derived diesel. This study is also informed by years of R&D and process de-risking learnings and was conducted with a basic engineering HTL plant design and costing that akin to a “first-of-a-kind” plant economics. This differs from our conventional “nth plant ” SOT assessments. Specifically, the HTL process model has been updated with more operationally reliable methods for feed heating and phase separations. Further, we have implemented additional spare equipment for redundancy, a more rigorous installed equipment cost estimation approach, and additional costs associated with feed formatting and delivery, building, piping and site development. An Excel-based cost sheet based on the basic engineering design is also released alongside the report that allows users to conduct customized TEA with their own feed composition and financial assumptions.

09 BIOMASS FUELS↗

DOE OSTI2024

Supporting data for Site-specific Design Case Study for Wet Waste Hydrothermal Liquefaction and Biocrude Upgrading to Hydrocarbon Fuels

Li, Shuyun↗

DOE OSTI2022

Energy I-Corps Annual Report 2021

The U.S. Department of Energy invests millions of dollars every year into the national lab complex. This investment allows the national laboratories to tackle the critical scientific challenges of our time - from renewable energy to quantum computing to creating a more resilient energy grid. The discoveries and innovations being developed by the labs have an even greater impact when we invest in bringing these ideas to the market where they can benefit the nation and world. To better arm researchers to collaborate with industry and turn research and development into demonstration and deployment, DOE employs Energy I-Corps to help researchers gain industry insight to guide innovation. Energy I-Corps invites teams of researchers to participate in an intensive two-month training during which the researchers define technology value propositions, conduct customer discovery interviews, and explore viable market pathways for their technologies. Researchers return to their labs with a framework for industry engagement to guide future research and inform a culture of market engagement within the lab environment. In this way, Energy I-Corps ensures our investment in the national labs and maintains and strengthens long-term U.S. competitiveness.

cohort↗

DOE OSTI2023

A National Infrastructure for Artificial Intelligence on the Grid (NI4AI) (Final Scientific/Technical Report)

Electric utilities have traditionally taken a very pragmatic yet myopic approach with grid sensors and the resulting collected data. Sensors are purchased and deployed to solve a specific, known problem that has risen to sufficient awareness as to justify the effort of deploying sensors and the needed capital investment. This sensor data flows into proprietary software packages with limited functionality intended only to address the initial problem. This approach aligns with the financial incentives of the utility to deploy capital into fixed hardware assets for which the corporations earn a rate of return. This mentality stands in stark contrast to the big data revolution that started nearly 25 years ago with the rise of Google. In this worldview, data is a fundamental business asset; successful organizations collect, store, explore, merge, and exploit as much data as possible to not only solve problems well understood today but also to tackle new problems that will inevitably rise tomorrow. The ARPA-E Open Innovation 2018 project entitled A National Infrastructure for Artificial Intelligence on the Grid or NI4AI for short was designed to demonstrate this alternative paradigm for using data. To do this, the project was composed of three key thrust areas. The first major component deployed a variety of high-frequency grid sensors and captured terabytes of both wide-scale and localized grid measurements, generating high-value datasets for grid research and algorithm development. The second aspect made available PingThings’ PredictiveGridTM, a horizontally scalable, cloud-based data management and AI platform built for time series data to explore and exploit the collected data. Finally, the project fostered a diverse and open research community composed of experts from numerous fields through focused educational content, code sharing, and data science competitions. Shifting away from “single use” sensors and closed data silos within electric utilities is a major benefit to the public at large. This legacy approach to data is incredibly (1) capital intensive (new sensors must be deployed for each new problem and problems tend to arise continuously) and (2) painfully slow (new problems must be identified first and then new sensors must be deployed to collect data to begin to address the issue). The transition to a carbon neutral grid requires a massive transformation of the existing grid infrastructure and will continue to challenge the legacy grid in unforeseen ways. The only way to make the energy transition cost effective is for utilities to abandon this dated data paradigm and adopt more contemporary approaches. NI4AI has shown that it is technically possible and economically feasible to ingest, explore, and exploit grid data collected from even very high frequency sensing, such as continuous point on wave sensors collecting measurements 10,000 times a second. In fact, the PredictiveGrid platform used is commercially available and deployed at several utilities in the United States. Project accomplishments were numerous and included (1) making available a state of the art time series platform to the community, (2) collecting over 520 streams of time series data from grid sensors totaling over 1 trillion grid measurements, and (3) developing and nurturing a community within the industry focused on the use of data to create value for utilities and, ultimately, end consumers.

