In efforts to combat carbon emissions in challenging sectors like heavy industry and shipping, Power-to-X (PtX) technology emerges as a promising solution. PtX involves converting renewable energy into hydrogen via water electrolysis and further processing it into eco-friendly fuels like methanol, ammonia, or kerosene. Denmark has seen a rise in plans for integrating large-scale PtX projects, which will introduce large electrical loads to its power system.To optimize the cost-effectiveness of PtX-based fuel production, a proposal suggests leveraging PtX plants’ inherent flexibility to provide frequency reserves to the electrical grid. The study centers on a real-life hybrid renewable energy system (HRES) dedicated to methanol production in Denmark.Analyzing the HRES technology and current reserve markets reveals that the HRES qualifies for frequency reserve provision certification, encompassing FCR, aFRR, and mFRR, by the transmission system operator. Through participation in the reserve market, the HRES can generate added revenue, resulting in substantial reductions of 12% and 30% in the levelised cost of methanol for 2020 and 2021 operational expenditure outcomes, respectively.The study illustrates significant cost reductions achievable through engagement in reserve markets, and these reductions may escalate further with increased market prices and volatility. Participating in frequency reserve capacity markets not only facilitates overall cost reduction but also serves as an insurance policy against unpredictable energy market fluctuations. This approach presents a promising trajectory to promote PtX technology adoption and nurture sustainable energy practices in challenging sectors.
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