Hydrogen Generation for Renewable Energy Transformation/Storage

UNION FENOSA WIND AUSTRALIA

Guillermo Alonso (Engineering Manager)

28th November 2016

1

Index

1. Background

2. The challenge for energy storage

3. Renewable Power to Gas (ReP2G) technology

4. The ACT ReP2G initiative sponsored by GPG

1

Background

3

Background

Union Fenosa Wind Australia and its parent group

UFWA is the Australian subsidiary of Global Power Generation (GPG), which is the international

generation arm belonging to Gas Natural Fenosa (GNF) Group. GNF’s main magnitudes:

4

Background

Gas Natural Fenosa in the world

5

Background

Union Fenosa Wind Australia

UFWA commenced its operations in Australia in 2008, to develop a portfolio of wind farms acquired

from a local developer.

The portfolio comprises 8 projects in 2 States:

NSW: Crookwell 2, Crookwell 3 and Paling Yards (Southern Tablelands)

VIC: Ryan Corner, Hawkesdale, Berrybank, Darlington and Tarrone (all in the SW district)

Currently the portfolio represents ~1,300MW of wind farms being developed, with one of them

(Crookwell 2, 91MW), already moving into construction mode.

On 18th August 2016, the ACT Government awarded Crookwell 2 Wind Farm a Feed-in Tariff

Entitlement as part of the ACT Next Generation Renewables Auction. It is expected that the wind

farm will commence commercial operation by late 2018, contributing to the 100% renewables target

for the Territory.

We are committed to a number of initiatives for Economic Development in the ACT. The key one for

the Academic Institutions and for the Industry of the ACT, is the Renewable Power to Gas initiative,

which is described in the rest of this presentation.

2

The challenge for

energy storage

7

Peak demand from the System will not necessarily match the Maximum Renewable Production

The challenge for energy storage

Wind and solar energy are naturally fluctuating

Solar generation shows a daily trend, with seasonal variation

Wind generation shows a more random behaviour

Current targets for renewable energy at a global scale, and specifically for the ACT, require an

increasingly important role of wind and solar energy.

The natural variability and intermittency of these sources will require solutions to balance the

generation with demand.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Energy

production

[kWh]

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Daily wind generation Average Generation Percentage

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Wind Photovoltaic

Win

d

Dem

an

d c

ov

era

ge (

%)

PV

Dem

an

d c

ov

era

ge

(%)

8

The challenge for energy storage

Energy storage technologies and properties

Dis

ch

arg

e tim

e

Stored energySource: Fraunhofer IWES - Solarfuel

Hydrogen and methane do not require a specific storage infrastructure as they can be directly

injected into the existing gas distribution grid that acts as the sink

Energy Storage with different discharge ranges, capacities and timeframes offer a solution that will

allow a higher penetration of variable renewable energy.

A combination of storage technologies would be required.

Hydrogen and Methane (natural gas), are forms of storage offering larger energy storage

capabilities and are potentially the most suitable for bulk energy storage.

3

Renewable Power to Gas

(ReP2G) technology

10

Renewable Power to Gas (ReP2G) technology

Concept

Methanation provides a double benefit: Energy storage plus CO2 reduction

ReP2G technology is a leading candidate to tackle the issues associated with the intermittency of

renewable energy power generation.

The ReP2G process links the electrical power grid to the gas grid by converting the electrical energy

to:

Hydrogen (H2) by water electrolysis for direct injection in the gas grid or conversion to;

Methane (CH4) by the reaction of H2 with an available source of carbon monoxide (CO) or carbon

dioxide (CO2). This process results in a substitute or synthetic natural gas (SNG) and offers

significant potential as a CO2 sink.

ReP2G process chain

11

Renewable Power to Gas (ReP2G) technology

Electric and gas networks interconnection

The electricity and gas networks can become increasingly interconnected leading to a sustainable,

interconnected and smart energy grid

Other technologies can build upon ReP2G, adding value and increasing the sustainability of the

energy system

12

Renewable Power to Gas (ReP2G) technology

Advantages

ReP2G technology allows or facilitates:

• Increased renewable generation capacity.

• Avoided renewable curtailment.

• Absorption of reactive power.

• Reduced reserve power

• Reduced CO2

emissions.

• Increased value for transport and distribution assets.

• Creation of a new business: Production of synthetic gas/renewable heat.

• Decarbonising Gas.

• Reduced fuel imports

• Improved security of supply.

• Creation of jobs and wealth.

• Creation of a new industry: Production of synthetic fuels.

• Avoid investments in expensive storage facilities.

• Reduced CO2

emissions.

For the power system: For the gas system: For the society:

13

Renewable Power to Gas (ReP2G) technology

Our experience in Europe

CDPL’s parent company, GNF Group, has already conducted research and developed a number of

pioneering projects dealing with ReP2G technology and storage:

Sotavento

Collaborative project with the Regional Government of Galicia to

acquire knowledge on the technology and potential of H2 as

storage of renewable energy. This plant, the first of its type in

Europe, has a capacity of 288kW, achieving a H2 production

efficiency of 75% producing some 60 Nm3/h of gas.

Smart Green GasCollaborative project

investing improvements in

the process to up-grade

biogas to bio-methane for

injection in the gas network

or use as a transport fuel.

Renovagas

Power to Gas Project:

Study of the potential in

Spain and investigation

in a 15kW pilot plant.

4

The ACT ReP2G initiative

sponsored by GPG

15

The ACT ReP2G project sponsored by GPG

General scope

To deliver the proposed energy storage paradigm, CDLP, ANU-ECI and ActewAGL are engaging to

carry out this initiative with the following goals:

Bring together academic institutions and the industry to integrate energy storage solutions with the

existing and future rooftop solar PV installations and other micro-grid infrastructure.

Invest in an appropriately sized ReP2G pilot plant, envisaged to be in the range of 100-200 kW on

an ACT site to support the applicable research and test program, whose results will provide

knowledge about the technical and economic feasibility of the ReP2G systems.

Assess the commercial potential of the Power2Gas technology.

Ultimately, seek to create a new sector within the renewable energy industry reaching beyond the

ACT that will create long-term jobs and economic benefits as a result of rolling out commercial

products.

CDLP will provide seed funding for the ReP2G project valued at $1.25M. Also as a part of the transfer

activities, we will transfer knowledge and experience valued in $30M.

Additionally, a significant part of the funding that CDLP will provide to the ACT tertiary collaboration &

research partnership with the ANU, valued at $1.5 million over 20 years, will be oriented to the ReP2G

initiative and this provision will comprise of:

An annual scholarship of up to $25,000

Additional collaborative research funding of up to $50,000 per annum.

This presentation is property of Gas Natural Fenosa /

Global Power Generation.

©Copyright Gas Natural SDG, S.A.

Thank you