97 MATHEMATICS AND COMPUTING↗

DOE OSTI2022

Front-End Engineering Design for Piperazine with the Advanced Stripper

This Department of Energy (DOE) funded project was executed with the goal of preparing a Front-End Engineering Design (FEED) for the capture and compression of 90% of the CO2 that would normally be emitted from an existing natural gas combined cycle (NGCC) plant. The FEED focused on the application of the piperazine advanced stripper (PZAS) process at Mustang Station of the Golden Spread Electric Cooperative (GSEC), which consists of two gas turbines with common heat recovery steam generator (HRSG). The University of Texas at Austin (UT) served as the prime contractor, and subcontracted AECOM Technical Services and Trimeric Corporation to support FEED development. This project team has worked together to advance PZAS for more than a decade. ExxonMobil, Chevron, and Total provided project co-funding. The objectives of this work included: 1. To advance engineering design such that a comprehensive estimate for the total installed cost of a full-scale PZAS CO2 Capture Plant with CO2 compression can be developed on an existing NGCC power plant. a. These detailed costs can also be used to qualify PZAS and other related second generation (2G) amine scrubbing processes for use on cogeneration facilities in refineries and chemical plants that use gas turbines with HRSGs to produce steam. b. These detailed costs will help qualify 2G amine scrubbing for use on NGCC power plants and establish a more accurate baseline cost to be used as a target by other capture technologies. 2. To provide cost details to be used in the economic optimization of the process features of PZAS and other 2G amine scrubbing processes. 3. To provide DOE with a more detailed understanding of carbon capture costs in a commercial application, enabling DOE to better design its R&D program to improve the economics for carbon capture. 4. To provide the host site and cost share partners with the information necessary to determine whether a commercial project to capture and use CO2 for enhanced oil recovery (EOR) or for sequestration can be justified (when accounting for the 45Q tax credit). A key component of the FEED is the estimated total installed cost, which provides a basis for the likely capital investment necessary to implement the PZAS carbon capture process at this location and scale. In combination with the included economic analysis, which accounts for potential revenue from the produced CO2, potential avenues to profitability are explored. The major findings of the FEED are as follows: The Mustang Station PZAS CO2 Capture Plant estimated total project cost of $698 MM of which $384 MM was direct costs. The annual operating costs were $32.6 MM. The total investment for a PZAS facility at Mustang Station is $725 MM. This estimate includes owner’s cost of $25 million and a contingency of $110 MM. • The study estimated the CO2 capture plant at Mustang Station would generate CO2 at $110/tonne for EOR, assuming a 12% IRR (internal rate of return) and an 85% capacity factor. For CO2 storage, the same case would achieve a 12% IRR at about $114/tonne. At a capacity factor of 52%, the storage and EOR cases would break even when carbon is priced ~$150/tonne. The economic analysis determined that the capacity factor and utility pricing, among other variable factors, had a significant effect on the economics and will need additional studied. • The energy penalty of the PZAS plant would be about 46 MW in connected power and 35 MW in operating load. The natural gas requirement (for the Gas Boiler package) would be about 354 MMBTU/hr. • The FEED revealed no major risks in process maturity. However, some areas were outlined for further engineering during detailed design, which included the Gas Boiler system, general arrangement and site layout, air coolers, schedule development, and optimization of the process for higher CO2 removal. • If PZAS were to be implemented at another host site, additional opportunities for cost reduction for would include cost reduction through use of cooling water and steam extraction.

03 NATURAL GAS↗

DOE OSTI2022

The Financial Performance of Family versus Non-Family Firms Operating in Nautical Tourism

This article analyses the financial performance of family versus non-family firms operating in nautical tourism, in 2015–2019. The sample of 39 Portuguese companies was collected from the SABI database. We use a regression of financial performance, measured by three alternative proxies: return on assets, return on equity and operating profit margin, on liquidity, leverage, turnover of assets, asset structure, company size and age. The regressions are performed across Nuts II regions on mainland and across types of firms (family and non-family). The results uncover several patterns. First, family firms are larger and older, make higher investments and therefore are less liquid. Second, liquidity, leverage and investment in tangible assets impact negatively and significantly the corporate financial performance, while the turnover of assets, size and age impacts positively and significantly. Third, the sign of the impacts depends on the measure of performance. Finally, firms in the Northern region show superior performance, which can be explained by the higher share of family firms. These findings can serve as a roadmap for managers when selecting strategies to improve performance. Additionally, they will contribute to the understanding of tourism destination dynamics and competitiveness.

