Feasibility study of hydrogen transmission infrastructure
With the political PtX-agreement from 15 March 2022 is it decided to investigate the needs for Danish hydrogen transmission infrastructure.
Energinet has initiated a feasibility study covering hydrogen transmission infrastructure in Jutland connecting large scale hydrogen production with a future German hydrogen market and hydrogen storage in Ll. Torup in Northern Jutland. The first steps were taken 3 May 2022, where Energinet invited PtX-stakeholders to an introductory dialogue meeting discussing the potentials for hydrogen infrastructure. At the meeting Energinet presented different proposals for hydrogen infrastructure and the value creation of both transport and storage of hydrogen was discussed.
The feasibility study was kicked off 20 June 2022 and will conclude in March 2023. The study covers three subprojects focusing on market rules, technical and design analysis, and socioeconomic analysis. Energinet will involve stakeholders in the continuously work.
The subproject for market rules shall work on a draft market model for transportation of hydrogen using the infrastructure. It will cover elements as e.g., conditions for balancing and tariff structures. Additionally, they will look into methods and process for binding commitment from the stakeholders for usage of hydrogen infrastructure.
The technical and design subproject will look into technical and safety perspectives for establishing new hydrogen infrastructure and look into converting of existing natural gas pipelines for transportation of hydrogen. The technical work shall result in design concepts, a first overview of authority processes, cost estimates, purchase strategy and timelines.
The subproject for business model, planning and socioeconomic will map out a business model for hydrogen infrastructure and how financing of the first steps of a hydrogen infrastructure can look like. The financing needs shall be investigated and a method for estimating the socioeconomic benefits by establishing hydrogen infrastructure.
Dependent on the results the feasibility study may be continued by a maturation- and after that potentially a construction project.
The political decisions on roles and responsibilities for hydrogen infrastructure means, that Energinets activities with the feasibility study is carried out on behalf of the future operator(s) of hydrogen infrastructure.
Below is a preliminary timeline for establishing hydrogen infrastructure, conditional to the political process.
How can a future hydrogen infrastructure look?
The feasibility study will also investigate a proposal where the first Danish hydrogen transmission pipelines can be laid. At the stakeholder meeting in May we presented the first thoughts. The map shows one proposal for a routing of the backbone. Other alternatives will be analyzed in the study.
It is important for Energinet that development of hydrogen infrastructure is seen together with the development of power infrastructure. This will ensure the full socioeconomic value of PtX in Denmark is harvest as mentioned in the PtX agreement. The electrolyser capacity and hydrogen infrastructure shall be built out in connection with the whole energy system to benefit from the flexibility that the PtX plants can contribute to. The electrolyser can produce hydrogen in hours with high RES production and lower power prices and visa versa shut down when RES resources are in shortage and the power prices therefore higher.
Combining RES and flexible electrolysers will reduce the needs for built out of the power grid significantly. Additionally, a hydrogen infrastructure being planned in connection with the power grid will facilitate that the RES capacity can supersede the peak demand for power as the electrolysers can use the power in times with over-capacity on the power market. A well-designed hydrogen infrastructure is in this way an important tool to integrate the huge amount of RES being planned for in the coming years.
Energinets work with hydrogen infrastructure takes place in collaboration with stakeholders in the PtX value chain.
Energinet perform e.g., in corporation with Evida and The Danish Energy Agency a market dialogue, which will contribute to to help to uncover the PtX stakeholders’ interest in hydrogen infrastructure. The results of the market dialogue will be public late October.
Additionally, Energinet has signed a corporation agreement with Gasunie Deutschland on 31 August 2022 to jointly investigate the possibilities for a cross-border connection supplying Danish green hydrogen to Germany.
We are planning a stakeholder meeting 28 november 2022, as a follow up on the meeting 3 May 2022 where we invite stakeholders to hear and discuss our preliminary result. We will shortly send out an invitation to sign up for the event. If you have any questions about the event send a mail to Tine Lindgren (TIL@energinet.dk).
In case you have a more generel interst in the feasibility study you are always welcome to contact Steen Brostrup Knudsen (SKU@energinet.dk).