Techno-economical modelling of a power-to-gas system for plant configuration evaluation in a local context

Abstract

Decarbonisation of the European energy networks is critical to meet Commission targets in the coming decades. The presented study aims to contribute to this by analysing one of the proposed solutions: power-to-gas. A techno-economic model is created for the purposes of evaluating specific projects on their feasibility in terms of local constraints and opportunities, using a current project as a template for model generation and analysing different possible configurations in 8 operational scenarios. Five metrics were used for scenario analysis: levelized cost of methane, minimum selling price, operational hours, hydrogen tank size and capital cost. The results from the analysis indicate that, in terms of the stated project, synthetic natural gas production and grid injection along with on-site mobility applications provide the best economical result. However, selling prices of synthetic natural gas obtained are one magnitude higher than current natural gas prices, indicating government support is required for further development. Future projections of electrolyser efficiency and equipment capital costs will greatly reduce production costs, giving promise for feasible business cases in the coming years.