Santos, Eleonora (ORCID:0000000346930804)↗

DOE OSTI2024

Fusion Materials Research at Oak Ridge National Laboratory in Fiscal Year 2023

The materials science challenge of providing a suite of suitable materials to satisfy the technology to achieve fusion energy is addressed in this ORNL program. The inability of currently available materials and components to withstand the harsh fusion nuclear environment requires development of new materials, and an understanding of their response to the fusion environment. The overarching goal of the ORNL Fusion Materials program is to provide the applied materials science support and materials understanding to underpin the ongoing DOE Office of Science—Fusion Energy Sciences program, in parallel with developing the materials for fusion power systems. In this effort the program continues to be integrated both with the larger U.S. and international fusion materials communities and with the U.S. and international fusion design and technology communities. The excitement of this program comes from the priorities given to this subject in the two recent fusion reviews, by the FESAC and NAS committees. An important element of those recommendations is the support for pivoting the national R&D emphasis to the Fusion Materials and Technologies (FM&T), the long-advocated Fusion Prototypic Neutron Source, and for the Fusion Pilot Plant study that will help focus program direction and efforts. Furthermore, the surge of venture capital investment into the private fusion industry start-ups over the last few years is anticipated to help accelerate all aspects of the fusion energy development. This twelfth annual report of the ORNL (Oak Ridge National Laboratory) Fusion Reactor Materials Program summarizes the accomplishments in Fiscal Year 2023 (FY2023). The year was the first to return to full post-COVID-restriction operations, with students and international assignees no longer impacted by COVID restrictions, as in FY20-21-22. Following the pattern of planning used in this program, work for the year FY2023 focused on having the data and productivity to support a strong presence at the International Conference on Fusion Reactor Materials (ICFRM) 21, organized by Spain and occurred in October 2023. Twenty-nine ORNL-led abstracts were submitted, with all accepted. Four were invited presentations, nine contributed oral, fourteen posters, and two withdrawn due to unforeseen circumstances. Additionally, nine external abstracts with ORNL contributing authors were presented. These will be reported in the FY24 report next year.

70 PLASMA PHYSICS AND FUSION TECHNOLOGY↗

DOE OSTI2024

Energy Communities IWG Site Review Tool

The Energy Communities IWG's new Site Review Tool is a resource for manufacturers and investors interested in developing or expanding clean energy supply chain projects in energy communities and nationwide. The interactive map provides access to publicly available information on brownfields, facilities, nearby infrastructure, and community attributes, including federal incentives. The site review tool empowers community leaders and developers to promote investment into communities and encourages users to learn and explore the diverse range of investment options. This tool can be useful for applicants to identify relevant information about their project that is requested in DOE grant and tax credit submissions, including 48C energy community status and whether a project is located in a disadvantaged community. More information on this tool can be found at: https://energycommunities.gov/iwg-site-review-tool/ Disclaimer: This mapping tool may not be relied upon by taxpayers to substantiate a tax return position or for determining whether certain penalties apply and will not be used by the IRS for examination purposes. The mapping tool does not reflect the application of the law to a specific taxpayer's situation, and the applicable Internal Revenue Code provisions ultimately control.

48C↗

DOE OSTI2025

Stockpile Stewardship and Nuclear Testing: A Technical Assessment

Since 1992, the United States has retained confidence in its nuclear weapon stockpile without performing any tests that produce nuclear yield. Instead, it has invested in a stockpile stewardship program (SSP) based on the same approach that was validated through fifty years of experience during the nuclear testing era. As the test moratorium continues and new information becomes available, it is both necessary and appropriate to periodically revisit the question of whether or not nuclear testing should resume. In a recent article by Dr. Mark Schneider, he asserts that the United States should return to nuclear testing to address the issues that negatively affect our country’s nuclear deterrent. A serious, technically informed evaluation of the most significant of the issues Dr. Schneider has raised is provided in this paper. The conclusion of this evaluation is that the strategy of a well-funded SSP coupled with rigorous assessments to identify if there is a specific need for a nuclear test is sound and cost-effective approach. Any decision otherwise needs to take into careful consideration all the classified SSP successes and data pertaining to the particular issues in question.

