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At least 19 records

Hydrogen's Economic Potential Within the United States

This presentation includes a very brief summary of the H2@Scale concept and results from the H2@Scale Technical and Economic Potential Analysis that was published in October 2020.

ENERGY PLANNING, POLICY, AND ECONOMY,HYDROGEN↗

The Technical and Economic Potential of Hydrogen within the United States

Hydrogen markets have an opportunity to grow as its value as an energy intermediate increases. Hydrogen’s estimated serviceable consumption potential in the United States is 106 MMT/yr which is a ten-fold increase over the current market size. That opportunity is driven primarily by increased demands for metals refining, biofuel and hydrocarbon production, supplementing the natural gas system, seasonal storage for the electricity grid, and fuel cell electric vehicles. The U.S. has many renewable, nuclear, and fossil resources that each could meet that demand itself. The economic potential, which considers both costs to produce hydrogen and willingness of applications to pay for it, is 22 to 41 MMT/yr. The range is impacted by factors that impact the cost to produce including the price of natural gas and the cost of electrolyzers. It is also impacted by competition to provide the same services as hydrogen including electrification.

electrolysis↗

Regional economic potential for recycling consumer waste electronics in the United States

Waste electronics are a growing environmental concern but also contain materials of great economic value. If properly recycled, waste electronics could enhance the sustainability of vital metal supply chains by offsetting the increasing demand for virgin mining. However, rapid changes in the size and composition of electronics complicate their end-of-life management. Here we couple material flow and geospatial analyses on over 90 critical consumer electronic products and find that over 1 billion devices, representing up to 1.5 million tonnes of mass, could be discarded annually in the United States by 2033. Emerging electronics such as connected home, health and augmented/virtual reality devices have become the fastest-growing types in the waste stream. Here we highlight policy opportunities to develop various sustainable circularity strategies around metal supply chains by showing the potential to integrate waste electronics and virgin mining pathways in western US regions, while new infrastructure designed specifically for waste electronics treatment is favourable in the central and eastern United States. Furthermore, we show the importance of building national-level refining and tear-down databases to improve electronics end-of-life management in the next decade.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Potential Economic Values of Low-Vapor-Pressure Gasoline-Range Bio-Blendstocks: Property Estimation, and Blending Optimization

Adding non-traditional blendstocks derived from biomass into gasoline has gained renewed interest since it will reduce greenhouse gas emissions and potentially enhance fuel properties and boost engine efficiencies. A competitive bio-blendstock candidate should have either lower prices or superior properties or both relative to conventional gasoline blending components. Gasoline is a mixture of hundreds compounds specified by properties rather than compositions. The addition of bio-blendstocks, most likely oxygenates, will modify the property mixing rules due to the non-ideal interactions between polar and nonpolar components. This paper presents an equation-of-state-based model for predicting Reid vapor pressure, reduced order non-linear property blending models for computing key properties of final gasoline products, and a blending optimization approach to identify key economic drivers. This paper also evaluates the economic values of bio-blendstocks to petroleum refiners using those models. In additional to ethanol, six low-vapor-pressure bio-blendstock candidates were evaluated: i-propanol, n-propanol, i-butanol, diisobutylene, cyclopentanone, and a mixture of furans. Reid vapor pressure, distillation temperatures, and octane numbers were identified as the key economic drivers of adding bio-blendstock. The economic values of those bio-blendstocks range from 2.22 to 4.00 US dollar per gasoline gallon equivalent in 2013 to 2017 5-year averaged price basis. The bio-blendstocks with higher octane numbers may have higher economic values. The uncertainties in property predictions may lead to roughly 15% deviation in the economic value evaluation.

