Item 4: H2@Scale Project Presentation — original pdf

Backup

H2@Scale “in Texas and Beyond” Proto-Hub + Regional Clean Hydrogen Hubs Brian Weeks, P.E. bweeks@gti.energy 281.235.7993 November 2022 DOE’s Hydrogen at Scale Vision Hydrogen can Fuel a Sustainable Energy Transition by enabling U.S. energy security, resiliency and decarbonize the energy sector • Hydrogen can be produced from diverse domestic resources for use in multiple sectors, or for export. • Hydrogen has the highest energy content by weight of all known fuels – 3X higher than gasoline - and is a critical feedstock for the entire chemicals industry, including liquid fuels. • Hydrogen and fuel cells can enable zero or near zero emissions in transportation, stationary or remote power, and portable power applications. • Hydrogen can be used as a “responsive load” on the grid to enable grid stability and gigawatt-hour energy storage, and increase utilization of power generators, including nuclear, coal, natural gas, and renewables. • Hydrogen can enable innovations in domestic industries (such as steel manufacturing and energy storage) and in transportation (e.g. in vehicles, rail, aviation, and marine applications) and iron making. https://www.energy.gov/eere/fuelcells/h2scale H2@Scale relevant for Texas Texas ideal to lead H2 production for a sustainable energy system • Excellent resources of natural gas, solar and wind for RH2 • Largest H2 producer in the nation • Major industry leaders on Hydrogen Council have significant presence in Texas 3 Approach Show H2@Scale benefits 1. Demonstrate multiple RH2 generation options, co-located with vehicle fueling and a large base load consumer to enable cost-effective H2 energy solutions 2. Develop framework for actionable H2@Scale pilot plans in Texas, Port of Houston and Gulf Coast region, including energy storage 4 • 40 kg/d from 2 PEM electrolyzers in H70 & H35 SimpleFuel units: MHI, SoCalGas, TACC, TCEQ Demonstration activities at UT (Track 1) ~100% renewable H2 generation • 75 kg/d SMR: GTI, OneH2, ONE Gas, WM • RNG credits from landfill in Texas • Solar power and emulated wind power through UT CEM microgrid Large scale, industry H2 user • 100 kW fuel cell powering Texas Advanced Computing Center Vehicle refueling • Published SAE J2601-4 fueling of 7-10 Toyota Mirai’s (Gen 1) • Hydrogen powered drones 5 Port of Houston H2 Framework (Track 2) • Identify policy and regulatory barriers • Define use and implementation plans leveraging existing industry resources • Develop actionable plan for H2@Scale and FCEV rollout in region  Partnering with other synergistic activities currently underway in Texas Image courtesy Port of Houston 6 Project Sponsorship Sponsors • Air Liquide • CenterPoint • Chart Industries • Chevron • ConocoPhillips • • Gas Technology Institute • • McDermott • Mitsubishi Heavy Industries • OneH2 • ONE Gas • ONEOK • Shell Frontier Energy LCRI • SoCalGas • Toyota • University of Texas at Austin • US DOE • WM Support partner • Center for Houston’s Future IdeaSmiths • • Rice University 7 H2@Scale in TX Study Projects • • • White Deer Wind Farm Study Partner: MHI Contributors: GTI and UT Scope: Assess H2 potential at wind farm facility. Use wind farm data for demonstration. • • • Permian Basin H2 Study Partner: ConocoPhillips Contributor: UT Scope: Assess H2 potential and pathways from Permian Basin to Gulf Coast (blue, green, ammonia). • • • Pipeline Study – NG +H2, CO2 Partners: ONEOK, ONE Gas Contributor: GTI Scope: Assess Texas pipelines suitability for blending H2 with natural gas, as well as CO2. Demonstration and Framework for H2@Scale in Texas and Beyond • • Partners: Air Liquide, CenterPoint, Chart, Chevron, ConocoPhillips, Frontier Energy, GTI, LCRI, McDermott, MHIA, ONE Gas, OneH2, ONEOK, Shell, SoCalGas, Toyota, UT Austin, US DOE, Waste Management Scope: H2@Scale TX – demonstration and strategic roadmap • • • FCEVs in Texas Study Partner: OneGas Contributors: GTI, UT, Frontier, Lone Star Clean Fuels Alliance Scope: Assess use of fuel cell electric vehicles in Austin, TX and necessary hydrogen infrastructure. Hydrogen Modeling / ESG Study • • • Partner: CenterPoint Contributors: GTI, CHF, Rice Scope: Mapping social, health, and carbon intensity impacts. • • • H2 Liquefaction Study Partner: Chart Contributor: GTI Scope: Assess H2 liquefaction opportunities in Texas • • • H2 Drone Fueling Assessment Partner: SoCalGas Contributors: GTI, DMI Scope: Assess refueling of hydrogen powered drones. Support demonstrations. 