Ontario has emerged as hub of clean energy innovation. The province has rapidly changed its energy mix from coal to renewables in the past 10 years, and Ontario’s latest Long-Term Energy Plan, finalized in 2013, calls for 50 MW of energy storage to be procured in 2014. Ontario is also home to several innovative storage companies, including Electrovaya, Temporal Power, Hydrostor, and Hydrogenics.
In addition to the 50 MW storage plan – split between 35 MW announced earlier this year and 15 MW slated for the second half of 2014 – Ontario also has a number of storage demonstrations underway. A 250 kWh/500 kW lithium ion community storage system is being tested by Toronto Hydro, and Temporal Power has two projects: one for wind integration with Hydro One and one for frequency regulation developed by NRStor. Hydrostor is testing a 4 MWh/1 MW demonstration facility to showcase the firm’s underwater compressed air system, 80 meters underwater.
First the Old World
In addition to batteries, compressed air energy storage, and flywheels, Ontario is adding hydrogen energy storage. Hydrogenics has announced a 2 MW power-to-gas project in Ontario as a part of the 35 MW procurement. Power-to-gas systems use surplus electricity and an electrolyzer to generate hydrogen for direct injection into the natural gas grid, or to generate hydrogen and then syngas for direct injection into the natural gas grid. Ancillary benefits include using the electrolyzer for demand response (including frequency regulation).
In Navigant Research’s recent white paper, The Fuel Cell and Hydrogen Industries: 10 Trends to Watch, one of the trends examined is power-to-gas. Specifically, the white paper suggests that the power-to-gas concept will be proven in Europe. In the near term, Navigant Research estimates a $100 million market for power-to-gas in Europe in 2015. The European power-to-gas market is expected to grow to as much as 665 MW in 2018, representing $850 million in revenue, according to Navigant Research estimates. This base scenario equates to 4% of the wind capacity to be installed in Europe that same year, with a total installed capacity by 2018 equivalent to 1.9% of the installed capacity of wind from 2014 to 2018.
Although North America has a smaller grid system and the advantage of cheap natural gas – which makes it difficult to make a business case for any alternative technology to gas turbines – there is clearly room for power-to-gas. Hydrogenics intends to find out how much.
Tags: Industrial Innovations, Grid-Tied Energy Storage, Renewable Energy, Smart Energy Program
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