Jiang, Yuan↗

Electrolyzers in the System Advisor Model (SAM): A Techno-Economic Potential Study

A technoeconomic analysis of grid to low temperature electrolysis (Grid-LTE), photovoltaic to low temperature electrolysis (PV-LTE), concentrating solar power to high temperature electrolysis (CSP-HTSE) and a concentrating solar power with PV to high temperature electrolysis (CSP-PV-HTSE) centralized hydrogen production systems are analyzed to assess the economics of system and to provide a baseline for comparing these technologies against hydrogen production cost targets. A framework integrating the system advisor model (SAM) and US Department of Energy hydrogen production models (H2A) is developed to assess these systems. The hydrogen levelized cost given current and future assumptions for technology cost and performance is evaluated at optimal system configurations. The framework described in this report integrates SAM with H2A electrolyzer technologies and provides analysts a detailed technoeconomic method to analyze concentrating and photovoltaic solar technologies to produce energy that are directly coupled to LTE and HTSEs that use that energy to split water into hydrogen and oxygen. The baseline hydrogen levelized cost (HLCs) for the GRID-LTE, PV-LTE, CSP-HTSE, and CSP-PV-HTSE systems in Daggett, CA are 2.82, 3.86, 3.68, and 2.90 $\$$USD 2016/kg H2 and 2.50, 2.13, 2.84, 2.15 $\$$USD 2016/kg H2 in the 2020 and 2050 scenarios respectively. To achieve the $\$$2/kg H2 target in locations with excellent solar resources, cost parameters values aligned with aggressive R&D targets will need to be achieved for all the systems configurations. In Daggett, PV costs of $\$$0.68 /Wac or moderate ATB PV CAPEX projections result in HLCs of $\$$2 /kg H2. Similarly for PV-MSALT-HTSE systems, $\$$0.60 /Wac result in $\$$2/kg H2. For the MSALT-HTSE systems, better than aggressive 2050 ATB salt tower CAPEX projections would be needed to reach $\$$2/kg H2. Molten salt tower capital costs of $\$$2400/kW would enable $\$$2/kg H2 in 2050.

08 HYDROGEN↗

Development of an enzyme cocktail to bioconvert untapped starch in sweet sorghum processing by-products: Part II. Application and economic potential

Demand for bioethanol and other biochemicals produced from agricultural crops has increased. Sweet sorghum has been identified as a promising bioenergy crop as it can produce starch, sugar, and fibrous biomass. During processing, starch accumulates in the juice sediments and clarification mud. And, while currently not recovered, it can be made accessible for fermentation by enzymatic hydrolysis. The enzymatic hydrolysis of starch in sweet sorghum processing streams was investigated, followed by fermentation of the resulting glucose to ethanol. The juice sediment contained sufficient starch to increase fermentable sugars by 127%, allowing a final ethanol titer of 11.1 vol%. The economics for fermentation of only dissolved sugars (Scenario 1) versus dissolved sugars and hydrolyzed starch (Scenario 2) were compared using a technoeconomic model. Fixed capital cost was found to be similar for both scenarios. For a set harvest period, Scenario 2 could produce 20% more ethanol; however, if the distillation by-product was dried and marketed as animal feed, Scenario 1 was more cost effective. A plant producing 5.6–5.7 Mkg of fuel ethanol per year had a minimum selling price of $0.67/kg of ethanol with concurrent production of animal feed and zero cost sweet sorghum processing. Finally, even with these optimistic assumptions, the estimated production cost was higher than the current wholesale price of fuel ethanol.

09 BIOMASS FUELS↗

Forecasting Distributed PV Adoption in Barranquilla, Colombia [Slides]

The objective of the dGen Colombia project is to provide projections to 2050 on distributed PV deployment by sector for a range of scenarios for Barranquilla, Colombia. NREL used the open-source Distributed Generation Market Demand Model (dGen) adapted for international projects for this analysis. As part of this analysis, technical potential, economic potential, and adoption projections of rooftop and groundmount PV for the city of Barranquilla are presented. Five main scenarios and their combinations were modeled to provide insight on the impact of increased demand from electric vehicles, air conditioning, and time-of-use tariffs.

