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Projects: Projects for Investigator
Reference Number	NIA2_NGESO036
Title	Hydrogen Production for Thermal Electricity Constraints Management
Status	Started
Energy Categories	Other Power and Storage Technologies(Electricity transmission and distribution) 40%; Other Power and Storage Technologies(Energy storage) 30%; Hydrogen and Fuel Cells(Hydrogen, Other infrastructure and systems R&D) 30%;
Research Types	Applied Research and Development 100%
Science and Technology Fields	ENGINEERING AND TECHNOLOGY (Electrical and Electronic Engineering) 100%
UKERC Cross Cutting Characterisation	Systems Analysis related to energy R&D (Energy modelling) 100%
Principal Investigator	Project Contact No email address given National Grid plc
Award Type	Network Innovation Allowance
Funding Source	Ofgem
Start Date	01 March 2023
End Date	31 August 2024
Duration	ENA months
Total Grant Value	£520,000
Industrial Sectors	Power
Region	London
Programme	Network Innovation Allowance
Investigators	Principal Investigator	Project Contact , National Grid plc (100.000%)
	Industrial Collaborator	Project Contact , National Grid Gas Transmission (0.000%)
Web Site	https://smarter.energynetworks.org/projects/NIA2_NGESO036
Objectives	"This project consists of six work packages: WP1: Digital site locator To develop a model that depicts multiple factors related to energy constraints and Hydrogen Production Facility (HPF) construction and operations which enables the NGESO to interrogate, weigh, and visualise the location of these factors. To create a scoring system for site criteria enabling potential HPF site locations to be selected and ranked. Deliverables: A UK wide mapping of variables for HPFs siting on energy constrained areas with cumulative ranking assessed to 1 km hexagon grid cells. Variables may include distance to water sources, distance to electricity substations, gas infrastructure, etc.A tool for the client to interrogate the mapped variables by hexagon grid cell and apply bespoke weighting for each variable.A short list of potential HPF site locations ranked in order of preference, according to pre-agreed site criteria. Dedicated section included in the overall report that presents methodology and key findings/ conclusions of the site location and selection work package. WP2: Commercial Model To develop a commercial model that supports the investigation into the high-level feasibility of operating hydrogen plants as a method of balancing thermal grid constraints. Deliverables: Excel-based commercial model that summarise the key inputs and outputs for each of the scenarios outlined. Key outputs are expected to be cost forecasts and the levelised cost of hydrogen for each scenario as well as system operability benefits.Dedicated section included in the overall report that presents methodology and key findings/ conclusions of the commercial model work package.The model will include a dashboard to make it more approachable in case it will be rerun in future by National Grid with different inputs or for checking further scenarios than those defined and agreed in the workshop. WP3: Economic and Regulatory Feasibility  In conjunction with Work Package 1, WP3 will seek to define the most suitable locations (based on pre-defined location criteria) for a HPF, and will model its operation (power supply to electrolyser, injection etc.) to achieve “optimal” commercial and system operability benefits. Finally, it aims to define the regulatory requirements to deliver the right investment signals to hydrogen plants whilst minimising constraint management costs for the NGESO. Deliverables: Excel based model that will define what will output the facility and system benefits.Dedicated section in the report that will present the results of the model and outline the regulatory framework and market design requirements for hydrogen system constraint management.WP4: Modular plant design To develop modular HPF design concepts to assist in determining the high-level characteristics and constraints of archetype plant designs. This work will feed into the assessment of electrolysis capacity requirements, water consumption and land area required. Deliverables: Modular HPF design outlined for up to three HPF archetypes, each archetype design will provide information on: 1. Peak hydrogen production rate 2. Raw water demand 3. Total power demand 4. Total land area demandDedicated section in the report summarising HPF modular design concepts and selected designs for identified site locations.Literature ReviewHigh level process flows and site layout WP5: Hydrogen injection to the gas grid To explore the feasibility of hydrogen produced from the HPFs being blended into the gas grid to understand what is the minimum level of hydrogen needed to make blending into the NTS technically and commercially viable. Dedicated section in the report setting out how a HPF may feed hydrogen into the gas grid. Identify preferred locations for blending onto the NTSUnderstand operational constraints for hydrogen injection (such as hydrogen flow rate variance)The Capex and Opex for injection of hydrogen into the NTSUnderstand the minimum level of hydrogen production for hydrogen injection into the NTS to become commercially viable.Identification of known unknowns and recommendations for future further work in this area. WP6: Synthesis and Recommendations To synthesise learning from all work packages and make recommendations for further work. Identification of potential demonstration sites/pilot projects with supporting justification. Detailed scope for demonstration of thermal constraint management by a hydrogen electrolyser plant/s, suitable for use in an innovation funding bid. Dedicated section in the report providing clear recommendations for future further work in this area. In line with the ENAs ENIP document, the risk rating is scored Low.  TRL Steps = 2 (TRL change 3)Cost = 2 (£520k) Suppliers = 1 (1 Supplier) Data Assumptions = 1  " "This project will develop models and tools to build a detailed understanding of the potential for hydrogen electrolysis to reduce thermal constraints on the electricity transmission network. The results of work packages on location, commercial models, and the economic and regulatory feasibility will feed into a proof-of-concept design for an electrolysis facility. The project will also investigate the feasibility (both technical and commercial) of the hydrogen produced to alleviate thermal constraints subsequently being injected into the gas grid. " "This project aims to:Identify where HPFs need to be located to provide balancing mechanism services to National Grid ESO and to achieve “optimal” commercial and system operability benefits.Investigate the high-level feasibility of operating hydrogen plants as a method of balancing thermal grid constraints and other system services. Define the regulatory requirements to deliver the right investment signals to hydrogen plants whilst minimising constraint management costs for the ESO.Develop modular HPF design concepts to assist in determining the high-level characteristics and constraints of archetype plant designs. Explore the feasibility of hydrogen produced from the HPFs being blended into the gas grid. "
Abstract	"Thermal constraints are forecast to cost consumers between £500m and £3b a year between now and 2030, owing to an increase in renewable generation and a lack of capacity on the transmission system to transfer power from where it generated to where it is used. Hydrogen electrolysis has the potential to mitigate some of these constraints by acting to store excess generation at times of high renewable generation. However, this will only be realised if the facilities are located in the right place and can operate in a way which provides a benefit to the electricity system. This project aims to investigate the potential for such facilities to provide constraint management services and suggest the right market signals to encourage investment in the right areas. "
Publications	(none)
Final Report	(none)
Added to Database	18/10/23