8 Current site layout 9 Port of Houston H2 Framework  Current status:  Preliminary pathway to $4/kg modeling complete  Held workshop to focus on HD trucking and fueling to guide completion of pathway analysis  Organizing path forward on Strategic Plan and developing draft document  White papers : ○ Electrolysis within ERCOT ○ Pipelines vs electrical transmission from West Texas ○ Hydrogen Power Turbines at Power Plants ○ Available at: https://sites.utexas.edu/h2/featured-publications/ 10 Integrated Energy System Expand, Modify, Repurpose, Leverage Existing Infrastructure DOE Hub Concept 12 By the Numbers The Hydrogen The Hub ≤2kg CO2e / kg H2 Carbon intensity <$2/kg by 2026 <$1/kg in the next decade Cost of produced hydrogen 50 – 100 mtons/day minimum Minimum amount hubs on initial launch $400M - 500M per hub $1B - $1.25B 50% Cost Share 13 Hydrogen Hub White Paper – Vision and Roadmap for creating a global H2 ecosystem SUPPLY Production Natural‐Gas based pathways – competitive advantage in natural gas and leader in CCUS technology Electrolysis based pathways – top‐quartile renewables costs INFRASTRUCTURE Transmission &  Distribution H2 pipelines – largest  network in US Trucking – home to a major trade corridor Shipping – established  port infrastructure for potential H2 exports Storage Salt caverns – access to formations  including Spindletop and Clemmons  Dome with demonstrated H2 storage  capacity Depleted gas reservoirs – expansive  former O&G operations sites present  potential storage opportunities Storage tanks – presence of equipment  manufacturers throughout state Hydrogen  Hub TRADING & MARKETPLACE Source: McKinsey Internal Study, US DOE H2@Scale RFI Summary of Results A digital marketplace for hydrogen leveraging  existing commodities trading platforms DEMAND Refinery & Petrochemicals Proximity to industrial demand centers, including the nation’s largest network petrochemical producers with the potential for near‐term switching Ammonia (incl. Exports) Home to leading ammonia and fertilizer producers proximal to agricultural operations in TX; ammonia is a cost‐competitive  hydrogen carrier for export Mobility Maritime vessels, intrastate heavy‐ duty trucks, drayage to and from four major seaports; major airports like IAH present high‐visibility opportunities for global recognition Power & Heat Largest renewables capacity with top‐ quartile costs (especially in West TX), H2 presents opportunities in energy storage and variation in power supply management Other industrial heating and  feedstock High‐grade heat applications which are used primarily by concentration of iron, steel, and cement producers along the  Gulf Potential opportunity by 2050 21MT of clean hydrogen  production in Texas,  including 11MT local  demand, 10MT export 220MT global CO2 abatement  potential from 21MT of hydrogen, i.e., 4x Houston’s 2019 emissions 30‐60% projects located in  communities most  impacted by  environmental justice 180k $100b potential direct, indirect, and induced jobs to be created in the hydrogen  economy potential addition to Texas’ GDP, i.e., 6% of Texas’ 2019 GDP 14 Gulf Coast Hydrogen Consortium Goals • Position Texas Triangle and Gulf Coast Region (Corpus Christi – SW Louisiana and Port Houston to Permian) as “Regional Clean Hydrogen Hub” • Commercially focused • Address DOE priorities for clean hydrogen hub (policies and programming on EEEJ & benefit metrics, workforce development, hub connectivity) • Establish financial and administrative structure that can facilitate federal grant application and administration • https://www.hyvelocityhub.us/ 15 Summary ‒ Discussed Today • ONE Gas, GTI Energy, and The University of Texas at Austin are collaborating on decarbonization: • H2@Scale Project in Texas and Beyond • DOE Regional Clean Hydrogen Hub www.hyvelocity.us ‒ Not Discussed Today • HyBlend – NREL, Sandia, Argonne, GTI Energy, ONE Gas, 30+ co-sponsors ◦ DOE CRADA to perform materials research and lifecycle analysis on hydrogen blending in gas pipelines • Methane Emissions Mitigation R&D ◦ Examples: Free piston linear drive compressor, methane atmospheric research, sensor and leak detection, etc. GTI ENERGY OVERVIEW | AUGUST 2022 16 GTI Energy develops innovative solutions that transform lives, economies, and the environment Sr. Director, Business Development, Research Operations Brian Weeks, P.E. bweeks@gti.energy 281.235.7993