14 SOLAR ENERGY↗

A Technical and Economic Assessment of LWR Flexible Operation for Generation and Demand Balancing to Optimize Plant Revenue

With increased penetration of subsidized variable renewable energy (VRE) resources and competition from low natural gas prices, existing light water reactor (LWR) nuclear power plants (NPPs) are struggling to remain economically competitive. This work examines the potential economic competitiveness of various thermal energy storage (TES) technologies when coupled directly or indirectly with a NPP. To highlight their relative economic competitiveness, we contrast several energy storage solutions in stochastic dispatch optimization. We leverage data from recent work analyzing a range of TES technologies with varying capital costs, performance, and technology readiness level (TRL) to establish our case. We explore inserting these technologies into an electricity market with existing nuclear generation and large projected variable renewable energy (VRE) penetration. Although these technologies' projected capital costs may make them unlikely candidates in their current state, this analysis demonstrates a high-fidelity techno-economic analysis of energy storage. Furthermore, as the projected cost of energy storage technologies evolves, this analysis sets a precedent for similar future investigations. One region with projected trends that may be unfavorable for existing nuclear capacity is the New York Independent System Operator (NYISO) market. New York state’s baseload generation has been historically provided by fossil-fired and nuclear assets. However, amid economic pressures from subsidized VREs and low natural gas prices, the state has recently deactivated Indian Point nuclear power plant units 2 and 3. Furthermore, the state plans to meet its zero-emission generation target by 2040 by replacing fossil-fired capacity with significant investments in VRE resources like wind and solar photovoltaic (PV) and battery storage. Increased intermittent resource penetration lowers the baseload power requirement, adding further economic pressure to the state’s three remaining NPPs still in operation. With three NPPs still in operation in New York, this work analyzes potential economic benefits to NPPs on the New York grid when directly or indirectly coupled with various TES technologies. This work requires two modeling steps to analyze the potential economic benefits of various system configurations of the TES directly or indirectly coupled with nuclear. First, this analysis leverages capacity expansion modeling by experts at the Electric Power Research Institute (EPRI). Using their deterministic capacity expansion model, U.S. Regional Economy, Greenhouse Gas, and Energy (US-REGEN), EPRI analysts evaluated the capacity and generation evolution of the New York state energy market under four projection scenarios. These four projection scenarios were developed to represent the potential evolution of the capacity and generation in NYISO from 2015 to 2050 under various economic, technology, and policy constraints. The results from these capacity expansion models are then used as boundary conditions in the second modeling step. The second modeling step uses the Holistic Energy Resource Optimization Network (HERON) for a set of stochastic techno-economic analyses (STEAs) to investigate the potential increase in the economic viability of various configurations of the TES. With no current capacity expansion capabilities, HERON takes the data generated from US-REGEN for 2050 to generate synthetic load, solar, and wind data. Then HERON economically optimizes the capacity and dispatch of the various TES configurations. The potential economic benefit is the differential net present value (NPV) of the TES configurations from the no-TES baseline. As a stochastic techno-economic analysis package, HERON introduces uncertainty into the economic metrics, while US-REGEN trades resolution for reduced computational complexity. Using HERON also allows the modeling of direct thermal coupling, a feature not common in capacity and dispatch models. As expected, with high capital costs, the costs of introducing energy storage for all the technologies considered outweighed the potential economic benefit of this strategy for flexible plant operation. The benefit of this analysis is primarily in demonstrating a workflow that examines innovative solutions to increase NPP revenue via TES coupling. HERON’s stochastic capacity and dispatch optimization process used in this work has proven an effective tool in observing and evaluating the impact of introducing storage technologies in a grid energy system.

