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      Coupling power and hydrogen sector pathways to benefit decarbonization

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      Governments and companies worldwide are increasing their investments in hydrogen research and development, indicating a growing recognition that hydrogen could play a significant role in meeting global energy system decarbonization goals. Since hydrogen is light, energy-dense, storable, and produces no direct carbon dioxide emissions at the point of use, this versatile energy carrier has the potential to be harnessed in a variety of ways in a future clean energy system.

      Often considered in the context of grid-scale energy storage, hydrogen has garnered renewed interest, in part due to expectations that our future electric grid will be dominated by variable renewable energy (VRE) sources such as wind and solar, as well as decreasing costs for water electrolyzers — both of which could make clean, “green” hydrogen more cost-competitive with fossil-fuel-based production. But hydrogen’s versatility as a clean energy fuel also makes it an attractive option to meet energy demand and to open pathways for decarbonization in hard-to-abate sectors where direct electrification is difficult, such as transportation, buildings, and industry.

      “We’ve seen a lot of progress and analysis around pathways to decarbonize electricity, but we may not be able to electrify all end uses. This means that just decarbonizing electricity supply is not sufficient, and we must develop other decarbonization strategies as well,” says Dharik Mallapragada, a research scientist at the MIT Energy Initiative (MITEI). “Hydrogen is an interesting energy carrier to explore, but understanding the role for hydrogen requires us to study the interactions between the electricity system and a future hydrogen supply chain.”

      In a recent paper, researchers from MIT and Shell present a framework to systematically study the role and impact of hydrogen-based technology pathways in a future low-carbon, integrated energy system, taking into account interactions with the electric grid and the spatio-temporal variations in energy demand and supply. The developed framework co-optimizes infrastructure investment and operation across the electricity and hydrogen supply chain under various emissions price scenarios. When applied to a Northeast U.S. case study, the researchers find this approach results in substantial benefits — in terms of costs and emissions reduction — as it takes advantage of hydrogen’s potential to provide the electricity system with a large flexible load when produced through electrolysis, while also enabling decarbonization of difficult-to-electrify, end-use sectors.

      The research team includes Mallapragada; Guannan He, a postdoc at MITEI; Abhishek Bose, a graduate research assistant at MITEI; Clara Heuberger-Austin, a researcher at Shell; and Emre Gençer, a research scientist at MITEI. Their findings are published in the journal Energy & Environmental Science.

      Cross-sector modeling

      “We need a cross-sector framework to analyze each energy carrier’s economics and role across multiple systems if we are to really understand the cost/benefits of direct electrification or other decarbonization strategies,” says He.

      To do that analysis, the team developed the Decision Optimization of Low-carbon Power-HYdrogen Network (DOLPHYN) model, which allows the user to study the role of hydrogen in low-carbon energy systems, the effects of coupling the power and hydrogen sectors, and the trade-offs between various technology options across both supply chains — spanning production, transport, storage, and end use, and their impact on decarbonization goals.

      “We are seeing great interest from industry and government, because they are all asking questions about where to invest their money and how to prioritize their decarbonization strategies,” says Gençer. Heuberger-Austin adds, “Being able to assess the system-level interactions between electricity and the emerging hydrogen economy is of paramount importance to drive technology development and support strategic value chain decisions. The DOLPHYN model can be instrumental in tackling those kinds of questions.”

      For a predefined set of electricity and hydrogen demand scenarios, the model determines the least-cost technology mix across the power and hydrogen sectors while adhering to a variety of operation and policy constraints. The model can incorporate a range of technology options — from VRE generation to carbon capture and storage (CCS) used with both power and hydrogen generation to trucks and pipelines used for hydrogen transport. With its flexible structure, the model can be readily adapted to represent emerging technology options and evaluate their long-term value to the energy system.

      As an important addition, the model takes into account process-level carbon emissions by allowing the user to add a cost penalty on emissions in both sectors. “If you have a limited emissions budget, we are able to explore the question of where to prioritize the limited emissions to get the best bang for your buck in terms of decarbonization,” says Mallapragada.

      Insights from a case study

      To test their model, the researchers investigated the Northeast U.S. energy system under a variety of demand, technology, and carbon price scenarios. While their major conclusions can be generalized for other regions, the Northeast proved to be a particularly interesting case study. This region has current legislation and regulatory support for renewable generation, as well as increasing emission-reduction targets, a number of which are quite stringent. It also has a high demand for energy for heating — a sector that is difficult to electrify and could particularly benefit from hydrogen and from coupling the power and hydrogen systems.

      The researchers find that when combining the power and hydrogen sectors through electrolysis or hydrogen-based power generation, there is more operational flexibility to support VRE integration in the power sector and a reduced need for alternative grid-balancing supply-side resources such as battery storage or dispatchable gas generation, which in turn reduces the overall system cost. This increased VRE penetration also leads to a reduction in emissions compared to scenarios without sector-coupling. “The flexibility that electricity-based hydrogen production provides in terms of balancing the grid is as important as the hydrogen it is going to produce for decarbonizing other end uses,” says Mallapragada. They found this type of grid interaction to be more favorable than conventional hydrogen-based electricity storage, which can incur additional capital costs and efficiency losses when converting hydrogen back to power. This suggests that the role of hydrogen in the grid could be more beneficial as a source of flexible demand than as storage.

