Material Presentation - Prof. Dr. Ir. Widodo Wahyu Purwanto

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Prospects for Hydrogen in the NZE Energy Systems

Widodo Wahyu Purwanto


1SustainableEnergy Systems and Policy Research Cluster
2Department of Chemical Engineering
3Master Program in Energy Systems Engineering
http://sesp.ui.ac.id/
Universitas Indonesia
Outline

§ Key drivers
§ Challenges of hydrogen deployment
§ Prospects of hydrogen for decarbonization
§ Key messages
Key drivers
NZE for 1.5°C and abatement strategies

Source: IRENA, 2021, 2022


UI - Energy Transition Model
UI Energy Transition Model, which was SCENARIOS

developed by Universitas Indonesia, is


TIMES model for Indonesia case study.
INPUT OPTIMISATION OUTPUT

• Technology Portfolio
Minimum
• Energy demand • Emission Trajectory
TIMES model is a model generator developed by the IEA's • Technology and Economic
Net Present Total System Cost
• Investment Cost
Energy Technology System Analysis Program (ETSAP). Parameters • Electricity Production Cost
• Flexibility Parameters • CO2 Intensity
• Emission Factors
• Technology Penetration
• Partial equilibrium optimisation
Rate
• Using perfect foresight approach
Model • Using linear-programming
approach approach
CONSTRAINT
Indonesia
model • Single region
extension • 3 level timeslices • Supply Demand Balance
• Unit commitment • Resources
• Short-term Operational

Source: UI-ETM, SESP


Pathway NZE for power sector

ü Natural gas as a bridge for renewable energy era.


ü R&D for CCS & BECCS becomes important as a net-negative technology and deployment is needed by 2040.
ü Solar PV utility scale will cover unused agricultural land, lake, and abandoned mining field starting from 2055.
ü Significant contribution of battery and pump hydro storage to balance the intermittency of solar PV.

”A lot of progress on pathways to decarbonize electricity, but


we may not be able to electrify all end user”
Source: Nadhilah, UI-ETM
Pathway NZE for transport sector

BAU NZE

Source: UI-ETM
Pathway NZE for industrial sector

BAU NZE

Source: UI-ETM
Challenges of hydrogen deployment
Current hydrogen production is via carbon-
intensive processes and used sectors

“Mostly for feedstock”


“Limited role in global energy mix” Source: ETC, 2022
Hydrogen and colors of hydrogen

“Focus on blue and green hydrogen with low and


carbon neutral for decarbonization”

“The biggest hurdle, however, may be cost and


safety is another concern as hydrogen is highly
flammable and potentially explosive”

Source: Ajanovic et al, 2022


Technology readiness levels
”Several hydrogen technologies not yet commercially available”

Source: Columbia University CGEP Source: ETC


Water and land area required for blue and green
hydrogen production

“Barrriers of green hydrogen fron VRE is


land area”
Source: IRENA, 2022 Source: Global CCS Institute, 2021
Carbon footprint and hydrogen production cost

“Producing low-carbon and green hydrogen at scale


Source: Ajanovic et al, 2022 includes energy storage and electrolyzer” Source: IRENA, 2019
Current status of hydrogen development
§ Indonesia: no specific strategy, targets and regulations on the
deployment of hydrogen for NZ,
§ There are only a few trials of fuel cell power for BTS applications
and for research,
§ Some proposed projects on green hydrogen production from RE
powers: Pertamina, Pupuk Indonesia and Mitsubishi; Samsung and
Hyundai North Sumatra and geothermal the Sarulla Block; MHI-
METI ammonia combustion in Coal and Gas based Power Plant
(PLN),
§ R&D on hydrogen is almost limited and not priority.
Prospects of hydrogen for decarbonization
Decarbonisation strategies by hydrogen
across value chains

“Hydrogen has long been seen as a potentially key component


of a carbon-neutral future”
Source: ETC, 2022
RE Power to X and end uses across the energy system

“Hydrogen is pathways for decarbonization


in hard-to-abate sectors where direct
electrification is difficult, such as
transportation, buildings, and industry”

Source: IRENA, 2020


Power generation and grid balancing - Power to X

Source: Hydrogen council

Source: Osman et al, 2022 Source: Columbia University CGEP


Jatiluhur reservoir floating solar PV to hydrogen for
NG network6%injection (6% H2) ~ 10 MMSCFD, 235 MW

H2 (USD/MMBtu) without battery 1


NG price 7–8
6 USD/MMBtu
H2 (USD/MMBtu) with battery 2 USD/MMBtu

Source: Rafly
Decarbonize industry - hydrogen as heat

Source: Hydrogen council, 2020


Decarbonize industry - hydrogen as feedstock
using carbon capture (CCU)

Source: RSC, ACS


Source: theicct, 2022
CCS Cluster South Sumatra
CO 2 Source and Sink Business Models

CCS Operator

Vertical Integration

Source: Shania
Source: Ning Asih et al, 2021
Levelized cost of green ammonia

Soure: IEA, 2021 Source: Hydrogen council, 2021


Hydrogen-based reduction for emission-free
iron making and cost of steel

Source: Hydrogen council Source: IEA, 2021


Decarbonize transport - BEV, FCEV, ICE

Source: Agora Energiewende Source: Hydrogen Council


GHG emissions and Total Cost of Ownership

Source: Cox et al, 2020 Source: Hydrogen council, 2020


Decarbonize Building - CCHP

Source: Challoch Energy, Chen et al., 2015


Future hydrogen supply mix

Low carbon – NG/Coal + CCS


Source: Hydrogen Council
Solar electricity-based hydrogen production cost

Source: IRENA, 2022 Source: IEA, 2021


Potential cost of hydrogen transport and trade

“Hydrogen trade and investment flows will spawn new


patterns of interdependence and bring shifts in bilateral
cooperation” Source: IEA, 2021, IRENA, 2022
Key messages
§ NZE energy system is an inclusion hydrogen and net-negative technologies
§ Develop strategies and roadmaps on hydrogen deployment in energy
systems,
§ Reform domestic energy price reflecting true price signal and energy
quality,
§ Create new market by strong incentives for low-carbon/green hydrogen,
§ Mitigate investment risk, and provide strong innovation support,
§ Establish appropriate certification, standard, carbon prices and regulation
regimes.
Thank You

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