25 ENERGY STORAGE↗

Techno-economic assessment of electricity market potential for co-located hydro-floating PV systems

Abstract—Harnessing renewable energy from diverse sources is paramount for sustainable power systems. Recently, co-located floating PV (FPV) systems present an intriguing prospect in this context. These hybrid systems, blending hydro and solar power, may offer a more consistent electricity output and potential economic advantages. Yet, assessing their actual potential requires a comprehensive techno-economic assessment. In addition, probabilistic price forecasting has recently gained attention in electricity market because decisions based on such predictions can yield significantly higher profits than those made with point forecasts alone. To this end, this paper embarks on a journey to elucidate the electricity market potential of co-located hydro-FPV systems in a probabilistic fashion to investigate the technological merits and economic viability of co-located hydro-FPV under different market structures. Our preliminary findings suggest that LCOE and payback metrics are sensitive not only to different markets but also to different solar incentives. Concurrently, we also observe that the payback period is generally faster with a production tax credit (PTC) than an investment tax credit (ITC). This assessment serves as a cornerstone for understanding the future prospects of co-located hydro-FPV systems in modern electricity markets.

13 HYDRO ENERGY↗

A parcel-level evaluation of distributed wind opportunity in the contiguous United States

This study examines the potential for distributed wind (DW) energy across the contiguous United States, leveraging advancements in the National Renewable Energy Laboratory's distributed wind model, dWind. The novel modeling approach described here utilizes a high-resolution dataset and analyzes over 150 million parcels, a significant improvement from prior methods that extrapolated results from a smaller random sample. This achievement is enabled through key model performance improvements, such as transitioning to multiprocessing, which reduces runtime by 97 %. This optimized, high-resolution approach allows the inspection of technology deployment potential and impact on a variety of scales tailored to individual properties and regions. The results here align with prior work showing substantial opportunity for energy generation using DW technologies. Key findings reveal a substantial increase from prior results in estimated technical and economic potential for DW. Metrics tuned to highlight economic potential also show increased incentives supporting rural adoption. Results are spatially aggregated for usability and published via the U.S. Department of Energy Wind Data Portal and a custom scenario visualization platform, aiding policymakers, industry, and property owners in assessing DW viability across various scenarios and spatial scales.

17 WIND ENERGY↗

The Global Technical, Economic, and Feasible Potential of Renewable Electricity

Renewable electricity generation will need to be rapidly scaled to address climate change and other environmental challenges. Doing so effectively will require an understanding of resource availability. We review estimates for renewable electricity of the global technical potential, defined as the amount of electricity that could be produced with current technologies when accounting for geographical and technical limitations as well as conversion efficiencies; economic potential, which also includes cost; and feasible potential, which accounts for societal and environmental constraints. We consider utility-scale and rooftop solar photovoltaics, concentrated solar power, onshore and offshore wind, hydropower, geothermal electricity, and ocean (wave, tidal, ocean thermal energy conversion, and salinity gradient energy) technologies. We find that the reported technical potential for each energy resource ranges over several orders of magnitude across and often within technologies. Therefore, we also discuss the main factors explaining why authors find such different results. According to this review and on the basis of the most robust studies, we find that technical potentials for utility-scale solar photovoltaic, concentrated solar power, onshore wind, and offshore wind are above 100 PWh/year. Hydropower, geothermal electricity, and ocean thermal energy conversion have technical potentials above 10 PWh/year. Rooftop solar photovoltaic, wave, and tidal have technical potentials above 1 PWh/year. Salinity gradient has a technical potential above 0.1 PWh/year. The literature assessing the global economic potential of renewables, which considers the cost of each renewable resource, shows that the economic potential is higher than current and near-future electricity demand. Fewer studies have calculated the global feasible potential, which considers societal and environmental constraints. While these ranges are useful for assessing the magnitude of available energy sources, they may omit challenges for large-scale renewable portfolios.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Agriculture’s Potential Regional Economic Contributions to the United States Economy When Supplying Feedstock to the Bio-Economy

