My thesis aims to investigate and answer the question: What is the levelized cost of hydrogen storage (LCOHS) in salt caverns in the EU, and how will it develop in the future? The research status on this topic is currently limited; LCOHS assessments are theoretical. Storing hydrogen in salt caverns is a method with confined experience. Currently, several research projects are being conducted and have been conducted throughout Europe. Therefore, the theoretical nature of the topic of salt cavern hydrogen storage will be eased in the coming years and decades.
The research question will be investigated in the following way: The first chapter will provide an overview of essential technical aspects, provide insight into the economics of salt cavern storage, and present the geological storage potential in the EU and Europe. After having provided a basis for the topic, the next step will be to outline storage facilities that will be used to investigate the LCOHS in salt caverns. Important aspects are the utilization of storage facilities and the components of a storage facility. The workflow of storing hydrogen will be presented, along with explanations of why specific components are needed and their purpose. With the knowledge and insights gained up to this point, it is possible to enrich the presented components with cost estimates. Cost estimates, how they have been obtained, and further input data will be delivered next. Having combined all the necessary information, the LCOHS is calculated. The levelized cost of hydrgen storage is used to identify the true cost of a storage technology. It takes into account the technical lifetimes of the components, capital costs, and operating and maintenance costs. It calculates the total cost of a storage technology per delivered output unit. LCOHS represents a hydrogen storage facility's average net present cost over its lifetime. LCOHS estimates will then be discussed and put into perspective. With the calculated LCOHS values, possible future developments of the LCOHS will be investigated based on technological learning and price developments.
Table of Contents
1 Introduction
2 Literature Review
2.1 Methodology
2.2 Technical and geological aspects of salt cavern storage
2.3 Economics of salt cavern storage
2.4 European salt formations and storage potential
3 Specification and design of a storage facility
3.1 Structure
3.2 Scope and components
3.3 Utilization of storage facilities
3.4 Discussion
4 Levelized cost of hydrogen storage
4.1 Methodology
4.2 Construction cost of salt caverns
4.2.1 Salt caverns high-frequency cycling and seasonal cycling
4.2.2 Salt caverns high-frequency cycling and seasonal cycling - Retrofitted
4.2.3 Results and Discussion
4.3 Above-ground components - CAPEX and OPEX
4.3.1 Base case components
4.3.2 Industry and mobility components
4.3.3 Ng-grid injection components
4.3.4 Re-electrification components
4.4 LCOHS calculations
4.4.1 Further input data
4.4.2 Results and further aspects
4.4.3 LCOHS literature estimates
5 Future LCOHS developments
5.1 Methodology
5.2 Data input
5.3 Results and discussion
6 Conclusion
Research Objectives and Key Topics
The primary objective of this thesis is to investigate and determine the levelized cost of hydrogen storage (LCOHS) in salt caverns within the European Union, while analyzing how these costs are expected to develop in the future. The research focuses on the technical, structural, and economic parameters governing large-scale underground storage.
- Technical and geological feasibility of salt caverns for hydrogen storage.
- Detailed cost breakdown (CAPEX and OPEX) for various storage facility configurations.
- Impact of operational modes (high-frequency vs. seasonal cycling) on costs.
- Economic modeling of LCOHS, including sensitivity to learning rates and electricity prices.
Extract from the Book
2.2 Technical and geological aspects of salt cavern storage
Hydrogen can be stored underground in different media. The most essential mentions are depleted gas and oil fields, aquifers, and salt caverns. Salt caverns are considered the best and most promising storage option (International Energy Agency, 2015, p. 22). The properties of salt and the lack of chemical reactions of salt with hydrogen guarantee long-term stability and tightness (Tarkowski & Czapowski, 2018, p. 21417). Another important aspect is that salt caverns possess properties that allow for very dynamic storage operations. This leads to a possible frequent turnover of stored gas and allows up to ten storage cycles a year (Kruck & Crotogino, 2013, p.13429; Tarkowski, 2019, p.90).
Salt caverns can be constructed in salt domes and bedded salt formations (Tarkowski, 2019, p.91). Salt domes are immense salt structures that emerged over time from deep-lying salt layers and formed domal structures; they can be over a kilometer in diameter and several kilometers in height and lie deep beneath the surface (Tarkowski & Czapowski, 2018, p. 21417). Bedded salt formations are much closer to the surface, can reach up to 300 meters in height, and are broader and thinner than salt domes (Speight, 2019, pp.161-162).
Summary of Chapters
1 Introduction: Provides an overview of the European Green Deal and the necessity of large-scale hydrogen storage for a decarbonized economy.
2 Literature Review: Details the search methodology and reviews existing knowledge on the technical, geological, and economic aspects of underground hydrogen storage.
3 Specification and design of a storage facility: Outlines the structural requirements, components, and utilization modes of an underground hydrogen storage facility.
4 Levelized cost of hydrogen storage: Presents the mathematical methodology and empirical cost assessment for constructing and operating salt cavern storage.
5 Future LCOHS developments: Investigates the impact of technological learning rates and future demand forecasts on cost reductions.
6 Conclusion: Summarizes the major findings and reflects on the potential future role of salt cavern storage in the EU hydrogen economy.
Keywords
Hydrogen storage, Salt caverns, LCOHS, Levelized cost, Underground storage, Energy economics, Decarbonization, CAPEX, OPEX, Technological learning, EU energy policy, Hydrogen economy, Storage facility, Salt domes, Leaching.
Frequently Asked Questions
What is the core focus of this thesis?
This thesis examines the economic viability and cost structures associated with storing hydrogen in salt caverns within the European Union.
What are the primary fields of interest?
The work covers geology, engineering, and economics, specifically analyzing salt formation types, storage facility design, and investment cost estimations.
What is the main research question?
The study asks: What is the current levelized cost of hydrogen storage (LCOHS) in salt caverns in the EU, and how is this cost expected to evolve in the future?
Which methodology is employed?
The author uses empirical cost modeling based on literature data (CAPEX/OPEX) and applies Wright's Law to estimate cost reductions through technological learning.
What topics are covered in the main section?
The main section details the construction requirements for salt caverns, the necessity of cushion gases, the role of above-ground infrastructure (compressors, decompressors, purifiers), and LCOHS calculations across different scenarios.
Which keywords best describe the work?
Keywords include Hydrogen storage, Salt caverns, LCOHS, Levelized cost, Underground storage, Economic feasibility, and Technological learning.
How does the type of cushion gas affect the LCOHS?
The choice of cushion gas, such as nitrogen or CO2, is an influential factor in facility design and economics, as discussed regarding injection processes and purity requirements.
Why is convergence in salt caverns a relevant factor?
Convergence (the shrinking of the cavern volume over time) is a long-term technical phenomenon that reduces available storage space, thereby impacting the long-term cost-efficiency of the cavern.
- Citar trabajo
- Leon Jaschinski (Autor), 2024, Hydrogen storage in geological formations in the EU. An empirical assessment of cost and cost development, Múnich, GRIN Verlag, https://www.grin.com/document/1582567