      The researchers’ multi-sector modeling approach also highlighted that CCS is more cost-effective when utilized in the hydrogen supply chain, versus the power sector. They note that counter to this observation, by the end of the decade, six times more CCS projects will be deployed in the power sector than for use in hydrogen production — a fact that emphasizes the need for more cross-sectoral modeling when planning future energy systems.

      In this study, the researchers tested the robustness of their conclusions against a number of factors, such as how the inclusion of non-combustion greenhouse gas emissions (including methane emissions) from natural gas used in power and hydrogen production impacts the model outcomes. They find that including the upstream emissions footprint of natural gas within the model boundary does not impact the value of sector coupling in regards to VRE integration and cost savings for decarbonization; in fact, the value actually grows because of the increased emphasis on electricity-based hydrogen production over natural gas-based pathways.

      “You cannot achieve climate targets unless you take a holistic approach,” says Gençer. “This is a systems problem. There are sectors that you cannot decarbonize with electrification, and there are other sectors that you cannot decarbonize without carbon capture, and if you think about everything together, there is a synergistic solution that significantly minimizes the infrastructure costs.”

      This research was supported, in part, by Shell Global Solutions International B.V. in Amsterdam, the Netherlands, and MITEI’s Low-Carbon Energy Centers for Electric Power Systems and Carbon Capture, Utilization, and Storage. More

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      Reducing emissions by decarbonizing industry

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      A critical challenge in meeting the Paris Agreement’s long-term goal of keeping global warming well below 2 degrees Celsius is to vastly reduce carbon dioxide (CO2) and other greenhouse gas emissions generated by the most energy-intensive industries. According to a recent report by the International Energy Agency, these industries — cement, iron and steel, chemicals — account for about 20 percent of global CO2 emissions. Emissions from these industries are notoriously difficult to abate because, in addition to emissions associated with energy use, a significant portion of industrial emissions come from the process itself.

      For example, in the cement industry, about half the emissions come from the decomposition of limestone into lime and CO2. While a shift to zero-carbon energy sources such as solar or wind-powered electricity could lower CO2 emissions in the power sector, there are no easy substitutes for emissions-intensive industrial processes.

      Enter industrial carbon capture and storage (CCS). This technology, which extracts point-source carbon emissions and sequesters them underground, has the potential to remove up to 90-99 percent of CO2 emissions from an industrial facility, including both energy-related and process emissions. And that begs the question: Might CCS alone enable hard-to-abate industries to continue to grow while eliminating nearly all of the CO2 emissions they generate from the atmosphere?

      The answer is an unequivocal yes in a new study in the journal Applied Energy co-authored by researchers at the MIT Joint Program on the Science and Policy of Global Change, MIT Energy Initiative, and ExxonMobil.

      Using an enhanced version of the MIT Economic Projection and Policy Analysis (EPPA) model that represents different industrial CCS technology choices — and assuming that CCS is the only greenhouse gas emissions mitigation option available to hard-to-abate industries — the study assesses the long-term economic and environmental impacts of CCS deployment under a climate policy aimed at capping the rise in average global surface temperature at 2 C above preindustrial levels.

      The researchers find that absent industrial CCS deployment, the global costs of implementing the 2 C policy are higher by 12 percent in 2075 and 71 percent in 2100, relative to policy costs with CCS. They conclude that industrial CCS enables continued growth in the production and consumption of energy-intensive goods from hard-to-abate industries, along with dramatic reductions in the CO2 emissions they generate. Their projections show that as industrial CCS gains traction mid-century, this growth occurs globally as well as within geographical regions (primarily in China, Europe, and the United States) and the cement, iron and steel, and chemical sectors.

      “Because it can enable deep reductions in industrial emissions, industrial CCS is an essential mitigation option in the successful implementation of policies aligned with the Paris Agreement’s long-term climate targets,” says Sergey Paltsev, the study’s lead author and a deputy director of the MIT Joint Program and senior research scientist at the MIT Energy Initiative. “As the technology advances, our modeling approach offers decision-makers a pathway for projecting the deployment of industrial CCS across industries and regions.”

      But such advances will not take place without substantial, ongoing funding.

      “Sustained government policy support across decades will be needed if CCS is to realize its potential to promote the growth of energy-intensive industries and a stable climate,” says Howard Herzog, a co-author of the study and senior research engineer at the MIT Energy Initiative.

      The researchers also find that advanced CCS options such as cryogenic carbon capture (CCC), in which extracted CO2 is cooled to solid form using far less power than conventional coal- and gas-fired CCS technologies, could help expand the use of CCS in industrial settings through further production cost and emissions reductions.

      The study was supported by sponsors of the MIT Joint Program and by ExxonMobil through its membership in the MIT Energy Initiative. More