The economic impact of obtaining biomass could become significant to U.S. rural economies via the establishment of a bioeconomy. In 2023, the Bioenergy Technologies Office (BETO) and Oak Ridge National Laboratory provided a road map to obtain over a billion tons of biomass for conversion to bioenergy and other products. Using information from this roadmap, this study estimates the potential positive and negative economic impacts that occur because of land use change, along with increased technological advances. This is achieved by using the input–output model, IMPLAN, and impacting 179 Bureau of Economic Analysis regions in the conterminous United States. Biomass included in the analysis comprises dedicated energy crops, crop residues, and forest residues. The analysis found that managing pastures more intensively could result in releasing land to produce dedicated energy crops on 30.8 million hectares, resulting in the production of 361 million metric tons of biomass. This, coupled with crop residues from barley, corn, oats, sorghum, and wheat (162 million metric tons), plus forest residues (41 million metric tons), provide 564 million dry metric tons of biomass. Assuming the price for biomass in 2023 dollars was USD 77 per dry metric-ton, this additional production results in an economic benefit for the nation of USD 619 billion, an increase from the Business As Is scenario (Baseline) of almost USD 100 billion per year, assuming a mature biomass industry. An additional 700,000 jobs are required to grow, harvest/collect, and transport the biomass material from the land.

ForSEAM↗

Fluidized Bed Gasification For Conversion of Biomass and Waste Materials to Renewable Hydrogen

This project was undertaken in order to study the potential for hydrogen production, at low cost, from mixtures of biomass and municipal solid waste (MSW). This approach allows for the production of hydrogen with a very low fossil carbon burden, while taking advantage of tipping fees (associated with MSW) to improved process economics. The team sourced three primary feedstocks (wood, MSW, and waste plastics) and characterized them comprehensively using established techniques with a long track record in the field of gasification. All three primary feedstocks were highly reactive and lost most of their mass during initial devolatilization. The production of tars, including heavy tars, was quite high, and was most problematic in the case of the MSW and Waste Plastics feedstocks. Little practical difference was identified between the MSW and Waste Plastics materials, and the addition of bed-forming materials (dolomite and brown alumina) to the feedstocks was found to reduce production of tars during devolatilization under thermogravimetric analysis and/or Fischer Assay conditions. A series of four tests in a lab-scale bubbling-fluidized-bed gasifier, at 50 psig of pressure and about 825 C, confirmed these findings. Pellet feedstocks, broken into fragments, were used for these tests, and pellets comprised of 50% MSW and 50% biomass were found to be the best option in terms of fossil carbon burden, economic potential, and gasification characteristics. Tests were then undertaken in a pilot-scale gasifier facility based on the GTI U-Gas fluidized-bed gasification technology. The feedstock handling train of the 20 TPD U-Gas pilot-scale gasifier located in Des Plaines, IL, was operated under simulated gasification conditions, and the 50/50 pellets were found to be very robust and unproblematic. An improved design for the forward end of the feedstock injection screw of the gasifier was developed and installed. The design approach was based on improved passive cooling of the front-most shroud at the end of the screw, since this approach was found in comprehensive modeling studies to be more than sufficient to accomplish the project objectives associated with this phase of the work, while also avoiding thermal gradients that could have caused heat-stress-induced damage to the refractory around the feedstock inlet if an active cooling approach had been applied. Careful technoeconomic analysis (TEA) of two possible 1000 TPD facilities was carried out. The TEA of conversion of MSW with corn stover in one case, and MSW with woody feedstock in the other case, showed that both had the potential to provide hydrogen at about $1/kg (minimum selling price, 2018 dollar basis). Of the two TEA cases, the one that was based on the conversion of wood in the southeastern USA was found to have slightly better economic potential. The other TEA case was based on a real location in Nebraska and called for corn stover feedstock conversion along with MSW. An underserved communities outreach program plan was developed in cooperation with personnel from the Nebraska Public Power District.

