| dc.description.abstract | Power-to-Gas is particularly applicable in Ontario’s energy market, due to the abundance of curtailed renewable energy. During off peak hours this results in not only low carbon, but low-cost electricity making hydrogen generation a highly profitable and environmentally friendly venture. Despite the benefits listed above, there has yet to be a full-scale adoption of Power-to-Gas technology both globally and in the local market. This eliminate this hesitation there is a requirement for diverse, profitable proof of concept installations and a public uncertainty regarding the inherent safety of the technology. It is the objective of this thesis to address these concerns by demonstrating the versatility of hydrogen in different energy system configurations, to show how layered revenue streams can produce profits in the face of policy uncertainty and by outlining the risks and control methods available to mitigate the safety concerns associated with Hydrogen.
The first paper presented in this thesis will address the question of whether a business case with strong financial returns is possible for a finished goods manufacture. Here we demonstrate the potential to capitalize on multiple revenue streams under a single investment and highlight some of the ancillary assets including reduction in air pollution and balance of the electrical grid. This design was developed for an automotive manufacturer requiring a total capital investment of $2,620,448 and resulting in a payback period of 2.8 years. Based on a sensitivity analysis, the annual revenue for selling hydrogen at $1.5 to $12 per kgH2 can sum to $54,741 to $437,928. In the modelled carbon tax program, CO2 allowances can be sold at $18 to $30 per tonne CO2 and the model predicts a CO2 offset of 2359.7 tonnes.
The second paper develops a case study that further expands on the use of a single pathway, the is the use of hydrogen enriched natural gas. This paper analyzes the integration of an electrolyzer unit into a manufacturer’s CHP microgrid and both explores the impact a carbon tax has on its feasibility and carries out a failure mode and effects analysis to highlight the safe nature of the technology. Currently realizable capital incentives can see IRRs as high as 13.76% with net present values of approximately $750,000. To realize financial feasibility, the carbon price in Ontario must achieve or exceed a minimum of 60$/ton CO2e. In all economically feasible, cases the system operating under an optimal storage coefficient and operational limit produced an emission offset greater than 3000-ton CO2 per year. | en |