45 MILITARY TECHNOLOGY, WEAPONRY, AND NATIONAL DEF↗

DOE OSTI2022

Electrolytic Renewable Fuel Production Optimal Operation Investigation - H2@Scale: Cooperative Research and Development Final Report, CRADA Number CRD-19-00818

This work explored the optimal design and operation of electrolytic hydrogen production from renewable power. While there are many financial incentives for renewable hydrogen, this work investigated the effects of Low Carbon Fuel Standards (LCFS) on the hydrogen breakeven cost. To this end, this project developed optimized operational strategies for electrolytic hydrogen facilities in the California. Four specific model projects were used as the basis for the analysis. Three model projects will be located in California and one in Texas or the Midwest to be determined during the project. All projects include interconnection to the natural gas grid as a method of transport for the product fuel and the hydrogen cases will also consider alternative modes of transport. The operational optimization will maximize project return through fuel production and grid services based on future scenarios for the value of each. The effort will rely on modeling tools developed by NREL and the UCI for grid modeling as well as the integrated resource planning tool (IRP), RESOLVE, which is the official IRP tool used by the California Public Utility Commission (CPUC). The development of this project can help to inform future hydrogen deployment, policy and regulation makers, research and development decisions, and private and public investment.

08 HYDROGEN↗

DOE OSTI2023

Extreme Decentralized Water Treatment: Exploring the Future of Premise-Scale Water Treatment and Reuse

Access to an adequate quantity of piped water and management of wastewater produced in homes and businesses is an expectation of city dwellers in wealthy countries, and an aspiration for many people living in rapidly developing cities in low- and middle-income countries. It is also crucial to public health and protection of the environment. For well over a century, municipal drinking water provision and wastewater management have been made possible by large investments in centralized systems in which fresh water passes through a small number of drinking water treatment plants before being distributed through a vast underground pipe network to buildings throughout the city (Sedlak 2014). After it is used, wastewater is collected in underground sewers that route it to treatment plants prior to its discharge to the environment. In some water-stressed cities, a fraction of the treated wastewater undergoes additional treatment prior to reuse. This recycled water often is returned to users through another dedicated water distribution system, which is designated in many places with purple pipes (non-potable water reuse). Alternatively, treated wastewater may be subjected to advanced treatment (e.g., reverse osmosis followed by advanced oxidation) prior to being returned to the drinking water supply (potable water reuse).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2021

Oilwell Conversion (Well API 121913310501) to Geothermal Heat Storage Well for Flexible Electricity Storage

Geothermal growth is limited by a lack of geographically dispersed high-temperature thermal resources and high initial upfront investment in characterization and well construction. This project intended to address the challenges of energy supply intermittency and enhance grid resilience, reliability, and energy security by storing energy provided from currently available renewable resources in the subsurface to harvest it a later time during at-peak energy demand. This project intended to improve geothermal adoption, reduce initial project risk, and improve price competitiveness through utilizing existing oil and gas infrastructure such as non-productive wells, non-economic fields, dry holes, and orphaned wells. The project also intended to address the lack of geographically dispersed thermal resources and enhance grid resilience, reliability, and energy security by introducing an economical method for storing energy from currently available renewable resources in the subsurface for usage during at-peak energy demand. During this research, the project furthered the understanding of the feasibility of utilizing abandoned oil and gas wells as geothermal heat storage wells. The project team investigated the heat storage and hydrogeological characteristics of subsurface reservoirs in the Illinois Basin to evaluate their response to heat injection for determining the evolution of temperature profiles and heat losses over time using existing and available data sets. The project team then performed modeling and simulation to evaluate the heat losses of returning fluids during heat extraction. The outputs were used to select an optimal candidate reservoir and location in Southern Illinois. The team designed and performed a small-scale field test in an existing oil well to refine the model and to demonstrate the permitting and regulatory pathways necessary for the conversion of oil and gas assets to geothermal use. The field test also serves as a proof of concept and can guide the procedures for future research and implementation. Additionally, the project team, conducted initial market research and customer discovery to develop a go to market strategy for an Advanced Geothermal Energy Storage (AGES) system. The project team in this research also identified the parameters to be refined in future research, to improve the current go to market strategy economic model. To this end several subject matter experts were also identified to assist in future research with geothermal infrastructure setup, energy storage policy and law, energy storage market demand, potential siting based on demand etc. Future research will involve further sophistication of the site commercial modeling, implementing a larger-scale test, and further refinement of the thermodynamic modeling/simulation process. The output will be lifecycle costs and economics suitable for comparison to alternative approaches from a validated full-scale demonstration for venture capital investment into this technology. The project successfully demonstrated the ability to leverage existing oilfield infrastructure, permits, and land access and leasing agreements, to enable geothermal storage projects to come online faster and cheaper than a greenfield development could. This technology could allow for greater energy independence and security through long-term energy storage solutions. The longer duration allows for greater storage for renewables currently limited by hours-long storage durations of lithium-ion. The AGES system would support the growth of renewable energy farms, and provide greater opportunities for a cleaner energy infrastructure.