08 HYDROGEN↗

Heuristic Dispatch Based on Price Signals for Behind-the-Meter PV-Battery Systems in the System Advisor Model

The economic potential of a behind-the-meter (BTM) PV-battery system depends greatly on how the battery is dispatched. Different utility rates, system sizes, generation and load profiles can all require different dispatch strategies. This paper presents price signals dispatch, a new algorithm for automated economic dispatch of BTM PV-battery systems, which utilizes 24-hour PV and load forecasts, degradation data, and utility rates. The algorithm is integrated with the System Advisor Model (SAM) tool and is tested with a nonlinear generic electrochemical battery model. Price signals dispatch outperforms SAM's existing algorithms in cases requiring a balance between demand charge management and energy arbitrage, and in cases where battery degradation imposes a significant cost.

batteries↗

Techno-economic assessment for the production of algal fuels and value-added products: opportunities for high-protein microalgae conversion

Abstract Background Microalgae possess numerous advantages for use as a feedstock in producing renewable fuels and products, with techno-economic analysis (TEA) frequently used to highlight the economic potential and technical challenges of utilizing this biomass in a biorefinery context. However, many historical TEA studies have focused on the conversion of biomass with elevated levels of carbohydrates and lipids and lower levels of protein, incurring substantial burdens on the ability to achieve high cultivation productivity rates relative to nutrient-replete, high-protein biomass. Given a strong dependence of algal biomass production costs on cultivation productivity, further TEA assessment is needed to understand the economic potential for utilizing potentially lower-cost but lower-quality, high-protein microalgae for biorefinery conversion. Results In this work, we conduct rigorous TEA modeling to assess the economic viability of two conceptual technology pathways for processing proteinaceous algae into a suite of fuels and products. One approach, termed mild oxidative treatment and upgrading (MOTU), makes use of a series of thermo-catalytic operations to upgrade solubilized proteins and carbohydrates to hydrocarbon fuels, while another alternative focuses on the biological conversion of those substrates to oxygenated fuels in the form of mixed alcohols (MA). Both pathways rely on the production of polyurethanes from unsaturated fatty acids and valorization of unconverted solids for use as a material for synthesizing bioplastics. The assessment found similar, albeit slightly higher fuel yields and lower costs for the MA pathway, translating to a residual solids selling price of $899/ton for MA versus $1033/ton for MOTU as would be required to support a $2.50/gallon gasoline equivalent (GGE) fuel selling price. A variation of the MA pathway including subsequent upgrading of the mixed alcohols to hydrocarbon fuels (MAU) reflected a required solids selling price of $975/ton. Conclusion The slight advantages observed for the MA pathway are partially attributed to a boundary that stops at oxygenated fuels versus fungible drop-in hydrocarbon fuels through a more complex MOTU configuration, with more comparable results obtained for the MAU scenario. In either case, it was shown that an integrated algal biorefinery can be economical through optimal strategies to utilize and valorize all fractions of the biomass.

09 BIOMASS FUELS↗

Algae to HEFA : Economics and potential deployment in the United States

Abstract To reach the goals set by the US Department of Energy's Sustainable Aviation Fuel (SAF) Grand Challenge, currently available feedstocks may be insufficient. Giving priority to developing, prototyping and reducing the cost of algal feedstock before investing and lining up locations is important. As the production of algal feedstocks advances, a simplified conversion approach using more mature technologies can help reduce the investment risk for algae‐based fuels. Reducing process complexity to the steps described here [namely, conversion of lipids to HEFA (hydroprocessed esters and fatty acids) fuels and relegating the remainder of the biomass to anaerobic digestion or food/feed production] enables the near‐term production of algal SAF but presents challenging economics depending on achievable cultivation costs and compositional quality. However, these economics can be improved by present‐day policy incentives. With these incentives, the modeled algae‐to‐HEFA pathway could reach a minimum fuel selling price as low as $4.7 per gasoline gallon equivalent depending on the carbon intensity reduction that can be achieved compared with petroleum. Uncertainty about algal feedstock production maturity in the current state of technology and the future will play a large role in determining the economic feasibility of building algae‐to‐HEFA facilities. For example, if immaturity increases the feedstock price by even 10%, SAF production in 2050 is about 58% of the production which could have been achieved with mature feedstock. Additionally, growth in this conversion pathway can be notably boosted through the inclusion of subsidies, and also through higher‐value coproducts or higher lipid yields beyond the scope of the process considered here.

09 BIOMASS FUELS↗