15 GEOTHERMAL ENERGY↗

DOE OSTI2020

Optimizing an Integrated Renewable-Electrolysis System

Hydrogen is a versatile energy carrier that is used in a wide variety of chemical and industrial processes. Producing hydrogen using electrolysis can enable integration of multiple sectors including electricity, heating, and industrial sectors; however, the cost of producing hydrogen from electrolysis remains a challenge for encouraging greater adoption. With growing amounts of renewable generation on the California grid, there is downward pressure on wholesale electricity prices, particularly during the afternoon from photovoltaics (PV). These lower, or even potentially negative prices, challenge the business cases for new and existing PV plants. In addition, as the grid transitions to less flexible generation, there is greater need for system flexibility. To help improve the economics for both solar PV and hydrogen production using electrolyzers, we explore the benefit of combining PV and electrolysis systems. The optimal breakeven hydrogen production cost for six unique market participation configurations is calculated at six candidate locations where PV is already installed. The six market configurations include islanded, separated, retail, net energy metering (NEM), hybrid retail/wholesale and wholesale. Using the Revenue Operation and Device Optimization Model (RODeO) model, the optimal breakeven hydrogen price over the lifetime of the equipment is calculated. The cost includes production, storage, and compression in preparation for gaseous delivery trucks. Revenue streams include the sale of hydrogen, low carbon fuel standard (LCFS) credits, renewable electricity sold to the grid, and Renewable Energy Credits (REC). The costs included are the electricity costs, capital and fixed operation and maintenance cost (FOM) for the electrolyzer, PV, and storage and compression systems as well as taxes and financing costs. In addition, cost reductions are achieved through retail and wholesale rate optimization, by which electricity is purchased at the lowest price and sold, if possible, at the highest price. For all locations, the breakeven hydrogen production cost results show that, in the order of decreasing cost, the system configurations are islanded (highest), separated, NEM, retail, hybrid retail/wholesale, and wholesale (lowest). The resulting system design balances between the capital and maintenance cost components, the operation costs (i.e., electricity costs) and the additional market revenues. The integration of solar PV and electrolysis is shown to provide a mutually beneficial relationship. For PV, integration with electrolysis offers the potential to hedge against wholesale market price volatility, and integration with electrolysis may offer the potential to defer or avoid transmission investment to deliver power to the point-of-use and instead use it on-site. When compared with SMR without considering any renewable hydrogen premiums, this study finds that PV + Electrolysis systems with current costs are likely not competitive; however, with cost reductions for electrolysis equipment consistent with DOE projections, it was found that systems with wholesale market access would be competitive, largely on account of both low capital costs and low-cost electricity. The electrolysis units can provide greater flexibility than is required based on retail rate optimization, so there is an opportunity for a utility or CAISO to increase system flexibility with PV + Electrolysis systems in return for commensurate compensation. In this way, there are potentially several solutions that fall between the hybrid configuration and the wholesale configuration that could provide sufficient compensation for a PV + Electrolysis unit to compete with SMR while also providing greater flexibility to the grid.

24 POWER TRANSMISSION AND DISTRIBUTION↗